Copper Drives BHP's Record Performance and Shareholder Returns

BHP's strategic shift to copper pays off, with the metal now its top earner. Strong H1 results lead to a 46% dividend increase and raised production guidance for 2026.

BHP Group's strategic pivot towards copper is yielding significant results, with the mining giant's latest half-year figures underscoring a successful transition towards metals critical for the global energy transition. Shareholders are seeing the direct benefit through a substantially increased dividend payout.

Financial Performance and Shareholder Rewards

The company's confidence in its financial strength is reflected in its distribution policy. BHP announced an interim dividend of 73 US cents per share, representing a 46 percent increase compared to the prior year. This payment to shareholders is scheduled for March 26, 2026.

The financial metrics clearly demonstrate the economic momentum. Adjusted EBITDA climbed 25 percent year-on-year to US$15.5 billion. Profit attributable to shareholders rose in parallel by 22 percent to US$6.2 billion. These gains highlight BHP's operational efficiency within a favorable market environment for key commodities.

A Historic Shift in Earnings Drivers

For the first time in the company's history, copper contributed the largest share to underlying earnings (EBITDA). Accounting for 51 percent, the metal has now supplanted the traditionally dominant iron ore as the primary profit generator. This shift was driven primarily by strong operational performance at the Escondida mine and elevated market prices for the resource.

The share price reflects this positive momentum, marking a new 52-week high at €68.00 yesterday. This continues an upward trend that has seen the stock advance more than 28 percent since the start of the year.

Revised Outlook and Strategic Positioning

Buoyed by the strong first-half performance, management has adopted a more optimistic view for the full 2026 financial year. BHP has raised its copper production forecast to a range of 1.9 to 2.0 million tonnes. The company is unequivocally betting on long-term high demand fueled by the expansion of renewable energy and increasing electrification.

With the raised production guidance and clear focus on copper, BHP is positioning itself for the second half of the year as a beneficiary of the global infrastructure transition.