Iron Ore Reduces BHP FY Profit To 5-year Low But Dividend Boosts Shares

BHP Group Limited (NYSE:BHP) is among the  7 Best Manganese Stocks to Buy Right Now. BHP Group Limited (NYSE:BHP) missed forecasts of $10.22 billion with an FY25 underlying profit of $10.16 billion, its lowest in five years and a 26% year-over-year decline. Results were impacted by the weakness in iron ore, brought on by a slowdown in Chinese demand. However, shares rose 1% when the miner declared a higher-than-expected total dividend of $1.10 per share, including a final payout of $0.60, topping the consensus of $1.01, although still the lowest since 2017.

Photo by Dominik Vanyi on Unsplash

An aerial view of a mining operation in action, with large trucks and yellow diggers.

BHP Group Limited (NYSE:BHP)’s realized iron ore price fell 19%, putting pressure on earnings, although this was partially offset by higher copper prices. The business raised its net debt objective to $10-20 billion and planned $11 billion in project and exploration spending over the next two years, with future spending expected to decline.

Mike Henry, the CEO, stated that despite tariff uncertainty, commodity demand is solid. Although the miner has warned that suitable acquisition possibilities are scarce, it is prioritizing the growth of copper and potash. Furthermore, BHP agreed to sell Brazilian copper assets for $465 million after pointing out a $1.7 billion cost overrun at its Jansen potash project. It is among the Best Manganese Stocks.

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