BHP Group’s posted underlying attributable profit of US $6.2 billion, up 22% from a year earlier, helped by stronger pricing in iron ore and a sharp lift in copper. BHP also declared an interim dividend of 73 US cents per share, set at a 60% payout ratio, which signaled steady cash generation and a willingness to return capital.
Copper was the stronger driver, with earnings edging past iron ore for the first time, and realized prices up 32% versus the prior year. Copper demand tied to power networks and data centers is translating into stronger pricing., and BHP lifted its full year copper production guidance to 1.9 to 2.0 million tonnes, a signal that management sees the near term backdrop as supportive.
BHP is a large index weight in Australia, so its earnings and dividend can affect sector returns, supporting broad materials exposure and resource heavy indices. It also highlights a simple point about diversification, as commodity cycles often diverge from growth shares and firm metals pricing can shift overall portfolio returns.
The bigger takeaway is the mix. BHP is leaning more on copper, not just iron ore, and that shifts what drives the stock. Copper tends to react faster to global investment trends, grid spending, and tight supply. If copper stays firm, BHP can keep delivering even in a quieter iron ore market. If copper eases, the earnings line can soften sooner than it would in an iron ore led period. For portfolios, that makes BHP a cleaner way to gain exposure to copper, and it means materials heavy indices may track copper swings more closely than they did a few years ago.