Home›Earnings›Results›Rio Tinto’s first-half results show EBITDA and free ca…

Rio Tinto’s first-half results show EBITDA and free cash flow surge

EBITDA rose 28% to $14.8 billion, while free cash flow jumped 75% to $3.8 billion as copper EBITDA nearly doubled.

Reported · Written up by our desk · Results

Rio Tinto reported first-half results showing a broad improvement in profitability and cash generation, with EBITDA increasing 28% year over year to $14.8 billion and free cash flow nearly doubling, up 75% to $3.8 billion. Underlying earnings also rose 43% to $6.9 billion, setting up a stronger payout profile for the period.

The company’s board approved a $3.4 billion interim dividend, up 43% from a year earlier. Rio Tinto attributed performance to its commodity mix, noting that copper, aluminum, and lithium now account for more than half of its EBITDA.

Copper EBITDA surged 84% to $5.7 billion, driven by ramp-up at the Oyu Tolgoi project and a 39% jump in average realized copper prices. Aluminum and lithium combined rose 38% to $3.3 billion, while iron ore was roughly flat at $6.8 billion as Rio Tinto continued to balance higher-growth exposures with a steadier cash generator.

Management also pointed to productivity gains, banking $870 million in savings during the first half and targeting a $1.8 billion annualized run rate by year-end. The update comes as the shares trade around $96, about 9% below the consensus price target of $105.50, according to the presentation accompanying the results coverage from MarketBeat Ratings.

Latest closeCopper $6.508 ▲1.0%

More like this

Sources