Rio Tinto Profit Drops 16% as Iron-Ore Prices Slide, Costs Climb

Rio Tinto Group reported first-half 2025 underlying profit of $4.81 billion, a 16% decline from a year earlier and below the $5.17 billion consensus estimate. Net income slipped to $4.53 billion as weaker iron-ore prices, oversupply concerns and lingering trade tensions weighed on revenue. The world’s largest iron-ore producer said average unit costs at its Pilbara operations in Western Australia climbed to $24.3 per wet metric ton from $23.2 a year ago, reflecting lower shipments and cyclone disruption. Capital expenditure for the period reached $4.73 billion. Despite the earnings drop, the board declared an interim dividend of $1.48 a share—above market expectations though lower than last year’s $1.77. Management kept full-year Pilbara shipment guidance at the lower end of its 323-to-338-million-tonne target range as the company continues to pivot investment toward copper assets.