2 days ago
Profit slump hits Aussie mining giant
Australian mining giant BHP has reported a sharp slump in profits as lower iron ore and coal prices hit the business.
On Tuesday morning, the $200bn ASX-listed behemoth reported underlying profits of $US10.2bn ($A15.7bn) for the 2025 financial year, a 26 per cent fall on the prior year.
Revenues came in at $US51.3bn ($A79bn), an 8 per cent fall on 2024.
Underlying earnings before interest, tax, depreciation and amortisation, meanwhile, tumbled 10 per cent to $US26bn ($A40bn).
The 'underlying' measure strips out one-off costs and gains and is designed to present a clearer picture of a company's performance.
Statutory profit, which includes one-off items, lifted 14 per cent from 2024 to $US9bn ($A13.8bn).
The company mines predominantly iron ore, coal and copper across Australia and Chile. Lower coal and iron ore prices hit BHP's revenues across the 2025 financial year. BHP. Credit: News Regional Media
Coal and iron ore are core inputs to steelmaking and prices are heavily dependent on Chinese demand for steel.
The miner credited a decline in iron ore and coal for its fall off in revenues.
BHP's average realised price for its Pilbara iron ore, or how much the company received for each tonne of material, was $US82.13 across the year compared with $US101.04 for 2024.
Iron ore accounts for the majority of the miner's earnings. BHP chief executive Mike Henry called the results a 'strong performance'. NewsWire / Emma Brasier Credit: News Corp Australia
Despite the falls in revenues, earnings and underlying profits, chief executive Mike Henry called the results 'a strong performance'.
'FY25 was another strong year for BHP, marked by record production, continued sector-leading margins and disciplined capital allocation,' he said.
'Safety remains our highest priority and we achieved year-on-year improvements across key metrics.
'Against a backdrop of global uncertainty this strong performance has led to robust financial outcomes and reflects the resilience of BHP's business and strategy.'
The results were broadly in line with market expectations.
Shareholders would receive a final dividend of 60c a share, the company said.
More to come .
