Mesabi Trust (MSB) Q3 2025 earnings summary

Executive summary

• Net income for the quarter ended October 31, 2024, surged to $78.3 million, primarily due to a $71.2 million non-recurring arbitration award for underpaid royalties from prior years.

• Royalty income for the quarter increased 58% year-over-year to $7.3 million, driven by higher iron ore pricing and shipments.

• Distributions declared per unit rose to $0.39 for the quarter, up from $0.35 in the prior year period.

Financial highlights

• Total revenues for the quarter were $79.0 million, including the arbitration award and $468,445 in interest income.

• Net income for the nine months ended October 31, 2024, was $87.2 million, up from $14.3 million in the prior year period.

• Unallocated reserve increased to $95.3 million as of October 31, 2024, from $21.1 million a year earlier, mainly due to the arbitration award.

Outlook and guidance

• Future distributions are expected to depend heavily on royalty income and the level of Trust expenses.

• Trustees have not received guidance from the mine operator regarding anticipated production or shipment volumes for Northshore in 2024.