BHP Group reported a significant increase in half-year profit, driven by strong performance in its copper operations amid rising global demand for the metal used in electrical power and renewable energy infrastructure.
The Australian mining giant posted a net profit of US$5.64 billion for the six months to December 31, a 27.7% surge from the previous year. Revenue rose 10.8% to US$27.9 billion. The results were propelled by higher prices and increased volumes, particularly from copper, which BHP states is now its largest earnings contributor.
CEO Mike Henry attributed the performance to the company’s position as the world’s largest copper producer, following a nearly 30% output increase over four years. He highlighted the role of flagship operations like the Escondida mine in Chile. “This is allowing us to maximise increased earnings from the recent run up in copper prices as well as gold,” Henry said.
The demand for copper is being sustained by global investments in electrical grids and renewable energy projects. BHP believes it is well-positioned to benefit from long-term price forecasts, citing four major growth projects across Chile, Argentina, Arizona, and South Australia.
The company also achieved record first-half iron ore shipments from its Western Australian operations, providing additional financial momentum.
Looking forward, BHP projects global economic growth of approximately 3% in 2026. Henry expressed cautious optimism, noting the resilience of China’s economy after its near 5% growth target was met last year, and the continued outperformance of India. “We are optimistic that the economic backdrop is supportive for our key commodities,” he stated.
The robust half-year results underscore BHP’s strategic shift towards copper and its exposure to the energy transition, while maintaining strength in its core iron ore business. The company’s focus on expanding its copper portfolio aligns with forecasts for sustained structural demand growth.
