Australian mining company BHP has announced that its net profit increased by nine percent year on year to $9.8 billion in the financial year ended June 30, 2026, supported by higher realized copper, iron ore and steelmaking coal prices, strong production volumes and disciplined cost management.
During the given period, BHP's revenue rose by 15 percent year on year to $58.8 billion, while its underlying profit increased by 30 percent to $13.2 billion. The company's underlying EBITDA climbed by 27 percent to $32.9 billion, with the corresponding margin rising by six percentage points to 59 percent.
BHP's net operating cash flow increased by 17 percent to $21.8 billion, while its free cash flow surged by 83 percent to $9.8 billion despite capital and exploration expenditure rising by five percent to $10.3 billion. The company's net debt consequently declined to $8.7 billion from $12.9 billion a year earlier.
WAIO produces record level iron ore
BHP's total iron ore production increased by one percent year on year to 264.7 million mt. Western Australia Iron Ore's (WAIO) production remained broadly stable at 256.9 million mt, while output reached a record 291.2 million mt amid strong performance across the company's mine, rail and port operations.
The iron ore segment's underlying EBITDA edged up by one percent to $14.5 billion, representing 43 percent of the group total, while its EBITDA margin stood at 61 percent. WAIO's average realized iron ore price increased by three percent to $84.56/mt, whereas its unit cost rose by six percent to $19.66/mt due mainly to currency movements and higher diesel prices.
For FY 2026-27, BHP expects total iron ore production of 260-272 million mt, including WAIO output of 253-264 million mt. The company plans to sustain WAIO production above 305 million mt per year from the fourth quarter of FY 2027-28 and reduce unit costs below $19/mt in FY 2028-29. The recently approved Ministers North mine is expected to contribute approximately 20 million mt per year once fully ramped up.
Meanwhile, BHP Mitsubishi Alliance's (BMA) steelmaking coal production increased by three percent year on year to 18.6 million mt, while its underlying EBITDA rose by 19 percent to $700 million amid higher realized prices and sales volumes. BHP's average realized steelmaking coal price increased by eight percent to $210.21/mt, while BMA's unit cost rose by five percent to $134.05/mt.
BHP forecasts BMA production of 18.5-20.5 million mt in FY 2026-27, with unit costs anticipated at $126-137/mt. Over the medium term, the company aims to increase BMA's production to 43-45 million mt per year and reduce unit costs below $120/mt.
BHP advances its operational emissions reduction target
Regarding sustainability, BHP's operational greenhouse gas emissions in FY 2025-26 were 33 percent below the FY 2019-20 baseline. The company remains on track to reduce such emissions by at least 30 percent by FY 2029-30, while approximately 80 percent of the electricity consumed by its operated assets is currently supplied from renewable sources.
Commenting on the results, BHP CEO Brandon Craig said that FY 2025-26 had been a strong year for the company, underlining its record WAIO iron ore production and shipments, copper output of approximately two million mt for the second consecutive year and stronger coal performance. Emphasizing that BHP had met or exceeded guidance across much of its portfolio, Mr. Craig added, “BHP is well set for what comes next,” citing further opportunities to improve operational performance, deliver growth projects and generate strong shareholder returns.
