Rio Tinto has just released its results for 2025, which highlight a mining giant that is steadily moving into metals that will drive the energy transition. Under the leadership of CEO Simon Trott, the mining giant increased output and profits due to a combination of operational excellence and improved financial discipline.
Rio Tinto’s consolidated revenues were $57.6 billion, an increase of 7%. Underlying EBITDA increased by 9% to $25.4 billion as the result of an 8% rise in copper-equivalent production, meaning more metal overall.
Copper output increased by 11%, a new record of 883,000 tonnes. The main driver was the ramp-up of the Oyu Tolgoi underground mine in Mongolia, which is finally delivering on its long-held promise. From a financial perspective, the copper segment delivered spectacular results with earnings more than doubling to a new record of $7.4 billion. The significance of copper in the energy transition is obvious: it is vital to the transition to clean electricity and is the metal of choice for EV batteries and renewable infrastructure.
Aluminium output also performed well with bauxite output at a new record level and earnings up 20%. Iron ore output remained robust despite the fall in iron ore prices, and Rio Tinto is celebrating the first shipment of iron ore from the new Simandou mine in Guinea.
These results come at a time when the company is changing its internal structure. Trott is reorganizing the company into three divisions: Iron Ore, Copper, and Aluminium. This brings decision-making closer to the work itself and eliminates several layers of management.
Cost discipline is clearly an important factor in the results with a 5% fall in operating unit costs, saving $800 million through smarter ways of working and leaner supply chains. Rio Tinto is also reviewing non-core assets with a view to disposing of them and realizing $5 billion to $10 billion to reinvest in new growth projects.
Rio Tinto’s shares dipped slightly after the update, despite the strength of the underlying story. However, there is a problem, as net debt more than doubled to $14.4bn, driven by high capital expenditures to fund its growth bets, such as its purchase of Arcadium Lithium, as well as its ongoing investments at Simandou. It is the eternal balance that any company in pursuit of growth must navigate. Spend now to drive future returns, but in doing so, increase current risks.
In 2025, Rio Tinto is a company that is in a confident state of transition, with copper production increasing, its operations running smoothly, and its financial discipline becoming increasingly honed. Going forward, the challenge will be to balance increasing debt with its ambitious growth ambitions, all while safety remains at the forefront, particularly in light of a tragic accident at Simandou earlier in the year. The message is simple from the company: invest now to build a stronger, more focused organization in the future. Time will tell whether such a message is delivered upon.
