LKAB (LKAB) Q3 2025 earnings summary

Executive summary

• Q3 2025 saw a negative operating result of SEK -2.4 billion, mainly due to expanded urban transformation costs and lower sales revenue.

• Production volumes were stable at 6.9 Mt, with fewer disruptions than last year.

• Net sales declined to MSEK 7,578 from MSEK 8,373 year-over-year, impacted by a stronger SEK and lower iron ore prices.

• Provisions for urban transformation increased by over SEK 20 billion, with SEK 4 billion charged to earnings.

Financial highlights

• Net sales for Q3 2025: MSEK 7,578 (down from 8,373 in Q3 2024).

• Operating loss: MSEK -2,423 (compared to profit of 2,067 in Q3 2024).

• Net financial income: MSEK 102 (599 in Q3 2024).

• Operating cash flow: MSEK 1,369 (1,045 in Q3 2024).

• Return on equity: 5.8% (13.5% in Q3 2024).

• Net debt/equity ratio: 9.0% (-16.1% in Q3 2024).

Outlook and guidance

• Expectation for 2025 is continued stable operation and normal production capacity.

• Iron ore prices and pellet premiums remain lower than recent years; market volatility and global economic uncertainty persist.

• High expenditure for urban transformation will continue in coming years.