BHP, the world's largest miner by market value, reported underlying profit of $13.2 billion for fiscal 2026, a 30% increase year-over-year, as copper prices hit all-time highs during the period.
Copper reached $6.7045 per pound on Comex and over $13,900 per tonne on the London Metal Exchange, according to commodity price data. The surge in the red metal accounted for the bulk of BHP's earnings growth. The company also posted a 9% gain in reported net profit, a slower figure that reflects one-time charges and non-underlying items.
BHP's underlying profit metric strips out exceptional gains and losses. The 30% jump in underlying profit against a 9% rise in net profit shows how much of the year's gains came from higher commodity prices rather than expanded production or cost control. For a miner of BHP's scale, commodity price moves often drive earnings more than operational gains do.
Copper has become central to BHP's strategy and earnings outlook. The miner has shifted capital toward copper projects as demand from the power and renewable energy sectors outpaces supply. Iron ore, BHP's traditional cash generator, remained stable in output but faced softer pricing year-over-year, making copper's strength even more critical to the profit beat.
The record copper price coincided with tighter global supply chains and sustained demand from China, the world's largest copper consumer. Industrial production in China remained strong despite economic slowdowns elsewhere, keeping pressure on inventory levels. Spot prices for copper have remained high through mid-2026, though off the absolute peaks seen during the reporting period.
BHP's 30% underlying profit growth outpaced the gains reported by other major miners during the same window. Rio Tinto and Glencore both reported strong results but with more modest percentage gains tied to their commodity mix. The difference tracks to BHP's larger exposure to copper relative to competitors with larger iron ore or diversified portfolios.
The underlying profit figure of $13.2 billion stands as a proxy for BHP's core earning power in a high-price environment. Whether the company can sustain margins near current levels depends entirely on whether copper prices remain high or retreat as supply-demand dynamics shift. Investors will watch BHP's next quarterly update, expected in October 2026, to track whether copper pricing holds or begins to fade.
