Rio Tinto Posts 9% EBITDA Growth, 8% Rise in Copper Output
Rio Tinto’s underlying EBITDA rose 9% year-over-year to $2,425.4 billion, driven by record copper-equivalent output up 8% and a 5% reduction in copper unit costs. The company will return 60% of its $10.9 billion underlying earnings as $6.5 billion in dividends, despite net debt climbing to $14.4 billion.
1. Earnings and EBITDA Growth
Rio Tinto delivered a 9% increase in underlying EBITDA to $2,425.4 billion, supported by $15.2 billion of iron ore EBITDA, a doubling of copper EBITDA to $7.4 billion, and a 20% rise in aluminum EBITDA. Underlying earnings remained stable at $10.9 billion.
2. Production and Cost Efficiency
Copper-equivalent production climbed 8%, setting annual output records, while copper unit costs declined by 5%. The company achieved a $650 million annualized run rate in productivity benefits, contributing to lower operating expenses.
3. Dividend Policy and Capital Expenditure
The board approved returning 60% of underlying earnings—$6.5 billion—to shareholders as dividends. Capital expenditure reached roughly $11 billion, landing at the top end of the guided range.
4. Balance Sheet and Strategic Risks
Net debt increased to $14.4 billion with gearing at 18% following the Arcadian acquisition. A fatality at Simandou underscored safety challenges, merger discussions with Glencore were discontinued, and volume growth is expected to moderate in 2026 due to closures and grade declines.