BHP Group (BHP) H2 2025 earnings summary

Executive summary

• Achieved record iron ore and copper production, with copper output exceeding 2 Mt and up 28% over three years, meeting full-year guidance across all assets.

• Maintained sector-leading margins, strong cash flow, and robust returns, leveraging a strong balance sheet for organic growth.

• Advanced sustainability initiatives, including a 5% reduction in operational GHG emissions from FY24 and a 40% increase in Indigenous procurement spend.

• Achieved gender balance in the workforce, with female representation at 41.3%.

• Realized year-on-year improvements in key safety metrics, with no fatalities and a significant reduction in high-potential injury frequency.

Financial highlights

• Underlying EBITDA reached US$26.0bn with a 53% margin, continuing a 20-year track record above 50%.

• Underlying attributable profit was US$10.2bn, with free cash flow at US$5.3bn and net operating cash flow at US$18.7bn.

• Final dividend of US$0.60 per share, bringing total dividends to US$5.6bn and a payout ratio of 60%.

• Net debt increased to US$12.9bn, with a gearing ratio of 19.8%.

• EBITDA declined 10% year-over-year, mainly due to lower commodity prices, with cost improvements offsetting inflation.

Outlook and guidance

• Average production growth of 2.2% per annum expected over the next decade, assuming project execution.

• Capital and exploration expenditure guidance at US$11bn for FY26 and FY27, reducing to US$10bn annually between FY28 and FY30.

• Copper production guidance for FY26 is 1,800–2,000kt; WAIO iron ore guidance is 258–296Mt.

• Remain on track to meet 2030 operational greenhouse gas emissions target, with decarbonization spend now expected in the 2030s.

• Net debt target range revised to US$10–20bn, reflecting improved business strength.