Rio Tinto: Solid results underpinned by +8% CuEq production and sharper cost discipline
LONDON--( BUSINESS WIRE)--Rio Tinto Chief Executive Simon Trott said: "Safety remains our highest priority. We are deeply committed to learning from the tragic death of one of our colleagues at the Simandou project last weekend and I will be spending time with the team on the ground, as we fully investigate how this happened.
"Our solid financial results demonstrate clear progress as we embed our stronger, sharper and simpler way of working. We achieved an 8% uplift in CuEq production 1 driven by the ongoing ramp-up of the Oyu Tolgoi underground copper mine and record iron ore production since April from our Pilbara operations. This strong operational performance, together with a diversifying portfolio and firm cost discipline, underpinned a 9% increase in underlying EBITDA to $25.4 billion and operating cash flow of $16.8 billion. We delivered stable underlying earnings of $10.9 billion, after taxes and government royalties of $10.4 billion 2.
"We continue to invest in delivering industry-leading, value-accretive growth, supported by our disciplined capital allocation and best-in-class project execution. We remain on track to achieve 3% CAGR in CuEq 1 production to 2030. At the same time, the structural cost improvements underway today position us for higher margins and cash flow. With a high-quality pipeline, anchored in copper, we have clear visibility to extend this growth profile well into the next decade.
"Our strong cash flow and balance sheet enable us to sustain a 60% payout ratio with a $6.5 billion ordinary dividend, making it the tenth consecutive year at the top end of the range."
1 Copper equivalent volume = Rio Tinto’s share of production volume / Volume conversion factor x Product price ($/t) / Copper price ($/t). Prices are based on long-term consensus prices. 2 In 2024, taxes and government royalties were $8.2 billion.
Year ended 31 December
2025
2024
Change
Net cash generated from operating activities (US$ millions)
16,832
15,599
8%
Purchases of property, plant and equipment and intangible assets (US$ millions)
12,335
9,621
28%
Free cash flow 1 (US$ millions)
4,025
5,553
(28)%
Consolidated sales revenue (US$ millions)
57,638
53,658
7%
Underlying EBITDA 1 (US$ millions)
25,363
23,314
9%
Underlying earnings 1 (US$ millions)
10,868
10,867
—%
Profit after tax attributable to owners of Rio Tinto (net earnings) (US$ millions)
9,966
11,552
(14)%
Underlying earnings per share (EPS) 1 (US cents)
669.2
669.5
—%
Ordinary dividend per share (US cents)
402
402
—%
Underlying return on capital employed (ROCE) 1
16%
18%
Net debt 1 (US$ millions)
14,362
5,491
162%
1 This financial performance indicator is a non-IFRS (as defined below) measure which is reconciled to directly comparable IFRS financial measures (non-IFRS measures). It is used internally by management to assess the performance of the business and is therefore considered relevant to readers of this document. It is presented here to give more clarity around the underlying business performance of the Group’s operations. For more information on our use of non-IFRS financial measures in this report, see the section entitled “Alternative performance measures” (APMs) and the detailed reconciliations on pages 38 to 45.
2. Our strategy - Delivering industry-leading value
Our strategy is built on a diversified portfolio of world-class assets and projects in the right commodities. It centres on the priorities of a great metals and mining business: operational excellence, project execution and capital discipline, underpinned by our people, social licence and partnerships. We are focused on the fundamentals of value creation and implementing our stronger, sharper, simpler way of working.
2025 highlights
People and Safety first
Operational excellence
On our pathway to deliver 4% CAGR unit cost improvement to 2030
Project execution
Capital discipline
Strong sustainability and social licence
1.
Based on total cost of sales of our operations, divided by sales volumes in copper equivalent terms on a Rio Tinto consolidated basis, stated in 2024 real terms.
2.
Productivity benefits are operating expenses savings on an annual run rate basis. They include actions already realised ($370 million) and actions which will be delivered by end of Q1 2026 ($280 million). All figures are on a consolidated basis.
The 2025 full year results release is available here
This announcement is authorised for release to the market by Andy Hodges, Rio Tinto’s Group Company Secretary.
LEI: 213800YOEO5OQ72G2R82
Classification: 3.1 Additional regulated information required to be disclosed under the laws of a Member State