Accordingly, BHP Billiton announced a net profit of US$7.12 billion for the first half of fiscal year 2025-26, compared with a net profit of US$5.28 billion in the corresponding period of the previous fiscal year. This year, the company's revenue increased by 10.8 percent year-on-year to $27.90 billion due to a significant increase in copper prices and rising iron ore prices. Meanwhile, BHP Billiton reported that EBITDA for the first half of the year was US$15.5 billion, up 25 percent, and the EBITDA margin was 58.4 percent, compared with 51.1 percent for the same period of the previous fiscal year.
BHP Billiton reported that iron ore prices averaged $102 per tonne (dry metric ton) in 2025, down seven percent year-on-year as supply growth outpaced demand and inventories at Chinese ports increased. Prices improved in the second half of the year amid increased blast furnace utilization and expectations of further political support in China. China's steel production has remained at around one billion metric tons for the seventh consecutive year, helped by strong exports and manufacturing demand, which offset continued weakness in the real estate sector. Demand outside China has been mixed, with growth in India and developing Asian countries, as well as declines in mature markets. BHP expects global demand for iron ore and steel to remain broadly stable in the short term, with demand for shipping stabilizing at a high level as a slight decline in China is balanced by growth in emerging markets and a moderate recovery in Europe.
On the supply side, shipping volumes are expected to increase, including new products from Guinea, while stronger domestic demand in India may limit its exports. Cost support is estimated at $80-100/dmt, backed by about one million metric tons of more expensive supplies. BHP claims that by the end of the 2020s, China's steel production will reach about one billion metric tons, while pig iron production will decrease slightly as scrap availability remains limited. The company plans to increase production to more than 305 million metric tons per year by fiscal year 2027-28, while reducing unit costs below $17.50 per ton in Western Australia, and Samarco has approved a $2.4 billion investment to increase capacity.
