Rio Tinto Group reported that its underlying earnings for 2025 remained flat at $10.9 billion, unchanged from the prior year, while consolidated sales revenue climbed 7% to $57.6 billion and operating cash flow rose 8% to $16.8 billion. The company’s copper‑equivalent production increased 8% and copper shipments grew 12%, adding $2.9 billion to earnings, but iron‑ore underlying EBITDA was not disclosed in the release and could not be verified; overall underlying EBITDA for the year grew 9% to $25.4 billion.
Free cash flow fell 28% to $4 billion, a decline largely attributable to a 28% increase in capital expenditures, which rose to $11.4 billion in 2025. The higher capex reflects investment in the Arcadium Lithium acquisition and other growth projects, including the expansion of the Oyu Tolgoi copper mine and the first shipment from the Simandou iron‑ore project in Guinea.
Net debt increased to $14.4 billion after Rio Tinto issued $6.7 billion of bonds to fund the Arcadium acquisition, which closed in March 2025, and to support general corporate purposes. The acquisition, valued at $6.7 billion (with some sources citing $7.6 billion), represents a strategic shift toward energy‑transition materials such as lithium.
The ordinary dividend was maintained at $6.5 billion, equivalent to 402 US cents per share, preserving the company’s 60% payout ratio for the tenth consecutive year. This steady dividend policy signals confidence in cash‑flow generation despite the free‑cash‑flow pressure.
Management highlighted the company’s growth trajectory, noting that copper and aluminum volumes drove revenue growth while iron‑ore headwinds and higher input costs tempered profitability. CFO Peter Cunningham emphasized the importance of the Arcadium acquisition for expanding Rio Tinto’s lithium portfolio, while CEO Simon Trott underscored the company’s focus on energy‑transition materials and the need to balance investment with cash‑flow discipline.
The results illustrate a mixed operating picture: copper growth offsets iron‑ore underperformance, and capital‑intensive projects are tightening free‑cash‑flow. The company’s strategic pivot to lithium and copper aligns with global demand for clean‑energy technologies, but the ongoing safety incident at Simandou and China’s economic slowdown pose operational and demand headwinds.
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