BHP Profit Climbs as Copper Offsets China Drag on Iron Ore

Why It Matters

The results highlight copper’s emerging role as a profit engine while illustrating the vulnerability of iron‑ore and coal to Chinese economic cycles, shaping future mining investment strategies.

Key Takeaways

• Underlying profit $6.2 bn, up 22% YoY
• Copper price surge drives earnings growth
• Iron ore sales hit by stagnant Chinese demand
• Steelmaking coal revenue remains pressured
• Forecasts met, indicating stable investor expectations

Pulse Analysis

BHP’s latest half‑year report underscores how a robust copper market can buoy a diversified miner when traditional bulk‑commodity demand falters. Copper prices have surged above $9,000 per tonne, driven by electric‑vehicle battery production, renewable‑energy infrastructure, and supply constraints in Chile and Peru. This price uplift lifted BHP’s copper division margins, contributing significantly to the $6.2 billion underlying profit and cushioning the group from softer performance elsewhere.

Meanwhile, China’s post‑pandemic slowdown continues to weigh on iron‑ore and steelmaking‑coal volumes. Domestic construction activity and steel consumption have plateaued, reducing import appetite for bulk commodities. BHP’s iron‑ore shipments to China fell modestly, and coal sales faced similar pressure, reflecting broader market trends where Asian demand is the primary growth engine for these assets. The company’s exposure to these cycles highlights the importance of geographic and product diversification in mitigating regional demand shocks.

For investors, BHP’s earnings narrative signals a strategic pivot toward higher‑margin, growth‑oriented metals like copper, while maintaining a foothold in traditional commodities. The alignment with analyst expectations suggests confidence in the firm’s operational execution and pricing assumptions. Looking ahead, sustained copper price strength and potential recovery in Chinese steel demand will be key determinants of BHP’s profitability trajectory, prompting stakeholders to monitor macro‑economic indicators and the company’s capital allocation toward expanding its copper portfolio.

BHP Profit Climbs as Copper Offsets China Drag on Iron Ore

February 16, 2026 at 9:44 PM UTC · Updated on February 16, 2026 at 10:14 PM UTC

BHP Group’s earnings for the six months to the end of December rose by more than a fifth thanks to a surge in copper prices, even as plateauing demand in China weighed on its iron ore and steelmaking coal businesses.

The world’s largest miner said underlying attributable profit climbed to $6.2 billion, up 22 % and broadly in line with analyst forecasts, according to a statement on Tuesday.