LKAB (LKAB) Q4 2024 earnings summary

Executive summary

• All production plants returned to operation by year-end after significant maintenance and disruptions earlier in 2024, enabling high delivery volumes in Q4.

• Full-year operating profit fell to SEK 8.7 billion from SEK 16.2 billion year-over-year, mainly due to lower iron ore prices and production stoppages.

• Board proposes a SEK 4.4 billion dividend, representing 50% of annual profit.

Financial highlights

• Q4 net sales: SEK 9,451 million (down from SEK 10,798 million in Q4 2023); full-year net sales: SEK 33,146 million (down from SEK 42,923 million).

• Q4 operating profit: SEK 2,619 million (down from SEK 3,800 million); full-year operating profit: SEK 8,722 million (down from SEK 16,230 million).

• Q4 profit for the period: SEK 2,069 million (down from SEK 3,632 million); full-year profit: SEK 8,773 million (down from SEK 15,220 million).

• Q4 operating cash flow: SEK 653 million (down from SEK 2,412 million); full-year operating cash flow: SEK 1,740 million (down from SEK 10,704 million).

• Return on equity: 11.0% (down from 20.0%); net debt/equity ratio: -15.5% (improved from -23.8%).

Outlook and guidance

• Plants are expected to operate stably in 2025, with a return to normal production capacity after extensive remedial work.

• Iron ore prices started 2025 at lower levels; market remains volatile with stable demand for high-grade products but significant global economic uncertainty.

• Ongoing focus on competitiveness, fossil-free steel supply, and addressing challenges in permitting, energy, and logistics.