- Rio Tinto
- 29 July 2026 07:57:03
Source: Sharecast
Underlying earnings for the six months to June 30 climbed 43% to $6.9bn, further driven by $870m in productivity gains. Free cash flow surged 75% year on year to $3.8bn.
Underlying core earnings rose 28% to $14.8bn for the first half of 2026, driven by stronger commodity prices, higher production volumes and continued progress on its multi‑year productivity programme.
The miner said improved market conditions delivered a $3.6bn uplift from prices, led by sharp gains in copper, gold and aluminium benchmarks, which rose 39%, 53% and 33% respectively. Iron ore prices also remained resilient, with a 2% increase in realised pricing, although weaker bauxite prices provided a modest offset.
A further $1.5bn benefit came from higher volumes and operating cash unit cost improvements, supported by Rio’s productivity programme, which contributed $870m in the period. The company said copper growth and targeted operational actions across Pilbara iron ore, Oyu Tolgoi and aluminium operations helped deliver a 3% increase in copper‑equivalent production.
These gains more than outweighed headwinds from foreign‑exchange movements, inflation and elevated energy and aluminium raw‑material costs. Exchange rates reduced underlying EBITDA by $0.7bn, with the US dollar weakening against both the Australian and Canadian currencies. General inflation shaved $0.4bn from earnings, while higher energy prices—linked to supply disruptions—cut a further $0.3bn.
Rio also booked a $1.2bn contribution from volumes and mix, including a $300m uplift tied directly to productivity initiatives and a $900m boost from growth projects such as the ramp‑up of Oyu Tolgoi and expansion of Argentinian lithium operations.
Operating cash unit costs improved by $0.3bn, reflecting labour‑productivity gains, tighter contractor management and discipline on discretionary spending. These benefits were partly offset by cost inefficiencies at Kennecott, Escondida, IOC and bauxite operations, as well as higher aluminium raw‑material costs.
Reporting by Frank Prenesti for Sharecast.com