Executive Summary
Mesabi Trust delivered a small-asset, royalty-based quarterly result for QQ2 2026 that showcases the unusual margin profile typical of mineral royalty structures. Revenue totaled $5.61 million, with a reported gross margin of 84.6% and an EBIT/EBITDA proxy also at $4.74 million, yielding an EPS of $0.36. On a YoY basis, revenue declined about 13.6% while QoQ revenue rose roughly 18.4%, underscoring the quarterly and commodity-price-driven nature of the business. The strong margin reflects the fixed-cost, low-capex economics of a royalty framework, but cash flow from operations was negative at approximately $2.96 million, and free cash flow was also negative by the same amount, highlighting cash-outflows driven by working capital movements and distributions rather than operating profitability alone.
Key Performance Indicators
QoQ: 18.42% | YoY:-13.61%
QoQ: 30.64% | YoY:-26.90%
QoQ: 30.64% | YoY:-12.12%
QoQ: 30.64% | YoY:-12.12%
QoQ: 28.57% | YoY:-12.20%
Key Insights
Revenue: $5,606,755; YoY change: -13.61%; QoQ change: +18.42%
Gross Profit: $4,743,882; Gross Margin: 84.61%; YoY: -26.90%; QoQ: +30.64%
Operating Income: $4,743,882; Margin: 84.61%; YoY: -12.12%; QoQ: +30.64%
Net Income: $4,743,882; Net Margin: 84.61%; YoY: -12.12%; QoQ: +30.64%
EPS: $0.36; YoY: -12.20%; QoQ: +28.57%
Cash from Operations: -$2,955,258; Free Cash Flow: -$2,955,258
Dividends Paid: -$5,116,803
Cash & Equivalents: $21,249,191; Total Assets: $24,776,662; Total Liabilities: $1,995...
Financial Highlights
Revenue: $5,606,755; YoY change: -13.61%; QoQ change: +18.42%
Gross Profit: $4,743,882; Gross Margin: 84.61%; YoY: -26.90%; QoQ: +30.64%
Operating Income: $4,743,882; Margin: 84.61%; YoY: -12.12%; QoQ: +30.64%
Net Income: $4,743,882; Net Margin: 84.61%; YoY: -12.12%; QoQ: +30.64%
EPS: $0.36; YoY: -12.20%; QoQ: +28.57%
Cash from Operations: -$2,955,258; Free Cash Flow: -$2,955,258
Dividends Paid: -$5,116,803
Cash & Equivalents: $21,249,191; Total Assets: $24,776,662; Total Liabilities: $1,995,459; Shareholders’ Equity: $22,781,203
Net Debt: -$21,249,191 (net cash position)
Weighted Avg Shares: 13,120,010
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
5.61M |
-13.61% |
18.42% |
| Gross Profit |
4.74M |
-26.90% |
30.64% |
| Operating Income |
4.74M |
-12.12% |
30.64% |
| Net Income |
4.74M |
-12.12% |
30.64% |
| EPS |
0.36 |
-12.20% |
28.57% |
Management Commentary
Note: The earnings transcript was not provided in the prompt. As a result, no management quotes or thematic highlights from a QQ2 2026 call can be authored here. If the transcript is supplied, this section will summarize themes such as strategic positioning, operational cadence, market conditions (iron ore pricing, demand in steel end-markets), and any guidance or cadence on future distributions.
Forward Guidance
No explicit forward guidance was included in the provided filing data. Given Mesabi Trust’s royalty structure and commodity-exposed cash flows, the near-term outlook hinges on iron ore prices, mine throughput, and the ability to sustain distributions. Absent new guidance, investors should monitor: (1) commodity price trajectories for iron ore, (2) any changes to distribution policy or cadence, and (3) levels of cash reserves versus ongoing dividend commitments. If iron ore prices recover or remain elevated and the underlying royalty base delivers steady cash inflows, distributions could stabilize or improve. If prices soften or if working capital dynamics persist as headwinds, expect potential pressure on near-term distributions and cash balance sufficiency.