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

BHP Group Limited BHP reported a 26% year-over-year decrease in underlying attributable profit from continuing operations at $10.2 billion for fiscal 2025 (ended June 30, 2025). The downside was led by a decline in iron ore and coal prices. This was partially offset by record copper and iron ore production volumes, and higher steelmaking coal production and copper prices. BHP’s underlying earnings per share were $2.00 compared with $2.70 in fiscal 2024. Earnings per American Depositary Share (ADS) were $4.00, lower than $5.40 in the previous year. The metric beat the Zacks Consensus Estimate of $3.87. BHP’s each ADS represents two fully-paid ordinary shares.BHP Group Limited Sponsored ADR Price, Consensus and EPS Surprise  BHP Group Limited Sponsored ADR price-consensus-eps-surprise-chart | BHP Group Limited Sponsored ADR QuoteBHP’s FY25 Revenues Dip Y/YRevenues for fiscal 2025 totaled $51.3 billion, which missed the Zacks Consensus Estimate of $52.1 billion. The top line was 8% lower than the prior fiscal year.The Iron ore segment’s revenues fell 18% year over year to around $23 billion, whereas revenues in the Copper segment increased 21.4% to $22.5 billion. The Coal segment’s revenues plunged 34.2% to $5 billion.BHP Group Delivers Record Iron & Copper Production in FY25The company’s total iron ore production for fiscal 2025 was a record 263 Mt, up 1% year over year. The figure came within the company’s guidance of 255-265.5 Mt. Production at Western Australia Iron Ore (“WAIO”)  was a record of 257 Mt (290 Mt on a 100% basis), reflecting supply-chain excellence with record productive movement, in addition to improved rail cycle times, and enhanced car dumper and ship loader performance unlocked by the Port Debottlenecking Project 1 (PDP1). The record production was delivered despite the impacts of Tropical Cyclone Zelia and Tropical Storm Sean in the third quarter, and the planned increase in tie-in activity of the multi-year Rail Technology Program (RTP1).Copper production rose 8% year over year to a record 2,017 kt. In fiscal 2025, nickel output was 30.2 kt, which was 63% lower year over year.BHP’s FY25 EBITDA Margin Slips Y/YUnderlying earnings before interest, taxes, depreciation and amortization (EBITDA) decreased 10.6% from the prior year to $26 billion due to lower revenues. The underlying EBITDA margin was 53%, down from the prior year’s 54%.  For the Iron ore segment, underlying EBITDA was down 23.9% year over year to $14 billion, while the Copper segment’s underlying EBITDA increased 43.9% to $12 billion. The Coal segment’s underlying EBITDA plunged 75% year over year to $573 million.Profit from operations increased 11% year over year to $19.4 billion. In fiscal 2025, BHP’s attributable profit (for total operations) increased 14% year over year to $9 billion.BHP Group’s Financial PositionNet operating cash flow for fiscal 2025 was $18.7 billion compared with $20.7 billion in fiscal 2024. The downside was attributed to lower realized prices. BHP Group reported a free cash flow of $5.3 billion, down from $11.9 billion in fiscal 2024.The company invested $2.1 billion to acquire a 50% interest in the Vicuña joint venture. Capital and exploration expenditure totaled $9.8 billion, up 6% from the prior fiscal year. As of the end of fiscal 2025, net debt was $12.9 billion compared with $9.1 billion as of the end of fiscal 2024.BHP’s Production Guidance for FY26BHP Group’s iron ore production guidance for fiscal 2026 is 258-269 Mt. WAIO's production is expected to be 251-262 Mt (284-296 Mt on a 100% basis). The company expects copper production to be 1,800-2,000 kt in fiscal 2026.Steelmaking coal production in fiscal 2026 is expected at 18-20 Mt (36-40 Mt on a 100% basis). Energy coal production is expected to be 14-16 Mt.BHP Group Provides Unit Cost Guidance for FY26Unit cost guidance for WAIO is expected to be $18.25-$19.75 per ton. Escondida unit costs are estimated to be $1.20-$1.50 per pound. Spence unit costs are expected between $2.00 and $2.40 per pound. Copper South Australia’s unit costs are anticipated to be $1.00-$1.50 per pound. BMA unit costs are expected between $116 and $128 per ton.BHP Stock’s Price PerformanceBHP Group’s shares have gained 4.9% in a year compared with the industry’s 12.7% growth. Image Source: Zacks Investment Research BHP Group’s Zacks RankBHP currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Other Performances in the Basic Materials SectorReliance, Inc. RS recorded earnings of $4.43 per share. Reliance lagged the Zacks Consensus Estimate of $4.72.Reliance recorded net revenues of $3.66 billion, up around 0.5% year over year. The top line beat the Zacks Consensus Estimate of $3.63 billion. Reliance reported a 3.9% year-over-year increase in shipments (thousand tons sold) to 1,615. Wheaton Precious Metals Corp. WPM reported adjusted earnings per share of 63 cents in second-quarter 2025, which surpassed the Zacks Consensus Estimate of 58 cents. The bottom line surged 90.9% year over year.Wheaton Precious Metals generated record revenues of around $503 million, which improved 68.3% on a year-over-year basis. The upside was caused by a 32% increase in average realized price and a 28% improvement in gold equivalent ounces (GEOs) sold. The top line beat the Zacks Consensus Estimate of $468 million.Teck Resources Ltd. TECK came out with earnings of 27 cents per share in the second quarter of 2025, beating the Zacks Consensus Estimate of 20 cents. This compares with earnings of 58 cents per share a year ago.Teck Resources posted revenues of $1.46 billion in the quarter, missing the Zacks Consensus Estimate by 8.7%. This compares with year-ago revenues of $2.83 billion. #1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BHP Group Limited Sponsored ADR (BHP): Free Stock Analysis Report Reliance, Inc. (RS): Free Stock Analysis Report Teck Resources Ltd (TECK): Free Stock Analysis Report Wheaton Precious Metals Corp. (WPM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks