Labrador Iron Ore Royalty (LIF) Q4 2025 earnings summary

Executive summary

• Revenue for 2025 was $166.5 million, down 20% year-over-year due to lower IOC sales volumes and weaker iron ore prices and pellet premiums.

• Net income per share fell 42% to $1.57, mainly from a 74% drop in equity earnings from IOC and lower royalty revenue.

• Cash flow from operations per share declined 52% to $1.52, reflecting reduced royalty income and no IOC dividend in 2025.

• Dividends declared per share were $1.55, down from $3.00 in 2024.

Financial highlights

• Total revenue: $166.5 million (2024: $209.0 million).

• Net income: $100.6 million (2024: $175.0 million).

• Cash flow from operations: $97.1 million (2024: $201.9 million).

• Adjusted cash flow: $91.5 million (2024: $199.0 million).

• IOC equity earnings: $15.9 million (2024: $60.6 million).

• Royalty revenue net of tax: $131.5 million (2024: $164.7 million).

Outlook and guidance

• IOC’s 2026 saleable production guidance: 15.0–18.0 million tonnes (2025 actual: 15.9 million tonnes).

• IOC 2026 capital expenditures forecast: US$290 million, with focus on sustaining and development projects.

• Global steel demand expected to rebound 1.3% in 2026, led by India and emerging economies.

• Iron ore pricing outlook remains resilient but faces near-term pressure from new supply.