BHP Axes 750 Jobs After $8bn Profit as Copper Drives 51% EBITDA and ASX Shares Surge

ASX Focus • Earnings • Mining

Updated: Feb 17, 2026 Tickers: BHP.AX • HG=F Read time: ~4 min By Swikblog

BHP’s latest half-year numbers landed with the kind of force that moves a whole market day. The miner posted a $8bn net profit, lifted revenue to $39.46bn, and rewarded shareholders with a US73c interim dividend. But the same announcement also carried a sharper edge: BHP says it will remove about 750 roles across Queensland as it pushes to cut costs in its coal business, citing the drag of the state’s royalty regime.

Why BHP is cutting jobs in Queensland despite a big profit

The contradiction at the heart of this result is simple: copper and iron ore are throwing off cash, while Queensland coal is being squeezed. BHP told the market it will place Saraji South into care and maintenance in Q2 FY26 and remove about 750 roles across Queensland, pointing to the “material impact” of coal royalties on returns. The company’s finance chief, Vandita Pant, said taxes and royalties are outstripping the profits being generated in that part of the business, calling it a continuing headwind.

Queensland Treasurer David Janetzki, meanwhile, reiterated that there will be no change to the royalty settings. In budget terms, the stakes are clear: the state is managing a deficit while relying heavily on coal royalty revenue. For BHP, the message is equally blunt: if the returns do not clear the hurdle rate, production schedules and headcount become the lever.

The copper story powering the rerate

Investors have been waiting for a clear signal that BHP’s “future-facing” commodities are no longer just a narrative. This half-year helped. BHP says it has achieved about 30% growth in copper production over the past four years, and it sees multiple “compelling” growth options across Argentina, Arizona, Chile and South Australia to ride what it expects to be a strengthening long-term copper market.

Iron ore stays the cash engine, even as copper grabs headlines

BHP’s West Australian iron ore operations delivered record first-half production and shipments, supported by additional train infrastructure at Port Hedland. The iron ore division remains the dependable cash engine that underwrites dividends and growth investment, even when the market’s attention shifts to copper. At the same time, the company has acknowledged ongoing supply-contract disputes involving China Mineral Resources Group, keeping a layer of uncertainty around the trading relationship even as volumes remain strong.

Dividend signal: confidence, discipline, and a clear payout line

The US73c interim dividend, framed as a 60% payout ratio, reads as a confidence marker as much as a reward. It suggests BHP sees its cash flow holding up well enough to keep funding a copper-and-potash growth pipeline while still paying meaningful income to shareholders. It also explains why the share price reaction was so immediate: for many portfolios, BHP is owned as much for the dividend profile as for the commodity cycle.

The near-term question now is whether the market continues to pay up for BHP as a “copper-forward” miner, or treats it as a diversified giant where coal and iron ore remain the gravitational centre. Either way, the strategy has been made explicit: squeeze costs where policy and royalties bite, and redeploy attention toward copper and potash where BHP believes the long runway sits.