Anglo American (AAL) H2 2025 earnings summary

Executive summary

• Achieved transformational progress in 2025, including major portfolio changes, operational excellence, and the announcement of a merger with Teck to form Anglo Teck, unlocking ~$800m annual synergies and focusing on copper and premium iron ore.

• Completed the demerger of PGMs (Valterra), full sell-down of the residual stake, and advanced the exit from De Beers, steelmaking coal, and nickel, generating up to $3bn in proceeds.

• Paid or planned ~$4.5bn special dividend to shareholders around merger completion.

• Safety performance improved with record-low injury frequency rates, though two workplace fatalities occurred.

Financial highlights

• Simplified business (copper and premium iron ore) delivered $6.9bn EBITDA (44% margin), underlying earnings of $1.6bn, and a 17% return on capital employed.

• Underlying EPS was $0.54, with a full-year dividend of $0.23 per share; net debt reduced to $8.6bn, with net debt/EBITDA at 1.3x.

• CapEx for continuing operations decreased 16% to $3.3bn, below guidance, with a $0.6bn reduction in 2025 and a declining profile through 2028.

• Realised $0.6bn gross cost savings in 2025, achieving a $1.8bn run rate.

• Strong cash conversion at 107% (continuing basis), up 9pp from 2024, and liquidity at $12.4bn.

Outlook and guidance

• 2026 copper production guidance: 700–760kt; premium iron ore: 55–59Mt.

• Copper unit cost expected to rise to $1.72/lb in 2026; premium iron ore unit cost to be ~$41/ton.

• Group underlying effective tax rate for 2026 expected at 44%-48%; long-term guidance for the simplified portfolio remains 38%-42%.

• CapEx for the next three years for the simplified portfolio expected at $2.6bn–$3.1bn per year, trending lower through 2028.

• De Beers CapEx expected at ~$500m in 2026.