BHP Group price target lowered to A$55 from A$66 at Freedom Broker

BHP Group reported a US$13B profit for 2026, up 30%, and approved US$8.7B in dividends. The company also announced 300 job cuts in Western Australia, sparking union criticism. BHP defends cuts as necessary for competitiveness amid rising costs and lower iron ore prices. Copper now leads earnings, with automation reducing labor needs.

BHP Group Ltd Chair Ross McEwan reaffirmed support for new CEO Brandon Craig, praising his experience and the board's thorough succession process. Craig replaced Mike Henry, who left the company in 'excellent shape.' BHP reported a 9.0% rise in attributable profit to USD9.83 billion for the fiscal year. Shares fell 4.2% in London and 3.3% in Johannesburg.

BHP Group Limited held its Annual General Meeting in Sydney, where the CEO and Chair discussed safety, leadership transitions, and financial performance. The company reported a strong year with a total dividend of $2.40 Australian per share, equivalent to US$8.7 billion. BHP expressed confidence in its future, citing strong demand for its resources and growth projects like Jansen potash. The Chair also emphasized the importance of competitiveness and policy settings for investment.

BHP CEO Brandon Craig emphasized copper growth and capital discipline at the AGM, targeting 3-4% annual production growth through 2035, with copper leading at 5%. He acknowledged cost overruns at Jansen potash due to inflation and productivity issues, but maintained long-term viability. Copper now contributes over half of earnings, and BHP remains the world's largest producer. The company reported record Olympic Dam production and maintained guidance despite weather and maintenance impacts.

BHP Group reported record production and earnings, with copper surpassing iron ore in contribution. The company approved $8.7B in dividends for 2026. Jansen potash project faces cost increases but remains on track. BHP committed to 30% operational emissions reduction by 2030 and highlighted copper growth opportunities. Management addressed shareholder concerns on coal, electrification, and water usage.

BHP reported a 19% drop in Q1 FY27 copper production due to operational disruptions and lower feed grades. Full-year guidance remains unchanged at 1.65-1.8mt. Escondida mine output fell 23% to 252,600t. Copper prices rose 53% to $7.01/lb. Iron ore and coal production increased. BHP signed a MoU with KGHM and increased stake in Faraday to 32%.