BHP Annual Profit Rises on Record Copper Prices — Update

By Rhiannon Hoyle

BHP Group reported a 9% increase in annual net profit and an even bigger gain in underlying earnings as prices of copper, now its main profit engine, surged to record highs.

Australia-based BHP, the world's biggest miner by market value, on Tuesday reported a net profit of $9.83 billion for the 12 months through June, up from $9.02 billion the year prior. A previously announced $2.3 billion writedown of a potash project in Canada weighed on its bottom line.

BHP said it made an underlying profit of $13.20 billion, up 30% from a year earlier. Analysts expected an underlying profit around $12.66 billion, according to a consensus estimate collated by Visible Alpha.

Copper prices have climbed to record highs as global supplies tighten, fueled in part by the U.S. data-center build-out, which relies on metals-intensive power networks, cabling and electrical equipment. U.S. copper demand has also been fanned by bets that the Trump administration will impose tariffs on refined copper imports.

"Copper is the engine that is driving BHP's growth," said Chief Executive Officer Brandon Craig.

BHP fetched 35% more for its copper versus the year prior. BHP's earnings were also bolstered by higher prices of the iron ore and steelmaking coal that it mines.

Directors declared a final dividend of 99 cents a share, taking the miner's annual payout to $1.72 a share--its highest in four years. The market expected a full-year dividend of roughly $1.54 a share, according to Visible Alpha.

Shares in BHP were 3.3% higher by late morning in Sydney.

BHP has been reshaping its business to bet on a continued shift to lower-carbon energy sources and global population growth via investments in copper and potash--reducing its reliance on steel ingredient iron ore, which had long been the company's main source of profits.

Copper demand is expected to rise to more than 50 million metric tons a year by 2050, from about 34 million metric tons now, Craig said. BHP expects demand associated with investment in data centers to increase roughly sixfold between 2024 and 2050, to around 3 million tons a year.

"The world needs more copper and BHP has the assets, options and capability to help supply it," said Craig, who succeeded Mike Henry as CEO on July 1.

Copper for the first time contributed the largest share of BHP's annual earnings, accounting for 54% of the group's underlying earnings before interest, taxes, depreciation and amortization, or Ebitda.

That means BHP's efforts to expand its copper business--the focus of its investment plans--are "self-funding," Craig said.

BHP's pipeline of projects across Chile, Australia and Argentina could potentially lift the miner's copper production by around 40% by fiscal 2035, he said. BHP is already the world's largest copper producer.

Under former CEO Henry, BHP sought to turbocharge its copper business with a failed takeover bid for Anglo American.

Craig, formerly BHP's Americas chief, has said he wants BHP to pursue "visible, executable" growth in copper. Speaking to reporters Tuesday, he signaled that he wouldn't be prioritizing dealmaking to further expand BHP's copper footprint.

"Our focus really is on the organic growth program at BHP, and not to really engage excessively on M&A discussions," he said.

Potash is the other key part of BHP's growth plans. BHP says potash, which tends to boost crop yields, will be essential for food security and more sustainable farming in future.

BHP flagged the $2.3 billion impairment charge against its Jansen project in Canada's Saskatchewan province in June, as it projected an expansion of the development to cost $6.9 billion, up from an earlier estimate of $4.9 billion.

The Jansen project is scheduled to produce its first potash mid-2027 and is expected to account for about 10% of global potash output once the first two stages are running at full capacity.

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com

(END) Dow Jones Newswires

August 17, 2026 22:20 ET (02:20 GMT)

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