BHP delivered a solid result, with headline profit inline with expectations, as BHP continues to demonstrate operational resilience with improving momentum in copper.
- Revenue US$27.9bn vs US$26.88bn estimate
- Underlying profit US$6.20bn v US$6.25bn estimate
- Dividend US73c vs US65.3c estimate
Operationally, iron ore and copper production were up a modest ~2% YoY, though the earnings picture is what really jumped out with copper now contributing 51% of 1H FY26 group EBITDA. FY26 copper guidance was increased at Escondida and Antamina, and reaffirmed at Spence.
BHP also announced a long-term silver streaming agreement with Wheaton Precious Metals, receiving US$4.3bn upfront tied to its share of silver production at Antamina in Peru as well as a 20% trail on silver delivered moving forward . The deal monetises silver as a byproduct while retaining full exposure to the core copper-zinc asset and is not expected to increase reported debt.
BHP delivered a lift in the dividend, underscoring the resilience of the balance sheet and confidence in future cash flows. Near-term sentiment may take a hit given iron ore weakness, however the business continues to execute strongly at its copper projects at just the right time.
- MM owns BHP in its Active Growth Portfolio and Active Income Portfolio.
MM is long and bullish towards BHP
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