BHP (ASX:BHP) share price in focus as profit soars 22% in HY26 result

Core Viewpoint - BHP Group Ltd reported strong FY26 half-year results, driven by increased copper and iron ore prices, despite challenges in coal production and pricing [1][2][9]. Financial Performance - Revenue increased by 11% to US$27.9 billion, primarily due to higher copper prices [2][9]. - Underlying EBITDA rose 25% to US$15.5 billion, with profit from operations climbing 34% to US$12.3 billion [9]. - Attributable profit increased by 28% to US$5.6 billion, and operating cash flow rose 13% to US$9.4 billion [9]. - Free cash flow climbed 10% to US$2.9 billion, and interim dividend per share increased by 46% to US$0.73 [9]. Commodity Performance - Copper prices surged by 32% to US$5.28 per pound, contributing significantly to EBITDA, which soared 59% to US$8 billion [2]. - Iron ore's average realized price increased by 4% to US$84.71 per wet metric tonne, with production up 2% to 134 million tonnes, leading to a 4% increase in iron ore's underlying EBITDA to US$7.5 billion [3]. - Steelmaking coal production increased by 2% to 9.2 million tonnes, but the average realized price fell by 9% to US$188.58 per tonne, resulting in a 60% drop in coal underlying EBITDA to US$0.2 billion [4]. - Energy coal production rose by 10% to 8.1 million tonnes, with a 23% decline in average realized price to US$95.76 per tonne [4]. Potash Development - The Jansen stage 1 potash project is 75% complete, with stage 2 at 14% completion; potash prices increased by 30% during the HY26 period due to strong demand [5]. Future Outlook - BHP anticipates robust demand for commodities, particularly copper, with expectations of a tight market due to global grade declines and slow mine development [6][7]. - Global iron ore and steel demand is expected to remain stable in the short term, with slight reductions in China offset by growth in emerging economies [8].