BHP shares lift as FY25 dividends top estimates
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More news: BHP shares lifted in morning trade after the mining group's full-year result broadly met market forecasts.
Shares were up 1.1% $41.91 at 11:50am AEST, taking returns to around 6% since the turn of the year.
RBC Capital Markets analyst Kaan Peker said BHP reported "another strong set of results, which highlights the consistency of the business”.
He said "most key metrics" were in line with consensus estimates, while the final dividend beat expectations and "should be viewed favourably”.
What they said: "The company is balancing its shift toward growth (namely in copper), and is continuing to pay compelling dividends, which adds to the investment case, in our view," Peker said.
BHP profit up 6% in FY25 after record copper and iron ore output
The news: Mining giant BHP reported a 6% increase in statutory net profit after tax to USD9.8 billion ($15.1 billion) for the 2025 financial year, after meeting its production guidance across all assets, and setting fresh annual output records in copper and iron ore.
The numbers: The result was up from the USD7.9 billion reported last year, and topped market estimates of $9.66 billion, according to Visible Alpha data.
However, revenue fell by USD4.4 billion, or 8%, to USD51.3 billion, dragged down by a decline in iron ore and coal prices. This was partially offset by higher copper prices, the company said.
The company declared a final dividend of 60 US cents per share, taking total dividends to USD1.10 per share. This is lower than last year's total payout of $1.46 per share, but above analysts' expectations of USD1.01 per share.
The context: BHP said its external operating environment during the year was influenced by "policy uncertainty, particularly around tariffs, fiscal policy, monetary easing, and industrial policy".
However, the company said commodity demand has remained resilient, particularly in China and India. It noted that Chinese copper demand outperformed in FY25, while iron ore demand was resilient, driven by infrastructure investment and manufacturing activity in China.
The miner said steelmaking coal prices have softened due to oversupply, but policy shifts in China and new blast furnace capacity in Asia are expected to support the market.
What they said: "We remain confident in the long-term fundamentals of steelmaking materials, copper and fertilisers, which are critical to global growth, urbanisation and the energy transition," said BHP chief executive Mike Henry.
The source: ASX
