Rio Tinto Ltd (RTNTF) Full Year 2025 Earnings Call Highlights: Record Production and Strategic …

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

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

**Copper Equivalent Production:** Increased by 8%, setting annual records for both copper and bauxite.

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

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

**Dividend:** Stable underlying earnings of $10.9 billion, with 60% returned to shareholders, equating to $6.5 billion.

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

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

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

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

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

**Operating Cash Flow:** Strong, contributing to a slight decrease in net debt in the second half of the year.

**Gearing:** Modest at 18%.

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Release Date: February 19, 2026

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

Positive Points

Rio Tinto Ltd (RTNTF) achieved an 8% increase in copper equivalent production, setting annual records for both copper and bauxite.

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

Rio Tinto Ltd (RTNTF) plans to return 60% of its stable underlying earnings of $10.9 billion to shareholders, equating to $6.5 billion.

The company has a strong project pipeline, including significant growth in aluminum, lithium, and copper over the next decade.

Rio Tinto Ltd (RTNTF) is focusing on operational excellence and cost reduction, achieving a $650 million run rate in annualized productivity benefits.

Negative Points

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

Net debt increased to $14.4 billion due to the Arcadian acquisition, although it fell slightly in the second half of the year.

The company faces challenges in maintaining production targets at Simandou due to safety concerns.

There are concerns about the potential impact of geopolitical risks on Rio Tinto Ltd (RTNTF)'s operations in regions like Mongolia and Guinea.

The company is experiencing headwinds in the Pilbara region, impacting productivity and cost efficiency.

Q & A Highlights

Q: Can you elaborate on the discussions with Glencore and the decision not to proceed with a merger? A: Simon Trott, CEO, explained that the discussions with Glencore were thorough and constructive, focusing on whether a merger would create value for Rio Tinto shareholders. Ultimately, they concluded that they could not reach an agreement that would deliver value, particularly considering the underlying asset quality and potential synergies.

Story Continues  

Q: What are the plans for cost-cutting beyond the $650 million program, particularly in the Pilbara region? A: Simon Trott, CEO, stated that the $650 million was a run rate target for the end of Q1, and the 2026 cash delivery is expected to be materially above this. The cost-cutting efforts are part of a multi-year program across all business units, including iron ore, with a focus on productivity and efficiency improvements.

Q: How does Rio Tinto view the potential for streaming agreements, particularly with the gold component at OT? A: Peter Cunningham, CFO, mentioned that Rio Tinto has various options to release capital across its portfolio, including streaming agreements. However, the focus is on systematically evaluating the best options to deliver value, considering current discussions with the government around taxation.

Q: What is the strategic rationale behind the Brazil aluminum deal with CBA and its implications for the relationship with Chinalco? A: Simon Trott, CEO, highlighted that the deal with CBA offers an opportunity to grow Rio Tinto’s aluminum business and secure supply lines, particularly for bauxite. The transaction also strengthens the relationship with Chinalco, potentially paving the way for further collaborations.

Q: How does Rio Tinto assess geopolitical risks when considering new projects or acquisitions in high-risk regions? A: Simon Trott, CEO, acknowledged the complexity of geopolitical risks and emphasized the importance of evaluating opportunities based on value creation. Higher discount rates and a thorough assessment of potential returns are used to determine whether to pursue projects in challenging jurisdictions.

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

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