BHP Profit Jumps 30% on Copper Boom; Shares Rise 2.7% on August 19

BHP Group posted a $13.8 billion profit for the 2026 financial year, up 30% from the prior year, as copper prices surged 35% and the red metal became the company’s largest profit contributor for the first time. CEO Brandon Craig announced the results on August 18, revealing copper now accounts for 54% of group earnings. The company paid a fully franked dividend of 99 US cents, the highest in four years, and signalled plans to accelerate a $9.7 billion expansion of South Australian mines.

Copper overtakes iron ore as BHP’s profit engine

Copper delivered $25.6 billion in earnings globally, with South Australian operations producing 320 kilotonnes per annum. BHP broke a 20-year copper production record at Olympic Dam, while average realised copper prices jumped 35% to $5.74 per pound year-on-year. Copper’s underlying EBITDA surged 48% to a record $18.2 billion, with a 70% margin. CEO Brandon Craig called copper “the engine that is driving BHP’s growth” across Australia, Chile and Argentina.

Record dividend and cash flow signal shareholder confidence

BHP paid a fully franked final dividend of 99 US cents, totalling 172 US cents for the full year, beating analyst estimates by 7% to 9%. Free cash flow jumped 83% to $9.8 billion, while net debt fell to $8.7 billion, below the company’s $10-20 billion target range. The dividend payout ratio reached 72%, the highest in four years, reflecting strong operational performance and pricing tailwinds.

Expansion plans hinge on 2027 investment decision

BHP aims to lift South Australian copper production from 320 kilotonnes to 500 kilotonnes per annum in the first phase of expansion. A major smelter and refinery investment could push capacity beyond one million tonnes copper equivalent annually, matching the scale of BHP’s Escondida mine in Chile. The final investment decision is expected in the 2027 calendar year. Capex increased 5% to $10.3 billion, funding a copper pipeline targeting roughly 40% production growth by FY35.

Sexual harassment complaints rise despite operational strength

BHP’s ethics and investigation unit handled 113 complaints of sexual harassment in the 12 months to July, with 131 sackings and resignations in response. More than two dozen cases involved racial abuse. At least 125 cases were not investigated due to insufficient information or the wishes of the affected person. The company noted no cases involved sexual assault, though many involved indecent touching, stalking and sexualised comments. BHP and Rio Tinto face ongoing class actions from female employees alleging harassment and discrimination.

Final Thoughts

BHP’s 30% profit jump and record dividend reflect a structural shift toward copper as commodity prices remain elevated. With Meyka grading the stock B+ and analyst consensus neutral, the $9.7 billion expansion bet hinges on sustaining copper demand through 2027.

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