The Rio Tinto Ltd (ASX: RIO) share price is on watch after the ASX mining share reported its FY25 half-year result.
Rio Tinto is one of the largest miners in the world. It’s involved in resources like iron ore, copper, bauxite and lithium.
Rio Tinto FY25 half-year result
Here are some of the highlights for the six months to June 2025:
- Revenue slightly increased to US$26.87 billion
- Underlying EBITDA (EBITDA explained) fell 5% to US$11.5 billion
- Underlying earnings declined 16% to US$4.8 billion
- Net profit after tax fell 22% to US$4.5 billion
- Operating cashflow declined 2% to US$6.9 billion
- Free cashflow plunged 31% to US$2 billion
- Interim dividend declined 16% to US$1.48 per share
The dividend payout ratio represented 50% of its net profit, which seems like a healthy balance.
Let’s take a look at how each individual division performed.
The iron ore EBITDA fell 24% to US$6.7 billion. The average iron ore price declined by 15% year on year.
The aluminium EBITDA jumped 50% to US$2.4 billion. The aluminium price increased by 14% year on year. It also benefited from higher volumes and improved market premiums, offset by $321 million of gross costs associated with US tariffs.
The copper EBITDA surged 69% to US$3.1 billion. The copper price increased 4% year on year. It also benefited from a ramp-up of the Oyu Tolgoi underground project.
The minerals EBITDA declined 58% to US$0.3 billion. This business suffered from lower pricing across most commodities, particularly titanium dioxide feedstock and iron ore pellets.
Outlook for the Rio Tinto share price
Rio Tinto says it’s well positioned to generate value from its “best-in-class project execution”, together with growing demand for its products, now and in the coming decades.
The ASX mining share said it’s on track to deliver strong medium-term production growth, with solid foundations in place and a diverse pipeline of options for the future.
There are other ASX dividend shares that appeal more to me because of the greater certainty of net profit (and dividend) growth in any given year – other businesses don’t necessarily need good commodity prices to deliver growing dividends.
However, I do like that Rio Tinto is seeing profit growth for both aluminium and copper. It’s also investing in lithium, which has a potentially attractive growth outlook, depending on how lithium demand grows in the coming years.
