Rio Tinto Group

Underlying EBITDA increased 28% to $14.8 billion. Stronger commodity prices added $3.6 billion to EBITDA, including $2 billion from copper and $1.3 billion from aluminum, while external headwinds totaled $1.5 billion. Controllables contributed another $1.2 billion, and management said it had already banked $870 million of productivity benefits by June. Free cash flow rose 75%, copper equivalent production increased 3%, and the interim dividend was $3.4 billion, 43% higher, at a 50% payout ratio. On capital allocation, the company said it reduced net debt during the period while funding $5 billion of CapEx and paying the 2025 final dividend of $4.2 billion in the half. Full-year CapEx guidance was unchanged at up to $11 billion in 2026 and 2027, before easing to $10 billion in real 2025 terms from 2028; sustaining capital is around $4 billion a year. Management also said it is targeting a year-end productivity run rate of $1.8 billion and remains on track for a 3% CAGR in copper-equivalent production to 2030 and a 4% CAGR reduction in unit cost.

Simon Trott framed the half as evidence that Rio Tinto is becoming “stronger, sharper and simpler,” with a heavier emphasis on operational performance and disciplined returns. He said the company is changing how it works through more than 80 initiatives and a new management operating system, and emphasized safety after two colleague deaths in the half. His tone was confident and assertive, repeatedly pointing to growth in copper, aluminum, lithium and iron ore as proof that the strategy is working.

Peter Cunningham highlighted that the earnings uplift was not just a price story, pointing to stronger commodity markets plus the productivity program and growth volumes. He said underlying EBITDA reached $14.8 billion, free cash flow rose 75%, and net debt fell despite $5 billion of CapEx and the $4.2 billion 2025 final dividend paid in the half. He also broke down the EBITDA benefit from stronger prices at $3.6 billion and the external headwinds at $1.5 billion, and reiterated the company’s capital allocation priorities: sustaining and decarbonization capital of around $7 billion to $8 billion a year, shareholder returns, and selective cash release opportunities.

Analysts pressed management on how the jump from $870 million of banked productivity benefits to the $1.8 billion run rate breaks down; Peter said the waterfall showed roughly $530 million from cost and the rest from volume, and said the mix should be broadly similar for the full year. Questions also focused on aluminum strategy and possible asset monetizations; Simon said aluminum remains a core business with strong assets, but Rio is still weighing simplification and performance improvements. On copper and growth, management said Resolution is in the drilling/ore-body characterization phase, Kennecott’s life-extension decision is expected in the near-to-mid term, and the company is still assessing whether a smelter would be needed for Resolution. Questions on Mongolia tax disputes and Pilbara labor changes were answered with references to ongoing arbitration, continued engagement with government, and a focus on safe, respectful workplace relations.