Owning BHP Group Ltd (ASX: BHP) stock has been a good move for the past six months, following its rise of approximately 20%. That compares to a decline of 3% for the S&P/ASX 200 Index (ASX: XJO), at the time of writing.
The huge ASX mining share has a massive presence for Aussie investors because of its huge market capitalisation and typically rewarding dividend yield.
After the company’s recent FY26 half-year result. A few things became clear and I think investors should be aware of them.
Copper is now a major part of the company’s earnings
For the first six months of FY26, copper contributed 51% of BHP’s underlying operating profit (EBITDA). In dollar terms, copper underlying EBITDA jumped 59% to US$8 billion. It’s becoming increasingly important for BHP stock.
In other words, iron ore became a minority contributor to the business in HY26. Time will tell what percentage of earnings iron ore will be in the coming years.
BHP reported that the average realised price increased by 32% to US$5.28 per pound, representing an increase of 32% year-over-year. The ASX mining share highlighted short-term large supply disruptions at major copper mines and the threat of tariffs providing “positive price momentum”.
The company expects a continued tight copper market over the next few years. BHP wrote:
Copper fundamentals remain attractive. Demand is expected to grow from ~34 Mt today to >50 Mt by CY50, with the key drivers being ‘Traditional’ economic growth (home building, electrical equipment and household appliances), ‘Energy Transition’ (renewables and electric vehicles) and ‘Digital’ (Artificial Intelligence and Data Centres). Growth potential for ‘Digital’ is promising â we believe that copper demand in Data Centres could grow sixfold to nearly 3Mtpa in CY50.
We anticipate that the cost curve for the mines needed to meet this demand is likely to steepen as both operational and development challenges progressively increase.
Strong demand expected for iron ore
There is a rising iron ore price at the moment, which is a positive for BHP’s potential iron ore earnings in the second half of FY26.
According to Trading Economics, the iron ore price has bounced back to US$105 per tonne, which is at a level the business can make a pleasing level of profit.
BHP said:
In China, supportive policy measures in CY25 underpinned steel and metals-related manufacturing activity, particularly in transport and machinery, which helped to offset ongoing housing sector weakness and the slowdown in infrastructure investment.
China’s trade surplus surpassed US$1 Tn in CY25 for the first time, as strong exports to global markets offset weaker shipments to the United States. Steel exports provided support to China’s production and more than offset the slight decline in domestic steel demand.
Indian commodity demand continues to grow strongly, driven by broad-based sectoral growth and underpinned by the ongoing capacity additions in the steel and metals value chain (e.g. blast furnaces in steel, smelting and refining in copper).
For me, this suggests that BHP can continue delivering solid profit generation from its iron ore business, which is good news for BHP stock, despite the headwind of expected production from Africa, particularly Simandou (which is partly owned by Rio Tinto Ltd (ASX: RIO).
Positive potash conditions
On top of the good news for copper and iron ore, potash â a greener form of fertiliser â is also expected to benefit from growing demand over the long-term. Excitingly, in the six months to December 2025, the potash average price increased 30% year-over-year thanks to strong demand in Southeast Asia and China.
Stage 1 of the Jansen potash project was 75% complete as of December 2025 and stage 2 was 14% complete. Stage 1 production is targeted for mid-2027.
BHP wrote:
Longer term, we believe potash benefits from attractive demand fundamentals from the intersection of several global megatrends: rising population, changing diets and the need for more sustainable and efficient use of arable land for agriculture.
The post 3 things about BHP stock every smart investor knows appeared first on The Motley Fool Australia.
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More reading
- Buy, hold, sell: BHP, CSL, and Woodside shares
- Should you buy the dip on ASX mining shares?
- Rio Tinto shares charge higher on big copper news
- Should I invest $2,000 in the VAS ETF?
- Should you buy BHP shares for passive income?
Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.