BHP FY26: Copper EBITDA Surges 48%, Dividend Rises to $1.72

BHP Group posted a sharp rise in copper earnings for fiscal 2026, with the metal contributing more than half of group operating profit. The miner declared a final dividend of $1.72 per share, up from $1.46 a year earlier.

Copper production slipped 3% to 1.8 million tonnes. The average realised price jumped 35% to $5.74 per pound. Underlying EBITDA from copper soared 48% to $18.2 billion, accounting for 54% of BHP's total operating profit. BHP said demand remains supported by electrification, data centres and the risk of future supply deficits.

Iron ore, the other main earnings driver, was flatter. Western Australian Iron Ore output rose 1% to 265 million tonnes. The average realised price edged up 3% to $84.56 per wet metric tonne. Underlying EBITDA grew just 1% to $14.5 billion, representing 43% of group profit. Higher energy and freight costs, partly from Middle East disruption, squeezed margins. BHP aims to lift iron ore production above 305 million tonnes a year by the fourth quarter of FY28 and hold it there, while cutting unit costs below $19 a tonne.

Coal added a smaller but faster-growing piece. Steelmaking coal production rose 3% to 18.6 million tonnes, with the average price up 8% to $210.21 a tonne. Energy coal production grew 9% to 16.4 million tonnes, though the price slipped 3% to $104.28. Coal EBITDA jumped 45% to $830 million, contributing 3% of the group total. BHP noted that Indian pig iron production growth remains robust, keeping the country the largest seaborne steelmaking coal importer.

The Jansen potash project in Canada continues to ramp. Capital and exploration spending there rose to $1.8 billion in FY26 from $1.6 billion in FY25. BHP expects FY27 outlay of about $2 billion. Across the business, mineral exploration and early-stage entry spending totalled $408 million, focused on new copper resources that meet clear value thresholds.

BHP's reliance on copper is increasing. The metal now generates more than half of group EBITDA, up from roughly 40% two years ago. That concentration carries risk if prices correct. BHP is betting on long-term demand growth, spending heavily on copper exploration and the Jansen potash project to add a new earnings stream.

The next catalyst is the pace of iron ore expansion and the Jansen potash first production timeline. BHP aims to have Jansen in production by late 2026, with full capacity of 8 million tonnes a year by 2027. BHP's Alpha Score sits at 73 out of 100, a moderate rating. For more on BHP, see the stock page.