Australian mining company BHP Billiton has announced its financial results for the first half ended December 31 of the financial year 2025-26.
Accordingly, BHP Billiton has posted a net profit of US$7.12 billion for the first half of the financial year 2025-26, up from a net profit of US$5.28 billion in the corresponding period of the previous financial year, while the company’s revenues increased by 10.8 percent year on year to US$27.90 billion, due to the significant increase in copper prices and higher iron ore prices. Meanwhile, BHP Billiton reported an EBITDA of US$15.5 billion for the first half, up by 25 percent, while its EBITDA margin was at 58.4 percent, compared to 51.1 percent in the same period of the previous financial year.
BHP Billiton reported that iron ore prices averaged $102/dmt (dry metric ton) in 2025, down seven percent year on year as supply growth outpaced demand and Chinese port inventories increased. Prices improved in the second half of the year amid stronger blast furnace utilization and expectations of further policy support in China. Chinese steel output remained at around one billion metric tons for the seventh consecutive year, supported by strong exports and manufacturing demand, which offset continued weakness in the property sector. Demand outside China was mixed, with growth in India and emerging Asia and subdued conditions in mature markets. BHP expects global iron ore and steel demand to remain broadly stable in the near term, with seaborne demand plateauing at high levels as slight declines in China are balanced by emerging market growth and a modest European recovery.
On supply, seaborne volumes are expected to rise, including new output from Guinea, while stronger domestic demand in India may limit its exports. Cost support is estimated at $80-100/dmt, underpinned by around one million metric tons of higher-cost supply. BHP maintains that China’s steel production will plateau at around one billion metric tons in the late 2020s, with pig iron output declining slightly as scrap availability remains constrained. The company plans to lift production to over 305 million metric tons per annum by the financial year 2027-28, while reducing unit costs below $17.50/t in Western Australia, and Samarco has approved a $2.4 billion investment to increase capacity to about 26 million metric tons per annum through 2028-29.