BHP’s copper-producing assets generated the majority of Group Underlying EBITDA for the first time in fiscal 2026, with Total Copper Underlying EBITDA increasing 48% to a record $18.2 billion and accounting for 54% of the group’s earnings measure, up from 45% a year earlier.
The milestone represents a material shift in BHP’s earnings composition as copper becomes increasingly important relative to its historically dominant iron ore operations. Group Underlying EBITDA increased 27% to $32.9 billion, meaning copper alone generated more than half of the company’s underlying operating earnings.
Copper’s profitability was also unusually high. The business generated an Underlying EBITDA margin of 70% and approximately $6.9 billion of free cash flow during the year. By comparison, iron ore generated more than $14 billion of Underlying EBITDA at a 61% margin.
Higher copper prices contributed to the performance, but by-products materially strengthened the economics of BHP’s copper mines. The portfolio produced 571,000 ounces of gold, 17.9 million ounces of silver and 3,600 tonnes of uranium, generating $4.5 billion of by-product revenue, up 45% from fiscal 2025.
At Escondida, Underlying EBITDA increased 45% to $12.4 billion even though copper production declined 3% to 1.261 million tonnes. Unit costs fell 10% to $1.07 per pound as record concentrator throughput, productivity gains and increased by-product credits helped offset planned grade declines.
Copper South Australia delivered an even sharper improvement in unit economics. Underlying EBITDA increased 65% to $3.2 billion while unit costs fell 73% to $0.32 per pound, supported by higher copper prices and favorable gold, silver and uranium by-product credits. The operation generated approximately $1 billion of free cash flow after capital project investment.
At the group level, revenue increased 15% to $58.8 billion, underlying attributable profit increased 30% to $13.2 billion, and net operating cash flow rose 17% to $21.8 billion. Free cash flow increased 83% to $9.8 billion, while net debt fell 33% to $8.7 billion from $12.9 billion, taking leverage below BHP’s stated $10 billion to $20 billion net-debt target range.
BHP is positioning copper to become an even larger part of the portfolio. The company estimates that its organic project pipeline could lift attributable copper production to approximately 2 million tonnes annually by fiscal 2035, roughly 40% above current levels. Projects under consideration or development include expansions at Escondida and Copper South Australia, the Vicuña joint venture and additional growth projects across Chile, Argentina and the United States.
