Rio Tinto PLC (RIO) Full Year 2025 Earnings Call Highlights: Strong EBITDA Growth and Strategic …

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Fri, February 20, 2026 at 12:01 AM GMT+9 3 min read

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**Revenue:** Underlying EBITDA increased by 9% to $2,425.4 billion.

**Net Income:** Stable underlying earnings of $10.9 billion.

**Dividend:** 60% of underlying earnings returned to shareholders, equating to $6.5 billion.

**Copper Production:** Increased by 8% in copper equivalent production.

**Copper Unit Costs:** Reduced by 5%.

**Productivity Benefits:** Achieved a $650 million run rate in annualized productivity benefits.

**Net Debt:** Increased to $14.4 billion.

**Iron Ore EBITDA:** Delivered $15.2 billion of EBITDA.

**Copper EBITDA:** More than doubled to $7.4 billion.

**Aluminum EBITDA:** Increased by 20%.

**CapEx:** At the high end of guidance range, around $11 billion.

**Iron Ore Unit Costs:** In line with guidance at $23 per ton.

**Balance Sheet:** Gearing is modest at 18%.

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Release Date: February 19, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Rio Tinto PLC (NYSE:RIO) achieved an 8% increase in copper equivalent production, setting annual records for both copper and bauxite.

The company reported a 9% increase in underlying EBITDA, driven by strong performance in copper and aluminum.

RIO unlocked a $650 million run rate in annualized productivity benefits, contributing to cost reductions.

The company plans to return 60% of its stable underlying earnings of $10.9 billion to shareholders, equating to $6.5 billion in dividends.

RIO is well-positioned for future growth, with strong prospects in aluminum, lithium, and copper, and a robust project pipeline extending into the 2030s.

Negative Points

A fatality occurred at the Simandou mine site, highlighting ongoing safety challenges and the need for improved safety measures.

Net debt increased to $14.4 billion due to the Arcadian acquisition, although the balance sheet remains in good shape.

The company faces challenges in maintaining cost competitiveness in the Pilbara region, with unit costs guided at $23 to $25 per ton.

Volume growth is expected to be more muted in 2026, with closures and expected grade declines impacting production.

The discussions with Glencore did not result in an agreement, indicating potential missed opportunities for synergies and growth.

Q & A Highlights

Q: Can you elaborate on the discussions with Glencore and the decision not to proceed with a merger? A: Simon Trott, CEO, explained that the discussions with Glencore were thorough and focused on whether a merger would create value for Rio Tinto shareholders. Ultimately, they concluded that the value proposition was not sufficient to proceed. The discussions included a full review of Glencore’s diversified business, including coal, and assessed potential synergies and asset quality.

Story Continues  

Q: What are your thoughts on streaming opportunities, particularly with the gold component at OT? A: Peter Cunningham, CFO, stated that Rio Tinto has various options to release capital across its portfolio, including streaming. However, they are systematically evaluating these options to prioritize value creation.

Q: Can you provide more details on the cost-cutting measures beyond the $650 million program? A: Simon Trott, CEO, mentioned that the $650 million was a run rate target for Q1, and they expect 2026 cash delivery to be materially above this. The cost-cutting measures are part of a multi-year program across all business units, including iron ore, to drive productivity and efficiency.

Q: How do you view the potential for growth in the Brazilian aluminum sector following the deal with CBA and Chinalco? A: Simon Trott, CEO, highlighted that the deal with CBA and Chinalco offers an opportunity to grow Rio Tinto’s aluminum business and secure supply lines. The strategic rationale includes adding value and growth potential in the Brazilian aluminum sector.

Q: What is Rio Tinto’s approach to geopolitical risks, especially in high-risk regions like the DRC and Kazakhstan? A: Simon Trott, CEO, acknowledged the importance of evaluating geopolitical risks and emphasized that any potential investment in high-risk regions would require a high return to justify the challenges. The company uses various tools, such as higher discount rates and risk-sharing strategies, to assess opportunities in these regions.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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