BHP Group (BHP) H1 2025 earnings summary

Executive summary

• Delivered strong operational and financial performance in HY25, with 10% YoY copper production growth and sector-leading margins, maintaining a focus on operational excellence and capital discipline.

• Achieved significant progress in organic growth projects, especially in copper and potash, including the Vicuña JV in Argentina and Jansen project.

• Comprehensive Samarco settlement agreement reached, resolving major Brazilian liabilities and providing certainty for stakeholders.

• Standout production at Escondida (copper), WAIO (iron ore), and BMA (coal); WAIO remains the lowest-cost iron ore producer globally.

• Chair succession announced, with Ross McEwan succeeding Ken MacKenzie.

Financial highlights

• Underlying EBITDA was US$12.4bn with a 51.1% margin for the December 2024 half-year.

• Underlying attributable profit was US$5.1bn after a 36.4% adjusted effective tax rate (44.2% incl. royalties).

• Interim dividend of US$0.50/share (US$2.5bn total) declared, maintaining a 50% payout ratio.

• Net operating cash flow was US$8.3bn, with net debt rising to US$11.8bn and gearing at 19.2%.

• ROCE was 20.4% for HY25, with Escondida and WAIO achieving 29% and 44% respectively.

Outlook and guidance

• On track to achieve FY25 production and cost guidance across all commodities, with copper production guidance at 1,845–2,045kt and iron ore at 255–265.5Mt.

• FY25 capital and exploration expenditure expected at US$10bn; Jansen Stage 1 potash project 63% complete.

• Net debt expected near the top of the US$5–15bn target range due to growth investments and settlement payments.

• Global economic growth forecasted at 3.2% in CY24, with U.S. and India as key demand drivers.

• Anticipate ongoing volatility due to trade, inflation, and regulatory policies but remain optimistic about long-term commodity demand.