LKAB (LKAB) Q4 2025 earnings summary

Executive summary

• Stable production and delivery volumes in Q4 and full year, with fewer disruptions than prior year.

• Sales revenue declined due to a significantly weakened US dollar and lower pellet premiums, despite higher global iron ore prices.

• Substantial increase in costs for urban transformation in Kiruna negatively impacted profit.

• Board proposes a dividend of MSEK 1,500, representing 50% of annual profit.

Financial highlights

• Q4 net sales: MSEK 8,305 (down from 9,451 YoY); full year: MSEK 33,325 (33,146 YoY).

• Q4 operating profit: MSEK 986 (2,619 YoY); full year: MSEK 3,274 (8,722 YoY).

• Q4 profit for the period: MSEK 526 (2,069 YoY); full year: MSEK 2,976 (8,773 YoY).

• Q4 operating cash flow: MSEK -864 (653 YoY); full year: MSEK 2,382 (1,740 YoY).

• Return on equity: 3.7% (11.0% YoY); net debt/equity ratio: 8.4% (-15.5% YoY).

Outlook and guidance

• Geopolitical uncertainty and trade policy measures are affecting global markets.

• Iron ore prices at the start of 2026 are slightly higher; pellet premiums expected to rise.

• Demand for iron ore products remains stable but at lower levels than previous years; market remains volatile.

• Urban transformation in Kiruna will require intensive efforts and increased spending in coming years.