Rio Tinto Group (RIO) H2 2024 earnings summary

Executive summary

• Achieved strong operational and financial performance in 2024, with the third consecutive year of value-adding growth and a diversified portfolio supporting resilience and profitability.

• Focused on operational excellence, ESG leadership, project development, and maintaining social license, contributing to sustained growth and shareholder returns.

• Underlying EBITDA reached $23.3 billion, down 2% year-over-year, and underlying earnings were $10.9 billion, down 8% year-over-year.

• Maintained a 60% dividend payout ratio, distributing $6.5 billion to shareholders, continuing a nine-year track record at the top end of the payout range.

• Significant progress in decarbonization, with a 14% emissions reduction since 2018 and record project approvals supporting 2030 targets.

Financial highlights

• Consolidated sales revenue was $53.7 billion, down 1% compared to 2023.

• Underlying EBITDA was $23.3 billion, down 2% year-over-year, despite an 11% drop in iron ore prices, offset by higher aluminum and copper contributions.

• Operating cash flow increased 3% to $17.1 billion, with a 67% EBITDA cash conversion rate.

• Net debt ended at $5.5 billion, and ordinary dividend payout maintained at 60% of earnings, totaling $6.5 billion.

• Share of capital investment grew 37% to $9.5 billion, reflecting growth and decarbonisation projects.

Outlook and guidance

• 2025 copper equivalent production expected to grow 4% at mid-point of guidance, excluding Arcadium Lithium, with a decade-long 3% CAGR targeted.

• Pilbara iron ore shipments guidance for 2025: 323-338Mt; copper: 780-850kt; bauxite: 57-59Mt; aluminium: 3.25-3.45Mt.

• CapEx guidance unchanged at $11 billion for 2025, with future years expected at $10–11 billion, accommodating Arcadium projects.

• Full-year iron ore shipment guidance maintained despite weather disruptions, with ongoing review of Pilbara product strategy.

• Effective tax rate expected at 28-30%; shareholder returns to remain at 40-60% of underlying earnings.