Labrador Iron Ore Royalty (LIF) Q3 2025 earnings summary

Executive summary

• Third quarter 2025 results were impacted by lower concentrate for sale (CFS) sales and declining pellet premiums, partially offset by higher iron ore prices and increased pellet sales volumes.

• Royalty revenue rose 5% year-over-year to $43.4 million, but net income per share fell 11% to $0.47.

• Adjusted cash flow per share dropped 44% year-over-year, mainly due to the absence of an IOC dividend this quarter.

Financial highlights

• Revenue for Q3 2025 was $44.0 million, up from $42.3 million in Q3 2024.

• Net income for Q3 2025 was $30.4 million ($0.47 per share), down from $33.6 million ($0.53 per share) in Q3 2024.

• Adjusted cash flow per share was $0.38, down from $0.68 in Q3 2024.

• No IOC dividend was received in Q3 2025, compared to $20.3 million in Q3 2024.

• Cash flow from operations was $32.7 million, down from $43.0 million in Q3 2024.

Outlook and guidance

• IOC's 2025 saleable production is expected at the low end of the 16.5–19.4 million tonne guidance.

• IOC revised 2025 capital expenditure forecast to US$288 million, down from US$342 million.

• Iron ore prices remain stable post-quarter, but pellet premiums continue to decline; long-term iron ore price outlook remains challenging.

• World Steel Association projects flat global steel demand in 2025 and moderate growth in 2026, contingent on European and Chinese market recovery.