BHP Group H1 2026 Margin Slippage Tests Resilient Earnings Narrative

Simply Wall St.02-17

BHP Group (ASX:BHP) has put fresh numbers on the table for H1 2026, with total revenue of US$26.1 billion and basic EPS of US$0.91, alongside net income of US$4.6 billion. The company has seen recent ...

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The company has seen recent ...</p>\n\n<a href=\"https://simplywall.st/stocks/au/materials/asx-bhp/bhp-group-shares/news/bhp-group-h1-2026-margin-slippage-tests-resilient-earnings-n\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>BHP Group H1 2026 Margin Slippage Tests Resilient Earnings Narrative</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nBHP Group H1 2026 Margin Slippage Tests Resilient Earnings Narrative\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-02-17 17:15 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/au/materials/asx-bhp/bhp-group-shares/news/bhp-group-h1-2026-margin-slippage-tests-resilient-earnings-n><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>BHP Group (ASX:BHP) has put fresh numbers on the table for H1 2026, with total revenue of US$26.1 billion and basic EPS of US$0.91, alongside net income of US$4.6 billion. The company has seen recent ...</p>\n\n<a href=\"https://simplywall.st/stocks/au/materials/asx-bhp/bhp-group-shares/news/bhp-group-h1-2026-margin-slippage-tests-resilient-earnings-n\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BHP","symbol_name":"必和必拓公司","start_time":0,"source_url":"https://simplywall.st/stocks/au/materials/asx-bhp/bhp-group-shares/news/bhp-group-h1-2026-margin-slippage-tests-resilient-earnings-n","article_id":"2612345456","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/company-cover/256654-main-header/1585186732463"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/au/materials/asx-bhp/bhp-group-shares/news/bhp-group-h1-2026-margin-slippage-tests-resilient-earnings-n","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2612345456","pubTimestamp":1771319717,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"BHP Group (ASX:BHP) has put fresh numbers on the table for H1 2026, with total revenue of US$26.1 billion and basic EPS of US$0.91, alongside net income of US$4.6 billion. The company has seen recent revenue move from US$28.4 billion in H2 2024 to US$25.2 billion in H1 2025 and US$26.1 billion in H2 2025, while EPS shifted from US$1.38 to US$0.87 and then US$0.91 over the same halves. This sets a clear backdrop for how you read this latest print. With margins easing over the past year, the...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"BHP":"必和必拓公司","BHP.AU":"BHP GROUP LTD"},"translate_title":"必和必拓集团2026年上半年利润率下滑考验弹性盈利叙述","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"BHP.AU":1.5,"BHP":1.5},"content_text":"BHP Group (ASX:BHP) has put fresh numbers on the table for H1 2026, with total revenue of US$26.1 billion and basic EPS of US$0.91, alongside net income of US$4.6 billion. The company has seen recent revenue move from US$28.4 billion in H2 2024 to US$25.2 billion in H1 2025 and US$26.1 billion in H2 2025, while EPS shifted from US$1.38 to US$0.87 and then US$0.91 over the same halves. This sets a clear backdrop for how you read this latest print. With margins easing over the past year, the focus now is on how investors balance solid absolute earnings against a tighter profitability profile. See our full analysis for BHP Group. With the headline figures in place, the next step is to see how these results line up with the widely held stories about BHP, where some long running narratives may be confirmed and others could be put under pressure. See what the community is saying about BHP Group ASX:BHP Revenue & Expenses Breakdown as at Feb 2026 AdvertisementNet profit margin slips to 19%  Over the last 12 months, BHP converted US$53.98b of revenue into US$10.24b of net income, which works out to a 19% net profit margin compared with 21.2% a year earlier. Consensus narrative talks up resilient earnings supported by long life, low cost assets. However, the margin move from 21.2% to 19% and the 8.2% average annual earnings decline over five years show that profitability has been under pressure even while assets are described as high quality.\n     Supporters often point to cost leadership in key operations, but the lower margin and negative five year earnings trend mean that cost advantages have not fully translated into steadier bottom line outcomes recently. This mix of high assessed earnings quality and softer margins gives you a more mixed picture than a simple \"resilient earnings\" story would suggest.    Bulls argue that BHP’s long life, low cost assets can keep cash flow resilient even as margins move around, and this margin profile is a good place to test how that claim holds up over time. 🐂 BHP Group Bull Case Revenue base over US$53b with modest growth forecast  On a trailing basis BHP generated US$53.98b of revenue, and analysts are currently forecasting earnings growth of about 3.3% per year while expecting revenue to slip slightly by 0.5% per year. Supportive views often lean on copper and potash growth projects as future drivers. Yet the combination of a US$53.98b revenue base and the forecast 0.5% annual revenue decline suggests the market is not baking in strong top line expansion from that project pipeline just yet.\n     Analysts expecting earnings to grow while revenue edges down are effectively relying on margin improvement or mix, which sits against the recent margin compression from 21.2% to 19%. For you as a shareholder, that split between slight revenue contraction and modest earnings growth makes it important to watch how efficiently BHP can run its existing asset base rather than counting only on new volume growth.    Valuation sits between P/E support and lower DCF fair value  BHP’s current share price of A$52.74 screens against a DCF fair value of A$38.70 and an analyst price target reference of A$49.73, while its 18.5x P/E is below the industry average of 24.3x and peer average of 20.3x. Critics highlight that the share price sitting above the A$38.70 DCF fair value and above the A$49.73 target reference can weigh on purely cash flow based valuation arguments, even though the below market and below industry P/E gives the multiples case some support.\n     The gap between A$52.74 and the A$38.70 DCF fair value points to a more cautious stance from discounted cash flow models, especially when paired with a 19% net margin that has softened over the year. At the same time, trading on 18.5x earnings versus a 24.3x industry P/E means some investors may still see BHP as relatively cheaper than metals and mining peers when they focus on simple earnings multiples.    Skeptics warn that margin softness and an unstable dividend track record make the premium to DCF fair value worth paying attention to, particularly if earnings growth stays modest. 🐻 BHP Group Bear Case Next Steps To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for BHP Group on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves. If this mix of solid earnings and softer margins leaves you on the fence, take a moment to check the full picture for yourself, and move quickly to shape your own view by weighing up the 2 key rewards and 1 important warning sign. See What Else Is Out There Pressure on BHP’s margins, modest 3.3% earnings growth expectations and a share price above DCF fair value all point to a less compelling risk reward trade off. If that mix makes you cautious about paying up for earnings that are not racing ahead, it is worth acting now and checking out 9 high quality undervalued stocks that pair stronger valuation support with solid fundamentals.  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.Valuation is complex, but we're here to simplify it.Discover if BHP Group might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. 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