BHP Group H1 FY2025 Earnings Preview & Outlook

BHP Group has long stood as a bellwether in the global mining sector. With its latest FY2024 financial results and an upcoming H1 FY2025 earnings release scheduled for February 18, 2025, investors and market observers are closely monitoring the company’s performance in a challenging commodity market.

This article examines BHP Group’s FY2024 financial performance, detailed revenue segmentation, capital intensity, competitive positioning, associated risks and advantages, analyst expectations, and emerging market trends. The analysis covers data from FY2024 (the year ended June 30, 2024) and provides context for what to anticipate in the near term.

FY2024 Financial Performance Overview

BHP Group’s FY2024 results provide a comprehensive snapshot of its operations amid modest revenue growth and strategic shifts in its portfolio. Key financial metrics for the entire year ended June 30, 2024, are as follows:

• Revenue: $55.7 billion, marking a 3% year-over-year (YoY) increase.
• Underlying EBITDA: $29.0 billion, up 4% YoY.
• Net Income (GAAP): $7.9 billion, reflecting a 39% decline YoY due to exceptional charges of $5.8 billion.
• Diluted EPS (GAAP): $1.57.
• Total Dividend Per Share: $1.46 (combining a 74¢ final dividend with a 72¢ interim dividend).
• Net Debt: $9.1 billion, down from $11.2 billion in FY2023.
• Free Cash Flow: $11.9 billion.

These results indicate that while revenue and EBITDA experienced modest growth, one-time charges significantly affected net income. The company has maintained strong cash flow generation and reduced net debt, underscoring its financial resilience in market headwinds.

Revenue Segmentation Breakdown

A mix of core commodities underpins BHP’s diversified revenue structure. The detailed breakdown for FY2024 (year ended June 30, 2024) is as follows:

Iron Ore

• Revenue: $28.0 billion (50.3% of total revenue)
• BHP’s Western Australia Iron Ore (WAIO) division delivered record production figures. Stable prices…