Executive Summary
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.
Key Performance Indicators
QoQ: -25.27% | YoY:-6.20%
QoQ: -92.25% | YoY:29.33%
QoQ: -92.29% | YoY:27.78%
Key Insights
Revenue: $5,841,807; YoY -6.20%; QoQ -25.27%
Gross Profit: $5,055,518; YoY +7.77%; QoQ -35.33%
Operating Income: $5,042,537; YoY +5.58%; QoQ -31.38%
Net Income: $6,067,040; YoY +29.33%; QoQ -92.25%
EPS: $0.46; YoY +27.78%; QoQ -92.29%
EBITDA: $1,024,503; EBITDA Margin ≈ 17.54%
EBITDARatio: 0.1754; Operating Income Margin: 0.8632
Net Income Margin: 1.0386 (note: elevated due to non-operating/other income contributions)
Dividends Paid: $5,116,803 (cash outflow)
Free Cash Flow: $9,411,185; Operat...
Financial Highlights
Revenue: $5,841,807; YoY -6.20%; QoQ -25.27%
Gross Profit: $5,055,518; YoY +7.77%; QoQ -35.33%
Operating Income: $5,042,537; YoY +5.58%; QoQ -31.38%
Net Income: $6,067,040; YoY +29.33%; QoQ -92.25%
EPS: $0.46; YoY +27.78%; QoQ -92.29%
EBITDA: $1,024,503; EBITDA Margin ≈ 17.54%
EBITDARatio: 0.1754; Operating Income Margin: 0.8632
Net Income Margin: 1.0386 (note: elevated due to non-operating/other income contributions)
Dividends Paid: $5,116,803 (cash outflow)
Free Cash Flow: $9,411,185; Operating Cash Flow: $9,411,185
Cash & Equivalents: $100,204,531
Total Current Assets: $101,728,452; Total Assets: $101,728,455
Total Current Liabilities: $78,400,735; Total Liabilities: $78,400,735
Total Stockholders’ Equity: $23,327,720
Net Debt: -$100,204,531 (net cash position; no debt reported)
Current Ratio / Quick Ratio: 1.30; Payout Ratio: 84.3%; Dividend Yield: 1.65%
Price-to-Book: 13.27; Price-to-Earnings: 12.76; EV/FCF: 32.90; Price to Operating Cash Flow: 32.90
Weighted Avg Shares: 13,120,010 (basic) / 13,120,010 (diluted)
Notes: Net income margin appears inflated by non-operating income; cash generation remains the core value driver for MSB.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
5.84M |
-6.20% |
-25.27% |
| Gross Profit |
5.06M |
7.77% |
-35.33% |
| Operating Income |
5.04M |
5.58% |
-31.38% |
| Net Income |
6.07M |
29.33% |
-92.25% |
| EPS |
0.46 |
27.78% |
-92.29% |
Key Financial Ratios
operatingProfitMargin
86.3%
operatingCashFlowPerShare
$0.72
freeCashFlowPerShare
$0.72
dividendPayoutRatio
84.3%
Management Commentary
Management transcript not provided in the supplied data. No official earnings-call transcript or direct management quotes are available for synthesis. The analysis below reflects the quarter’s financials and typical themes relevant to Mesabi Trust (royalty-based iron ore) and outlines the key topics that management would ordinarily address: commodity price exposure, ore shipment volumes, sustainability of distributions/dividend coverage, the balance sheet stance given a debt-free profile, and potential sensitivity to mining and regulatory developments. Once a transcript is available, these themes can be paired with verbatim quotes and management color on trajectory and guidance.
Forward Guidance
There are no explicit management targets in the provided data for 2026. Given Mesabi Trust’s royalty structure and its debt-free balance sheet, the medium-term outlook hinges on (1) iron ore price stability or improvement, (2) ore shipment volumes from the Mesabi range, and (3) the pace and structure of distributions relative to earnings and cash flow. Base-case assumptions would imply continued healthy quarterly distributions driven by robust cash from operations, subject to commodity price cycles. If commodity prices hold or rise and shipments remain stable, MSB could sustain or modestly grow distributions, supported by its substantial cash balance and lack of leverage. In a bear scenario—material declines in iron ore pricing or volumes—distributions would be pressured even as the company retains substantial liquidity. Monitoring factors to watch include ore price trends, Mesabi mine production and shipment activity, changes in royalty arrangements, and any one-off items that could affect reported earnings versus cash flow.