Labrador Iron Ore Royalty (LIF) Q2 2026 earnings summary

Executive summary

• Second quarter 2026 results were negatively impacted by a 33% year-over-year drop in total iron ore sales volumes, driven by lower concentrate for sale (CFS) and pellet production at IOC due to a strategic operational reset and logistical constraints.

• Royalty revenue fell 27% year-over-year to $33.7 million, and net income per share declined 58% to $0.17 compared to Q2 2025.

• Adjusted cash flow per share was $0.29, down 28% year-over-year, reflecting lower sales and profitability.

Financial highlights

• Revenue for Q2 2026 was $34.1 million, down from $46.8 million in Q2 2025.

• Net income for Q2 2026 was $11.2 million ($0.17 per share), compared to $26.5 million ($0.42 per share) in Q2 2025.

• Adjusted cash flow for Q2 2026 was $18.6 million ($0.29 per share), versus $25.8 million ($0.40 per share) in Q2 2025.

• No IOC dividend was received in Q2 2026 or Q2 2025.

• Cash flow from operations was $17.7 million, unchanged from Q2 2025.

Outlook and guidance

• 2026 sales are expected to be at or below the low end of the original 15–18 million tonne guidance, due to first-half performance and operational constraints.

• Iron ore prices are projected to remain supported in H2 2026, with pellet premiums expected to strengthen due to tight supply and increased demand for high-grade, low-emission feedstocks.

• Strategic reset at IOC will continue, with constrained concentrate production and limited free cash flow for IOC dividends anticipated for several years.