Rio Tinto profit jumps 47% as copper revenues surge

Rio Tinto ↘ 0.34% on Wednesday reported its highest half-year profit in four years, with net earnings rising 47% to $6.7 billion for the six months ended June 30, driven by surging copper revenues and higher production across its key commodities.company-announcements.afr+1

The world's largest iron ore producer posted underlying earnings of $6.85 billion, up 43% from $4.81 billion a year earlier and slightly ahead of the Visible Alpha consensus estimate of $6.80 billion. Revenue climbed 15% to $31.0 billion, while underlying EBITDA rose 28% to $14.8 billion.fool+2

Copper Division Powers Results

The standout performer was Rio Tinto's copper division, where underlying EBITDA surged 84% to $5.7 billion, driven partly by higher output from its Mongolian operations. The company said copper, aluminium, and lithium now contribute over half of underlying EBITDA, reflecting the miner's ongoing diversification away from iron ore dependence.company-announcements.afr+1

Iron ore, still the group's largest earnings contributor, generated underlying EBITDA of $6.8 billion, down 1% from the prior year. Pilbara iron ore operations recorded their highest first-half production since 2018.fool+1

Dividend Raised, Cash Flow Surges

Free cash flow jumped 75% to $3.8 billion, enabling Rio Tinto to declare an interim dividend of $2.11 per share, up 43% from $1.48 a year earlier — its highest interim payout in four years.company-announcements.afr+1

CEO Simon Trott called the results "a step-change in performance," citing the company's accelerating productivity program, which has delivered $870 million in benefits and is targeting an annualised run-rate of $1.8 billion by year-end.fool

"Our strong cash flow and balance sheet allow us to declare a $3.4 billion interim ordinary dividend, up 43 per cent, as we continue to invest in high-returning growth," Trott said.fool

Outlook Unchanged

Rio Tinto reaffirmed its full-year production and cost guidance across key commodities. The company said it remains on track to unlock $5 billion to $10 billion of cash through portfolio management and infrastructure initiatives, with opportunities to release around $5 billion by the end of 2026 already being progressed.company-announcements.afr+1