Off the Call: 1HCY26 Results

Research evidence excerpt

Off the Call: 1HCY26 Results

Update

July 29, 2026 03:51 AM GMT

Morgan Stanley Australia Limited+MRio Tinto Limited | Asia Pacific Rahul Anand, CFA

Equity Analyst

Off the Call: 1HCY26 Results R.Anand@morganstanley.comMorgan Stanley & Co. International plc+ +61 2 9770-1136

Alain Gabriel, CFA

Following the 1HCY26 results conference call, we provide our Equity Analyst

Alain.Gabriel@MorganStanley.com +44 20 7425-8959

key takeaways below.

Morgan Stanley Australia Limited+

See our 1HCY26 earnings first take here. Michael A Stancliff

Research Associate

Productivity benefits and durability: Management expects the targeted US$1.8bn Michael.Stancliff@morganstanley.com +61 2 9770-9253

year-end run-rate for CY26 to retain a broadly similar mix to the first-half benefits, Morgan Stanley & Co. International plc+

where ~US$530m were related to costs, with the balance of the total US$870m to Ferdinand Huber

volumes. Management distinguished benefits already banked in earnings from Ferdinand.Huber@morganstanley.com +44 20 7677-2702

annualised initiatives still flowing through, including transition costs. While the

programme is expected to mature as the more immediate opportunities are

completed, management reiterated that there is “significantly more to go,”

(although this was not quantified) with further projects expected to contribute

beyond CY26, and a continued focus on sustaining benefits already delivered.

Rio Tinto Limited (RIO.AX, RIO AU)

Pilbara productivity and replacement mines: Management linked the first half iron

Australia Materials | Australia

ore performance to improved mine-to-port system flows and the changes previously Stock Rating Underweight

made to product strategy. Greater system stability has allowed the business to Industry View Attractive

Price target A$147.50