BHP Group Ltd (ASX: BHP) shares are roaring higher on Tuesday morning.
At the time of writing, the mining giant's shares are up 8% to a record high of $54.20.
This follows the release of a strong half-year result this morning.
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What did BHP report?
As we covered here, BHP delivered an 11% increase in revenue to US$27.9 billion during the first half. This was driven primarily by the significant increase in copper prices, and higher iron ore prices.
Things were even better for its profits, with underlying EBITDA rising 25% to US$15.46 billion and attributable profit increasing 28% to US$5.64 billion.
For the half, BHP's copper operations contributed record underlying EBITDA of US$8 billion. This represents 51% of total EBITDA and was the first time the majority of group underlying EBITDA was generated from copper. And with management increasing its FY 2026 group copper guidance to the range of 1.9 Mt to 2.0 Mt, it could be an even larger contributor to full-year earnings.
This strong performance allowed the BHP board to declare a bumper, fully franked interim dividend of 73 US cents per share, which is up 46% on the prior corresponding period and well ahead of consensus expectations.
What was the market expecting?
According to a note out of Morgans, its analysts expect the Big Australian to report revenue of US$51.26 billion, EBITDA of US$25.98 billion, and an underlying net profit of US$5.07 billion. It adds:
BHP is well funded for its current projects at WAIO, Escondida and Jansen, with the upside in metal prices amassing free cash flow. As a result, we estimate a USD 60 cent interim dividend, representing a higher-than-usual first half payout ratio.
What are experts saying?
Totality's market strategist, Aaron Zanchetta, was impressed with the half. This was particularly the case with the copper business, which was a standout.
Mr Zanchetta told The Motley Fool Australia:
BHP delivered a strong half-year result, with underlying EBITDA up 25% and underlying attributable profit rising more than 20%, driven by higher copper and iron ore prices and continued operational outperformance. Copper was the standout, contributing 51% of group EBITDA for the first time and highlighting BHP's growing leverage to the energy transition alongside resilient margins across iron ore.
A 60% payout interim dividend underscores balance sheet strength and confidence in cash flow sustainability as the group continues to invest in its copper and potash growth pipeline.
