Rio Tinto (RIO.L/RIO.AX): 1H26 results – FCF and dividend ahead; guiding for $5 bn cash release by end-26

Research evidence excerpt

Rio Tinto (RIO.L/RIO.AX): 1H26 results – FCF and dividend ahead; guiding for $5 bn cash release by end-26

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28 Jul 2026 20:20:27 ET │ 15 pages

Rio Tinto (RIO.L/RIO.AX)

1H26 results – FCF and dividend ahead; guiding for $5 bn cash release

by end-26

Ephrem Ravi AC

CITI'S TAKE +44-20-7986-2462

1H26 results for RIO came in largely in-line with reported EBITDA at $14.8 ephrem.ravi@citi.com

billion, +28% y/y. Copper and aluminium business came in with better- Krishan M Agarwal

than-expected EBITDA, partially offset by slight weakness in iron ore and

lithium. Underlying EPS at $4.21 also came in 8% ahead of the VA +44-020-7986-4092

consensus estimates. Moreover, the company has reported a solid set of krishan.agarwal@citi.com

cash flow performance with 1H26 FCF at $3.8 billion, rising 75% y/y and 17% Ijeoma Ihuegbu

ahead of VA consensus. Lower cash tax, better than expected associate +44-207-986-3914

dividend and lower capex were key drivers for FCF beat. RIO has announced

dividend of $2.11/share, up 43% y/y and maintaining its 50% payout ratio ijeoma.ihuegbu@citi.com

trend for interim dividend. RIO has reiterated its guidance for $5-10 billion Thiago Ojea

cash release from asset monetization, with potential for up to $5 billion +61-2-8225-2404

cash release transactions by end-26. thiago.ojea@citi.com

Copper unit costs are running below its revised guidance — RIO’s reported unit Jack Whelan

cost for copper business is running at negative USc24.7/lb. The solid cost +61-2-8225-5979

performance is driven by Oyu Tolgoi where gold/silver production has been running jack.whelan@citi.com

ahead of expectation together with higher prices. RIO’s revised copper unit cost

guidance at USc30-50/lb (vs USc65-75c/lb earlier) is significantly higher than 1H26