BHP Group Ltd (BHP) (H1 2026) Earnings Call Highlights: Strong Financial Performance and …

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Tue, February 17, 2026 at 4:00 PM GMT+9 3 min read

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**Underlying EBITDA Growth:** Increased by 25% with a margin of 58%.

**Underlying Attributable Profit:** $6.2 billion.

**Return on Capital Employed:** 24%.

**Interim Dividend:** USD 0.73 per share, up 46% half on half.

**Production Increase:** Group production increased by 2%.

**Unit Cost Improvement:** Improved by around 4.5% despite inflation and currency pressures.

**Copper EBITDA:** Record $8 billion, over half the group total, with a margin of 66%.

**Western Australia Iron Ore C1 Costs:** Up 1% to $17.66 per ton.

**Steelmaking Coal Volumes:** Increased by 2%.

**Free Cash Flow Projection:** Expected to generate around $60 billion over the next five years.

**Silver Streaming Agreement:** $4.3 billion cash from Antamina's future silver production.

**Capital Unlock Potential:** Up to $10 billion, with $6 billion already unlocked.

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Release Date: February 16, 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 strong operational and financial performance, with a 25% increase in underlying EBITDA and a 58% margin.

The company achieved record production in copper and iron ore, benefiting from high commodity prices.

BHP Group Ltd (NYSE:BHP) announced a significant interim dividend increase of 46% to USD0.73 per share, reflecting strong cash returns to shareholders.

The company has a clear growth strategy, with plans to increase copper production by 40% by 2035 and expand its potash business.

BHP Group Ltd (NYSE:BHP) successfully executed capital recycling initiatives, unlocking $6.3 billion in cash through strategic deals, including a $4.3 billion silver streaming agreement.

Negative Points

BHP Group Ltd (NYSE:BHP) faces challenges in maintaining cost efficiencies, with some operations experiencing cost pressures despite overall improvements.

The company is exposed to geopolitical and policy uncertainties, which could impact global commodity demand and pricing.

There are risks associated with executing large-scale projects, such as the Jansen potash project, which requires careful management to avoid cost overruns.

BHP Group Ltd (NYSE:BHP) must navigate complex regulatory environments, particularly in regions like South America, which could delay project timelines.

The company's reliance on high commodity prices for profitability means it is vulnerable to potential downturns in the commodity market.

Q & A Highlights

Q: Can you elaborate on the silver stream sale and its impact on shareholder returns? A: Mike Henry, CEO: The silver stream sale is not a shift to a 60% payout ratio, but it reflects our strong operational results and thoughtful capital allocation. Vandita Pant, CFO: The proceeds from the silver stream will be assessed through our capital allocation framework, balancing growth projects and shareholder returns.

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Q: Could you discuss the execution and timeline for the Vicuna project? A: Mike Henry, CEO: The Vicuna project is a significant opportunity with a potential FID by the end of the year. Stage one could see production by 2030, contributing to our 5% CAGR copper growth from 2027 to 2035.

Q: How does BHP plan to capture value from gold streams, particularly at Olympic Dam? A: Mike Henry, CEO: While we aim to maximize value from our gold assets, the upside potential at Olympic Dam and Vicuna makes us cautious about streaming deals. We focus on non-core commodities like silver for such transactions.

Q: What are the critical factors for achieving the $17.5 per ton cost target in Western Australia Iron Ore? A: Mike Henry, CEO: Achieving this target involves volume dilution, rail technology programs, and continuous improvement through the BHP operating system. Vandita Pant, CFO: Additional factors include supply chain improvements and increased autonomous haulage.

Q: Can you provide more details on the capital allocation and potential asset sales? A: Vandita Pant, CFO: We aim to unlock up to $10 billion through strategic asset sales, focusing on infrastructure assets like power and diesel. Each transaction is evaluated to ensure it unlocks value without compromising strategic control.

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

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