Rio Tinto H1 Earnings Call Highlights

Rio Tinto reported a stronger first half of 2026, with underlying EBITDA rising 28% to $14.8 billion and free cash flow increasing 75%, as higher copper and aluminium prices combined with productivity gains and operational improvements. Chief Executive Officer Simon Trott said the company was building momentum through a strategy centered on performance, returns, portfolio quality and disciplined capital allocation.

“Nothing we report today means anything if our people do not go home safely,” Trott said, adding that safety remains the company’s first priority.

Chief Financial Officer Peter Cunningham said stronger commodity markets, particularly for copper and aluminium, supported the financial result. Copper and aluminium accounted for nearly 60% of Rio Tinto’s first-half EBITDA, according to the company.

Higher commodity prices added $3.6 billion to underlying EBITDA, including $2 billion from copper and $1.3 billion from aluminium, Cunningham said. These gains more than offset $1.5 billion in external headwinds related to foreign exchange, inflation and higher market-driven input costs. The company also reported $1.2 billion of controllable improvements.

Rio Tinto said it had banked $870 million in productivity benefits through the end of June, exceeding the $650 million target it outlined at its capital markets day in December. Trott said the company now targets a year-end productivity run rate of $1.8 billion, nearly triple the level anticipated seven months earlier. The effort includes more than 80 initiatives involving contractor management, procurement, digital investment, team structures and operational processes.

Oyu Tolgoi generated about $80 million in productivity improvements through changes to underground development and drawbell construction. Pilbara operations delivered about $55 million in annual benefits by removing redundant capacity and improving system resilience. Atlantic Operations produced roughly $40 million in annual savings through contractor-management measures.

Cunningham said the productivity program consisted of approximately $530 million of cost benefits and the remainder from volume improvements during the first half. He said the company expected a broadly similar mix for the full year, although the precise composition could change as individual operating initiatives progress.

Rio Tinto declared an interim dividend of $3.4 billion, a 43% increase from the prior period. The company said the payment represented a 50% payout of underlying earnings, consistent with its usual interim-dividend approach.