BHP Reports Highest Dividend in Four Years as Copper Drives Record Earnings
Synopsis
BHP delivered better than expected FY26 results as record copper prices boosted profits, supported a higher dividend and strengthened the miner's long-term growth outlook.
BHP Group reported stronger than expected earnings for FY26 and declared its highest annual dividend in four years driven by record copper prices that helped the metal overtake iron ore as the miner's largest earnings contributor.
The company posted an underlying attributable profit of US$13.20 billion for the year ended June 30. The profits exceeded analysts' consensus estimate of US$12.66 billion and improving from US$10.16 billion a year earlier.
The mining giant also announced a final dividend of US99 cents per share, taking its total annual payout to US$1.72 per share.
Copper along with by-products such as gold and uranium, generated US$18.19 billion in operating earnings during the year, surpassing iron ore's US$14.53 billion and highlighting the company's growing exposure to the global energy transition.
Copper Demand Strengthens Long-term Outlook
BHP said rising copper prices which have climbed above US$14,000 per tonne this year have been supported by expanding AI data centre infrastructure and accelerating investments in clean energy.
CEO Brandon Craig said the company is well positioned to increase copper production by as much as 40% by 2035 and reaching around 2 million tonnes annually. Global copper demand is projected to exceed 50 million tonnes per year by 2050, compared with approximately 34 million tonnes in 2026.
Iron Ore Remains a Key Contributor
Despite copper taking the top spot, BHP's Western Australia Iron Ore (WAIO) business remained a major earnings contributor, generating US$14.67 billion in operating earnings, up 2% from the previous year.
The company also said it sees potential to unlock up to US$3.5 billion in additional value from its WAIO assets through active portfolio and asset management. Meanwhile, net debt declined to US$8.69 billion, below both the company's target range of US$10–12 billion and market expectations, reflecting a stronger balance sheet.
Source: mining.com
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