Rio Tinto FY25: Higher revenue, stable dividend as growth projects ramp up

The Rio Tinto Ltd (ASX: RIO) share price is in focus as the mining giant delivered its full-year results, reporting revenue of US$57.6 billion (up 7%) and a 9% rise in underlying EBITDA to US$25.4 billion.

What did Rio Tinto report?

• Revenue rose 7% to US$57.6 billion
• Underlying EBITDA increased 9% to US$25.4 billion
• Net profit attributable to owners fell 14% to US$10.0 billion
• Underlying earnings were stable at US$10.9 billion
• Net cash from operating activities up 8% to US$16.8 billion
• Ordinary full-year dividend maintained at US$6.5 billion (60% payout ratio)

What else do investors need to know?

Rio Tinto delivered an 8% uplift in copper equivalent production, supported by the completion of the Oyu Tolgoi underground copper mine and ongoing ramp-up in Pilbara iron ore. Record annual bauxite production and a strong showing from the aluminium segment also contributed to performance, while the recent Arcadium Lithium acquisition expanded the group’s footprint in battery minerals.

The company continues to emphasise operational discipline and cost control, achieving a 5% reduction in unit costs (in 2024 real terms). However, overall net profit declined versus last year, reflecting higher tax, increased depreciation with new projects online, and the integration of lithium assets. The group ended the year with net debt of US$14.4 billion, primarily from the Arcadium deal.

What’s next for Rio Tinto?

Looking ahead, Rio Tinto maintains production and capital investment guidance consistent with its medium-term strategy. The company is targeting a sustained increase in copper equivalent production of 3% CAGR to 2030, supported by ongoing investments in major iron ore, copper, aluminium, and lithium projects across its global portfolio.

Decarbonisation remains a priority, with progress towards its 2030 Scope 1 and 2 emissions reduction targets. Management also highlighted plans to unlock further value via asset sales and portfolio optimisation, while keeping shareholder payouts at the top end of the target range.

Rio Tinto share price snapshot

Over the past 12 months, Rio Tinto share have risen 38%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 8% over the same period.

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The post Rio Tinto FY25: Higher revenue, stable dividend as growth projects ramp up appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.