BHP Group Ltd (BHP) (Half Year 2026) Earnings Call Highlights: Strong Copper Growth and …

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Wed, February 18, 2026 at 12:00 AM GMT+9 3 min read

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**Group Copper Equivalent Growth:** Up 2% for the year.

**Cost Reduction:** Down 5%, equating to a 7% real-term cost decline.

**Dividend Increase:** Up over 40% to USD 0.73 per share.

**Western Australian Iron Ore Power Deal:** Valued at USD 2 billion.

**Silver Streaming Deal:** USD 4.3 billion with Wheaton for Antamina Silverstream.

**Copper Guidance Increase:** 2027 guidance up by 100,000 tons; overall increase for 2026 and 2027 by 150,000 tons.

**Copper Production Growth:** Expected 5% CAGR from 2027 to 2035.

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Release Date: February 17, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

BHP Group Ltd (NYSE:BHP) reported a strong operating result with group copper equivalent growth up 2% for the year and costs down 5%, translating to a real terms decline of 7%.

The company declared a substantially higher dividend, up over 40% to USD0.73 per share, reflecting confidence in its operational performance and positive outlook.

BHP Group Ltd (NYSE:BHP) announced a silver streaming deal with Wheaton for $4.3 billion, showcasing its strategic approach to capital allocation and maximizing returns.

The company increased its copper guidance for 2026 and 2027 by 150,000 tons, highlighting its advantage in a time of high copper prices.

BHP Group Ltd (NYSE:BHP) is executing a copper growth program expected to increase copper production by 5% on a CAGR basis from 2027 to 2035, with attractive capital intensities.

Negative Points

There is some softness in demand for Jimblebar, which BHP Group Ltd (NYSE:BHP) is mitigating by increasing sales of other products.

The Viunia project presents technical challenges due to its greenfield nature and elevation, requiring careful risk management.

BHP Group Ltd (NYSE:BHP) faces tough negotiations with CMRG, impacting its sales strategy and pricing.

The company has a $10 billion target for unlocking latent value in its portfolio, but achieving this ambitious goal may be challenging.

BHP Group Ltd (NYSE:BHP) is cautious about entering into more streaming deals, as they could risk giving away upside potential in production.

Q & A Highlights

Q: Can you comment on the sales strategy for Jimblebar, given its strong production and pricing? A: Mike Henry, CEO, explained that despite some softness in demand for Jimblebar, BHP has been mitigating this by increasing sales of other products. The company has multiple distribution channels and levers to manage the situation effectively, ensuring strong operational and marketing performance.

Story Continues  

Q: Regarding the $10 billion target for unlocking latent value, is there potential to exceed this target, and what might limit you? A: Vandita Pant, Chief Commercial Officer, noted that while $10 billion was ambitious, BHP has already achieved over $6 billion. There are more opportunities, but the company maintains a high bar for deals, ensuring no strategic or operational control loss and focusing on additional value realization.

Q: How does BHP plan to manage the risks associated with the Viunia greenfield project? A: Mike Henry highlighted that the project is being approached in stages to de-risk it. BHP is leveraging the experience of its partner, Lundin Mining, which has expertise in challenging environments. The phased approach allows for learning and adaptation between stages.

Q: How does BHP view the balance between dividends and buybacks in terms of shareholder returns? A: Mike Henry stated that BHP does not have a strong preference between dividends and buybacks, considering both options every six months. The recent decision to pay a dividend above consensus reflects confidence in the company’s strong operational performance and positive market conditions.

Q: Can you confirm if the CapEx numbers for the Cunia project are equity accounted and how they affect the net debt range? A: Mike Henry confirmed that the CapEx for Cunia is equity accounted and will not be included within BHP’s $10 billion to $20 billion net debt range, effectively keeping it off the balance sheet.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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