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BHP's copper division now drives over half its earnings as record margins and smart deals like the Antamina silver stream fuel strong H1 growth and a solid dividend.
This article covers information on BHP Group Limited.
LON:BHPBHP has delivered a strong first half to 31 December 2025. Underlying EBITDA rose 25% to US$15.5 billion with the Group margin improving to 58.4%. Attributable profit increased 28% to US$5.6 billion and underlying attributable profit was up 22% to US$6.2 billion.
The milestone: Copper is now BHP’s largest earnings driver, contributing 51% of Group underlying EBITDA for the first time. That shift is exactly where the strategy has been pointing – and it’s arriving with copper prices doing the heavy lifting.
| Metric (HY26) | Result | YoY |
|---|---|---|
| Revenue | US$27.9 billion | +11% |
| Underlying EBITDA | US$15.5 billion | +25% |
| Underlying EBITDA margin | 58.4% | from 51.1% |
| Attributable profit | US$5.6 billion | +28% |
| Underlying attributable profit | US$6.2 billion | +22% |
| Net operating cash flow | US$9.4 billion | +13% |
| Free cash flow | US$2.9 billion | +10% |
| Net debt | US$14.7 billion | Up from US$12.9 billion (FY25) |
| Adjusted effective tax rate | 36.6% | 36.4% in HY25 |
| Interim dividend | 73 US cents per share | 60% payout ratio |
This is the story of the half. Copper EBITDA jumped 59% to a record US$8.0 billion on a 32% increase in average realised prices to US$5.28/lb and strong cost control. Segment margin was a punchy 66%.
Strategically, BHP is leaning into a copper market it sees as tight for years. The growth pipeline is muscular: the Escondida New Concentrator (potential 220 – 260 ktpa by CY31-32 pending FID), Copper South Australia phases to >500 ktpa (first phase) and up to 650 ktpa longer term, plus Antamina, Resolution Copper (45%) and the Vicuña district with Lundin Mining. It’s the right commodity, the right assets, at the right time.
Iron ore remains a formidable profit centre. WAIO delivered US$7.5 billion of underlying EBITDA (up 5%) with a 62% margin, helped by record first-half shipments and a resilient supply chain. The average realised price edged up to US$84.71/wmt (+4%).
Costs did tick up: WAIO unit costs rose 7% to US$19.41/t due to record material moved to build inventory. The medium-term plan is to sustain >305 Mtpa (100% basis) from Q4 FY28, supported by the sixth car dumper at Port Hedland, the Western Ridge Crusher project and rail tech upgrades, with a medium-term unit cost ambition of <US$17.50/t.
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Coal was the laggard. Segment underlying EBITDA fell to US$0.2 billion (down 60%), with steelmaking coal prices lower year-on-year and energy coal down more sharply. BMA’s unit costs were broadly flat in the period, but the business is wrestling with Queensland royalty impacts and has moved Saraji South into care and maintenance, removing ~750 roles. Guidance is unchanged but skewed to the lower half of ranges.
Cash generation was healthy: US$9.4 billion of operating cash flow and US$2.9 billion of free cash flow, after US$5.3 billion of capital and exploration spend. Net debt rose to US$14.7 billion, comfortably within the US$10 – 20 billion target range; gearing is 20.9%.
The interim dividend is 73 US cents per share (fully franked), a 60% payout reflecting “strong operating performance, disciplined capital allocation and confidence in our outlook”. Dividend reinvestment is operating.
On capital flexibility, BHP has announced two notable deals expected to complete in H2 FY26: a US$4.3 billion silver stream over Antamina silver, and a power agreement linked to WAIO expected to realise US$2 billion. Together they unlock >US$6 billion of cash, with potential to reach up to US$10 billion through further portfolio actions. That gives BHP extra optionality without equity dilution.
Balanced view: Jansen’s cost increase is a blemish, but schedule is intact. Copper options look progressively shovel-ready, while Vicuña is large but at scoping level and will require careful metallurgy and permitting work in a complex, high-altitude setting.
This was a quality half. BHP’s copper strategy is landing on the P&L with a 66% copper margin, reduced unit costs at key assets and a raised production outlook. Iron ore is quietly doing what it does best – throwing off cash – despite a small cost step-up to build resilience.
There are offsets. Coal earnings are under pressure, Jansen Stage 1 costs are higher, and the adjusted tax take remains chunky. Net debt has risen, albeit within range and largely explained by disciplined capex and shareholder returns – and BHP is actively recycling capital, with >US$6 billion of cash expected from the silver stream and WAIO power agreements.
Overall, this is the BHP you want in a higher-for-longer copper world: low-cost, diversified, cash generative, and with multiple levers to grow in copper and potash. Execution on the growth projects and continued cost discipline are the swing factors from here.
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