BHP Group (NYSE: BHP): Recovery Signs Amid Profit Slump

By Patricia Miller

Feb 18, 2025

1 min read

BHP’s profit plunged 23% to a six-year low, but with steel and copper demand rebounding, could this be the turning point for investors?

Pit pours liquid metal into molds. Stock footage. Liquid mass of molten metal pours out of pit. Stream of liquid metal is poured into molds at metallurgical

#What You Need to Know

BHP Group Ltd (NYSE: BHP) has reported a significant decline in profits, marking its lowest first-half profit in six years at $5.08 billion, a drop of 23% from the previous year. The decline is attributed mainly to falling iron ore prices, where earnings decreased by 26% as demand fluctuated due to global economic conditions.

Despite these challenges, BHP has indicated signs of recovery in demand for steel and copper, particularly due to easing monetary policies from central banks. Looking ahead, BHP is prioritizing organic growth and expects to invest heavily to expand its copper operations amid a backdrop of global trade uncertainties.

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#Why This Is Important for Retail Investors

  • Profit Decline: BHP experienced a 23% drop in profits, which may impact shareholder payouts and stock performance.

  • Dividend Changes: The interim dividend has been reduced to 50 cents, the lowest in eight years, signaling potential cash flow concerns.

  • Market Recovery: Signs of recovery in China and potential central bank rate cuts could positively influence steel and copper demand.

  • Investment Focus: BHP's strategy is now centered on organic growth rather than acquisitions, which can impact long-term strategy for investors.

  • Trade Risks: Potential trade tensions could pose risks to the overall recovery of the mining sector, prompting investors to reassess their positions.

#Relevant ETFs

  • SPDR S&P Metals and Mining ETF

  • iShares U.S. Basic Materials ETF

  • Invesco DB Base Metals Fund

  • VanEck Vectors Gold Miners ETF

  • Global X Copper Miners ETF

  • Invesco S&P 500 Equal Weight Materials ETF

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Important Notice And Disclaimer

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

Patricia Miller does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the above article.

Patricia Miller has not been paid to produce this piece by the company or companies mentioned above.

Digitonic Ltd, the owner of ValueTheMarkets.com, does not hold a position or positions in the stock(s) and/or financial instrument(s) mentioned in the above article.

Digitonic Ltd, the owner of ValueTheMarkets.com, has not been paid for the production of this piece by the company or companies mentioned above.