Rio Tinto Group (RIO) H1 2025 earnings summary

Executive summary

• Achieved resilient H1 2025 financial results with underlying EBITDA of $11.5bn and operating cash flow of $6.9bn, supported by portfolio diversification and strong Aluminium and Copper performance, despite a 13% drop in iron ore prices and weather disruptions.

• Major projects, including Simandou and Western Range, are progressing on time and on budget, with Simandou's first shipment expected in November 2025.

• Closed Arcadium Lithium acquisition, integrating lithium assets and expanding growth options.

• Interim dividend of $2.4bn declared, maintaining a 50% payout ratio.

• Announced leadership transition, with Simon set to succeed as CEO.

Financial highlights

• Consolidated sales revenue stable at $26.9bn; underlying EBITDA down 5% to $11.5bn; underlying earnings down 16% to $4.8bn.

• Operating cash flow decreased 2% to $6.9bn; net debt rose to $14.6bn, mainly due to Arcadium acquisition.

• Interim dividend payout maintained at 50%, totaling $2.4bn.

• Share of capital investment increased 23% to $4.5bn; CapEx increased to support growth and productivity.

• Return on capital doubled in aluminum despite tariff challenges.

Outlook and guidance

• On track to meet 2025 production, project, and investment guidance; Pilbara iron ore shipments guided at 323–338Mt, copper 780–850kt, aluminium 3.25–3.45Mt.

• Pilbara iron ore unit cash costs guided at $23.0–24.5/t; copper C1 net unit costs updated to 110–130c/lb.

• CapEx guidance unchanged at ~$11bn for 2025 and $10–11bn thereafter, with growth investments of ~$3bn annually.

• Simandou ramp-up to 120 million tons over 2.5 years; Oyu Tolgoi copper output guided at 500,000 tons/year by 2028.

• Effective tax rate expected at 33% for 2025, returning to 30% from 2026.