BHP posts record profit and raises dividends

Mining giant BHP reported an attributable profit of US$9.83 billion ($13.83 billion) for the year ending June 30, 2026, a 9% increase from the previous year. The company also announced a 57% jump in dividends, paying out US$1.72 per share—its highest payout in four years.

Copper drives earnings, but production slips

Booming copper prices strengthened the results, now accounting for 54% of BHP’s earnings before interest, taxes, depreciation, and amortization (EBITDA). Copper futures climbed 16% year-to-date, solidifying the metal as the company’s top revenue source.

Production fell 3% over the year, and future output is expected to decline further. Analysts say this trend could weaken BHP’s investment case, even as it remains Australia’s most valuable listed company.

Revenue rose 15% to US$58.76 billion, while EBITDA increased 27% to US$32.9 billion. Shareholders will receive a final dividend of 99 US cents ($1.39) per share next month, about 20% above expectations.

As of early afternoon on 18 August, the stock had rallied 4%. Earlier, Bloomberg reported that buy recommendations for BHP had fallen to a record low among the brokers it tracks.

Dividends overshadow cost pressures

Wealth Within senior analyst Filip Tortevski said the results demonstrated BHP’s ability to convert a better commodity environment into earnings and cash flow. Copper delivered a 70% EBITDA margin, while the company reduced unit costs across major assets by 6%.

The company confirmed 113 cases of sexual harassment in fiscal 2026, up from 102 the previous year. Of those, 109 individuals either had their employment terminated or resigned.

Racial harassment reports also climbed, with 27 cases compared to 24 in fiscal 2025. Twenty-two individuals responsible for racial harassment left the company.

The disclosures arrive as BHP, Rio Tinto, and Fortescue face three class-action lawsuits alleging widespread sexual harassment, sexual violence, and discrimination at their worksites.

Record profits may have reassured investors, but workplace culture remains a concern. Balancing growth with accountability in a male-dominated industry presents ongoing difficulties.

Shareholders appear focused on dividends for now. Copper’s rally and BHP’s operational discipline will need to outweigh declining production and shifting market sentiment.