Feb 19 (Reuters) - Rio Tinto posted a flat full‑year profit on Thursday as stronger copper prices and higher output countered softer iron ore markets, with its flagship iron ore division still feeling
Rio Tinto Earnings Steady Amid Iron Ore Slump, Copper Gains
Feb 19 (Reuters) - Rio Tinto on Thursday reported flat annual earnings that missed expectations as weaker iron ore prices weighed on its core business, while stronger copper prices and higher output helped limit the impact.
The world's largest iron ore producer, which recently walked away from merger talks with Glencore, posted underlying earnings of $10.87 billion for the year ended December 31, unchanged from a year earlier and below the Visible Alpha consensus of $11.03 billion.
Dividend Increase and Earnings Overview
The miner also declared a final dividend of 254 cents per share, implying a payout ratio of 60% of underlying earnings, up from 225 cents in 2024.
The results highlight miners' increasing focus on copper as demand accelerates, driven by the growth of power-hungry AI data centres and the shift toward cleaner energy.
Annual unit costs for Pilbara iron ore were around $0.5 per tonne higher than in 2024 due to inflationary pressures and weather‑related disruptions. Pilbara unit costs are forecast to rise further to between $23.5 and $25.0 per wet metric ton this year.
Copper's Rising Influence in Mining
Rio's copper business delivered stronger results, with average realised prices rising 17% in 2025 and output up 11%, supported by a ramp‑up at the Oyu Tolgoi mine in Mongolia.
The metal also overtook iron ore in rival BHP's earnings for the first time, the world’s largest listed miner said this week.
That strategic pivot has fuelled a wave of dealmaking across the sector as companies race to secure long‑life copper resources.
Failed Merger Talks with Glencore
Rio's own talks with Glencore collapsed in February after the companies failed to agree on valuation and ownership terms, ending discussions that would have created the world's largest listed mining company and significantly boosted copper exposure.
(Reporting by Roushni Nair in Bengaluru and Melanie Burton in Australia; Editing by Nivedita Bhattacharjee)
