ASX Stocks Capitalising on Commodity Price Momentum
Commodity markets are roaring back to life and giants like BHP, Rio Tinto, Fortescue are capitalising on the boom from iron ore and copper to the critical minerals powering energy transition.
BHP Group Limited (ASX: BHP)
had another strong year in FY2025 showing solid performance even though commodity prices were weaker. It hit record production levels in iron ore and copper and kept its margins among the best in the industry. The company reported revenue of about US$51.3 billion and an underlying EBITDA of US$26.0 billion giving a margin of 53%. Its underlying profit stood at around US$10.2 billion backed by a strong net operating cash flow of US$18.7 billion. BHP paid total dividends of US$5.6 billion. With a healthy balance sheet, net debt sitting at US$12.9 billion and disciplined spending, BHP looks well placed to benefit from future demand in key resources like copper, iron ore, potash and metallurgical coal which are important for the energy transition.
Rio Tinto Limited (ASX: RIO)
posted steady results for the first half of FY2025 backed by good operations and more balance coming from its Aluminium and Copper business. The company made around US$26.9 billion in revenue, with underlying EBITDA of about US$11.5 billion even though iron ore prices fell by 13%. Operating cash flow came in at US$6.9 billion and it an interim dividend of US$2.4 billion keeping the payout ratio at 50%. Aluminium EBITDA jumped 50% to US$2.4 billion helped by record bauxite output and better prices. Copper production went up 16% to 438 thousand tonnes thanks to stronger results from Oyu Tolgoi and Escondida. With the Arcadium Lithium deal Rio Tinto is stepping more into battery metals positioning itself as a diversified global mining powerhouse for the energy transition era.
Fortescue Limited (ASX: FMG)
had another strong year in FY25 showing how solid its position is as one of the lowest cost iron ore producers in the world. The company recorded a revenue of around US$15.5 billion with an underlying EBITDA of US$7.9 billion and a net profit after tax of about US$3.4 billion. It shipped 198.4 million tonnes of iron ore during the year and got an average price of US$85 per dry tonne. Fortescue brought in US$6.5 billion from operations and made free cash flow of about US$2.6 billion keeping its balance sheet healthy with only US$1.1 billion net debt. Apart from iron ore the company is also pushing ahead with its Green Metals Project in Pilbara and working to expand Iron Bridge concentrate operations showing its aim to grow profits.
(Source: Company Announcements)
Get Your Free Report on Top 5 ASX Stocks on WhatsApp
Instant Access. No Credit Card Required.
Receive on WhatsApp
Checkout Our Recommendation for free - 7 days free trial
Start Free TrialASX Stock Research & Recommendations — 7‑day free trial
Independent, analyst‑driven insights.
- Stock of the week report
- Daily Analysis Report
- No credit card required
Get Your FREE Report
Discover the Top ASX Stocks to Invest In 2026!
Expert Analysis of Top-Performing ASX Stocks
Market Insights and In-Depth Research
Buy, Sell, And Hold Recommendations
Almost There!
Enter your details to download the report
Success!
Preparing your download...
Latest Article
Disclaimer
Veye Pty Ltd(ABN 58 623 120 865), holds (AFSL No. 523157 ). All information provided by Veye Pty Ltd through its website, reports, and newsletters is general financial product advice only and should not be considered a personal recommendation to buy or sell any asset or security. Before acting on the advice, you should consider whether it’s appropriate to you, in light of your objectives, financial situation, or needs. You should look at the Product Disclosure Statement or other offer document associated with the security or product before making a decision on acquiring the security or product. You can refer to our Terms & Conditions and Financial Services Guide for more information. Any recommendation contained herein may not be suitable for all investors as it does not take into account your personal financial needs or investment objectives. Although Veye takes the utmost care to ensure accuracy of the content and that the information is gathered and processed from reliable resources, we strongly recommend that you seek professional advice from your financial advisor or stockbroker before making any investment decision based on any of our recommendations. All the information we share represents our views on the date of publishing as stocks are subject to real time changes and therefore may change without notice. Please remember that investments can go up and down and past performance is not necessarily indicative of future returns. We request our readers not to interpret our reports as direct recommendations. To the extent permitted by law, Veye Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss, or data corruption) (as mentioned on the website www.veye.com.au), and confirms that the employees and/or associates of Veye Pty Ltd do not hold positions in any of the financial products covered on the website on the date of publishing this report. Veye Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services.
