Rio Tinto PLC announced on Thursday that its annual net profit fell by 14%, but the company maintained its full-year shareholder dividend payout as underlying earnings remained stable.
The world's second-largest mining company by market value reported a net profit of $9.97 billion for 2025, down from $11.55 billion the previous year.
Underlying earnings totaled $10.87 billion, a slight decrease of just 0.9% year-on-year, but this figure fell short of the market consensus estimate of approximately $11.03 billion compiled by research firm Visible Alpha.
Rio Tinto's board declared a final dividend of $2.54 per share, which the company stated represents 60% of its underlying earnings.
A year earlier, the company paid a dividend of $2.25 per share, also equivalent to 60% of underlying earnings. Rio Tinto indicated its target is to distribute, on average, 40% to 60% of underlying earnings to shareholders over the course of the cycle.
The full-year dividend amounted to $4.02 per share, unchanged from the prior year and exceeding the market consensus compiled by Visible Alpha.
The miner stated that the "overall neutral impact from price movements underscores the growing importance of our diversified model."
In 2025, the sales price for iron ore from Rio Tinto's Australian mines decreased by 7.6% compared to the previous year, although prices for copper and aluminum from its global operations saw increases.
The company's Australian iron ore business continued to contribute over half of the group's earnings.
Rio Tinto has been attempting to reduce its reliance on iron ore by investing in other commodities such as copper and lithium.
Just two weeks ago, the company was in discussions with Glencore regarding a potential partial or full merger of businesses. Such a deal could have created the world's largest miner and copper producer, but the parties ultimately failed to agree on terms.
Under UK regulations, Rio Tinto is restricted from making another unsolicited approach to Glencore for at least six months, barring specific circumstances such as the emergence of a competing bidder from a third party.
Analysts anticipate that management will refocus on the plan outlined at the investor briefing last December: reducing costs and divesting assets to streamline the business structure.
Rio Tinto stated it is currently conducting "market testing" for its borates and titanium dioxide businesses, while also advancing efforts for the "monetization of infrastructure assets."
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