Mesabi Trust (MSB) Q1 2026 Earnings Report

Mesabi Trust reported QQ1 2026 revenue of $4.73 million, down 24.25% year-over-year and 18.95% quarter-over-quarter, with gross profit of $3.63 million and a robust gross margin of approximately 76.7%. The quarterly operating income and net income are both $3.63 million, reflecting the royalty-based model’s low operating cost structure and the absence of material operating expenses in the period. Earnings per share stood at $0.28 (diluted). Notably, the cash flow profile shows operating cash flow of $2.08 million, but the company paid dividends of $78.06 million in the quarter and reported a net cash outflow from financing activities of the same magnitude, resulting in a net cash decrease of about $75.98 million for the period. Cash at period-end was $24.22 million, and the company carries no long-term debt, yielding a net cash position of roughly $24.22 million. The balance sheet shows total assets of $27.43 million and total stockholders’ equity of $19.61 million. This highlights Mesabi Trust’s shallow cost base and high-margin royalty income, but underscores the tension between large distribution obligations and modest quarterly earnings. The trend underscores a classic royalty-trust dynamic: durable gross margins and liquidity, with distributions funded by accumulated cash and ongoing royalty receipts rather than reinvestment. Investors should monitor underlying ore shipments and iron ore price dynamics, as these drive future distributions and cash composure. Given the absence of debt and a substantial cash balance, the near-term risk remains more about distribution sustainability than balance-sheet stress, though the scale of quarterly distributions relative to current earnings warrants close attention to the underlying royalty cash flow trajectory.