Rana Gruber (RANA) Q1 2025 earnings summary

Executive summary

• Quarterly revenue reached NOK 401 million, up 41% year-over-year, supported by stable iron ore prices and strong production volumes of 473,000 tons.

• EBITDA rose to NOK 180.1 million, with a margin of 45%, driven by higher revenue and operational efficiency.

• Magnetite production increased to 39,000 tonnes, with further growth expected as new facilities become operational.

• Board declared a quarterly dividend of NOK 1.27 per share, marking 17 consecutive quarters of dividends and representing 60% of adjusted net profit.

• Initial R&D results for Fe67 are promising, supporting ambitions for high-grade production.

Financial highlights

• Adjusted net profit was NOK 78.5 million, up 15% year-over-year.

• EBIT increased to NOK 121.7 million from NOK 11.0 million year-over-year.

• Net profit was NOK 130.3 million, slightly down from NOK 134.2 million year-over-year due to lower financial income.

• Net cash flow from operations was NOK 174 million, including a NOK 44 million tax payment.

• Free cash flow reached NOK 134 million, or NOK 3.62 per share.

Outlook and guidance

• Magnetite sales are expected to rise further in 2025 as production capacity expands.

• Maintains previous outlook amid heightened geopolitical and economic uncertainty; European steel sector remains weak, but stable offtake agreement with Cargill provides resilience.

• Seasonal cost variations are anticipated, but cost targets are expected to be met for the year.

• Strategic focus on efficiency, innovation, and diversification to navigate volatile iron ore prices and global trade tensions.

• Preparations underway for Colorana line closure by year-end 2025.