Mining giant Rio Tinto has announced a stronger-than-expected financial performance for the first half of 2026, highlighted by a 47% rise in underlying profit to US$6.7 billion and a 5% jump in its share price to US$167.20.
The company declared an interim dividend of US$2.11 per share, surpassing market consensus and reflecting confidence in its solid earnings and cash generation.
Copper earnings lead growth
Rio Tinto’s copper earnings surged 84% to US$5.7 billion, exceeding market expectations by 9%, as the company increased its exposure to the metal. Copper now represents 36% of the group’s earnings, narrowing the gap with iron ore, which accounted for 43% with earnings of US$6.8 billion, remaining the largest contributor.
Dividend and cash flow exceed expectations
Analyst James Redfern of RBC Capital Markets noted that the interim dividend of US$2.11 per share was 3% higher than the forecast of US$2.04, in line with RBC’s estimates. The stronger payout was supported by underlying profits beating expectations by roughly 3% and a lower-than-anticipated tax rate of 25.5%.
Free cash flow was a standout at US$3.8 billion, significantly above both market consensus of US$2.2 billion and RBC’s forecast of US$1.7 billion, underscoring Rio Tinto’s robust financial health.
