BHP Group FY25 Earnings & Revenues Decline Y/Y on Lower Prices

Core Insights - BHP Group Limited reported a 26% year-over-year decrease in underlying attributable profit from continuing operations at $10.2 billion for fiscal 2025, primarily due to declining iron ore and coal prices, although record production volumes in copper and iron ore partially offset this decline [1][10]. Financial Performance - Underlying earnings per share were $2.00, down from $2.70 in fiscal 2024, while earnings per American Depositary Share (ADS) were $4.00, lower than $5.40 in the previous year, but exceeded the Zacks Consensus Estimate of $3.87 [2]. - Revenues for fiscal 2025 totaled $51.3 billion, missing the Zacks Consensus Estimate of $52.1 billion and representing an 8% decrease from the prior fiscal year [3]. - The Iron ore segment's revenues fell 18% year over year to approximately $23 billion, while revenues in the Copper segment increased 21.4% to $22.5 billion, and the Coal segment's revenues plunged 34.2% to $5 billion [3][10]. - Underlying EBITDA decreased 10.6% from the prior year to $26 billion, with an EBITDA margin of 53%, down from 54% [7]. Production Highlights - Total iron ore production for fiscal 2025 reached a record 263 million tons (Mt), up 1% year over year, aligning with the company's guidance [4]. - Copper production rose 8% year over year to a record 2,017 kilotons (kt), while nickel output was 30.2 kt, which was 63% lower year over year [6]. Operational Efficiency - Profit from operations increased 11% year over year to $19.4 billion, and attributable profit for total operations increased 14% year over year to $9 billion [8]. - Net operating cash flow for fiscal 2025 was $18.7 billion, down from $20.7 billion in fiscal 2024, attributed to lower realized prices [9]. Investment and Capital Expenditure - The company invested $2.1 billion to acquire a 50% interest in the Vicuña joint venture, with total capital and exploration expenditure amounting to $9.8 billion, up 6% from the prior fiscal year [11]. Future Guidance - BHP Group's iron ore production guidance for fiscal 2026 is set at 258-269 Mt, with copper production expected to be between 1,800-2,000 kt [12].