Anglo American (AAL) H1 2025 earnings summary

Executive summary

• Advanced portfolio simplification with Valterra demerger, steelmaking coal and nickel sales, and De Beers separation in progress.

• Operational excellence in copper and iron ore drove stable, cost-effective production, with EBITDA margins of 48% and 44% respectively.

• Transformation positions the business as high-margin, cash-generative, and focused on future-enabling commodities.

• $1.3 billion of $1.8 billion targeted cost savings realized by June 2025; strong cash conversion at 108%.

• Strategic priorities include operational excellence, portfolio simplification, and growth delivery.

Financial highlights

• Revenue from continuing operations: $8.95–$9.3 billion, down 7% year-over-year; EBITDA: $2.96–$3.0 billion, margin 32%.

• Net debt at $10.8 billion, net debt/EBITDA at 1.8x, expected to fall below 1x after asset sales; liquidity at $12.0 billion.

• EPS from continuing operations: $0.32; total EPS: $0.15; dividend: $0.07 per share, reflecting losses from discontinued operations.

• Cash conversion improved to 108% (up 15pp year-over-year).

• Pro-forma simplified portfolio: revenue $7.3 billion, EBITDA $3.2 billion, margin 43%, ROCE 15%.

Outlook and guidance

• 2025 copper production guidance: 690–750 kt at c.151c/lb unit cost; iron ore: 57–61 Mt at c.$36/t.

• CapEx guidance for continuing operations: $3.1–$3.5 billion in 2025, with long-term sustaining CapEx at ~$2 billion per annum.

• Dividend payout ratio maintained at 40% of underlying earnings; net debt/EBITDA target below 1.0x.

• Effective tax rate guidance for 2025: 44–48%.

• Pro forma portfolio expected to deliver higher margins, cash conversion, and ROCE.