Rio Tinto Group

Underlying EBITDA increased 28% to $14.8 billion. Stronger commodity prices added $3.6 billion to underlying EBITDA, including $2 billion from copper and $1.3 billion from aluminum, while external headwinds reduced EBITDA by $1.5 billion. Controllables contributed a further $1.2 billion, and free cash flow rose 75%. The interim dividend was lifted 43% to $3.4 billion, with a 50% payout. Management said it had already banked $870 million of productivity benefits and is targeting a year-end run rate of $1.8 billion. Capital expenditure guidance was unchanged at up to $11 billion in 2026 and 2027, before reducing to $10 billion in real '25 terms from 2028. Sustaining capital is expected to be around $4 billion a year, and the company said it 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 heavy emphasis on operational excellence and capital discipline. He repeatedly stressed safety after two colleague fatalities in the half, saying nothing else matters if people do not go home safely. Strategically, he highlighted Rio’s exposure to electrification, AI and digital, plus world-class assets in copper, aluminum, lithium and iron ore, and said the company is focused on extracting more value from that portfolio through a new management operating system and broader accountability at the asset level.

Peter Cunningham said the half delivered a step change in financial performance, supported by stronger copper and aluminum markets but not driven by price alone. He cited underlying EBITDA of $14.8 billion, free cash flow up 75%, net debt reduced despite higher investment, and the 43% higher dividend at a 50% payout. He also broke out the EBITDA bridge: $3.6 billion from higher commodity prices, $1.5 billion of external headwinds, and $1.2 billion from controllables. On capital allocation, he said the company expects to spend around $7 billion to $8 billion a year on sustaining replacement and decarbonization capital, with around $5 billion of cash release opportunities in 2026 and a broader pipeline above $10 billion.

Analysts focused on the jump from $870 million of banked productivity to the $1.8 billion run rate target, and management said the increase will come from a mix of cost and volume benefits, with Peter citing about $530 million of cost and the rest volume. Questions also centered on aluminum strategy and whether it fits with simplification; Simon said Rio views aluminum as one of its core growth commodities and is focused on improving the business rather than shrinking it. Other notable topics were Resolution Copper, where Simon said the next step is drilling the ore body and assessing whether smelter build options are needed, and Kennecott, where he said an extension into the 2040s is progressing and should be decided in the not-too-distant future.