Rio Tinto Group (RIO) H1 2025 earnings summary

Executive summary

• Achieved resilient operational and financial performance in H1 2025, with underlying EBITDA of $11.5bn and operating cash flow of $6.9bn, despite lower iron ore prices and weather disruptions.

• Portfolio diversification and strategic investments, especially in copper and aluminum, drove profitable growth and offset iron ore headwinds.

• Major projects, including Oyu Tolgoi and Simandou, are ramping up on schedule, with Simandou's first shipment accelerated to November 2025.

• Social license and partnerships with local communities remain a core focus, highlighted by new co-designed management and heritage plans.

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

Financial highlights

• Consolidated sales revenue stable at $26.9bn; underlying EBITDA down 5% to $11.5bn; operating cash flow $6.9bn (down 2% YoY).

• Underlying earnings declined 16% to $4.8bn; net earnings $4.5bn (down 22% YoY).

• Net debt increased to $14.6bn, mainly due to the Arcadium Lithium acquisition.

• Share of capital investment rose 23% to $4.5bn; CapEx weighted to second half due to project phasing.

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

Outlook and guidance

• On track to meet full-year guidance for production, projects, and investments; 2025 production guidance maintained.

• 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 110–130c/lb.

• CapEx guidance reaffirmed at ~$11bn for 2025 and $10–11bn thereafter; effective tax rate expected at 33% for 2025.

• Exploration and evaluation expense expected slightly below $1bn for 2025.