BHP profit beats estimates as copper lifts growth, highest dividend in 4 years

• Copper division generated $18.19 billion in operating earnings, exceeding iron ore's $14.53 billion and becoming BHP's top earnings driver amid AI data center demand and clean energy transition
• Full-year underlying profit rose 30% to $13.20 billion, while net debt fell to $8.7 billion, below the company's target range of $10-12 billion
• BHP projects copper production could increase 40% by 2035 to 2 million tonnes annually, with global demand expected to reach 50 million tonnes by 2050 from 34 million tonnes currently

BHP Profit Beats Estimates on Copper Surge, Announces Highest Dividend in 4 Years

Key Financial Results:

BHP Group reported full-year underlying attributable profit of $13.20 billion for the year ended June 30, exceeding analyst estimates of $12.66 billion and up 30% from last year's $10.16 billion. The company announced its highest annual dividend in four years at $1.72 per share (final dividend of 99 cents).

Copper Overtakes Iron Ore:

For the first time, copper became BHP's largest earnings driver, generating $18.19 billion in operating earnings versus iron ore's $14.53 billion. This shift reflects record copper prices exceeding $14,000 per tonne, driven by AI data center expansion and the global transition to clean energy.

Strategic Positioning:

New CEO Brandon Craig, who assumed leadership last month, emphasized strong copper fundamentals for the next decade. BHP plans to increase copper production by up to 40% by 2035, reaching 2 million tonnes annually. Copper demand is projected to grow from 34 million tonnes currently to over 50 million tonnes by 2050.

Iron Ore Performance:

BHP's flagship Western Australia Iron Ore operations delivered $14.67 billion in operating earnings, up 2% year-over-year and meeting analyst expectations. The company identified potential to unlock up to $3.5 billion in additional value from these assets through portfolio optimization.

Balance Sheet Strength:

Net debt fell to $8.69 billion at fiscal year-end, below the company's target range of $10-12 billion and analyst estimates of $9.10 billion.

Market Implications:

The results underscore the strategic importance of copper in the mining sector's energy transition narrative, positioning BHP favorably for sustained growth in electrification and renewable energy infrastructure.