Full Year 2026 BHP Group Ltd Earnings Call (EMEA) Transcript
Key Points
- Record production at Western Australia Iron Ore and around 2 million tons of copper for the second consecutive year, solidifying BHP Group Ltd (BHP)'s position as the world's largest copper producer.
- Underlying EBITDA rose 27% to $33 billion with a margin of nearly 60%, and underlying attributable profit increased 30% to $13 billion.
- Unit costs improved by over 6% across the group, with notable cost declines at Escondida (10%) and Copper South Australia (over 70%), enhancing margins.
- Strong cash flow generation and a strengthened balance sheet, with net debt below $9 billion, supported a full-year dividend of $8.7 billion, the highest in four years.
- A robust growth pipeline, including copper projects expected to deliver around 5% annual growth and the Jansen potash project on track for first production, positions BHP Group Ltd (BHP) for future value creation.
- A fatality at Peak Downs Mine underscores ongoing safety challenges, with the company acknowledging that progress is not the measure and zero fatalities remains an unmet goal.
- A $2.3 billion non-cash impairment related to Jansen negatively impacted total attributable profit, which rose only 9% to nearly $10 billion.
- Higher copper prices (up 35%) were a key tailwind, but the company faces currency pressures, inflation, and higher diesel and asset prices, which could pressure future costs.
- The Jansen project has highlighted the need for improved major project execution, with the company admitting that project delivery performance must be enhanced.
- Despite strong results, the company's growth estimates of 3-4% per year through 2035 are higher than what many investors model (around 2%), indicating a potential gap in market expectations.
Welcome to today's presentation of BHP's results for the 2026 financial year. My name is Brandon Craig and I'm joined by our Chief Financial Officer, Vendita Pant. As Chief Executive Officer, it is a pleasure for me to host this call with all of you this morning. But let me begin by saying that BHP is in great shape.
Mike has left us a strong platform with a tier one portfolio, an operating system that continues to improve and a balance sheet that allows us to invest through the cycle. I intend to build on this strong foundation by adding even greater pace, improving our operational practices and focusing on our customers and markets. Today, we have great momentum, which you will see in our operational and financial results.
The opportunity now is to accelerate performance, to lift safety, productivity and growth to the next level while maintaining the discipline that has served shareholders well over many years. That is the agenda I am focused on as Chief Executive Officer, accelerating performance, delivering
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