Rio Tinto (LSE:RIO) reported underlying EBITDA of $14.8 billion for the six months to 30 June, up 28% on the prior-year period, alongside a 75% jump in free cash flow to $3.8 billion.
The mining group, whose portfolio spans iron ore, copper, aluminium and lithium, said profit after tax attributable to owners rose 47% to $6.7 billion, while underlying earnings climbed 43% to $6.9 billion, driving underlying return on capital employed to 17%.
Copper equivalent production grew 3% in the half, with copper, aluminium and lithium together contributing more than half of underlying EBITDA, reflecting the company's push to diversify away from iron ore.
Chief executive Simon Trott said the group has "already banked $870 million of productivity benefits" and is on track for an annualised run-rate of $1.8 billion by year-end, part of a multi-year cost and output program.
Operating cash flow rose 32% to $9.2 billion, funding continued investment in growth projects including Simandou, where SimFer mine construction and port infrastructure are both more than three-quarters complete following first high-grade iron ore sales in April.
The lithium business reached first production at Fénix 1B and Sal de Vida ahead of schedule, supporting a ramp-up toward roughly 200,000 tonnes of lithium carbonate equivalent capacity by 2028.
The board declared an interim ordinary dividend of $3.4 billion, up 43%, equivalent to a 50% payout ratio.
Rio Tinto maintained its 2026 production and sales guidance across iron ore, copper, aluminium and lithium.
News Intelligence what this means for the company
Rio Tinto delivered a sharp earnings beat in H1 2026, with underlying EBITDA up 28% and free cash flow surging 75% to $3.8 billion, driving a 43% increase in the interim dividend to $3.4 billion at a 50% payout ratio. The jump reflects both commodity price strength and execution on a $1.8 billion annualized productivity program, while Simandou mine and port infrastructure are more than three-quarters complete, positioning the company to unlock material new iron ore supply.
The combination of near-term cash generation and progress on long-cycle growth projects (Simandou, lithium ramp to 200,000 tonnes LCE by 2028) strengthens Rio Tinto's ability to sustain elevated shareholder returns while funding diversification away from iron ore. Maintained 2026 guidance suggests management confidence, though commodity price assumptions underpinning the beat remain a key risk.
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