BHP Group: Solid Execution, But Valuation Limits Upside
FY2026 production and cost guidance were broadly achieved, with iron ore and copper output in line with expectations and realised copper prices materially above consensus. Net debt declined to approximately $9 billion from $14.7 billion in H1, supported by free cash flow, working-capital improvements and asset disposals. FY2027 guidance points to only modest iron ore growth and lower copper production, while major maintenance and development projects will require significant CAPEX.