Mesabi Trust (MSB) Q2 2026 earnings summary

Executive summary

• Royalty income for the quarter ended July 31, 2025, decreased year-over-year due to lower iron ore pricing and shipments, as well as a reduction in the bonus royalty rate.

• Net income for the quarter was $4.74 million, down $0.65 million from the prior year quarter; six-month net income was $8.38 million, down $0.51 million year-over-year.

• Distributions declared per unit for the quarter were $0.12, compared to $0.30 in the prior year period.

Financial highlights

• Total royalty income for the quarter was $5.42 million, down from $6.25 million in the prior year quarter; six-month royalty income was $9.77 million, down from $12.27 million.

• Expenses for the quarter were $0.86 million, a decrease of $0.23 million year-over-year, mainly due to lower legal fees.

• Net income per unit for the quarter was $0.3616, down from $0.4114 in the prior year quarter.

• Cash and cash equivalents at July 31, 2025, were $21.25 million, down from $100.2 million at January 31, 2025, reflecting large prior-year distributions.

Outlook and guidance

• Future distributions are expected to remain highly dependent on royalty income and the level of Trust expenses.

• Trustees anticipate continued variability in royalty income due to unpredictable iron ore production, pricing, and shipment volumes.

• Northshore operations are expected to continue as a swing operation, with no full restart anticipated in the near term.