Mesabi Trust (MSB) Q4 2026 earnings summary

Executive summary

• Fiscal 2026 saw a 34.9% decrease in total royalty income and an 85.1% drop in net income year-over-year, primarily due to lower iron ore shipments, decreased pricing, and the absence of a large non-recurring arbitration award recognized in the prior year.

• Iron ore pellet production and shipments from Trust lands totaled 3.5 million tons, down 9.5% from the previous year, with 100% of production and shipments sourced from Trust lands.

• Distributions to unitholders fell 81.5% to $16.8 million ($1.28 per unit) from $90.9 million ($6.93 per unit) in fiscal 2025.

Financial highlights

• Base overriding royalties: $10.4 million (down 28.5% YoY); bonus royalties: $5.4 million (down 47.5% YoY); fee royalties: $0.75 million (up 27.5% YoY).

• Total revenues: $17.5 million (down 82.2% YoY); net income: $13.9 million (down 85.1% YoY).

• Unallocated reserve decreased by 12.5% to $20.4 million, mainly due to lower cash and accrued income receivable.

• Cash and cash equivalents at year-end: $23.2 million, all in U.S. government securities or money market funds.

Outlook and guidance

• Trustees cannot predict future production, shipment volumes, or pricing due to Cliffs' control over Northshore operations and market volatility.

• Distributions are expected to remain highly variable and dependent on royalty payments, iron ore market conditions, and Trust expenses.