- FY revenue down 8% to $51.3bn
- Underlying EBITDA down 10% to $26.0bn
- Final dividend of $0.60 per share (60% payout ratio)
Matt Britzman, senior equity analyst, Hargreaves Lansdown:
“Mining giant BHP saw profits fall to a 5-year low, as softer iron ore prices weighed on the bottom line. But riding the commodity price wave is part and parcel of being a global miner, and considering where we are in the cycle, performance has been solid. Chinese iron ore demand has remained relatively robust, but a general shift to more protectionist trade policies in Western countries is expected to put prices under pressure over the near term.
What sets BHP apart is its enviable cost base. Its Australian operations deliver ultra-low-cost production, giving it a competitive edge even when prices falter. Meanwhile, the group is steadily ramping up its exposure to copper – a metal with lingering tariff risks but a compelling long-term demand story.
Management struck an optimistic chord on the broader commodity outlook, underscored by a hike in the dividend payout ratio and a more flexible approach to debt. It’s a signal of confidence, not just in the balance sheet, but in the future of the business.”
