The BHP (ASX:BHP) share price return trounced the ASX 200 in 2025

Core Viewpoint - BHP Group Ltd significantly outperformed the ASX 200 in 2025, providing shareholders with a strong return, driven by favorable commodity prices, particularly iron ore and copper [1][2]. BHP Share Price Performance - In 2025, BHP's share price increased by 13.8%, while the ASX 200 rose by only 6.25%, indicating that BHP's capital growth return more than doubled that of the index [2]. Commodity Price Influences - The iron ore price ended 2025 at approximately US$107 per tonne, which is beneficial for BHP's profitability due to its low production costs [3]. - The copper price rose by around 40% over 2025, which is expected to significantly enhance earnings from BHP's copper division, as copper is crucial for electrification and renewable energy [4]. Strategic Considerations - The company is focusing on diversifying its production, particularly in copper and potash, to reduce reliance on iron ore and enhance earnings growth [6]. - There is caution regarding potential impacts on iron ore prices due to expected increases in African iron ore production [6].