Rio Tinto has delivered its highest half-year results in four years, backed by strong operational execution, cost-cutting momentum, and buoyant commodity prices.
The group reported a 28 per cent rise in underlying earnings to US$14.8 billion (AU$21.31 billion) for the half year ended June 30, while free cash flow surged 75 per cent to US$3.8 billion.
Profit after tax attributable to owners climbed 47 per cent to US$6.7 billion, prompting the board to declare a US$3.4 billion interim ordinary dividend, up 43 per cent on the previous corresponding period.
Rio Tinto CEO Simon Trott attributed the result to accelerating productivity and disciplined portfolio execution.
“We achieved a step-change in performance in the first half, which, alongside favourable commodity prices, delivered a 28 per cent increase in underlying EBITDA and a 75 per cent rise in free cash flow,” Trott said.
“Our continued investment in growth drove a 3 per cent increase in copper equivalent production and further strengthened our portfolio diversification, with copper, aluminium and lithium contributing more than 50 per cent of underlying EBITDA.”
Production gains were led by the ongoing underground ramp-up at Oyu Tolgoi in Mongolia, sustained aluminium outputs, and the Pilbara iron ore operations recording their strongest first-half production volumes since 2018.
Meanwhile, major growth initiatives advanced rapidly, with first high-grade iron ore sales achieved from the Simandou project in Guinea and early production milestones reached across lithium assets.
Despite operational headwinds, including rising diesel costs in the Pilbara, Rio Tinto maintained its full-year production and unit cost guidance across all primary commodities.
The company expects copper production to come in at 800 to 870 kt, while total iron sales are expected at 343 to 366 Mt.
The company also lowered its expected 2026 effective tax rate on underlying earnings from 30 per cent to approximately 25 per cent due to tax asset utilisation.
