Australian mining company BHP announced that its net profit increased nine percent year-on-year to $9.8 billion in the fiscal year ended June 30, 2026, driven by higher prices for realized copper, iron ore and coal for steel production, high production volumes and disciplined cost management.
During the period, BHP's revenue increased by 15% year-on-year to $58.8 billion, while its underlying earnings increased by 30 percent to $13.2 billion.. The company's EBITDA increased by 27% to $32.9 billion, and the corresponding margin increased by six percentage points to 59%.
BHP's net operating cash flow increased by 17% to $21.8 billion, while while free cash flow increased by 83 percent to $9.8 billion, despite a five percent increase in capital and exploration costs to $10.3 billion. As a result, the company's net debt decreased to $8.7 billion from $12.9 billion a year earlier.
WAIO produces record-breaking iron ore качества
BHP's total iron ore production increased by one percent year-on-year to 264.7 million mt. Western Australia iron ore production (WAIO) remained broadly stable at 256.9 million tonnes, while production reached a record 291.2 million tonnes on the back of strong performance in the company's mines, rail and port operations.
EBITDA in the iron ore segment increased by one percent to $14.5 billion, representing 43 percent of the group's total business, and the EBITDA margin was 61 percent. The average selling price of WAIO iron ore increased by three percent to $84.56 per tonne, while unit cost increased by six percent to $19.66 per tonne, mainly due to currency fluctuations and higher diesel fuel prices.
In fiscal year 2026-27, BHP expects total iron ore production to be 260-272 million tons, including WAIO - 253-264 million tons. The company plans to maintain WAIO production at over 305 million tons per year from the fourth quarter of fiscal 2027-28 and reduce unit costs to below $19 per ton in fiscal 2028-29. Once fully operational, the newly approved Ministers North mine is expected to produce about 20 million tons of coal per year.
Meanwhile, BHP Mitsubishi Alliance (BMA) steelmaking coal production increased by three percent year-on-year to 18.6 million tons, while EBITDA increased by 19 percent to $700 million against the background of rising sales prices and volumes. The average selling price of BHP steelmaking coal increased by eight percent to $210.21 per tonne, while BMA's unit cost increased by five percent to $134.05 per tonne.
BHP forecasts BMA production at 18.5-20.5 million tonnes in fiscal year 2026-27, with expected unit costs of $126-137 per tonne. In the medium term, the company plans to increase BMA production to 43-45 million tons per year and reduce unit costs to below $120 per ton.
BHP has achieved its production reduction target выбросов
Regarding sustainable development, domestic greenhouse gas emissions in fiscal year 2025-26 This year, they were 33 percent below the baseline level of the 2019-20 fiscal year. The company continues to work on reducing such emissions by at least 30% by fiscal years 2029-30, while about 80% of the electricity consumed at existing plants currently comes from renewable sources.
Commenting on the results, BHP CEO Brandon Craig said that the 2025-26 fiscal year was a success for the company, highlighting record iron ore production and shipments, copper production of about two million tons for the second year in a row, as well as higher coal production figures. Emphasizing that BHP, Mr. Craig added that even though BHP has met or exceeded recommendations for most of its portfolio, "it is well prepared for what comes next," citing additional opportunities to improve operational efficiency, implement growth projects, and generate high returns for shareholders.
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