Rio Tinto net profit falls 14% on weak iron ore demand
By Frank Prenesti
Date: Thursday 19 Feb 2026
(Sharecast News) - Rio Tinto on Thursday posted a 14% drop in full-year net profit as weak steel demand in China hit iron ore earnings, slightly offset by higher copper prices.
The company, which recently abandoned merger talks with rival Glencore, said net profit came in at $9.97bn in 2025 compared with $11.55bn a year earlier.
Underlying earnings for the world biggest iron ore miner in the year to December 31 were flat at $10.87bn, below consensus estimates of $11.03bn. Revenue rose 7%, but operating costs increased $42bn.
Rio's copper business capitalised on a 17% in average realised prices over the course of the year, with output rising 11%, supported by a ramp-up at the Oyu Tolgoi mine in Mongolia. Underlying profits in the metal more than doubled to $7.4bn, making up around 30% of total earnings.
However, iron ore profits, which made up around 60% of group earnings, were down 7.6% as the enduring property market slump hits demand for the commodity. Shipments from Pilbara iron ore operations in Western Australia slipped 1% while realised prices were down around 8% year on year.
Like other miners such as BHP, Rio has moved to focus on in-demand commodities such as copper and lithium in the shift towards cleaner energy and growing investment in artificial intelligence data centres which consume vast amounts of power.
Looking towards 2026 Rio targeted total iron ore sales of 343 - 366 million tonnes, compared to 342 million tonnes last year, and a consolidated copper production target of 800 - 870 thousand tonnes, down from 883 thousand tonnes.
"Investors will hope there is some conservatism baked into copper output forecasts for 2026 given they imply some tailing off from the level achieved in 2025," said AJ Bell head of markets Dan Coatsworth.
"Rio may face pressure to return to the idea of a combination with Glencore after the mandatory six-month cooling off period has expired later this year."
Reporting by Frank Prenesti for Sharecast.com
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