BHP Publishes Half-Year 2025 Report & Accounts

BHP Group Limited

Financial results for the half year ended 31 December 2024

18 February 2025

Operational excellence underpins strong returns and investment in growth

“BHP reported a strong financial performance for the half-year, underpinned by safe and reliable operations and rigorous cost control. The Group’s industry-leading margins and robust cash flow enabled the Board to determine an interim dividend of 50 US cents per share – a total of US$2.5 billion. The strength of the result demonstrates BHP’s operational resilience and its ability to perform through the cycle, with standout production performances in the half from Escondida, WAIO and BMA. WAIO has maintained its lead as the lowest-cost iron ore producer globally, a testament to our ongoing work to drive productivity at our operations.

We continued to invest in growth, including US$3.2 billion in potash and copper, and have now also successfully completed the US$2.0 billion formation of Vicuña Corp, a 50/50 joint venture with Lundin Mining to develop the combined Filo del Sol and Josemaria copper projects in an exciting prospective region in Argentina.

In Brazil, the signing of a comprehensive settlement agreement during the half will deliver expanded programs for the environment and communities, while also providing greater clarity on future cash flows related to the tragedy.

The demand for BHP products remains strong despite global economic and trade uncertainties, with early signs of recovery in China, resilient economic performance in the US and strong growth in India. The trajectory of the world population growing from eight billion today to 10 billion in 2050, with more people living in cities, together with the energy transition and the growth of data centres and AI, will compound the need for more metals and minerals. Against this backdrop, BHP is well-positioned, with the ability to leverage our strong balance sheet, technical know-how and sustainable business practices to deliver growth and resilient shareholder returns.

Ross McEwan will succeed Ken MacKenzie as Chair on 31 March 2025. We thank Ken for the instrumental role he has played in shaping BHP and look forward to Ross’ leadership as Chair of BHP.” 

Mike Henry
BHP Chief Executive Officer

Safety	Operational excellence
Focus on fatality elimination	Copper equivalent production Up 5.3%[i]
High Potential Injury frequency[ii] declined ~54% from H2 FY24, with zero high potential injuries recorded in Q2 FY25.	Group copper production increased 10%, driven by a 22% increase at Escondida. Strong underlying operational performance at all other assets, including at WAIO where production was up 1% and at BMA where production increased 14% (excluding production from the now divested Blackwater and Daunia mines).
Financial results	Net cash tax paid
Attributable profitUS$4.4 bnHY24 US$0.9 bn	Net income tax and royalty-related taxationUS$3.4 bnHY24 US$3.6 bn
The Group’s Attributable profit reflects our strong underlying operational performance and disciplined cost control amid the lower price environment. Underlying attributable profit[iii] decreased 23% (after adjusting for the HY24 exceptional losses).Total copper proportion of Group Underlying EBITDAiii increased to 39% (HY24: 25%), reflecting a 10% increase in copper volumes and higher copper prices.	BHP continues to be one of the largest corporate taxpayers in Australia, as is Escondida in Chile. Our global adjusted effective tax rate[iii] was 36.4% and increases to 44.2% once revenue and production-based royalties are included.
Investing in growth	Shareholder value
Capital and exploration expenditure[iii]US$5.2 bn Up 10%HY24 US$4.7 bn	Fully franked interim dividendUS$0.50 per share50% payout ratio
We invested US$3.2 bn in potash and copper and expect to invest ~65% of our medium-term capital on these future-facing commodities.In January 2025, we completed the formation of Vicuña Corp. (Vicuña), a 50/50 joint venture with Lundin Mining to develop the combined Filo del Sol (FDS) and Josemaria copper projects.	We have determined an interim dividend of US$2.5 bn.In February 2025, BHP announced that Ken MacKenzie will retire from the Board on 31 March 2025. The Board has elected Ross McEwan to succeed as Chair from this date.

Group financial performance

Earnings and margins

Strong underlying operational performance provides resilience against lower prices

Revenue   US$25.2 bn Down 8%   HY24 US$27.2 bn	BHP’s strong underlying operational performance delivered increased sales volumes in our key commodities: copper, iron ore and steelmaking coal.[iv]	Our adjusted effective tax rate increased primarily due to the impact of higher rates under the new Chilean mining tax regime that applied from 1 January 2024, and increased earnings from Chilean copper.
Attributable profit   US$4.4 bn  Up 376%   HY24 US$0.9 bn	Revenue however decreased US$2.0 bn primarily as a result of the decline in realised iron ore and steelmaking coal prices. This was partially offset by higher realised copper prices.	The adjusted effective tax rate for FY25 is expected to be within the guidance range of 33% to 38%.
Underlying attributable profit   US$5.1 bn Down 23% HY24 US$6.6 bn	Our productivity initiatives and cost discipline, combined with favourable foreign exchange movements, allowed us to mitigate a global inflation rate of ~3.7%, which was predominantly driven by higher labour costs.	Our operating costs included US$1.3 bn of revenue or production-based royalties. Including these payments, our Group effective tax rate was 44.2% (HY24: 40.9%).
Profit from operations   US$9.1 bn Up 90% HY24 US$4.8 bn	As a result, unit costsiii were ~3.9%[v] lower across our major assets, with WAIO maintaining its position as the lowest cost major iron ore producer globally and Escondida delivering a 12% reduction in unit costs.	We recorded Attributable profit of US$4.4 bn through disciplined cost control and strong operational performance, amid the lower price environment. Underlying attributable profit decreased 23% (after adjusting for the HY24 exceptional losses).
Underlying EBITDA US$12.4 bn Down 11% HY24 US$13.9 bn	Overall, Underlying EBITDA decreased 11% due to the lower revenue. The contribution from copper increased to 39% of Group Underlying EBITDA (HY24: 25%) reflecting a 10% increase in copper volumes and higher copper prices.
Underlying EBITDA marginiii   51.1% HY24 53.3%	Our Underlying EBITDA margin remained strong at 51.1%. Our 20-year average Underlying EBITDA margin is greater than 50%.[vi]
Adjusted effective tax rate   36.4% HY24 31.0% FY25e 33 – 38%

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