Mesabi Trust (MSB) Q4 2025 Earnings Report

Q4 2025 for Mesabi Trust posted a modest revenue decline and a robust net income outcome under a high-margin royalty structure. Revenue was $5.84 million, down 6.2% year-over-year and 25.3% quarter-over-quarter, while gross profit remained strong at $5.06 million, yielding a gross margin of roughly 86.5%. The company delivered net income of $6.07 million and earnings per share of $0.46, up about 29.3% year-over-year despite the revenue softness, aided by the royalty-based model and favorable non-operating factors. Cash flow remained highly constructive, with $9.41 million generated from operating activities and $5.12 million in cash dividends paid during the period, resulting in a net cash increase of about $4.29 million. Mesabi maintains a pristine balance sheet with cash and equivalents of about $100.2 million and no debt, producing a net cash position of approximately $100.2 million. The payout ratio stands at 84.3%, supporting a stable, investor-friendly distribution profile in a commodity-sensitive environment. Looking ahead, the stock benefits from a large, debt-free balance sheet and ongoing royalty cash flow, but remains exposed to iron ore price moves and shipment volumes from Mesabi’s mines. The near-term thesis hinges on commodity pricing stability and sustained royalty receipts, with the potential for dividend durability even if earnings volatility persists.