Rio Tinto (ASX:RIO) logged its financial results for 2025, headlined by an 8% increase in copper equivalent production and a 9% rise in underlying EBITDA to US$25.4 billion.
The performance was primarily driven by the successful ramp-up of the Oyu Tolgoi underground copper mine and record iron ore production from its Pilbara operations.
Despite the operational gains, the company reported a 14% decline in net earnings attributable to owners, totaling US$10 billion, while free cash flow dropped 28% to US$4 billion due to increased capital expenditure.
CEO Simon Trott emphasised the company's "sharper and simpler way of working," noting that disciplined cost management helped offset broader economic pressures.
Milestones achieved during the year include the completion of the Oyu Tolgoi underground project and the first ore shipment from the Simandou Iron Ore Project in December 2025.
The company expanded its portfolio into battery materials by closing the acquisition of Arcadium Lithium ahead of schedule.
Rio Tinto maintained a strong balance sheet, allowing for a US$6.5 billion ordinary dividend, representing a 60% payout ratio.
This marks the tenth consecutive year the company has paid out at the top end of its target range.
However, net debt rose 162% to $14.4 billion, reflecting the company’s aggressive investment in growth projects and acquisitions.
The firm remains committed to a 3% CAGR in CuEq production through 2030, anchored by its high-quality copper and iron ore pipeline.
At the time of reporting, Rio Tinto's share price was $168.55.