BHP FY26 Underlying EBITDA US$32.9bn, Net Debt US$8.7bn

BHP (ASX:BHP) reported financial results for the year ended 30 June 2026, with all figures expressed in US dollars. Revenue was US$58.8 billion, up 15% on FY25's US$51.3 billion, an increase of US$7.5 billion that BHP said reflected strong volumes delivered into higher copper, iron ore and steelmaking coal prices. Attributable profit increased 9% to US$9.8 billion. Adjusting for exceptional items, including a US$2.3 billion impairment recognised in relation to BHP's investment in the Jansen project and US$1.1 billion related to the Samarco dam failure, underlying attributable profit increased 30% to US$13.2 billion. Underlying EBITDA increased 27% to US$32.9 billion and the underlying EBITDA margin, a non-IFRS measure defined in the release's footnotes, increased 6 percentage points to 59%, which BHP said was its highest in four years. Unit costs were 6.1% lower across BHP's major assets, with Escondida delivering a 10% decrease and Copper SA a 73% reduction supported by increased gold and silver by-product credits. Underlying return on capital employed was 26.1%, against 20.6% in FY25.

Copper contributed 54% of group underlying EBITDA, against 45% in FY25, at a record of more than US$18 billion with a 70% underlying EBITDA margin and US$6.9 billion of free cash flow, while iron ore generated more than US$14 billion of underlying EBITDA at a 61% margin. Net operating cash flow increased 17% to US$21.8 billion and free cash flow increased 83% to US$9.8 billion. Net debt was US$8.7 billion at 30 June 2026, down from US$12.9 billion a year earlier and below BHP's unchanged target range of US$10 billion to US$20 billion, with a gearing ratio of 13.4%. Capital and exploration expenditure was US$10.3 billion, up 5%, and guidance is unchanged at approximately US$11 billion in FY27. BHP determined a fully franked final dividend of US$0.99 per share, or US$5.0 billion, equivalent to a 72% payout ratio and payable on 23 September 2026, bringing total cash returns announced for the year to US$8.7 billion or US$1.72 per share. Chief Executive Officer Brandon Craig said a contracting colleague was fatally injured at BMA last month; BHP said the loss occurred at BMA's Peak Downs mine in July 2026 and that investigations are underway.