BHP Group Limited posted robust FY2026 results with a 15% revenue increase, record copper production contributing over half of underlying EBITDA, and a total fully franked dividend of 172 US cents per share. The company advances growth projects, including the Jansen potash mine, while managing legacy Samarco liabilities and pursuing climate targets.
- Revenue up 15% to US$58.76 billion
- Profit after tax attributable to shareholders up 9% to US$9.83 billion
- Copper contributes over half of underlying EBITDA for first time
- Declared total dividend of 172 US cents per share, fully franked
- Jansen potash project 84% complete, first production mid-2027
Financial and Operational Highlights
BHP Group Limited (ASX:BHP) delivered a strong FY2026, lifting revenue 15% to US$58.76 billion and profit after tax attributable to shareholders by 9% to US$9.83 billion. The company declared a total dividend of 172 US cents per share, fully franked, marking its highest payout in four years and reflecting robust cash flow generation and disciplined capital allocation.
Operationally, BHP set a new benchmark with copper contributing more than half of its underlying EBITDA for the first time, supported by record production at Olympic Dam and Escondida, despite anticipated grade declines. Western Australia Iron Ore (WAIO) achieved record production while maintaining its status as the world's lowest-cost major iron ore producer for the seventh consecutive year. Steelmaking coal volumes lifted at BHP Mitsubishi Alliance (BMA), which also recorded its highest stripping volumes in five years.
Growth Projects and Pipeline Progress
The Jansen potash project in Canada is 84% complete, with first production on track for mid-calendar year 2027. Despite a US$2.3 billion impairment reflecting higher capital intensity, Jansen is expected to operate at the low end of the cost curve when fully ramped up, with potential to supply around 10% of global potash demand.
BHP is advancing a suite of copper growth options, including the Escondida New Concentrator, with a final investment decision expected in 2027 or 2028. The concentrator aims to increase copper output by 230–270 kilotonnes per annum from 2031. Other projects progressing include expansions at Copper South Australia and two sanctioned growth projects at Spence, with first production expected from FY2028. Regulatory milestones have been reached at the non-operated joint ventures Vicuña and Resolution Copper, enhancing BHP’s exposure to future copper opportunities.
Safety, Sustainability and Climate Commitments
BHP remains fatality free for FY2026 but mourns the loss of a contractor colleague at Peak Downs mine in July 2026, underscoring the company’s ongoing safety vigilance. High potential injury frequency decreased 27% year-on-year, contributing to a 69% reduction over five years.
On climate, BHP achieved a 33% reduction in operational greenhouse gas emissions from its FY2020 baseline, with renewable electricity accounting for 80% of power consumed across operated assets. The company is conducting proof-of-concept trials for battery-electric haul trucks and locomotives, aiming to displace diesel at scale post-2030. BHP’s medium-term target is a 30% reduction in operational emissions by FY2030 and a net zero goal by 2050, with a clear pathway supported by capital investments and technology partnerships.
Financial Discipline and Risk Management
BHP generated free cash flow of US$9.8 billion, an 83% increase over FY2025, enabling a capital expenditure program of US$10.3 billion focused on growth, particularly copper, which accounts for over half of planned spend. The company’s net debt declined by US$4.2 billion to US$8.7 billion, reinforcing a strong balance sheet with gearing at 13.4%.
Legacy liabilities related to the Samarco dam failure remain a significant focus, with US$5.2 billion provisioned as at 30 June 2026. The company continues to manage ongoing litigation and regulatory risks associated with this event, alongside other legal proceedings including class actions in Australia, the UK, and South Africa.
Leadership and Governance
FY2026 marked a leadership transition with Brandon Craig appointed CEO from 1 July 2026, succeeding Mike Henry. Craig brings 27 years of experience across BHP’s portfolio and a focus on accelerating performance and disciplined growth. The Board welcomed Mark Vassella, with deep steel industry experience, enhancing governance amid ongoing strategic execution.
BHP maintains rigorous governance frameworks, integrating climate-related risk management into its enterprise risk processes and embedding sustainability into strategy and remuneration. The company’s disclosures comply with emerging Australian sustainability reporting standards, including climate-related financial disclosures under AASB S2.
What to Watch Next
BHP’s ability to execute its copper and potash growth projects on budget and schedule will be key to sustaining its market leadership and financial momentum. The company’s progress on diesel displacement technology trials and the scaling of renewable energy solutions will be critical to meeting its climate targets. Meanwhile, developments in Samarco-related litigation and regulatory outcomes remain a material uncertainty. Investors should monitor commodity price trends, geopolitical dynamics, and evolving regulatory frameworks that could impact BHP’s diversified portfolio and long-term value creation.
With a robust balance sheet and a disciplined capital allocation framework, BHP is poised to navigate the challenges and opportunities shaping the global resources sector in the coming decade.
Bottom Line?
BHP’s FY2026 results underscore its operational strength and growth momentum, but execution risks on major projects and legacy liabilities warrant close attention.
Questions in the middle?
- How will BHP manage cost and schedule risks on the Jansen Stage 2 potash expansion?
- What progress will BHP make in commercialising battery-electric haulage and displacing diesel post-2030?
- How might evolving Samarco litigation outcomes affect BHP’s financial provisions and reputation?