REG - Rio Tinto - Final Results
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RNS Number : 5769T Rio Tinto PLC 19 February 2026
19 February 2026
Solid results underpinned by +8% CuEq(1) production and sharper cost
discipline
Rio Tinto Chief Executive Simon Trott said: "Safety remains our highest
priority. We are deeply committed to learning from the tragic death of one of
our colleagues at the Simandou project last weekend and I will be spending
time with the team on the ground, as we fully investigate how this happened.
"Our solid financial results demonstrate clear progress as we embed our
stronger, sharper and simpler way of working. We achieved an 8% uplift in CuEq
production(1) driven by the ongoing ramp-up of the Oyu Tolgoi underground
copper mine and record iron ore production since April from our Pilbara
operations. This strong operational performance, together with a diversifying
portfolio and firm cost discipline, underpinned a 9% increase in underlying
EBITDA to $25.4 billion and operating cash flow of $16.8 billion. We delivered
stable underlying earnings of $10.9 billion, after taxes and government
royalties of $10.4 billion(2).
"We continue to invest in delivering industry-leading, value-accretive growth,
supported by our disciplined capital allocation and best-in-class project
execution. We remain on track to achieve 3% CAGR in CuEq(1) production to
2030. At the same time, the structural cost improvements underway today
position us for higher margins and cash flow. With a high-quality pipeline,
anchored in copper, we have clear visibility to extend this growth profile
well into the next decade.
"Our strong cash flow and balance sheet enable us to sustain a 60% payout
ratio with a $6.5 billion ordinary dividend, making it the tenth consecutive
year at the top end of the range."
1. Executive Summary
• Net cash generated from operating activities of $16.8 billion up 8%
and underlying EBITDA of $25.4 billion up 9%. Results were underpinned by our
operational excellence and disciplined cost management, and rising
contributions from copper and aluminium.
• Profit after tax attributable to owners of Rio Tinto of $10.0
billion.
• Ordinary dividend of $6.5 billion, a 60% payout, ten-year track
record at top end of range.
• Key project execution milestones in 2025:
◦ Oyu Tolgoi copper underground development project now complete
◦ Simandou high grade iron ore first ore shipment in December
◦ Western Range iron ore replacement mine opened on time and on budget
◦ Construction commenced at three further Pilbara iron ore brownfield
mines
◦ Arcadium acquisition closed ahead of schedule in March: focused on
delivering
in-flight lithium projects in Argentina and Canada
(1) Copper equivalent volume = Rio Tinto's share of production volume / Volume
conversion factor x Product price ($/t) / Copper price ($/t). Prices are based
on long-term consensus prices. (2) In 2024, taxes and government royalties
were $8.2 billion.
Year ended 31 December 2025 2024 Change
Net cash generated from operating activities (US$ millions) 16,832 15,599 8 %
Purchases of property, plant and equipment and intangible assets (US$ 12,335 9,621 28 %
millions)
Free cash flow(1) (US$ millions) 4,025 5,553 (28)%
Consolidated sales revenue (US$ millions) 57,638 53,658 7 %
Underlying EBITDA(1) (US$ millions) 25,363 23,314 9 %
Underlying earnings(1) (US$ millions) 10,868 10,867 - %
Profit after tax attributable to owners of Rio Tinto (net earnings) (US$ 9,966 11,552 (14) %
millions)
Underlying earnings per share (EPS)(1) (US cents) 669.2 669.5 - %
Ordinary dividend per share (US cents) 402 402 - %
Underlying return on capital employed (ROCE)(1) 16% 18%
Net debt(1) (US$ millions) 14,362 5,491 162 %
(1) This financial performance indicator is a non-IFRS (as defined below)
measure which is reconciled to directly comparable IFRS financial measures
(non-IFRS measures). It is used internally by management to assess the
performance of the business and is therefore considered relevant to readers of
this document. It is presented here to give more clarity around the underlying
business performance of the Group's operations. For more information on our
use of non-IFRS financial measures in this report, see the section entitled
"Alternative performance measures" (APMs) and the detailed reconciliations on
pages 38 to 45.
2. Our strategy - Delivering industry-leading value
Our strategy is built on a diversified portfolio of world-class assets and
projects in the right commodities. It centres on the priorities of a great
metals and mining business: operational excellence, project execution and
capital discipline, underpinned by our people, social licence and
partnerships. We are focused on the fundamentals of value creation and
implementing our stronger, sharper, simpler way of working.
2025 highlights
People and Safety first • Our all-injury frequency rate (AIFR) for 2025 was 0.37,
consistent with 2024.
• We are strengthening safety through front-line focus,
simplification and accountability.
Operational excellence On our pathway to deliver 4% CAGR unit cost improvement to 2030
• Volume driven efficiencies:
◦ Copper: +11% YoY, driven by ongoing ramp-up of Oyu Tolgoi +61%
YoY
◦ Aluminium: uplift cross the value chain, with record annual
bauxite production of 62.4 Mt
◦ Resulted in 5%(1) operating unit cost reduction in 2025 (2024
real terms)
• Productivity benefits: $650 million(2) annualised by Q1 2026 -
key actions
◦ Streamlined organisation: from four into three core product
groups - Iron Ore, Aluminium & Lithium and Copper, moving decisions to our
assets, as close as possible to the point of impact
◦ Stronger operational discipline: deployed operational excellence
programs across all managed sites, reduced contractors and discretionary spend
through strict controls
◦ Sharper focus: placed Jadar into care & maintenance, stopped
non-core studies and programs
Project execution • Strong project execution outcomes:
◦ Simandou: exceptional development pace with first shipment in Q4
◦ Pilbara: Western Range opened on time and on budget, four of the
five major replacement mines are ramping up or under construction
◦ Copper: Oyu Tolgoi underground development project is now
complete, first Nuton copper achieved at Johnson Camp mine
◦ Lithium: completed acquisition of Arcadium, focus on delivering
in-flight projects on time and on budget towards 200 ktpa lithium carbonate
equivalent capacity by 2028
Capital discipline • Strong balance sheet supports ten-year track record of 60%
ordinary dividend payout
• Targeting to release $5-10 billion cash proceeds from asset base
◦ Market testing of borates and TiO(2) underway, together with the
monetisation of infrastructure
Strong sustainability and social licence • Decarbonisation:
◦ We have a pathway to our 2030 target of a 50% reduction in
Scope 1 and 2 emissions, however this is dependent on the timely delivery of
third party projects to underpin those solutions and completion of commercial
discussions, neither of which can be guaranteed by that date.
◦ CO(2) emissions: 31.5 Mt CO(2)e Scope 1 and 2 in 2025,
equivalent to a 14% reduction vs 2018 baseline (36.7 Mt CO(2)e).
• Agreement Modernisation:
◦ signed a Co-Management Agreement with the Puutu Kunti Kurrama and
Pinikura (PKKP) Aboriginal Corporation to support a lasting and trusted
partnership. The agreement is the overarching framework for our iron ore
operations on PKKP Country and formalises how they engage on proposals
affecting heritage and social surroundings throughout the mine life cycle.
◦ We signed an updated Agreement with the Nyiyaparli People to
strengthen ways of working together, deliver long-term benefits for the
Nyiyaparli People, and provide Rio Tinto with a clear framework for engaging
on mine development on Nyiyaparli Country.
◦ We also signed an Interim Modernised Agreement with the
Yinhawangka People, establishing a pathway to a fuller modernised agreement
that will govern how Rio Tinto operates on Yinhawangka Country for the long
term.
1. Based on total cost of sales of our operations, divided by sales
volumes in copper equivalent terms on a Rio Tinto consolidated basis, stated
in 2024 real terms.
2. Productivity benefits are operating expenses savings on an annual run
rate basis. They include actions already realised ($370 million) and actions
which will be delivered by end of Q1 2026 ($280 million). All figures are on a
consolidated basis.
3. Guidance
2026 production and sales guidance and capital investment guidance are
consistent with our Capital Markets Day, released on 4 December 2025.
Production and sales(2) Units 2025 2026 Guidance(1)
Total iron ore sales(3) Mt(4) 342 343 - 366
Pilbara sales (100% basis) Mt(4) 326 323 - 338
Simandou sales (100% basis) Mt(4) 0 5 - 10
IOC(5) sales (100% basis) Mt(4) 16 15 - 18
Copper production (consolidated) kt 883 800 - 870(8)
Aluminium & Lithium
Bauxite production Mt 62.4 58 - 61
Alumina production(6) Mt 7.6 7.6 - 8.0
Aluminium production(7) Mt 3.4 3.25 - 3.45
Lithium carbonate equivalent (LCE) production kt 57 61 - 64
1. Guidance remains subject to weather impacts. Pilbara iron ore
guidance remains subject to the timing of approvals for planned mining areas
and heritage clearances.
2. Rio Tinto share unless otherwise stated. Our strategic reviews are
advancing as planned, with the next phase focused on identifying the best path
to unlock value. As such, we will no longer provide production guidance for
Iron and Titanium, and Borates, while this process is underway.
3. Includes all shipments from Pilbara and IOC, including those to our
Portside trading business; Excludes shipments from our Portside trading
business.
4. Wet metric tonnes.
5. Iron Ore Company of Canada.
6. QAL production now included on a 100% basis for 2026 guidance.
7. Includes primary aluminium only.
8. Circa 10% YoY growth from operated assets.
Unit Costs
2025 2026 Guidance
Pilbara iron ore unit cash costs, free on board (FOB) basis - US$ per wet 23.5 23.5 - 25.0
metric tonne
Australian dollar exchange rate 0.64 0.67
Copper C1 net unit costs (Kennecott, Oyu Tolgoi and Escondida) - US cents per 67 65 - 75
lb
Pilbara unit cost guidance: reflecting the impact of a stronger Australian
dollar against the US dollar. We continue our focus on productivity through
increasing orebody efficiency and improving system flow, to partially offset
the impacts of currency headwinds, inflation and depletion.
Share of capital investment
$bn 2025 2026 Guidance
Growth capital 3.2 Up to 3.0
Sustaining capital 4.4 ~4.0
Replacement capital 3.6 ~3-4
Decarbonisation capital 0.2 ~0.2
Total Group 11.4 Up to 11
Effective tax rate 31.5 % ~30%
Other guidance for 2026
• The effective tax rate on underlying earnings is expected to be
~30%. In 2025, the rate was 31.5%, compared to guidance of 33%, primarily due
to the re-recognition of deferred tax assets in Australia and the US in the
second half of the year.
• Our exploration and evaluation expense (E&E) is expected to be
~$0.8 billion. This reflects sharper focus on our portfolio, by advancing
value-accretive programs and stopping non-core studies. Our underlying
expenditure on E&E in 2025 was $0.8 billion (pre-sale of interest in the
Winu project).
• An annual cash spend of ~$1 billion is expected on closure
activities in the coming years, in line with 2025, as we continuously
rehabilitate our operations and progress work at Argyle, Diavik, Energy
Resources of Australia (ERA) (under a Management Service Agreement), the Gove
alumina refinery and legacy sites, together with progressive closure activity
across our operations.
4. Price and exchange rate sensitivities
The following sensitivities give the estimated effect on underlying EBITDA,
assuming that each price or exchange rate moved in isolation. The relationship
between currencies and commodity prices is a complex one; movements in
exchange rates can affect movements in commodity prices and vice versa. The
exchange rate sensitivities quoted here include the effect on operating costs
of movements in exchange rates, but do not include the effect of the
revaluation of foreign currency working capital. They should be used with
care.
Average published US$ million impact on
price/exchange rate for 2025 12 months
underlying EBITDA
of a 10% change
in prices/exchange rates
Aluminium (LME) - US$ per tonne 2,632 1,330
Copper (LME) - US cents per pound 451 899
Gold - US$ per troy ounce 3,432 211
Iron ore realised price (FOB basis) - US$ per dry metric tonne 90.0 2,317
Lithium carbonate (spot, $/t CIF China, Japan & Korea) 9,451 56
Australian dollar against the US dollar 0.64 937
Canadian dollar against the US dollar 0.72 404
Oil (Brent) - US per barrel 69 172
5. Financial performance
5.1 Income Statement
Financial results from our diversifying portfolio
To provide additional insight into the performance of our business, we report
underlying EBITDA and underlying earnings. Underlying EBITDA and underlying
earnings are non-IFRS measures. For definitions and a detailed reconciliation
of underlying EBITDA and underlying earnings to the nearest IFRS measures, see
pages 38 to 41, respectively.
The principal factors explaining the movements in underlying EBITDA are set
out in this table.
US$bn
2024 underlying EBITDA 23.3
Prices -
Exchange rates 0.1
Volumes and mix 2.4
General inflation (0.5)
Energy 0.1
Operating cash unit costs 0.3
Exploration and evaluation expenditure (net of profit from disposal of 0.4
interests in undeveloped projects)
Non-cash costs/other (0.6)
Change in underlying EBITDA 2.0
2025 underlying EBITDA 25.4
Financial figures are rounded to the nearest $100 million, hence small
differences may result in the totals.
• Underlying EBITDA: increased by 9% to $25.4 billion, driven by a 5%
uplift in sales volumes (on a copper equivalent, Rio Tinto share basis),
diversifying portfolio and cost discipline. In conjunction with cost
discipline, we achieved a 5% (2024 real terms) reduction in our operating unit
costs.
• Overall neutral impact of price movements reflects the growing
importance of our diversified model: the 6% lower iron ore index price (FOB
$/dmt) was offset by higher prices for bauxite, alumina, aluminium (net of
tariff impact), copper and gold, demonstrating the resilience and value of our
diversified portfolio through the commodity cycle. A table of prices and
exchange rates is included on page 46.
• Exchange rates $0.1 billion benefit: on average, the US dollar
strengthened by 2% against the Australian and Canadian dollars, which was
partially offset by exchange losses on revaluation of balance sheet items as
the US dollar weakened towards the end of 2025.
• Volumes and mix $2.4 billion benefit: demonstrates our strong
foundation in operational excellence, with a 5% rise in sales volumes (on a
copper equivalent, Rio Tinto share basis).
◦ Uplift in volumes $2.9 billion: driven by a 12% uplift in
consolidated copper shipments underpinned by a 61% increase in copper
production at Oyu Tolgoi and increased gold grades and volumes, along with
higher throughput at Escondida. We delivered a net 1% increase in Pilbara
shipments (Rio Tinto consolidated basis), demonstrating our operational
resilience following the four cyclones in Q1, the impact of which is disclosed
separately. The volume uplift also reflected exceptional bauxite production
underpinned by the Safe Production System (SPS).
◦ Impact of cyclones in the Pilbara -$0.6 billion: the total impact to
underlying EBITDA of the cyclones was -$0.7 billion (-$0.6 billion volume
impact and cyclone recovery costs of -$0.1 billion).
• Inflation net of energy prices -$0.4 billion impact: general
inflation on our cost base of $0.5 billion was partly offset by the easing of
diesel prices.
• Improved operating cash unit costs net $0.3 billion: sharper focus
on cost discipline.
◦ Cash unit cost improvement $0.8 billion: was underpinned by enhanced
cost efficiencies achieved on delivering higher copper, bauxite and alumina
volumes, whilst maintaining strong cost discipline.
◦ Temporary cash unit cost increases -$0.4 billion: refined copper
production at Kennecott was 31% lower in 2025, due to the planned smelter
shutdown and limited ore availability from geotechnical constraints until we
gain access to higher grade ore in Slice 2 in 2027. 2024 was a strong
comparative year with more refined production from the drawdown of inventory,
following the smelter rebuild in 2023. IOC's cash unit costs were impacted by
1% lower production and reflected investment in mine pit health and
operational stability.
◦ Higher aluminium raw material prices -$0.1 billion: reflected
increases in prices for coke and caustic, partially offset by alloys.
◦ Cyclone recovery costs in the Pilbara -$0.1 billion: included repair
and mitigation costs, supporting delivery of recovered volumes.
• Exploration and evaluation $0.4 billion benefit: with Rincon costs
being capitalised from 1 July 2024 and a $0.2 billion gain on sale of 30%
interest in Winu.
• Non-cash costs/other -$0.6 billion impact: includes investment to
reflect our growth and diversification ambition, including operating
expenditure at Simandou as operations ramp up, funding of Nuton programs and
Arcadium acquisition and integration costs. Furthermore, in 2024 we revised
the closure discount rate from 2.0% to 2.5%, increasing underlying EBITDA by
$0.2 billion, which did not recur in 2025.
Net earnings
The principal factors explaining the movements in underlying earnings and net
earnings are set out below.
Net earnings and underlying earnings refer to amounts attributable to the
owners of Rio Tinto. The net profit attributable to the owners of Rio Tinto in
2025 was $10 billion (2024: $11.6 billion).
US$bn
2024 net earnings 11.6
Changes in underlying EBITDA (see above) 2.0
Increase in depreciation and amortisation (pre-tax) in underlying earnings (0.6)
Increase in interest and finance items (pre-tax) in underlying earnings (0.2)
Increase in tax on underlying earnings (1.0)
Increase in underlying earnings attributable to outside interests (0.2)
Total changes in underlying earnings -
Changes in items excluded from underlying earnings (see below) (1.6)
Movement in impairment charges net of reversals 0.3
Movement from consolidation and disposal of interests in businesses (0.9)
Movement in closure estimates (non-operating and fully impaired sites) (0.1)
Movement in exchange differences and gains/losses on derivatives (0.6)
Other (0.2)
2025 net earnings 10.0
Financial figures are rounded to the nearest $100 million, hence small
differences may result in the totals.
• Increase in depreciation -$0.6 billion: in line with ramp-up of Oyu
Tolgoi and inclusion of Arcadium since March.
• Higher taxes -$1.0 billion: increased contribution from Escondida
with an associated higher underlying tax rate. Additionally, some unrecognised
deferred tax assets, disallowed costs and adjustments in respect of prior
years around the Group, have driven the effective tax rate on underlying
earnings to 31.5% (28.3% in 2024).
• Higher finance items: reflecting an $8.9 billion increase in net
debt in 2025 following the issuance of $9 billion of bonds to fund the
acquisition of Arcadium and for general corporate purposes.
Items excluded from underlying earnings
The differences between underlying and net earnings are set out in this table
(all numbers are after tax and exclude amounts attributable to non-controlling
interests).
2025 2024
Year ended 31 December US$bn US$bn
Underlying earnings 10.9 10.9
Items excluded from underlying earnings
Net gains on consolidation and disposal of interests in businesses - 0.9
Impairment charges net of reversals (0.2) (0.5)
Foreign exchange and derivative gains/(losses) on net debt and intragroup (0.4) 0.2
balances and derivatives not qualifying for hedge accounting
Change in closure estimates (non-operating and fully impaired sites) (0.2) (0.1)
Other - 0.2
Total items excluded from underlying earnings (0.9) 0.7
Net earnings 10.0 11.6
Financial figures are rounded to the nearest $100 million, hence small
differences may result in the totals.
On page 41 there is a detailed reconciliation from net earnings to underlying
earnings, including pre-tax amounts and additional explanatory notes. The
differences between profit after tax and underlying EBITDA are set out in the
table on page 39.
• In 2025, there were no significant gains on consolidation and
disposal of interests in businesses. In 2024, these totalled $0.9 billion,
primarily related to a gain following the increase in ownership of Tiwai Point
Smelter (NZAS), New Zealand, the sale of Sweetwater, a former uranium legacy
site in Wyoming, US, and the sale of Dampier Salt's Lake MacLeod operation in
Western Australia.
• Impairment charges net of reversals -$0.2 billion: mainly related to
the tailings storage facility at the Yarwun alumina refinery, which was
expected to reach capacity by 2031. We will curtail production by 40% from
October 2026 to allow another four years to explore and develop technical
solutions that could extend the refinery's life, which resulted in an
impairment charge in 2025. Refer to note 4 to the Financial Statements of our
2025 Annual Report for further details. In 2024, we recognised impairment
charges net of reversals of $0.5 billion (after tax), mainly related to our
alumina refinery Queensland Alumina Limited (QAL) .
• Foreign exchange and derivative losses -$0.4 billion: includes
post-tax losses on intragroup balances of $0.8 billion (2024: $0.6 billion
gain) offset by post-tax gains on external net debt of $0.3 billion (2024:
$0.4 billion loss), primarily as a result of the strengthening of the
Australian dollar in 2025.
Net earnings and underlying earnings refer to amounts attributable to the
owners of Rio Tinto.
Underlying EBITDA by product group
Underlying EBITDA
2025 2024 Change
Year ended 31 December US$bn US$bn %
Iron Ore 15.2 17.0 (11) %
Aluminium & Lithium 4.6 3.6 29 %
Copper 7.4 3.4 114 %
Reportable segments total 27.1 24.0 13 %
Simandou iron ore project (0.1) - 336 %
Other operations 0.1 0.5 (90) %
Central pension costs, share-based payments, insurance and derivatives (0.1) 0.2 (148) %
Restructuring, project and one-off costs (0.6) (0.3) 139 %
Other central costs (0.8) (0.8) - %
Central exploration and evaluation (0.2) (0.2) (3) %
Total 25.4 23.3 9 %
Financial figures are rounded to the nearest $100 million, hence small
differences may result in the totals and year-on-year changes. Underlying
EBITDA and underlying earnings are non-IFRS measures used by management to
assess the performance of the business and provide additional information
which investors may find useful. For more information on our use of non-IFRS
financial measures in this report, see the section entitled "Alternative
performance measures" (APMs) and the detailed reconciliations on pages 38 to
45. Financial information has been recast in accordance with the
organisational restructure announced on 27 August 2025.
• Other Operations: includes Rio Tinto Iron & Titanium, Borates
and Diamonds. Underlying EBITDA was lower YoY due to weaker demand for TiO(2)
in 2025 and where 2024 included a one-off insurance receipt ($0.2 billion).
• Central pension costs, share-based payments, insurance and
derivatives netted to $0.1 billion: mainly associated with the premiums paid
by the business to our captive insurers offset by insurance claim settlements
and unrealised losses on derivatives (vs gain in 2024).
• Restructuring, project and one-off costs $0.6 billion: YoY increase
primarily in the first half, associated with the acquisition and integration
of Arcadium. It also includes centrally funded research and development
programs (expected to reduce in 2026 following rationalisation), and continued
investment in Group-wide technology and systems to drive further productivity.
In the second half, we simplified and streamlined our operating model,
resulting in a leaner Executive Committee (from 11 to 9) and senior management
team (reduced roles by 22%). This resulted in one-off restructuring costs in
2025, with the full benefit expected in 2026.
• Other central costs $0.8 billion: central corporate costs were flat
YoY, reflecting cost productivity improvements delivered on simplifying
central functions, which offset inflationary pressures.
• Central exploration and evaluation $0.2 billion: during 2025, we
further prioritised our strong portfolio of exploration projects with activity
in 15 countries across six commodities. This included simplifying the focus
through decisions to cease exploration activity in Brazil and Finland and any
lithium exploration projects without remaining commitments. Importantly, we
advanced the drill program and early studies at the Nuevo Cobre project in
Chile, in partnership with Codelco.
5.2 Consistently strong cash flow generation with disciplined investment
2025 2024
Year ended 31 December US$bn US$bn
Net cash generated from operating activities 16.8 15.6
Purchases of property, plant and equipment and intangible assets (12.3) (9.6)
Sales of property, plant and equipment and intangible assets 0.1 -
Lease principal payments (0.5) (0.5)
Free cash flow¹ 4.0 5.6
Dividends paid to equity shareholders (6.1) (7.0)
Acquisition of Arcadium (including acquired net debt) (7.6) -
Net funding relating to Simandou (outside of free cash flow) 0.8 0.5
Funding received relating to the Nemaska project 0.2 -
Other (0.1) (0.3)
Movement in net debt¹ (8.9) (1.3)
Financial figures are rounded to the nearest $100 million, hence small
differences may result in the totals.
• $16.8 billion of net cash generated from operating activities:
reflecting the higher underlying EBITDA and a 66% underlying EBITDA cash
conversion rate, in line with 2024. There was a modest working capital cash
outflow of $0.2 billion, including the impact of higher commodity prices in
receivables.
• $12.3 billion of purchases of property, plant and equipment and
intangible assets: comprised $4.1 billion of growth, $3.6 billion of
replacement, $4.5 billion of sustaining and $0.2 billion of decarbonisation
capital (in addition to $0.4 billion of decarbonisation operational
expenditure). Our share of capital investment (see table below) was
$11.4 billion. We continue to fund our capital program in accordance with our
disciplined capital allocation framework.
• $6.1 billion dividends paid: reflected payment of the 2024 final and the
2025 interim ordinary dividends.
• $7.6 billion Arcadium acquisition: includes $6.3 billion paid to
Arcadium's shareholders, $0.4 billion paid to their convertible loan note
holders, consolidation of Arcadium's $0.7 billion net debt and $0.2 billion
loaned by Rio Tinto to Arcadium prior to completion of the acquisition.
Transaction costs have been expensed and are included in operating expenses
and are part of operating cash flows.
• $0.8 billion net inflow from Simandou funding: we received $1.3 billion
from Chalco Iron Ore Holdings (CIOH) relating to CIOH's share of Simandou
project expenditure. This was partly offset by $0.6 billion funding provided
to Winning Consortium Simandou (WCS) rail and port entities.
• $14.4 billion net debt(1) at 31 December 2025: the above movements
resulted in an increase in net debt¹ of $8.9 billion in 2025.
(1) This financial performance indicator is a non-IFRS (as defined below)
measure which is reconciled to directly comparable IFRS financial measures
(non-IFRS measures). It is used internally by management to assess the
performance of the business and is therefore considered relevant to readers of
this document. It is presented here to give more clarity around the underlying
business performance of the Group's operations. For more information on our
use of non-IFRS financial measures in this report, see the section entitled
"Alternative performance measures" (APMs) and the detailed reconciliations on
pages 38 to 45.
Year ended 31 December 2025 2024
US$m US$m⁽ᶜ⁾
Purchase of property, plant and equipment and intangible assets 12,335 9,621
Less: Sales of property, plant and equipment and intangible assets (50) (30)
Capital expenditure 12,285 9,591
Funding provided by the Group to equity accounted units (EAUs)((a)) 557 965
Less: Equity or shareholder loan financing received/due from non-controlling (1,439) (1,063)
interests((b))
Rio Tinto share of capital investment 11,403 9,493
(a) Funding provided by the group to EAUs relates to funding of WCS Rail
and Port Holding Entities (WCS) in relation to the Simandou project,
consisting of a direct equity investment in WCS of US$249 million (2024:
US$431 million) and loans provided totalling US$308 million (2024: US$534
million).
(b) We received US$1,321 million (2024: US$1,505 million) from Chalco
Iron Ore Holdings Ltd (CIOH) interests of which US$1,160 million (2024:
US$1,063 million) relates to CIOH's 47% share of capital expenditure incurred
on the Simandou project and associated funding provided by the Group to EAUs
during the current year on an accruals basis. In 2025, we also received US$236
million from Investissement Québec (IQ) in respect of their 50% share of
capital expenditure incurred on the Nemaska lithium development project. The
equivalent amount, on an accruals basis, of US$279 million is included in Rio
Tinto share of capital investment.
(c) The 2024 comparative has been recast to include sales of property,
plant and equipment and intangible assets which is now part of the definition.
( )
5.3 Retaining a strong balance sheet
• Net debt(1): $14.4 billion at 31 December 2025 increased by $8.9
billion compared to 2024 year end, mainly following completion of the Arcadium
acquisition in March.
• Net gearing ratio(1) (net debt to total capital): 18% at 31 December
2025 (31 December 2024: 9%). See page 45.
• Total financing liabilities excluding net debt derivatives: $23.5
billion at 31 December 2025 following $9 billion bond issuance to fund the
acquisition of Arcadium and for general corporate purposes (31 December 2024:
$13.8 billion) and the weighted average maturity was 11 years. At 31 December
2025, 76% of these liabilities were at floating interest rates (81% excluding
leases). The maximum amount within non-current borrowings maturing in any one
calendar year is $2.8 billion, which matures in 2028.
• Cash and cash equivalent plus other short-term highly liquid
investments: $9.2 billion at 31 December 2025 (31 December 2024:
$8.7 billion).
• Provision for closure costs: $17.8 billion at 31 December 2025 (31
December 2024: $15.7 billion). The key movements explaining the increase were:
◦ +$0.9 billion due to a weakening of the US dollar against local
currencies at 31 December 2025
◦ +$0.8 billion from amortisation of the discount on provisions
◦ +$1.2 billion from net increases to new provisions
◦ +$0.3 billion relating to the Arcadium acquisition
◦ partly offset by -$1.0 billion spend against the provision as we
advanced our closure activities at Argyle, ERA (under a Management Service
Agreement), the Gove alumina refinery and other legacy sites, along with
progressive closure activity across our operations.
( )
(1) This financial performance indicator is a non-IFRS (as defined below)
measure which is reconciled to directly comparable IFRS financial measures
(non-IFRS measures). It is used internally by management to assess the
performance of the business and is therefore considered relevant to readers of
this document. It is presented here to give more clarity around the underlying
business performance of the Group's operations. For more information on our
use of non-IFRS financial measures in this report, see the section entitled
"Alternative performance measures" (APMs) and the detailed reconciliations on
pages 38 to 45.
5.4 Shareholder returns
Ten-year track record of 60% payout ratio on the ordinary dividend
2025 2024
US$bn US$bn
Ordinary dividend
Interim⁽ª⁾ 2.4 2.9
Final⁽ª⁾ 4.1 3.7
Full-year ordinary dividend⁽ª⁾ 6.5 6.5
Payout ratio on ordinary dividend 60% 60%
a. Based on weighted average number of shares and declared dividends per
share for the respective periods and excluding foreign exchange impacts on
payment. Financial figures are rounded to the nearest $100 million, hence
small differences may result in the totals.
Ordinary dividend per share declared 2025 2024
Interim (US cents) 148 177
Final (US cents) 254 225
Full-year (US cents) 402 402
Final dividend calendar 2026
2025 Interim dividend 5 March
Ex-dividend date for Rio Tinto plc and Rio Tinto Limited ordinary shares
2025 Interim dividend 6 March
Ex-dividend date for Rio Tinto plc ADRs
Record date 6 March
Final date for Dividend Reinvestment Plan and alternate currency payment 24 March
elections
Currency conversion date 7 April
Payment date 16 April
The 2025 final ordinary dividend to be paid to our Rio Tinto Limited
shareholders will be fully franked. The Board expects Rio Tinto Limited to be
in a position to pay fully franked dividends for the foreseeable future.
The Board is committed to maintaining an appropriate balance between cash
returns to shareholders and investment in the business, with the intention of
maximising long-term shareholder value while maintaining a strong balance
sheet.
The Board expects total cash returns to shareholders over the longer term to
be in a range of 40% to 60% of underlying earnings in aggregate through the
cycle. Both Rio Tinto plc and Rio Tinto Limited dividends are declared in US
dollars.
6. Review of operations
Iron Ore
Year ended 31 December 2025 2024 Change
Pilbara production (million tonnes - 100%) 327.3 328.0 0 %
Pilbara shipments (million tonnes - 100%) 326.2 328.6 (1) %
Salt production (million tonnes - Rio Tinto share)¹ 4.8 5.8 (18) %
IOC pellets and concentrates production (million tonnes - Rio Tinto share)² 9.3 9.4 (1) %
Simandou production (million tonnes - Rio Tinto share) 1.0 NA NA
Segmental revenue (US$ millions) 28,989 31,601 (8) %
Average Pilbara iron ore realised price (US$ per dry metric tonne, FOB basis) 90.0 97.4 (8) %
IOC pellets realised price (US$ per wet metric tonne, FOB basis)(2) 125.7 144.0 (13) %
Underlying EBITDA (US$ millions) 15,194 16,985 (11) %
Net cash generated from operating activities (US$ millions) 10,605 12,132 (13) %
Capital expenditure (US$ millions)³ - excludes Simandou project (4,422) (3,303) 34 %
Free cash flow (US$ millions) 6,061 8,740 (31) %
Underlying return on capital employed⁴ 39% 48%
Production figures are sometimes more precise than the rounded numbers shown,
hence small differences may result in the year-on-year change. Financial
information has been recast in accordance with the organisational restructure
announced on 27 August 2025.
1. Dampier Salt is reported within Iron Ore, reflecting management
responsibility. The Simandou iron ore project in Guinea reports to the Chief
Safety & Technical Officer and financial information is reported outside
the Reportable segments.
2. Iron Ore Company of Canada (IOC) has been moved from the former Minerals
product group to the Iron Ore product group.
3. Capital expenditure is the net cash outflow on purchases less sales of
property, plant and equipment; capitalised evaluation costs; and purchases
less sales of other intangible assets.
4. Underlying return on capital employed (ROCE) is defined as underlying
earnings excluding net interest divided by average capital employed.
Financial performance
• Pilbara product strategy: Following a review of our product
strategy, we made some changes to specifications of the Pilbara Blend. These
predominantly combined the previous Pilbara Blend and SP10 products into a
single blend with the average iron content moving to 60.8% Fe (from 61.6%).
Shipments of the new Pilbara Blend commenced in July 2025. As planned, SP10
levels have reduced by around half YoY, accounting for 10% of Pilbara
shipments in H2 2025 (100% basis), from 20% in H2 2024.
• Underlying EBITDA: 11% lower than 2024, primarily reflecting lower
realised prices across both Pilbara and IOC ($2.3 billion impact) alongside
inflation. These impacts were partly offset by a 1% increase in Pilbara
shipments (consolidated basis), despite disruption from the cyclones in Q1,
along with a lower proportion of SP10 volumes following implementation of the
Pilbara product strategy.
• Pilbara unit costs: Strong Pilbara shipment performance and mining
productivity in the second half drove a reduction in unit costs from $24.3 per
tonne in H1 to $23.5 per tonne for the full year, which were $0.5 per tonne
higher than 2024. This was primarily driven by inflation, a higher work index
and $0.1 billion of recovery costs incurred following the cyclones in Q1,
which were partially offset by productivity improvements.
• Capital investment: 34% increase YoY reflecting the progress we have
made at our Pilbara projects. Four of the five major replacement mines are
currently ramping up or under construction. We opened Western Range in June
2025 on time and on budget, and Brockman Syncline 1, Hope Downs 2 and West
Angelas have received all necessary approvals, enabling commencement of main
construction works, laying the foundation to achieve our mid-term capacity of
345 to 360 Mtpa.
• Cash flow: Cash generated from operating activities was 13% lower
than 2024, driven by the same factors as underlying EBITDA and representing an
underlying EBITDA cash conversion comparable to 2024. Net of the increase in
capital investment, Iron Ore delivered free cash flow of $6.1 billion.
• Pilbara pricing:
% of total shipments 2025 2024
Average index for the month 75 % 78 %
Quarterly lag 10 % 10 %
Quarterly average & others 15 % 12 %
FOB pricing 25 % 25 %
• Pilbara average prices:
Units H1 2025 H2 2025 2025 2024 % change YoY
Platts 62% index FOB, $/dmt 92.0 93.1 92.5 98.4 (6) %
Pilbara iron ore FOB, $/wmt 82.5 83.1 82.8 89.6 (8) %
Pilbara iron ore FOB, $/dmt 89.7 90.3 90.0 97.4 (8) %
• Freight revenue: Segmental revenue for our Pilbara operations
included freight revenue of $2.1 billion (2024: $2.3 billion).
Review of operations
• Pilbara iron ore: Production was flat YoY (100% basis) following a
rebound from the cyclone impacts in Q1 and the achievement of record mining
rates since April. This performance was underpinned by continued investment in
mine health and productivity. While cyclone recovery constrained the port
operations for most of H1, surplus inventories accumulated at the mines.
Enhanced resilience across our rail and port infrastructure subsequently
enabled record shipments in H2.
• Iron Ore Company of Canada: 2025 production was 1% lower YoY, due to
pit health and mine equipment reliability challenges which constrained ore
availability and resulted in lower ore feed to the concentrator. Annual rail
haulage set a record at 37.8 Mt driven by continued operational improvements
to meet increasing third party demand and IOC material.
• Simandou: First ore from the SimFer mine commenced train loading in
October, with first shipment from the WCS port in December, landing at the
port in China in January 2026. Stockpiles have continued to build at the
SimFer mine gate. In total, 2.3 Mt of crushed iron ore was produced in 2025
(100% SimFer). Tertiary crushing will be undertaken in China. There is a two
to three month lag between mine gate production and sales.
• Portside business: Total iron ore sales in China at our portside
were 23.2 Mt (29.9 Mt in 2024), of which 95% were either screened or blended
in Chinese ports. The decrease in sales reflects lower SP10 shipments.
• Inventory levels at portside: 6.4 Mt at year end (7.1 Mt at 31
December 2024), including 3.3 Mt of Pilbara product.
Aluminium & Lithium
Year ended 31 December 2025 2024 Change
Bauxite production ('000 tonnes - Rio Tinto share) 62,400 58,653 6 %
Alumina production ('000 tonnes - Rio Tinto share) 7,593 7,303 4 %
Aluminium production ('000 tonnes - Rio Tinto share) 3,380 3,296 3 %
Lithium carbonate equivalent (LCE) production ('000 tonnes - Rio Tinto 57 NA NA
share)(1)
Segmental revenue (US$ millions)(2) 17,056 13,650 25 %
Average realised aluminium price (US$ per tonne) 3,318 2,834 17 %
Underlying EBITDA (US$ millions) 4,574 3,552 29 %
Net cash generated from operating activities (US$ millions) 3,815 2,847 34 %
Capital expenditure - excluding EAUs (US$ millions)(3) (3,346) (1,848) 81 %
Free cash flow (US$ millions) 416 962 (57) %
Aluminium underlying return on capital employed(4) 13% 10%
Production figures are sometimes more precise than the rounded numbers shown,
hence small differences may result in the year-on-year change. Financial
information has been recast in accordance with the organisational restructure
announced on 27 August 2025.
1. Q1 2025 LCE production from Arcadium was 17 kt of which 6 kt was
produced since completion of the acquisition in March. Accordingly, of the 57
kt LCE production in 2025, 46 kt was attributable to Rio Tinto.
2. 2025 freight revenue for Bauxite business was $493 million (2024: $498
million).
3. Capital expenditure is the net cash outflow on purchases less sales of
property, plant and equipment; capitalised evaluation costs; and purchases
less sales of other intangible assets. It excludes equity accounted units
(EAUs).
4. Underlying return on capital employed (ROCE) is defined as underlying
earnings excluding net interest divided by average capital employed.
Financial performance
• Underlying EBITDA: Overall we delivered a significant uplift in
profitability with a 29% increase in underlying EBITDA to $4.6 billion,
primarily driven by the Aluminium business which contributed $4.4 billion and
delivered an underlying ROCE of 13%. Our Lithium business contributed $0.2
billion, including Arcadium following completion of the acquisition in March.
The result reflects strong bauxite and aluminium prices, improved market
premiums alongside higher volumes, partly offset by approximately $1 billion
of gross costs associated with US tariffs on our primary aluminium exports.
From March 2025, we lost the 10% tariff exemption under Section 232, from
which we benefited since 2018. The US Midwest premium has adapted to levels
fully compensating for the 50% tariff.
• Capital investment: YoY increase primarily reflecting continued
investment in growth. This incorporates approximately $1.4 billion capital
expenditure related to Lithium projects, including Rincon, Fénix expansion
(1B), Sal de Vida and Nemaska. Capital expenditure increased by about $300
million to $2 billion in the Aluminium business, reflecting the acceleration
of the low-carbon AP60 aluminium smelter project in Quebec, Canada and early
works to increase capacity at the Weipa Southern Operations in Queensland,
Australia.
• Cash flow: Aluminium business generated $1.9 billion of free cash
flow, a 45% YoY increase, driven by higher underlying EBITDA, and represents
an increase in underlying EBITDA cash conversion compared to 2024. This was
partly offset by a $1.5 billion cash outflow in the Lithium business mainly on
investment in growth capital projects.
• Pricing: Our aluminium price comprises the LME price, a market
premium and a value-added product (VAP) premium.
• Realised price:
$/tonne H1 2025 H2 2025 2025 2024 2025 vs
2024
Average realised prices including premiums for value-added products (VAP) 3,125 3,504 3,318 2,834 +17 %
Average LME price 2,539 2,722 2,632 2,419 +9 %
Average product premiums for VAP sales(1) 292 374 336 295 +14 %
(1) Our VAP sales were 42% of primary metal sold in 2025 (2024: 46%).
H1 2025 H2 2025 2025
Total Rio Tinto Aluminium (RTA) shipments 723 630 1,353
US destination, kt
Total RTA tariff cost, $m 321 709 1,030
Average Midwest premium duty paid(1), $/tonne 855 1,731 1,301
Average realised tariff costs - US destination, 444 1,126 761
$/tonne
(1) Midwest premium duty paid applies to approximately 50% of our total
volumes in 2025 (59% in 2024). The US Midwest premium adapted to tariffs level
in 2025, fully compensating for the 50% tariff after an initial period.
Review of operations
• Bauxite: Delivered another steady year with production increasing 6%
YoY to a new annual production record of 62.4 Mt. This followed a 7% increase
in the prior year, reflecting sustained operational improvements from
application of the Safe Production System at Amrun.
• Alumina: 4% YoY increase in production, driven by improving plant
performance at Yarwun and stable operations across other sites. At Yarwun, we
announced we will reduce production by 40% from October 2026 to extend the
operation's life until 2035 and allow time to explore further life-extension
and modernisation options.
• Aluminium: Stable production as the group continued to adapt to
market and supply chain dynamics, maintaining output near historical highs.
The YoY increase in production reflected increased ownership interests in
Boyne Smelters from 59.4% to 71% effective 1 October and further to 73.5% from
1 November 2024, and Tiwai Point Smelter from 79.4% to 100% effective 1
November 2024. New Zealand Aluminium Smelter (NZAS) returned to full
production rates in Q4 following the call from Meridian Energy to reduce
electricity usage from early March to 15 June 2025. The Kitimat smelter
continued stable operations despite operating with fewer pots than targeted,
as we adapt to lower reservoir levels.
• Lithium: Completed the acquisition of Arcadium in March, formed Rio
Tinto Lithium business together with Rincon. Achieved record Q4 hydroxide
production at Bessemer City and record carbonate production at Fénix and
Olaroz, supported by the ramp-up to nameplate capacity of Fénix 1A and Olaroz
stage 1 running at full capacity as planned, with stage 2 performing in line
with expectations. Mt Cattlin spodumene operation in Western Australia was
placed on care and maintenance by end of March 2025.
Copper
Year ended 31 December 2025 2024 Change
Copper production ('000 tonnes) (consolidated basis)(1) 883 793 11 %
Gold production - mined ('000 oz - Rio Tinto share) 464 282 65 %
Segmental revenue (US$ millions) 13,729 9,275 48 %
Average realised copper price (US cents per pound)(2) 457 422 8 %
Underlying EBITDA (US$ millions) 7,369 3,437 114 %
Net cash generated from operating activities (US$ millions)(3) 4,702 2,590 82 %
Capital expenditure - excluding EAUs (US$ millions)(4) (1,872) (2,055) (9) %
Free cash flow (US$ millions) 2,820 526 437 %
Underlying return on capital employed (product group operations)(5) 14% 6%
Production figures are sometimes more precise than the rounded numbers shown,
hence small differences may result in the year-on-year change.
1. Includes Oyu Tolgoi and Kennecott on a 100% consolidated basis, and
Escondida on an equity share basis.
2. Average realised price for all units sold. Realised price does not
include the impact of the provisional pricing adjustments, which positively
impacted revenues by $758 million (2024: $92 million negative).
3. Net cash generated from operating activities excludes the operating cash
flows of equity accounted units (EAUs) but includes dividends from EAUs
(Escondida).
4. Capital expenditure is the net cash outflow on purchases less sales of
property, plant and equipment; capitalised evaluation costs and purchases less
sales of other intangible assets. It excludes EAUs.
5. Underlying return on capital employed (ROCE) is defined as underlying
earnings (product group operations) excluding net interest divided by average
capital employed.
Financial performance
• Underlying EBITDA: Delivered a standout year with underlying EBITDA
up 114% driven by a 9% increase in copper LME price and a 12% increase in
consolidated copper sales volumes, further supported by the strong gold price
and higher gold volumes from Oyu Tolgoi. In addition, a $195 million gain was
recognised from the sale of a 30% interest in the Winu copper project in
Australia to Sumitomo Metal Mining, with the joint venture agreement completed
in Q4. The strong underlying EBITDA supported a 14% return on capital
employed, increasing by 8 percentage points from 2024.
• Unit costs: Copper C1 net unit costs, at 67 cents per pound were
lower than the revised guidance provided at the Capital Markets Day on 4
December 2025 (80 - 100c/lb). This reduced by 53% from 2024 (142 c/lb),
driven by higher copper production at Escondida and Oyu Tolgoi. In addition,
higher by-product credits from higher gold volumes and a rising gold price
further reduced net unit costs. This was partially offset by cost
inefficiencies at Kennecott on lower refined production.
• Capital investment: 9% YoY decrease in capital investment as we
completed the Oyu Tolgoi underground project development in Q4.
• Cash flow: We generated 82% higher net cash from operating
activities of $4.7 billion, driven by the higher underlying EBITDA, albeit
representing a lower underlying EBITDA cash conversion, mainly due to lower
dividends from Escondida relative to its underlying EBITDA as the asset moves
into an investment phase. Together with a 9% reduction in capital investment,
free cash flow of $2.8 billion was delivered, a substantial uplift from 2024.
Review of operations
• Production: 11% increase in copper production YoY, mainly driven by
a 61% YoY increase from Oyu Tolgoi supported by a now fully operational
conveyor to surface combined with higher grade from the open pit. We also
benefited from improving head grade and recovery rates at Escondida. This was
partially offset by lower refined volumes at Kennecott due to a planned 45-day
smelter shutdown and a strong 2024 where we benefited from the drawdown of
inventory following the smelter rebuild in late 2023. Mined production at
Kennecott was stable YoY as we continue to successfully navigate challenging
geotechnical conditions.
• Oyu Tolgoi: ramp-up is on track to reach an average of around 500
thousand tonnes of copper per year (100% basis and stated as recoverable
metal) from 2028 to 2036.(1) Continuing engagement with Government of Mongolia
including for the Entrée licence transfer. We maintain flexibility and
options in the mine plan, including bringing Panel 1 or Panel 2 South into
production first, depending on the timing of the licence transfer.
• Oyu Tolgoi LLC confirms that it has received tax assessments
amounting to MNT 1.6 trillion (approximately $440 million) in primary tax
interest and penalties from the Mongolian Tax Authority. This assessment
pertains to a tax audit covering the financial years 2021 and 2022. These
assessments are inconsistent with the Oyu Tolgoi Investment Agreement and
applicable Mongolian legislation, and we will take relevant steps including
engaging in discussions with the Government of Mongolia to resolve this
matter.
(1)The 500 thousand tonne per annum copper production target (stated as
recoverable metal) for the Oyu Tolgoi underground and open pit mines for the
years 2028 to 2036 was previously reported in a release to the ASX dated 11
July 2023 "Investor site visit to Oyu Tolgoi copper mine, Mongolia
(https://www.riotinto.com/en/invest/presentations/2023/oyu-tolgoi-site-visit)
". All material assumptions underpinning that production target and those
production profiles continue to apply and have not materially changed.
( )
7. Capital projects
Project Total Capital remaining to be spent from Status/Milestones
(Rio Tinto 100% capital cost 1 Jan 2026
owned unless (100% unless
otherwise stated) otherwise stated)
Ongoing
Iron ore
Project: Western Range $1.3bn $0.2bn • Officially opened on 6 June 2025 on time and on budget.
(Rio Tinto share)(1) (Rio Tinto • Planned production ramp-up through 2026.
Location: Western Australia (WA), Australia share)
Ownership: Rio Tinto (54%) and China Baowu Steel Group Co. Ltd (46%)
Capacity: 25 Mtpa
Approval: September 2022
First production: March 2025
To note: The project includes construction of a primary crusher and an
18-kilometre conveyor connection to the Paraburdoo processing plant.
Project: Brockman (Brockman Syncline 1) $1.8bn $1.0bn • The project received all necessary State and Federal Government
approvals in Q1 enabling bulk earthworks to commence in Q2 and mobilisation of
key construction contractors in Q3.
Location: WA, Australia • First production remains on track for 2027.
Ownership: 100%
Capacity: 34 Mtpa
Approval: March 2025
Planned first production: 2027
To note: The project is to extend the life of the Brockman regions in WA.
Project: Hope Downs 2 (incl. Bedded Hilltop) $0.8bn $0.3bn • Received all necessary State and Federal Government approvals in H1,
enabling the commencement of construction activities.
(Rio Tinto share) (Rio Tinto share)
• Main construction activities continue to progress in line with plan,
Location: WA, Australia including bulk earthworks clearing and installation of tunnel segments over
the rail line.
Ownership: Rio Tinto (50%) and Hancock Prospecting (50%)
• First production remains on track for 2027.
Capacity: 31 Mtpa
Approval: June 2025
Planned first production: 2027
To note: The project is to extend the life of the Hope Downs 1 operation in
WA.
Project: West Angelas Sustaining $0.4bn $0.3bn • State Agreement was received in October 2025 allowing mobilisation
and the start of construction activities in November.
(Rio Tinto share) (Rio Tinto share)
• First production remains on track for 2027.
Location: WA, Australia
Ownership: Rio Tinto (53%), Mitsui Iron Ore (33%) and Nippon Steel (14%)
Capacity: 35 Mtpa
Approval: October 2025
Planned first production: 2027
To note: The project is to extend the life of the West Angelas hub in WA.
Project: Simandou $6.2bn $2.1bn • We achieved first ore shipment in December. Ore is being railed from
the SimFer mine to the main rail line via the SimFer rail spur and shipped
(Rio Tinto (Rio Tinto share) through the WCS port while construction of the SimFer port is finalised. This
marked the start of commissioning tests of the common rail to port
Location: Guinea, Africa share) infrastructure. Commissioning of the common rail to port infrastructure will
be a complex process, and once complete, around the end of Q1 2026, we expect
SimFer mine ownership: SimFer (85%), Government of Guinea (GoG) (15%) a 30 month ramp-up to full capacity.
SimFer mine capacity: 60 Mtpa(2) • SimFer mine construction progressed to plan, reaching 62% completion
by year end, with bulk earthworks and permanent process facilities
(27 Mtpa Rio Tinto share) construction ongoing; ore continues to be crushed and stockpiled via temporary
crushers, with first ore through permanent crushing facilities expected in H2
Approval: July 2024 2026.
Start date: first shipment in December 2025 • SimFer rail spur: Mechanically complete and operational. Full rail
commissioning targeted for Q1 2026.
To note: Investment in the Simandou high-grade iron ore project in Guinea in
partnership with CIOH, a Chinalco-led consortium (the SimFer joint venture) • SimFer port: Advanced ahead of plan with 66% completed. Fabrication
and co-development of the rail and port infrastructure with Winning Consortium of transhipment vessels (TSV) continuing and the first TSV under-construction
Simandou(3) (WCS), Baowu and the Republic of Guinea (the partners) for the successfully launched in December in China. SimFer port commissioning is
export of up to 120 Mtpa of iron ore mined by SimFer's and WCS's respective expected in Q1 2027
mining concessions.(4) The SimFer joint venture(5) will develop, own and
operate a 60 Mtpa(2) mine in blocks 3 & 4. WCS will construct the • Non-managed infrastructure - our partners confirm that construction
project's ~536 kilometre shared dual track main line, a 16 kilometre spur is progressing well and is on track.
connecting its mine to the mainline as well as the WCS barge port, while
SimFer will construct the ~70 kilometre spur line, connecting its mining
concession to the main rail line, and the transhipment vessel (TSV) port.
Aluminium
Project: Low-carbon AP60 aluminium smelter $1.3bn $0.3bn • Construction activities progressed to plan, with key milestones
achieved in 2025 including completion of pot-to-pot module fabrication and
installations, completion of main buildings and energisation of the first
substations.
Location: Quebec, Canada
• First hot metal and commissioning remains on track to be completed
Ownership: Rio Tinto (100%) by Q1 2026.
Capacity: Project will add 96 new AP60 pots, increasing AP60 capacity by
160,000 tonnes of primary aluminium per annum
Approval: June 2023
Planned start date: First hot metal and commissioning is expected by Q1 2026,
smelter fully ramped up by end of 2026.
To note: The investment includes up to $113 million of financial support from
the Quebec government. This new capacity is expected to be in addition to
30,000 tonnes of new recycling capacity at Arvida, which has been rescheduled
to open in Q4 2026 (previously Q4 2025).
Lithium
Project: Rincon expansion $2.5bn $2.0bn • Starter plant: commissioning completed and start-up in progress,
aiming to reach full capacity by end 2026.
• Regulatory approval received in August, enabling commencement of
Location: Salta province, Argentina construction for the battery-grade lithium carbonate plant. Construction
activities progressed during H2, including camp expansion works and
Ownership: Rio Tinto (100%) development of site infrastructure.
Capacity: 60 ktpa (battery grade lithium carbonate) • Expansion project construction of full scale plant remains on track.
Approval: December 2024
Planned first production: 2028 with three-year ramp-up to full capacity
To note: Project consists of the 3 ktpa starter plant and 57 ktpa expansion
program. The mine is expected to have a 40-year(6) life and operate in the
first quartile of the cost curve.
Project: Fénix expansion (1B) $0.7bn $0.1bn • Project is mechanically complete with commissioning at 60%.
Mechanical Vapour Recompression plant commissioned to support planned first
production.
Location: Catamarca province, Argentina • First production remains on track for H2 2026.
Ownership: Rio Tinto (100%)
Capacity: 10 ktpa LCE (battery grade lithium carbonate)
Planned first production: H2 2026
To note: product is carbonate, chloride
Project: Sal de Vida $0.7bn $0.1bn • Project is mechanically complete with commissioning at 40%.
• First production remains on track for H2 2026.
Location: Catamarca province, Argentina
Ownership: Rio Tinto (100%)
Capacity: 15 ktpa LCE
Planned first production: H2 2026
To note: product is carbonate
Project: Nemaska Lithium $1.1bn $0.5 bn • Project work progresses at Bécancour hydroxide plant in Quebec.
Engineering is now complete with construction at 60%. Commissioning planned to
(Rio Tinto share) (Rio Tinto share) commence in 2026 ahead of first production in 2028.
Location: Quebec, Canada • Whabouchi and Galaxy mines: we are undertaking a strategic business
and capital discipline review with our partners in Canada to decide which of
Ownership: Rio Tinto (50%), Investissement Québec (50%) the two mines we will develop. We expect to make a decision in the first half
of 2026, to ensure an integrated solution for spodumene supply to Bécancour
Capacity: 28 ktpa LCE (100%) is available by 2028.
Planned first production: 2028
To note: product is integrated lithium hydroxide.
Copper
Project: Oyu Tolgoi underground mine $7.06bn Nil • Primary Crusher #2 construction completed ahead of plan in Q3, with
first ore delivered in September.
• Underground project development completed during Q4.
Location: Mongolia
• Project is now focused on safe handover to operations.
Ownership: Rio Tinto (66%), Government of Mongolia (34%)
Capacity: from both the open pit and underground mines, average of ~500 kt⁷
per year from 2028 to 2036.
Approval: 2016
First production: 2024, ramp-up till 2028
To note: Oyu Tolgoi is set to become the world's 4th largest copper mine by
2030
Project: Kennecott open pit extension $1.8bn $0.8bn • Stripping will continue through 2027 with sustainable ore production
from the second phase of the pushback expected to be reached in H2 2027.
Location: Utah, US
Ownership: Rio Tinto (100%)
Approval: 2019
To note: The project scope includes mine stripping activities and some
infrastructure development, including tailings facility expansion. The project
will allow mining to continue into a new area of the orebody between 2026 and
2032.
Project: Kennecott North Rim Skarn (NRS) underground development(8) $0.6bn $0.3bn • First production from NRS occurred in December 2025 with ramp-up
from main stoping ramp sequence in Q1 2026.
( )
Location: Utah, US
Ownership: Rio Tinto (100%)
Capacity: around 250 kt through to 2033(9)
Approval: June 2023
First production: Q4 2025
To note: Original approval for $0.5bn with a further $0.1bn approved in
December 2024 for additional infrastructure and geotechnical controls.
1. Rio Tinto share of the Western Range capital cost includes 100% of
funding costs for Paraburdoo plant upgrades.
2. The estimated annualised capacity of approximately 60 million dry tonnes
per annum iron ore for the Simandou life of mine schedule was previously
reported in a release to the Australian Securities Exchange (ASX) dated 6
December 2023 titled "Investor Seminar 2023". Rio Tinto confirms that all
material assumptions underpinning that production target continue to apply and
have not materially changed.
3. WCS is the holder of Simandou North Blocks 1 & 2 (with the
Government of Guinea holding a 15% interest in the mining vehicle and WCS
holding 85%) and associated infrastructure. WCS was originally held by WCS
Holdings, a consortium of Singaporean company, Winning International Group
(50%) and Weiqiao Aluminium (part of the China Hongqiao Group) (50%). On 19
June 2024, Baowu Resources completed the acquisition of a 49% share of WCS
mine and infrastructure projects with WCS Holdings holding the remaining 51%.
In the case of the mine, Baowu also has an option to increase to 51% during
operations. During construction, SimFer will hold 34% of the shares in the WCS
infrastructure entities with WCS holding the remaining 66%.
4. WCS holds the mining concession for Blocks 1 & 2, while SimFer holds
the mining concession for Blocks 3 & 4. SimFer and WCS will independently
develop their mines.
5. SimFer Jersey Limited is a joint venture between the Rio Tinto Group
(53%) and Chalco Iron Ore Holdings Ltd (CIOH) (47%), a Chinalco-led joint
venture of leading Chinese SOEs (Chinalco (75%), Baowu (20%), China Rail
Construction Corporation (2.5%) and China Harbour Engineering Company (2.5%)).
SimFer S.A. is the holder of the mining concession covering Simandou Blocks 3
& 4, and is owned by the Guinean State (15%) and SimFer Jersey Limited
(85%). SimFer Infraco Guinée S.A. will deliver SimFer's scope of the
co-developed rail and port infrastructure, and is co-owned by SimFer Jersey
(85%) and the Guinean State (15%). SimFer Jersey will ultimately own 42.5% of
La Compagnie du Transguinéen, which will own and operate the co-developed
infrastructure during operations.
6. The production target of approximately 53 kt of battery grade lithium
carbonate per year for a period of 40 years was previously reported in a
release to the ASX dated 4 December 2024 titled "Rincon Project Mineral
Resources and Ore Reserves: Table 1". Rio Tinto confirms that all material
assumptions underpinning that production target continue to apply and have not
materially changed. Plans are in place to build for a capacity of 60 kt of
battery grade lithium carbonate per year with debottlenecking and improvement
programs scheduled to unlock this additional throughput. Capacity of 60 ktpa
is comprised of 3 ktpa starter plant,
50 ktpa full scale plant and 7 ktpa additional optimisation.
7. The ~500 thousand tonne per year copper production target (stated as
recoverable metal) for the Oyu Tolgoi underground and open pit mines for the
years 2028 to 2036 was previously reported in a release to the Australian
Securities Exchange (ASX) dated 11 July 2023 "Investor site visit to Oyu
Tolgoi copper mine, Mongolia". All material assumptions underpinning that
production target continue to apply and have not materially changed.
8. The NRS Mineral Resources and Ore Reserves, together with the Lower
Commercial Skarn (LCS) Mineral Resources and Ore Reserves, form the
Underground Skarns Mineral Resources and Ore Reserves.
9. The 250 thousand tonne copper production target for the Kennecott
underground mines over the years 2023 to 2033 was previously reported in a
release to the Australian Securities Exchange (ASX) dated 20 June 2023 "Rio
Tinto invests to strengthen copper supply in US". All material assumptions
underpinning that production target continue to apply and have not materially
changed.
8. Future options
Project Status
Iron Ore: Pilbara brownfields
Location: WA, Australia • Four of the five major replacement mines are currently ramping up or
under construction.
Ownership: Rio Tinto (100%)
• The Greater Nammuldi extension project continues to be optimised
Capacity: over the medium term, our Pilbara system capacity remains between with a pathway to first ore in 2028.(1)
345 and 360 million tonnes per year. Meeting this range, and the planned
product mix, will require the approval and delivery of the next tranche of
replacement mines over the next five years.
Iron Ore: Rhodes Ridge
Location: WA, Australia • In December 2025, the Rhodes Ridge Joint Venture approved a $191
million (Rio Tinto share $96 million) feasibility study to progress
Ownership: Rio Tinto (50%), Mitsui & Co. (40%), AMB Holdings Pty Ltd development of the first phase of the project.
(10%)(2)
• The joint venture partners (Rio Tinto 50%, Mitsui 40% and AMB
Capacity: 40 to 50 Mtpa Holdings 10%) intend to invest a further $146 million on exploration between
2026 and 2028 as part of ongoing study phases.
First ore: end of decade
• The feasibility study is expected to conclude in 2029.
To note: The Rhodes Ridge Joint Venture has approved a feasibility study to
progress development of the first phase of the Rhodes Ridge project. The
feasibility study will assess development of an operation with initial annual
production capacity of 40 to 50 Mtpa, and is scheduled to commence in Q1 2026
and expected to conclude in 2029. The development will use Rio Tinto's rail,
port and power infrastructure.
Following completion of the pre-feasibility study and with the environmental
referral planned, we aim to progress toward reporting an initial Ore Reserve
for Rhodes Ridge in 2026, contingent on continued review of all relevant
modifying factors.
Copper: Resolution
Location: Arizona, US • On 20 June 2025, the United States Forest Service (USFS) republished
the Final Environmental Impact Statement (FEIS) and draft Record of Decision
(ROD). Absent a Court order, this publication would have enabled completion of
the congressionally mandated land exchange between Resolution Copper and the
Ownership: Rio Tinto (55%), BHP (45%) federal government. But, on 18 August 2025, as the land exchange neared
completion, the Ninth Circuit Court of Appeals issued an administrative order
To note: proposed underground copper mine in the Copper Triangle, in Arizona. to enjoin the land exchange.
• On 6 October 2025, in separate litigation brought by the Apache
Stronghold, a non-profit organisation, the U.S. Supreme Court denied the
group's petition for rehearing in its case seeking to prevent the land
exchange.
• Oral arguments in the Ninth Circuit Court of Appeals were completed
on 7 January 2026. A decision is anticipated in 2026.
• Resolution continues to seek to demonstrate to the Courts why the
land exchange should proceed as directed by Congress. The land exchange will
enable further underground mine development and place thousands of acres of
ecologically and culturally significant land into permanent conservation.
Copper: Winu
Location: WA, Australia • The Joint Venture agreement with SMM was completed on schedule in
Q4.
• The pre-feasibility study with an initial processing capacity
Ownership: Rio Tinto (70%), Sumitomo Metal Mining (SMM) (30%) development of up to 10 Mtpa was also completed in Q4.
To note: In late 2017, we discovered copper-gold mineralisation at the Winu • The project has advanced to a feasibility study, which is currently
project (Paterson Province in Western Australia). In 2021, we reported our in progress and scheduled for completion by the end of 2026.
first Indicated Mineral Resource. The pathway remains subject to regulatory
and other required approvals. Project Agreement negotiations with Nyangumarta • The Environmental Review Document has been submitted to the Western
and the Martu Traditional Owner Groups remain our priority. Australian Environmental Protection Authority (EPA) for assessment in
collaboration and support with both Traditional Owner Groups.
Project Status
Copper: La Granja
Location: Cajamarca, Peru • Evaluation of drill results is underway - results are expected in Q1
2026.
• Progressing the feasibility study.
Ownership: Rio Tinto (45%), First Quantum Minerals (55%)
To note: In August 2023, we completed a transaction to form a joint venture
with First Quantum Minerals (FQM) that will work to unlock the development of
the La Granja project, one of the largest undeveloped copper deposits in the
world, with potential to be a large, long-life operation. FQM acquired its
stake for $105 million. It will invest up to a further $546 million into the
joint venture to sole fund capital and operational costs to take the project
through a feasibility study and toward development.
Aluminium: Arctial partnership
Location: Finland • Arctial JV was formally established in Q2 2025 and a
pre-feasibility study and environmental impact assessment study were conducted
during the remainder of 2025.
To note: Partnership agreement with the Swedish investment company Vargas,
Mitsubishi Corporation and other international and local industry partners to • The JV partners will review the outcome of those studies and are
study a low carbon aluminium greenfield opportunity in Finland. As the expected to consider next steps for further development of the project during
strategic industrial partner, Rio Tinto will provide the Arctial partnership Q1 2026.
with access to its proven industry-leading AP60 technology and assist in what
would be the first AP60 deployment in an aluminium smelter outside Quebec,
Canada.
Lithium
Location: Argentina • Developing the blueprint in 2026 for two future hubs, targeting
$30/kg capital intensity with a 30-month timeline for development and
<$5/kg C1 operating costs.
Location: Atacama region, Chile • Expected agreement closure dates: H1 2026 (for both Maricunga and
Altoandinos), subject to receipt of all applicable regulatory approvals and
satisfaction of other customary closing conditions.
To note:
• Binding agreement to form a joint venture (JV) with Codelco to
develop and operate the high-grade Salar de Maricunga project.
• Binding agreement with ENAMI to form a JV to develop the Salares
Altoandinos project.
Location: Serbia • Project has been moved to care and maintenance.
Ownership: Rio Tinto (100%)
To note: Development of the greenfield Jadar lithium-borates project in Serbia
to include an underground mine with associated infrastructure and equipment,
as well as a beneficiation chemical processing plant.
(1) All necessary State and Federal Government approvals have been received.
The project is still subject to Traditional Owner consultation.
(2) Mitsui holds its 40% interest through an entity named SPC Blue Pty Ltd and
AMB holds its 10% interest through Rhodes Ridge Mining (No 1) Pty Ltd, a
wholly owned subsidiary of Wright Prospecting Pty Ltd, that is managed and
controlled by AMB.
Selected financial information for the
year ended 31 December 2025
Contents
Selected financial information Page number
Consolidated income statement (#Section17) 27
Consolidated statement of comprehensive income (#Section18) 28
Consolidated cash flow statement (#Section19) 29
Consolidated balance sheet (#Section20) 31
Consolidated statement of changes in equity (#Section22) 32
Explanatory notes to the selected financial information
Status of financial information (#Section24) 34
Financial information by business unit (#Section25) 35
Alternative performance measures (#Section27) 38
Consolidated income statement
Year ended 31 December 2025 2024
US$m US$m
Consolidated operations
Consolidated sales revenue 57,638 53,658
Net operating costs (excluding items disclosed separately) (41,784) (37,745)
Net impairment charges (341) (538)
Gains on consolidation and disposal of interests in businesses - 1,214
Exploration and evaluation expenditure (net of profit from disposal of (577) (936)
interests in undeveloped projects)
Operating profit 14,936 15,653
Share of profit after tax of equity accounted units 1,478 838
Profit before finance items and taxation 16,414 16,491
Finance items
Net exchange (losses)/gains on external net debt and intragroup balances (493) 322
Gains/(losses) on derivatives not qualifying for hedge accounting 22 (92)
Finance income 465 514
Finance costs (1,062) (763)
Amortisation of discount on provisions (778) (857)
(1,846) (876)
Profit before taxation 14,568 15,615
Taxation (4,319) (4,041)
Profit after tax for the year 10,249 11,574
- attributable to owners of Rio Tinto (net earnings) 9,966 11,552
- attributable to non-controlling interests 283 22
Basic earnings per share 613.7c 711.7c
Diluted earnings per share 608.4c 707.2c
Consolidated statement of comprehensive income
Year ended 31 December 2025 2024
US$m US$m
Profit after tax for the year 10,249 11,574
Other comprehensive income/(loss)
Items that will not be reclassified to the income statement:
Remeasurement gains on pension and post-retirement healthcare plans 165 83
Changes in the fair value of equity investments held at fair value through (34) -
other comprehensive income (FVOCI)
Tax relating to these components of other comprehensive income (41) (22)
Share of other comprehensive gains of equity accounted units, net of tax 1 4
91 65
Items that have been/may be subsequently reclassified to the income statement:
Currency translation adjustment((a)) 2,846 (3,391)
Currency translation on operations disposed of, transferred to the income - (27)
statement
Fair value movements:
- Cash flow hedge gains 57 13
- Cash flow hedge (gains)/losses transferred to the income statement (164) 17
Net change in costs of hedging reserve 3 4
Tax relating to these components of other comprehensive income 29 (10)
Share of other comprehensive income/(loss) of equity accounted units, net of 34 (45)
tax
2,805 (3,439)
Total other comprehensive income/(loss) for the year, net of tax 2,896 (3,374)
Total comprehensive income for the year 13,145 8,200
- attributable to owners of Rio Tinto 12,706 8,375
- attributable to non-controlling interests 439 (175)
(a) Excludes a currency translation gain of US$238 million (2024: charge of
US$317 million) arising on Rio Tinto Limited's share capital for the year
ended 31 December 2025, which is recognised in the consolidated statement of
changes in equity. Refer to the consolidated statement of changes in equity on
page 32.
Consolidated cash flow statement
Year ended 31 December 2025 2024
US$m US$m
Cash flows from consolidated operations((a)) 21,153 19,859
Dividends from equity accounted units 1,070 1,067
Cash flows from operations 22,223 20,926
Net interest paid (862) (685)
Dividends paid to holders of non-controlling interests in subsidiaries (314) (477)
Tax paid (4,215) (4,165)
Net cash generated from operating activities 16,832 15,599
Cash flows from investing activities
Purchases of property, plant and equipment and intangible assets((b)) (12,335) (9,621)
Sales of property, plant and equipment and intangible assets 50 30
Acquisitions of subsidiaries, joint ventures and associates, net of cash (6,022) (346)
acquired
Disposals of subsidiaries, joint ventures, joint operations and associates - 427
Purchases of financial assets (385) (113)
Sales of financial assets((c)) 223 677
Net funding of equity accounted units((b)) (669) (784)
Other investing cash flows (197) 136
Net cash used in investing activities (19,335) (9,594)
Cash flows before financing activities (2,503) 6,005
Cash flows from financing activities
Equity dividends paid to owners of Rio Tinto (6,145) (7,025)
Proceeds from additional borrowings, net of issue costs 16,019 261
Repayment of borrowings and associated derivatives (8,189) (860)
Lease principal payments (522) (455)
Proceeds from issue of equity to non-controlling interests((b)) 1,628 1,574
Purchase of non-controlling interest - (591)
Other financing cash flows (2) 2
Net cash from/(used in) financing activities 2,789 (7,094)
Effects of exchange rates on cash and cash equivalents 95 (99)
Net increase/(decrease) in cash and cash equivalents 381 (1,188)
Opening cash and cash equivalents less overdrafts 8,484 9,672
Closing cash and cash equivalents less overdrafts 8,865 8,484
(a) Cash flows from consolidated operations 2025 2024
US$m US$m
Profit after tax for the year 10,249 11,574
Adjustments for:
- Taxation 4,319 4,041
- Finance items 1,846 876
- Share of profit after tax of equity accounted units (1,478) (838)
- Gains on consolidation and disposal of interests in businesses - (1,214)
- Net impairment charges 341 538
- Depreciation and amortisation 6,577 5,918
- Provisions (including exchange differences on provisions) 998 398
Utilisation of other provisions (402) (94)
Utilisation of provisions for close-down and restoration (1,049) (1,142)
Utilisation of provisions for post-retirement benefits and other employment (183) (133)
costs
Change in inventories (377) 205
Change in receivables and other assets (460) (202)
Change in trade and other payables 593 54
Other items((d)) 179 (122)
21,153 19,859
Consolidated cash flow statement (continued)
(b) In 2025, our net cash outflow in relation to the Simandou iron ore project,
excluding cash generated from operating activities, was US$1,455 million
(2024: US$1,292 million). This includes cash outflows of US$2,219 million
(2024: US$1,832 million) for purchases of property, plant and equipment, and
US$557 million as net funding of equity accounted units for the funding of
shared infrastructure in the WCS Rail and Port Holding Entities (2024: US$652
million, in addition to an initial US$313 million for the acquisition of the
WCS Rail and Port Holding Entities). We received related cash inflows of
US$1,321 million from Chalco Iron Ore Holdings Ltd (CIOH) for cash calls by
SimFer Jersey Limited (2024: US$1,505 million, of which US$411 million related
to CIOH's share of expenditure incurred up until the end of December 2023 to
progress critical works).
(c) In 2025, we received net proceeds of US$218 million (2024: US$675 million)
from our sales and purchases of investments within a separately managed
portfolio of fixed income instruments (refer to note 20 of the Financial
Statements to our 2025 Annual Report). Purchases and sales of these securities
are reported on a net cash flow basis within "Sales of financial assets" or
"Purchases of financial assets" depending on the overall net position at each
reporting date.
(d) In 2025, other items includes the recognition of realised gains of
US$22 million on currency forwards not designated as hedges (2024: realised
losses US$88 million).
Consolidated balance sheet
As at 31 December 2025 2024
US$m US$m
Non-current assets
Goodwill 2,949 727
Intangible assets 5,227 2,804
Property, plant and equipment 84,310 68,573
Investments in equity accounted units 5,881 4,837
Inventories 338 222
Deferred tax assets 4,288 4,016
Receivables and other assets 1,841 1,397
Other financial assets 1,699 1,090
106,533 83,666
Current assets
Inventories 6,968 5,860
Receivables and other assets 4,996 4,241
Tax recoverable 159 105
Other financial assets 574 419
Cash and cash equivalents 8,872 8,495
21,569 19,120
Total assets 128,102 102,786
Current liabilities
Borrowings (733) (180)
Leases (524) (354)
Other financial liabilities (249) (112)
Trade and other payables (10,133) (8,178)
Tax payable (587) (585)
Close-down, restoration and environmental provisions (1,128) (1,183)
Provisions for post-retirement benefits and other employment costs (473) (359)
Other provisions (1,103) (792)
(14,930) (11,743)
Non-current liabilities
Borrowings (21,198) (12,262)
Leases (1,062) (1,059)
Other financial liabilities (555) (591)
Trade and other payables (982) (543)
Tax payable (39) (28)
Deferred tax liabilities (4,094) (2,635)
Close-down, restoration and environmental provisions (16,703) (14,548)
Provisions for post-retirement benefits and other employment costs (1,142) (1,097)
Other provisions (373) (315)
(46,148) (33,078)
Total liabilities (61,078) (44,821)
Net assets 67,024 57,965
Capital and reserves
Share capital((a))
- Rio Tinto plc 207 207
- Rio Tinto Limited 3,298 3,060
Share premium account 4,329 4,326
Other reserves 7,788 5,114
Retained earnings 46,581 42,539
Equity attributable to owners of Rio Tinto 62,203 55,246
Attributable to non-controlling interests 4,821 2,719
Total equity 67,024 57,965
(a) At 31 December 2025, Rio Tinto plc had 1,254.3 million ordinary shares
in issue and held by the public, and Rio Tinto Limited had 371.2 million
shares in issue and held by the public. There were no cross holdings of shares
between Rio Tinto Limited and Rio Tinto plc in either period presented.
As required to be disclosed under the ASX Listing Rules, the net
tangible assets per share amounted to US$33.24 (31 December 2024: US$31.84).
Consolidated statement of changes in equity
Year ended 31 December 2025 Attributable to owners of Rio Tinto
Share capital Share premium Other reserves Retained earnings Total Non-controlling Total
US$m account US$m US$m US$m interests equity
US$m US$m US$m
Opening balance 3,267 4,326 5,114 42,539 55,246 2,719 57,965
Total comprehensive income for the year((a)) - - 2,617 10,089 12,706 439 13,145
Currency translation arising on Rio Tinto Limited's share capital 238 - - - 238 - 238
Dividends((b)) - - - (6,145) (6,145) (265) (6,410)
Newly consolidated operations - - - - - 298 298
Own shares purchased from Rio Tinto shareholders to satisfy share awards to - - (57) (30) (87) - (87)
employees((c))
Change in equity interest held by Rio Tinto - - - (7) (7) 2 (5)
Treasury shares reissued and other movements - 3 - - 3 - 3
Equity issued to holders of non-controlling interests((d)) - - - - - 1,628 1,628
Employee share awards charged to the income statement - - 114 135 249 - 249
Closing balance 3,505 4,329 7,788 46,581 62,203 4,821 67,024
Year ended 31 December 2024 Attributable to owners of Rio Tinto
Share capital Share premium Other reserves Retained earnings Total Non-controlling Total
US$m account US$m US$m US$m interests equity
US$m US$m US$m
Opening balance 3,584 4,324 8,328 38,350 54,586 1,755 56,341
Total comprehensive income for the year((a)) - - (3,242) 11,617 8,375 (175) 8,200
Currency translation arising on Rio Tinto Limited's share capital (317) - - - (317) - (317)
Dividends((b)) - - - (7,025) (7,025) (528) (7,553)
Newly consolidated operations - - - - - 5 5
Own shares purchased from Rio Tinto shareholders to satisfy share awards to - - (44) (13) (57) - (57)
employees((c))
Change in equity interest held by Rio Tinto - - - (468) (468) 88 (380)
Treasury shares reissued and other movements - 2 - - 2 - 2
Equity issued to holders of non-controlling interests((d)) - - - - - 1,574 1,574
Employee share awards charged to the income statement - - 72 78 150 - 150
Closing balance 3,267 4,326 5,114 42,539 55,246 2,719 57,965
Consolidated statement of changes in equity (continued)
(a) Refer to the Consolidated statement of comprehensive income for
further details. Adjustments to other reserves include currency translation
attributable to owners of Rio Tinto, other than that arising on Rio Tinto
Limited's share capital.
(b) Dividends per share announced or paid during the year are summarised
below:
Year ended 31 December 2025 2024
US cents US cents
Dividends per share: Ordinary - paid during the year 373.0 435.0
Ordinary dividends per share: announced with the results for the year 254.0 225.0
(c) Net of contributions received from employees for share awards.
(d) Refer to the consolidated cash flow statement for further details.
Status of financial information
The full year financial information contained in this announcement, which does
not constitute statutory accounts as defined in Section 434 of the Companies
Act 2006, has been derived from the statutory accounts for the year ended
31 December 2025. These statutory accounts have been audited, were approved
by the Board on 19 February 2026, and will be filed with the Registrar of
Companies in the United Kingdom and the Australian Securities and Investments
Commission in due course. Statutory accounts for the year ended 31 December
2024 have been filed with the Registrar of Companies.
Unless stated otherwise, financial information for the years ended
31 December 2025 and 31 December 2024 has been extracted from the full
financial statements for that year prepared under the historical cost
convention, as modified by the revaluation of certain derivative contracts,
the impact of fair value hedge accounting on the hedged items and the
accounting for post-retirement assets and obligations.
The Auditors' reports on the full financial statements for the years ended
31 December 2025 and 31 December 2024 were both unqualified and, in relation
to Rio Tinto plc, did not contain a statement under section 498 (2) (regarding
adequacy of accounting records and returns), or under section 498 (3)
(regarding provision of necessary information and explanations) of the United
Kingdom Companies Act 2006, and in relation to Rio Tinto Limited, contained a
statement that the financial report is in accordance with the Corporations Act
2001 as amended by the ASIC Order dated 11 July 2024.
Financial information by business unit
Segmental revenue((a)) for the year ended 31 December Underlying EBITDA((a)) Depreciation and amortisation for the year ended 31 December
for the year ended 31 December
Rio Tinto 2025 2024 2025 2024 2025 2024
interest US$m US$m US$m US$m US$m US$m
% Restated Restated Restated
Aluminium & Lithium
Bauxite (b) 3,887 3,061 1,847 1,250 309 365
Alumina (c) 3,926 3,612 1,003 799 126 142
North American Aluminium (d) 8,443 7,030 1,367 1,639 864 785
Pacific Aluminium (e) 3,391 2,844 375 363 204 154
Evaluation projects/other 565 754 (266) (203) - -
Intra-segment (4,100) (3,651) 72 (175) - -
Aluminium 16,112 13,650 4,398 3,673 1,503 1,446
Lithium (f) 944 - 176 (121) 288 -
Total Aluminium & Lithium segment 17,056 13,650 4,574 3,552 1,791 1,446
Copper
Kennecott 100% 2,766 2,599 870 720 600 718
Escondida 30% 4,582 3,424 3,379 2,221 449 426
Oyu Tolgoi 66% 4,992 2,184 3,545 1,105 846 473
Evaluation projects/other 1,389 1,068 (425) (609) 3 3
Total Copper segment 13,729 9,275 7,369 3,437 1,898 1,620
Iron Ore
Pilbara (g) 25,847 27,849 14,786 16,543 2,398 2,390
Iron Ore Company of Canada 58.7% 2,060 2,450 469 746 268 229
Dampier Salt 68.4% 304 412 76 117 14 23
Evaluation projects/other (h) 2,318 3,197 (232) (497) 2 -
Intra-segment (h) (1,540) (2,307) 95 76 - -
Total Iron Ore segment 28,989 31,601 15,194 16,985 2,682 2,642
Reportable segments total 59,774 54,526 27,137 23,974 6,371 5,708
Simandou iron ore project (i) - - (96) (22) 19 7
Rio Tinto Iron & Titanium (j) 1,729 1,993 148 609 249 226
Rio Tinto Borates 100% 814 763 210 183 64 65
Diamonds (k) 332 279 (79) (115) 8 29
Other operations (l) 239 166 (229) (160) 339 321
Inter-segment transactions (13) (21) - -
Central pension costs, share-based payments, insurance and derivatives (74) 153
Restructuring, project and one-off costs (606) (254)
Central costs (818) (816) 121 121
Central exploration and evaluation (230) (238)
Net interest
Underlying EBITDA/earnings 25,363 23,314
Items excluded from underlying EBITDA/earnings (229) 1,055
Reconciliation to consolidated income statement
Share of EAUs sales and inter-subsidiary/EAUs sales (5,237) (4,048)
Impairment charges net of reversals (m) (341) (573)
Depreciation and amortisation in subsidiaries excluding capitalised (6,271) (5,744)
depreciation
Depreciation and amortisation in EAUs (594) (559) (594) (559)
Taxation and finance items in EAUs (1,514) (1,002)
Finance items (1,846) (876)
Consolidated sales revenue/profit before taxation/depreciation and 57,638 53,658 14,568 15,615 6,577 5,918
amortisation
Financial information by business unit (continued)
Capital expenditure((a)(n)) Operating assets((o))
for the year ended 31 December as at 31 December
Rio Tinto 2025 2024 2025 2024
interest US$m US$m US$m US$m
% Restated Restated
Aluminium & Lithium
Bauxite (b) 231 159 2,105 2,289
Alumina (c) 289 279 689 804
North American Aluminium (d) 1,344 1,153 11,411 10,516
Pacific Aluminium (e) 117 102 736 706
Evaluation projects/other - - 814 810
Intra-segment - 1 78 (15)
Aluminium 1,981 1,694 15,833 15,110
Lithium (f) 1,365 154 9,783 1,088
Total Aluminium & Lithium segment 3,346 1,848 25,616 16,198
Copper
Kennecott 100% 593 774 2,589 2,391
Escondida 30% - - 3,316 2,779
Oyu Tolgoi 66% 1,278 1,277 16,857 16,692
Evaluation projects/other 1 4 230 262
Total Copper segment 1,872 2,055 22,992 22,124
Iron Ore
Pilbara (g) 4,063 2,985 20,427 17,016
Iron Ore Company of Canada 58.7% 330 291 1,394 1,240
Dampier Salt 68.4% 29 27 94 5
Evaluation projects/other (h) - - 804 718
Intra-segment (h) - - (105) (177)
Total Iron Ore segment 4,422 3,303 22,614 18,802
Reportable segments total 9,640 7,206 71,222 57,124
Simandou iron ore project (i) 2,219 1,832 4,158 2,106
Rio Tinto Iron & Titanium (j) 229 244 3,270 3,215
Rio Tinto Borates 100% 64 57 438 475
Diamonds (k) 3 48 (106) (38)
Other operations (l) 38 70 (1,251) (1,396)
Inter-segment transactions (3) 6
Other items 92 134 (1,163) (755)
Total 12,285 9,591 76,565 60,737
Add back: Proceeds from disposal of property, plant and equipment 50 30
Total purchases of property, plant & equipment and intangibles as per cash 12,335 9,621
flow statement
Add: Net debt (14,362) (5,491)
Equity attributable to owners of Rio Tinto 62,203 55,246
Financial information by business unit (continued)
Business units are classified according to the Group's management structure.
Our management structure is based on product groups together with global
support functions whose leaders make up the Executive Committee. The Executive
Committee members each report directly to our Chief Executive who is the chief
operating decision maker and is responsible for allocating resources and
assessing performance of the operating segments. Finance costs and net debt
are managed on a Group-wide basis and are therefore excluded from the
segmental results
The financial information by business unit has been recast in accordance with
the organisational restructure announced on 27 August 2025 which simplified
our product group structure from 4 to 3 segments. The main impacts are: Iron
Ore Company of Canada (IOC) has moved from the previous Minerals product group
to the Iron Ore product group and Rincon has moved from "evaluation
projects/other" in the previous Minerals product group to the new Aluminium
& Lithium product group; the other business activities formerly in the
Minerals product group are now classified outside of the reportable segments.
Rio Tinto Iron & Titanium and Rio Tinto Borates were placed under
strategic review during 2025, with Diamonds now presented outside of our
product group structure as it managed by the Chief Commercial Officer.
On 6 March 2025, we acquired Arcadium Lithium plc, and its results are
included in the new Aluminium & Lithium product group as part of
"Lithium", together with Rincon.
The disclosures in this note include certain alternative performance measures
(non-IFRS measures). For more information on the non-IFRS measures used by the
Group, including definitions and calculations, refer to the section titled
alternative performance measures (pages 38 to 45). Ownership interests are
100% unless otherwise shown.
(a) Segmental revenue, Underlying EBITDA and Capital expenditure are defined and
calculated within the Alternative Performance Measures section on page 38.
(b) Bauxite represents the Group's interest in Gove and Weipa, Porto Trombetas
(22%) and Sangaredi (22.9%).
(c) Alumina represents the Group's interest in Jonquière (Vaudreuil), Yarwun,
Queensland Alumina (80% equity and 20% additional tolling capacity in the
income statement) and São Luis (Alumar) (10%).
(d) North American Aluminium represents the Group's interest in Alma, Arvida,
Arvida AP60, Grande-Baie, ISAL, Kitimat, Laterrière, Alouette (40%),
Bécancour (25.1%), Sohar (20%) and Matalco (50%).
(e) Pacific Aluminium represents the Group's interest in Bell Bay, Boyne Island
(73.5%), Tiwai Point and Tomago (51.6%). On 30 September 2024, our interest in
Boyne Island was increased from 59.4% to 71.05% following our acquisition of
Mitsubishi Corporation's 11.65% interest in Boyne Smelters Limited (BSL). On
1 November 2024, our interest was further increased to 73.5% following our
acquisition of Sumitomo Chemical Company's (SCC) 2.46% interest in BSL. On
1 November 2024, we also acquired SCC's 20.64% interest in New Zealand
Aluminium Smelters, increasing our interest from 79.36% to 100%.
(f) Lithium represents the Group's interest in Rincon and, following the
acquisition of Arcadium Lithium on 6 March 2025, the following operating
mines: Olaroz (67%), Hombre Muerto, assets under construction in Argentina and
Canada (50%), undeveloped properties and downstream processing facilities in
Argentina, Canada, US, UK, China, and Japan (75%).
(g) Pilbara represents the Group's holding in Hamersley, Hope Downs Joint Venture
(50%), Western Range Joint Venture (54%) and Robe River Iron Associates (65%).
The Group's net beneficial interest in Robe River Iron Associates is 53%, as
30% is held through a 60% owned subsidiary and 35% is held through a 100%
owned subsidiary.
(h) Segmental revenue, Underlying EBITDA, and Operating assets within Evaluation
projects/other include activities relating to the shipment and blending of
Pilbara and IOC iron ore inventories held portside in China and sold to
domestic customers. Transactions between Pilbara or IOC and our portside
trading business are eliminated through the Iron Ore "intra-segment" line.
(i) Rio Tinto SimFer UK Limited (which is wholly owned by the Group) holds a 53%
interest in SimFer Jersey Limited (SimFer Jersey) which in turn, has an 85%
interest in SimFer S.A., the company that will carry out the Simandou mining
operations in Guinea, and an 85% interest in the company which is delivering
SimFer Jersey's scope of the co-developed rail and port infrastructure. SimFer
Jersey at present has a 100% interest in the companies that will own and
operate the transhipment vessels, however this is anticipated to reduce to 85%
with the Government of Guinea taking a 15% interest before transhipment
operations commence. These entities, together with the equity accounted WCS
Rail and Port Holding Entities (described in note 33 to the Financial
Statements of our 2025 Annual Report) and La Compagnie du Transguinéen S.A.,
eventual owner and operator of the co-developed infrastructure, are referred
to as the Simandou iron ore project.
(j) Includes our interests in Rio Tinto Iron and Titanium Quebec Operations, QIT
Madagascar Minerals (QMM, economic interest of 85%) and Richards Bay Minerals
(attributable interest of 74%).
(k) Relates to our 100% interest in the Diavik diamond mine and diamond marketing
operations.
(l) Other operations includes our 98.43% interest in Energy Resources of
Australia, sites being rehabilitated under the management of Rio Tinto
Closure, Rio Tinto Marine, and the remaining legacy liabilities of Rio Tinto
Coal Australia. These include provisions for onerous contracts, in relation to
rail infrastructure capacity, partly offset by financial assets and
receivables relating to contingent royalties and disposal proceeds.
(m) Refer to note 4 to the Financial Statements of our 2025 Annual Report for
allocation of impairment charges net of reversals between consolidated amounts
and share of profit in EAUs.
(n) Capital expenditure is the net cash outflow on purchases less sales of
property, plant and equipment, capitalised evaluation costs and purchases less
sales of other intangible assets as derived from the consolidated cash flow
statement. The details provided include 100% of subsidiaries' capital
expenditure and Rio Tinto's share of the capital expenditure of joint
operations but exclude equity accounted units.
(o) Operating assets of the Group represents equity attributable to Rio Tinto
adjusted for net debt. Operating assets of subsidiaries, joint operations and
the Group's share relating to equity accounted units are made up of net assets
adjusted for net debt and post-retirement assets and liabilities, net of tax.
Operating assets are stated after the deduction of non-controlling interests;
these are calculated by reference to the net assets of the relevant companies
(ie inclusive of such companies' debt and amounts due to or from Rio Tinto
Group companies).
Alternative performance measures
The Group presents certain alternative performance measures (non-IFRS
measures) which are reconciled to directly comparable IFRS financial measures
below. These non-IFRS measures, hereinafter referred to as alternative
performance measures (APMs), are used by management to assess the performance
of the business and provide additional information, which investors may find
useful. APMs are presented in order to give further insight into the
underlying business performance of the Group's operations.
APMs are not consistently defined and calculated by all companies, including
those in the Group's industry. Accordingly, these measures used by the Group
may not be comparable with similarly titled measures and disclosures made by
other companies. Consequently, these APMs should not be regarded as a
substitute for the IFRS measures and should be considered supplementary to
those measures.
The following tables present the Group's key financial measures not defined
according to IFRS and a reconciliation between those APMs and their nearest
respective IFRS measures.
APMs derived from the income statement
The following income statement measures are used by the Group to provide
greater understanding of the underlying business performance of its operations
and to enhance comparability of reporting periods. They indicate the
underlying commercial and operating performance of our assets including
revenue generation, productivity and cost management.
Segmental revenue
Segmental revenue includes consolidated sales revenue plus the equivalent
sales revenue of equity accounted units (EAUs) in proportion to our equity
interest (after adjusting for sales to/from subsidiaries).
Underlying EBITDA
Underlying EBITDA represents profit before taxation, net finance items,
depreciation and amortisation adjusted to exclude the EBITDA impact of items
which do not reflect the underlying performance of our reportable segments.
Reconciliation of profit after tax to underlying EBITDA
Items excluded from profit after tax are those gains and losses that,
individually or in aggregate with similar items, are of a nature and size to
require exclusion in order to provide additional insight into the underlying
business performance.
The following items are excluded from profit after tax in arriving at
underlying EBITDA in each year irrespective of materiality:
- all depreciation and amortisation in subsidiaries and the corresponding
share of profit in EAUs
- all taxation and finance items in subsidiaries and the corresponding
share of profit in EAUs
- unrealised (gains)/losses on embedded derivatives not qualifying for
hedge accounting (including foreign exchange)
- net (gains)/losses on consolidation or disposal of interests in
businesses
- net impairment charges and reversals including corresponding amounts in
share of profit in EAUs
- the underlying EBITDA of discontinued operations
- adjustments to closure provisions where the adjustment is associated
with an impairment charge and for legacy sites where the disturbance or
environmental contamination relates to the pre-acquisition period.
Alternative performance measures (continued)
In addition, there is a final judgemental category which includes, where
applicable, other credits and charges that, individually or in aggregate if of
a similar type, are of a nature or size to require exclusion in order to
provide additional insight into underlying business performance. For the years
ended 2025 and 2024, there were no items in this category.
Year ended 31 December 2025 2024
US$m US$m
Profit after tax for the year 10,249 11,574
Taxation 4,319 4,041
Profit before taxation 14,568 15,615
Depreciation and amortisation in subsidiaries, excluding capitalised 6,271 5,744
depreciation((a))
Depreciation and amortisation in equity accounted units 594 559
Finance items in subsidiaries 1,846 876
Taxation and finance items in equity accounted units 1,514 1,002
Unrealised (gains)/losses on embedded commodity and currency derivatives not (64) 73
qualifying for hedge accounting (including foreign exchange)
Gains on consolidation and disposal of interests in businesses((b)) - (1,214)
Impairment charges net of reversals ((c)) 341 573
Change in closure estimates (non-operating and fully impaired sites)((d)) 293 86
Underlying EBITDA 25,363 23,314
(a) Depreciation and amortisation in subsidiaries for the year ended 31
December is net of capitalised depreciation of US$306 million (31 December
2024: US$174 million).
(b) In 2024, gains on consolidation of businesses include the revaluation
of our previously held interest in the NZAS joint operation as we acquired the
remaining shares during the year and this became a subsidiary. Disposals
include the sale of Wyoming Uranium and Lake MacLeod, as described in note 5
to the Financial Statements of our 2025 Annual Report.
(c) Detailed information about impairment charges net of reversals is
disclosed in note 4 to the Financial Statements of our 2025 Annual Report.
(d) In 2025, the change in closure estimate charge includes US$233 million
related to the Yarwun alumina refinery, due to an acceleration of its forecast
closure date as studies had not identified an economically viable solution for
the construction of a second tailings storage facility. This qualified under
our accounting policy for exclusion from underlying earnings as it also
resulted in an impairment charge during the year (refer to note 4 to the
Financial Statements of our 2025 Annual Report for further details). In 2024,
the charge to the income statement related to the change in estimates of
underlying closure cash flows, net of the impact of a change in discount rate,
expressed in real-terms, from 2.0% to 2.5% as applied to provisions for
close-down, restoration and environmental liabilities at legacy sites where
the environmental damage preceded ownership by Rio Tinto.
Underlying EBITDA margin
Underlying EBITDA margin is defined as underlying EBITDA divided by the
aggregate of consolidated sales revenue and our share of equity account unit
sales after eliminations.
Year ended 31 December 2025 2024
US$m US$m
Underlying EBITDA 25,363 23,314
Consolidated sales revenue 57,638 53,658
Share of equity accounted unit sales and inter-subsidiary/equity accounted 5,237 4,048
unit sales eliminations
62,875 57,706
Underlying EBITDA margin 40 % 40 %
Alternative performance measures (continued)
Underlying earnings
Underlying earnings represents net earnings attributable to the owners of Rio
Tinto, adjusted to exclude items that do not reflect the underlying
performance of the Group's operations.
Exclusions from underlying earnings are those gains and losses that,
individually or in aggregate with similar items, are of a nature and size to
require exclusion in order to provide additional insight into underlying
business performance.
The following items are excluded from net earnings in arriving at underlying
earnings in each period irrespective of materiality:
• net (gains)/losses on consolidation or disposal of interests in
businesses
• net impairment charges and reversals
• (profit)/loss after tax from discontinued operations
• exchange and derivative gains and losses. This adjustment includes
exchange (gains)/losses on external net debt and intragroup balances,
unrealised (gains)/losses on currency and interest rate derivatives not
qualifying for hedge accounting, unrealised (gains)/losses on certain
commodity derivatives not qualifying for hedge accounting, and unrealised
(gains)/losses on embedded derivatives not qualifying for hedge accounting
• adjustments to closure provisions where the adjustment is associated
with an impairment charge, or for legacy sites where the disturbance or
environmental contamination relates to the pre-acquisition period.
In addition, there is a final judgemental category which includes, where
applicable, other credits and charges that, individually or in aggregate if of
a similar type, are of a nature or size to require exclusion in order to
provide additional insight into underlying business performance. In 2025,
there were no items in this category. In 2024 this includes provision for
uncertain tax positions in relation to disputes with the Mongolian Tax
Authority and the recognition of deferred tax assets at Energy Resources of
Australia.
Exclusions from underlying earnings relating to equity accounted units are
stated after tax and included in the column "Pre-tax".
Alternative performance measures (continued)
Reconciliation of net earnings to underlying earnings
Year ended 31 December Pre-tax Taxation Non-controlling Net amount Net amount
2025 2025 interests 2025 2024
US$m US$m 2025 US$m US$m
US$m
Net earnings 14,568 (4,319) (283) 9,966 11,552
Items excluded from underlying earnings
Impairment charges net of reversals 341 (100) - 241 534
Gains on consolidation and disposal of interests in businesses - - - - (897)
Foreign exchange and derivative losses/(gains):
- Exchange losses/(gains) on external net debt, intragroup balances and 471 14 1 486 (293)
derivatives((a))
- (Gains)/losses on currency and interest rate derivatives not qualifying (8) 1 (4) (11) 74
for hedge accounting((b))
- (Gains)/losses on embedded commodity derivatives not qualifying for hedge (63) 27 - (36) 65
accounting((c))
Change in closure estimates (non-operating and fully impaired sites)((d)) 293 (71) - 222 73
Uncertain Tax Provisions - - - - 195
Recognition of deferred tax assets at Energy Resources of Australia - - - - (436)
Total excluded from underlying earnings 1,034 (129) (3) 902 (685)
Underlying earnings 15,602 (4,448) (286) 10,868 10,867
(a) Exchange losses/(gains) on external net debt, intragroup balances and
derivatives includes post-tax losses on intragroup balances of US$761 million
(2024: US$647 million gain) offset by post-tax gains on external net debt of
US$275 million (2024: US$354 million loss), primarily as a result of the
Australian dollar strengthening against the US dollar compared to the 31
December 2024 spot rate.
(b) Valuation changes on currency and interest rate derivatives, which are
ineligible for hedge accounting, other than those embedded in commercial
contracts, and the currency revaluation of embedded US dollar derivatives
contained in contracts held by entities whose functional currency is not the
US dollar.
(c) Valuation changes on derivatives, embedded in commercial contracts that
are ineligible for hedge accounting but for which there will be an offsetting
change in future Group earnings. Mark-to-Market (MTM) movements on commodity
derivatives entered into with the commercial objective of achieving spot
pricing for the underlying transaction at the date of settlement are included
in underlying earnings. In 2025, this includes unrealised gains (2024: losses)
recognised in relation to our renewable PPAs.
(d) In 2025, the change in closure estimate charge includes US$233 million
related to the Yarwun alumina refinery, due to an acceleration of its forecast
closure date as studies had not identified an economically viable solution for
the construction of a second tailings storage facility. This qualified under
our accounting policy for exclusion from underlying earnings as it also
resulted in an impairment charge during the year (refer note 4 to the
Financial Statements of our 2025 Annual Report for further details). In 2024,
the charge to the income statement related to the change in estimates of
underlying closure cash flows, net of impact of a change in discount rate,
expressed in real-terms, from 2.0% to 2.5% as applied to provisions for
close-down, restoration and environmental liabilities at legacy sites where
the environmental damage preceded ownership by Rio Tinto.
Basic underlying earnings per share
Basic underlying earnings per share is calculated as underlying earnings
divided by the weighted average number of shares outstanding during the year.
Year ended 31 December 2025 2024
(cents) (cents)
Basic earnings per ordinary share 613.7 711.7
Items excluded from underlying earnings per share((a)) 55.5 (42.2)
Basic underlying earnings per ordinary share 669.2 669.5
(a) Calculation of items excluded from underlying earnings per share.
Alternative performance measures (continued)
Year ended 31 December 2025 2024
Items excluded from underlying earnings (US$m) 902.0 (685.0)
Weighted average number of shares (millions) 1,624.0 1,623.1
Items excluded from underlying earnings per share (cents) 55.5 (42.2)
We have provided basic underlying earnings per share as this allows the
comparability of financial performance adjusted to exclude items which do not
reflect the underlying performance of the Group's operations.
Interest cover
Interest cover is a financial metric used to monitor our ability to service
debt. It represents the number of times finance income and finance costs
(including amounts capitalised) are covered by profit before taxation, before
finance income, finance costs, share of profit after tax of equity accounted
units and items excluded from underlying earnings, plus dividends from equity
accounted units.
Year ended 31 December 2025 2024
US$m US$m
Profit before taxation 14,568 15,615
Add back
Finance income (465) (514)
Finance costs 1,062 763
Share of profit after tax of equity accounted units (1,478) (838)
Items excluded from underlying earnings 1,034 (715)
Add: Dividends from equity accounted units 1,070 1,067
Calculated earnings 15,791 15,378
Finance income 465 514
Finance costs (1,062) (763)
Add: Amounts capitalised (411) (424)
Total net finance costs before capitalisation (1,008) (673)
Interest cover 16 23
Payout ratio
The payout ratio is used by us to guide the dividend policy we implemented in
2016, under which we have sought to return 40-60% of underlying earnings, on
average through the cycle, to shareholders as dividends. It is calculated as
total equity dividends per share to owners of Rio Tinto declared in respect
of the financial year divided by underlying earnings per share (as defined
above). Dividends declared usually include an interim dividend paid in the
year, and a final dividend paid after the end of the year. Any special
dividends declared in respect of the financial year are also included.
Year ended 31 December 2025 2024
(cents) (cents)
Interim dividend declared per share 148.0 177.0
Final dividend declared per share 254.0 225.0
Total dividend declared per share for the year 402.0 402.0
Underlying earnings per share 669.2 669.5
Payout ratio 60 % 60 %
Alternative performance measures (continued)
APMs derived from cash flow statement
Capital expenditure
Capital expenditure includes the net sustaining and development expenditure on
property, plant and equipment, and on intangible assets. This is equivalent to
"Purchases of property, plant and equipment and intangible assets" in the cash
flow statement less "Sales of property, plant and equipment and intangible
assets".
This measure is used to support management's objective of effective and
efficient capital allocation as we need to invest in existing assets in order
to maintain and improve productive capacity, and in new assets to drive
business growth.
Year ended 31 December 2025 2024
US$m US$m
Purchase of property, plant and equipment and intangible assets 12,335 9,621
Less: Sales of property, plant and equipment and intangible assets (50) (30)
Capital expenditure 12,285 9,591
Rio Tinto share of capital investment
Rio Tinto's share of capital investment represents our economic investment in
capital projects.
The measure is based upon our capital expenditure APM (as defined above),
adjusted to deduct equity or shareholder loan financing provided to partially
owned subsidiaries by non-controlling interests in respect of major capital
projects in the period and contributions from other third parties. In
circumstances where the funding to be provided by non-controlling interests is
not received in the same period as the underlying capital investment, this
adjustment is applied in the period in which the underlying capital investment
is made, not when the funding is received. Where funding which would otherwise
be provided directly by shareholders is replaced with project financing, an
adjustment is also made to deduct the share of project financing attributable
to the non-controlling interest. This adjustment is not made in cases where
Rio Tinto has unilaterally guaranteed this project financing. Lastly, funding
contributed by the Group to equity accounted units for its share of investment
in their major capital projects is added to the measure. No adjustment is made
to the Capital expenditure APM where capital expenditure is funded from the
operating cash flows of the subsidiary or EAU.
Year ended 31 December 2025 2024
US$m US$m
Adjusted((a))
Capital expenditure((a)) 12,285 9,591
Funding provided by the group to EAUs((b)) 557 965
Total capital investment((a)) 12,842 10,556
Less: Equity or shareholder loan financing received/due from non-controlling (1,439) (1,063)
interests((c))
Rio Tinto share of capital investment((a)) 11,403 9,493
(a) In 2025, we revised the calculation of "Rio Tinto share of capital
investment" to be based on our "Capital expenditure" APM, as presented above.
Accordingly, we have adjusted prior year comparatives for comparability.
(b) Funding provided by the group to EAUs relates to funding of WCS Rail
and Port Holding Entities (WCS) in relation to the Simandou project,
consisting of a direct equity investment in WCS of US$249 million (2024:
US$431 million) and loans provided totalling US$308 million (2024: US$534
million).
(c) We received US$1,321 million (2024: US$1,505 million) from Chalco Iron
Ore Holdings Ltd (CIOH) interests of which US$1,160 million (2024: US$1,063
million) relates to CIOH's 47% share of capital expenditure incurred on the
Simandou project and associated funding provided by the Group to EAUs during
the current year on an accruals basis. In 2025, we also received US$236
million from Investissement Québec (IQ) in respect of their 50% share of
capital expenditure incurred on the Nemaska lithium development project. The
equivalent amount, on an accruals basis, of US$279 million is included in Rio
Tinto share of capital investment.
Alternative performance measures (continued)
Free cash flow
Free cash flow is defined as net cash generated from operating activities
minus purchases of property, plant and equipment and intangibles and payments
of lease principal, plus proceeds from the sale of property, plant and
equipment and intangible assets.
This measures the net cash returned by the business after the expenditure of
sustaining and development capital. This cash can be used for shareholder
returns, reducing debt and other investing/financing activities.
Year ended 31 December 2025 2024
US$m US$m
Net cash generated from operating activities 16,832 15,599
Less: Purchase of property, plant and equipment and intangible assets (12,335) (9,621)
Less: Lease principal payments (522) (455)
Add: Sales of property, plant and equipment and intangible assets 50 30
Free cash flow 4,025 5,553
APMs derived from the balance sheet
Net debt
Net debt is total borrowings plus lease liabilities less cash and cash
equivalents and other liquid investments, adjusted for derivatives related to
net debt.
Net debt measures how we are managing our balance sheet and capital structure.
Year ended 31 December 2025
Financial liabilities Other assets
Borrowings Lease liabilities((b)) Derivatives related to net debt Cash and cash equivalents including overdrafts Other investments((d)) Net debt
US$m
excluding overdrafts US$m ((c)) ((a)) US$m
((a)) US$m US$m
US$m
At 1 January (12,431) (1,413) (343) 8,484 212 (5,491)
Foreign exchange adjustment (53) (60) 46 95 14 42
Net cash movements excluding exchange movements (7,816) 522 (14) (7) 131 (7,184)
Newly consolidated operations((e)) (1,553) (46) - 293 - (1,306)
Other non-cash movements (71) (589) 231 - 6 (423)
At 31 December (21,924) (1,586) (80) 8,865 363 (14,362)
(a) Borrowings excluding overdrafts of US$21,924 million (2024: US$12,431
million) differs from Borrowings on the balance sheet as it excludes bank
overdrafts of US$7 million (2024: US$11 million) which has been included in
cash and cash equivalents for the net debt reconciliation.
(b) Other non-cash movements in lease liabilities include the net impact of
additions, modifications and terminations during the year.
(c) Included within derivatives related to net debt are interest rate and
cross-currency interest rate swaps that are in hedge relationships with the
Group's debt.
(d) Other investments includes US$363 million of term deposits with a
maturity greater than 3 months. In 2024, the entire balance of US$212 million
comprised highly liquid financial assets held in a separately managed
portfolio of fixed income instruments, classified as held for trading.
(e) This relates to our acquisition of Arcadium Lithium plc, refer to note
5 of the notes to our 2025 Financial Statements for more details.
Alternative performance measures (continued)
Net gearing ratio
Net gearing ratio is defined as net debt divided by the sum of net debt and
total equity at the end of each year. It demonstrates the degree to which the
Group's operations are funded by debt versus equity.
2025 2024
US$m US$m
Net debt 14,362 5,491
Total equity 67,024 57,965
Net debt plus total equity 81,386 63,456
Net gearing ratio 18 % 9 %
Underlying return on capital employed
Underlying return on capital employed (ROCE) is defined as underlying earnings
excluding net interest divided by average capital employed (operating assets).
Underlying ROCE measures how efficiently we generate profits from investment
in our portfolio of assets.
Year ended 31 December 2025 2024
US$m US$m
Profit after tax attributable to owners of Rio Tinto (net earnings) 9,966 11,552
Items added back to derive underlying earnings 902 (685)
Underlying earnings 10,868 10,867
Add/(deduct):
Finance income per the income statement (465) (514)
Finance costs per the income statement 1,062 763
Tax on finance cost (71) (208)
Non-controlling interest share of net finance costs (560) (496)
Net interest cost in equity accounted units (Rio Tinto share) 49 60
Net interest 15 (395)
Adjusted underlying earnings 10,883 10,472
Equity attributable to owners of Rio Tinto - beginning of the year 55,246 54,586
Net debt - beginning of the year 5,491 4,231
Operating assets - beginning of the year 60,737 58,817
Equity attributable to owners of Rio Tinto - end of the year 62,203 55,246
Net debt - end of the year 14,362 5,491
Operating assets - end of the year 76,565 60,737
Average operating assets 68,651 59,777
Underlying return on capital employed 16 % 18 %
Metal prices and exchange rates
12 months to 31 December 2025 12 months to 31 December 2024 Increase/ (Decrease)
Metal prices - average for the period
Copper - US cents/lb 451 415 9 %
Aluminium - US$/tonne 2,632 2,419 9 %
Gold - US$/troy oz 3,432 2,386 44 %
Twelve month average to 31 December At 31 December
Exchange rates against the US dollar 2025 2024 Increase/ (Decrease) 2025 2024 Increase/ (Decrease)
Pound sterling 1.32 1.28 3 % 1.35 1.25 8 %
Australian dollar 0.64 0.66 (2) % 0.67 0.62 8 %
Canadian dollar 0.72 0.73 (2) % 0.73 0.70 5 %
Euro 1.13 1.08 4 % 1.18 1.04 13 %
South African rand 0.056 0.055 3 % 0.060 0.053 13 %
Forward-looking statements
This report includes "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. All statements other than
statements of historical facts included in this report, including, without
limitation, those regarding Rio Tinto's financial position, business strategy,
plans and objectives of management for future operations (including
development plans and objectives relating to Rio Tinto's products, production
forecasts and reserve and resource positions), are forward-looking statements.
The words "intend", "aim", "project", "anticipate", "estimate", "plan",
"believes", "expects", "may", "should", "will", "target", "set to" or similar
expressions, commonly identify such forward-looking statements.
Such forward-looking statements involve known and unknown risks, uncertainties
and other factors which may cause the actual results, performance or
achievements of Rio Tinto, or industry results, to be materially different
from any future results, performance or achievements expressed or implied by
such forward-looking statements. Such forward-looking statements are based on
numerous assumptions regarding Rio Tinto's present and future business
strategies and the environment in which Rio Tinto will operate in the future.
Among the important factors that could cause Rio Tinto's actual results,
performance or achievements to differ materially from those in the
forward-looking statements include, but are not limited to: an inability to
live up to Rio Tinto's values and any resultant damage to its reputation; the
impacts of geopolitics on trade and investment; the impacts of climate change
and the transition to a low-carbon future; an inability to successfully
execute and/or realise value from acquisitions and divestments; the level of
new ore resources, including the results of exploration programmes and/or
acquisitions; disruption to strategic partnerships that play a material role
in delivering growth, production, cash or market positioning; damage to Rio
Tinto's relationships with communities and governments; an inability to
attract and retain requisite skilled people; declines in commodity prices and
adverse exchange rate movements; an inability to raise sufficient funds for
capital investment; inadequate estimates of ore resources and reserves; delays
or overruns of large and complex projects; changes in tax regulation; safety
incidents or major hazard events; cyber breaches; physical impacts from
climate change; the impacts of water scarcity; natural disasters; an
inability to successfully manage the closure, reclamation and rehabilitation
of sites; the impacts of civil unrest; the impacts of the Covid-19 pandemic;
breaches of Rio Tinto's policies, standard and procedures, laws or
regulations; trade tensions between the world's major economies; increasing
societal and investor expectations, in particular with regard to
environmental, social and governance considerations; the impacts of
technological advancements; and such other risks identified in Rio Tinto's
most recent Annual Report and accounts in Australia and the United Kingdom and
the most recent Annual Report on Form 20-F filed with the United States
Securities and Exchange Commission (the "SEC") or Form 6-Ks furnished to, or
filed with, the SEC. Forward-looking statements should, therefore, be
construed in light of such risk factors and undue reliance should not be
placed on forward-looking statements. These forward-looking statements speak
only as of the date of this report. Rio Tinto expressly disclaims any
obligation or undertaking (except as required by applicable law, the UK
Listing Rules, the Disclosure Guidance and Transparency Rules of the Financial
Conduct Authority and the Listing Rules of the Australian Securities Exchange)
to release publicly any updates or revisions to any forward-looking statement
contained herein to reflect any change in Rio Tinto's expectations with regard
thereto or any change in events, conditions or circumstances on which any such
statement is based.
Nothing in this report should be interpreted to mean that future earnings per
share of Rio Tinto plc or Rio Tinto Limited will necessarily match or exceed
its historical published earnings per share.
Contacts Please direct all enquiries to media.enquiries@riotinto.com
Media Relations, United Kingdom Media Relations, Australia Media Relations, Canada
Matthew Klar Matt Chambers Simon Letendre
M +44 7796 630 637 M +61 433 525 739 M +1 514 796 4973
David Outhwaite Alesha Anderson Malika Cherry
M +44 7787 597 493 M +61 434 868 118 M +1 418 592 7293
Rachel Pupazzoni Vanessa Damha
M +61 438 875 469 M +1 514 715 2152
Bruce Tobin
M +61 419 103 454
Investor Relations, United Kingdom Investor Relations, Australia Media Relations,
Rachel Arellano Tom Gallop US & Latin America
M +61 439 353 948
M +44 7584 609 644
Eddie Gan-Och
Jesse Riseborough
M +61 477 599 714
David Ovington
M +1 202 394 9480
M +44 7920 010 978
Laura Brooks
M +44 7826 942 797
Weiwei Hu
M +44 7825 907 230
Rio Tinto plc Rio Tinto Limited
6 St James's Square Level 43, 120 Collins Street
London SW1Y 4AD
United Kingdom Melbourne 3000
T +44 20 7781 2000 Australia
Registered in England
No. 719885
T +61 3 9283 3333
Registered in Australia
ABN 96 004 458 404
riotinto.com
This announcement is authorised for release to the market by Rio Tinto's Group
Company Secretary.
LEI: 213800YOEO5OQ72G2R82
Classification: 3.1 Additional regulated information required to be disclosed
under the laws of a Member State
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. END FR AKFBBCBKDPBD
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