Rio Tinto Group (RIO) H2 2025 earnings summary

Executive summary

• Achieved 8% increase in copper equivalent production in 2025, with record output in copper and bauxite, and industry-leading production growth.

• Underlying EBITDA rose 9% to $25.4 billion, with record copper EBITDA of $7.4 billion, and a 60% payout ratio returning $6.5 billion to shareholders.

• Maintained a 10-year track record of ordinary dividends at the top end of the payout range.

• Major projects executed, including Oyu Tolgoi underground completion, Simandou's first iron ore shipment, and lithium projects targeting 200,000 tons per annum by 2028.

• Focused on operational excellence, cost reduction, and disciplined capital allocation to drive growth and shareholder value.

Financial highlights

• Underlying EBITDA increased 9% year-over-year to $25.4 billion, driven by higher copper and aluminum prices and volumes.

• Consolidated sales revenue increased 7% to $57.6 billion, and cash flow from operations grew 8% to $16.8 billion.

• Net debt rose to $14.4 billion after the Arcadium acquisition, with gearing at 18%.

• CapEx reached $11.4 billion, with peak spend on Simandou ($1.6 billion) and lithium projects ($1 billion).

• Iron ore EBITDA was $15.2 billion, copper EBITDA $7.4 billion, and aluminum EBITDA $4.4 billion.

Outlook and guidance

• Targeting 3% CAGR in copper equivalent production through 2030, with growth led by copper, aluminum, and lithium.

• 2026 guidance: iron ore shipments 323–338Mt, copper production 800–870kt, bauxite 58–61Mt, lithium 61–64kt LCE.

• CapEx guidance remains up to $11 billion for the next two years, stepping down to less than $10 billion in the mid-term.

• Ongoing focus on productivity improvements and cost reductions, with aggregate improvements expected to materially exceed the $650 million run rate in 2026.

• Targeting 4% CAGR reduction in unit costs through 2030.