Mesabi Trust (MSB) Q2 2025 Earnings Report

- Mesabi Trust reported QQ2 2025 revenue of $6.4899 million, with gross profit of $6.4899 million and an operating income of $5.3979 million. Net income for the quarter was $5.3979 million, with basic earnings per share (EPS) of $0.41. The reported gross margin is effectively 100% (gross profit equals revenue), and the operating margin is approximately 83.17%, reflecting the royalty-based, low-cost structure that characterizes Mesabi Trust.
- Quarter-over-quarter (QoQ), revenue rose 3.83% from $6.2506 million in QQ1 2025 to $6.4899 million in QQ2 2025, while year-over-year (YoY) revenue declined about 34.37% versus QQ2 2024, reflecting cyclicality and base effects in iron-ore royalty contributions. Despite weaker year-ago pricing/volumes, current results show resilient cash flow characteristics through a fixed royalty framework.
- Cash flow and liquidity remain strong: net cash provided by operating activities was $3.8059 million. Dividends paid totaled $3.8048 million, resulting in a minimal net cash change for the period ($1,156) and an ending cash balance of $21.6311 million. The company maintains a net cash position with no outstanding debt, supporting stable distributions and balance sheet flexibility.
- The balance sheet shows total assets of $26.2487 million and total stockholders’ equity of $22.1160 million, with a current ratio of 6.35x, indicating robust liquidity. The investment profile is reinforced by a payout ratio of 70.5% (0.705) observed in the period’s metrics, consistent with Mesabi’s quasi-pass-through dividend framework.
- Management commentary for QQ2 2025 is not presented in the provided transcript data; as a result, this analysis relies on reported financials and typical drivers for a royalty trust in iron ore (commodity price environment, volume of royalty-bearing production, and mine-operating dynamics) to infer potential implications for distributions and investor risk.