LKAB (LKAB) Q2 2026 earnings summary

Executive summary

• Earnings declined in Q2 2026 compared to the same period last year, despite stable production and delivery volumes, due to negative foreign exchange effects and increased costs, especially for urban transformation and energy.

• Significant progress was made on long-term development, including the granting of two key environmental permits for critical minerals extraction and expanded mining operations.

• A new cooperation agreement and financial package with Kiruna Municipality was signed to support ongoing urban transformation.

• Safety remains a central focus, with ongoing initiatives following a fatal accident in 2024 and acceptance of a corporate fine.

Financial highlights

• Q2 2026 net sales were MSEK 7,187, down from MSEK 7,820 in Q2 2025, mainly due to currency hedging losses and lower pellet premiums.

• Operating profit for Q2 2026 was MSEK 63, a sharp decline from MSEK 1,074 in Q2 2025.

• Operating cash flow for Q2 2026 was MSEK 260, compared to MSEK 800 in Q2 2025.

• Return on equity for the rolling 12 months was 0.1%, down from 10.9% a year earlier.

• Net debt/equity ratio rose to 9.5% from -14.8% due to increased provisions for urban transformation.

Outlook and guidance

• Geopolitical uncertainty, especially in the Middle East, continues to impact delivery routes and global trade flows.

• The closure of a processing plant in Kiruna may occur in autumn 2026, potentially affecting production and deliveries.

• Market trends remain difficult to assess, with considerable uncertainty about the global economy and iron ore industry.

• The company continues to focus on strengthening competitiveness and supplying raw materials for fossil-free steel.