Mesabi Trust (MSB) Q3 2026 earnings summary

Executive summary

• Total royalty income for the quarter ended October 31, 2025, was $3.39 million, down 54% year-over-year due to lower iron ore pricing and shipments, and a reduced bonus royalty rate.

• Net income for the quarter was $2.77 million, a sharp decline from $78.33 million in the prior year, which included a one-time $71.19 million arbitration award.

• Distributions declared per unit for the quarter were $0.34, compared to $0.39 in the prior year.

Financial highlights

• Nine-month royalty income was $13.16 million, down 33% year-over-year, mainly due to an extended maintenance shutdown and lower pricing and shipments.

• Net income for the nine months was $11.14 million, down from $87.21 million in the prior year, reflecting the absence of the prior year’s arbitration award.

• Expenses for the quarter increased to $823,000, primarily due to higher legal fees; nine-month expenses decreased to $2.79 million due to lower legal costs post-arbitration.

• Unallocated reserve decreased to $21.09 million from $95.32 million a year ago, mainly due to the prior year’s arbitration award distribution.

Outlook and guidance

• Future distributions are expected to remain highly dependent on royalty income and trust expenses.

• Trustees anticipate continued variability in distributions due to unpredictable iron ore industry conditions and operator decisions.

• Northshore is expected to continue as a swing operation, with no full restart anticipated soon.