Rio Tinto profit surges 47% in first half

Rio Tinto reported a 47 percent jump in first‑half profit for 2026, driven by higher commodity prices and increased production as the miner leans into the AI‑linked supercycle.

Profit surge and cash flow boost

Half‑year earnings rose from $4.5 billion in the same period of 2025 to $6.6 billion, marking the 47 percent increase. Free cash flow surged 75 percent to $3.8 billion, and the company announced a dividend of 211 cents per share – its highest in four years and up 43 percent, fully franked for Australian shareholders.

The profit mix shifted noticeably toward copper, aluminum and lithium, which together now represent more than half of total earnings. Copper alone generated a record $5.7 billion, an 84 percent rise, as the Oyu Tolgoi mine in Mongolia ramped up output and copper prices hovered near $6 a pound.

Production rise and strategic focus

Rio Tinto said copper‑equivalent production increased 3 percent in the first half, reflecting its continued emphasis on metals central to the energy transition and the AI supercycle. At its recent annual general meeting, CEO Simon Trott reaffirmed a cost‑cutting agenda and highlighted opportunities in copper and lithium.

Iron ore, the long‑standing staple of the business, fell to just under half of EBITDA at $6.8 billion. Nevertheless, the Pilbara operation delivered its strongest first half since 2018, weathering early‑year cyclones and offsetting the decline in iron ore revenue.

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Analysts noted that the earnings jump helped Rio Tinto reduce net debt to $14.1 billion, contrary to expectations of a rise toward $15.4 billion. The lower leverage supports the company’s $5 billion capital‑release target for year‑end and keeps the 50 percent payout ratio well funded.

Two fatalities were recorded during the reporting period, at the Simandou and Kennecott sites. The firm emphasized safety as its top priority, reporting an all‑injury frequency rate of 0.40 for H1 2026 and announcing the launch of the Rio Tinto Management Operation System to strengthen safety, risk and performance standards.

Diesel costs are expected to climb as oil prices remain above $90 a barrel, while a stronger Australian dollar could compress Pilbara margins. The company also faces a $443 million tax dispute with the Mongolian government over Oyu Tolgoi.

For many workers on the ground, the shift toward copper and lithium means more stable employment prospects as demand for these metals grows. The focus on safer operations and clearer performance metrics may also translate into better working conditions and reduced accident rates.

Shares rose 7 percent on July 29 after the results were released.