LKAB (LKAB) Q2 2025 earnings summary

Executive summary

• Operating profit for Q2 2025 was SEK 1.1 bn, significantly lower year-over-year due to falling iron ore prices and a weakened US dollar, despite improved production stability and higher production volumes.

• Net sales for Q2 2025 were SEK 7,820 million, down from SEK 9,851 million in Q2 2024, mainly due to lower iron ore prices and currency effects.

• Production volume reached 5.8 Mt in Q2 2025, up from 5.3 Mt in Q2 2024, with delivery volume at 6.1 Mt and pellets accounting for 85% of deliveries.

Financial highlights

• Q2 2025 operating profit: SEK 1,074 million (Q2 2024: SEK 2,666 million); Q1–Q2 2025: SEK 4,711 million (Q1–Q2 2024: SEK 4,036 million).

• Q2 2025 net sales: SEK 7,820 million (Q2 2024: SEK 9,851 million); Q1–Q2 2025: SEK 17,442 million (Q1–Q2 2024: SEK 15,322 million).

• Q2 2025 profit for the period: SEK 1,524 million (Q2 2024: SEK 2,845 million).

• Operating cash flow for Q2 2025: SEK 800 million (Q2 2024: SEK 1,505 million).

• Return on equity for Q2 2025: 10.9% (Q2 2024: 16.3%).

Outlook and guidance

• Expectation for 2025 is continued stable operation and normal production capacity, with all affected plants back in production.

• Iron ore prices remain lower than recent years; market volatility and global economic uncertainty persist, with trade policy tensions and US tariffs adding risk.

• Demand for iron ore products has been stable but at a somewhat lower level than previous years.