Rio Tinto Group (RIO) investor relations material

Executive summary

• Achieved a 28% increase in underlying EBITDA to $14.8 billion and a 75% rise in free cash flow to $3.8 billion year-over-year, driven by higher commodity prices, productivity gains, and operational improvements.

• Copper, Aluminium, and Lithium contributed over 50% of underlying EBITDA, reflecting successful portfolio diversification and growth in these segments.

• Interim ordinary dividend declared at $3.4 billion, up 43%, with a 50% payout ratio, supported by strong cash flow and balance sheet.

• Productivity program delivered $870 million in benefits by June, targeting a $1.8 billion annualized run-rate by year-end.

• Maintained a robust balance sheet with Single A credit ratings and net debt reduced to $14.1 billion.

Financial highlights

• Consolidated sales revenue rose 15% to $31.0 billion; operating cash flow increased 32% to $9.2 billion year-over-year.

• Underlying earnings up 43% to $6.9 billion; profit after tax attributable to owners up 47% to $6.7 billion.

• Underlying EBITDA margin improved to 43% (from 39% YoY); ROCE improved to 17% from 14% YoY.

• Net debt reduced 2% to $14.1 billion; net gearing ratio at 16%.

• Interim dividend per share increased to 211 US cents (from 148 US cents in H1 2025).

Outlook and guidance

• 2026 production and sales guidance maintained across all major commodities; Pilbara iron ore unit cost guidance at $23.5–25.0/t.

• Copper C1 net unit cost guidance reduced to US 30–50c/lb due to higher gold prices and productivity improvements.

• Targeting $5–10 billion of cash release through portfolio management and infrastructure by end-2026.

• CapEx guidance unchanged: up to $11 billion in 2026 and 2027, reducing to $10 billion from 2028.

• Decarbonization pathway aims for a 50% reduction in Scope 1 and 2 emissions by 2030 vs. 2018 baseline.