Executive Summary
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.
Key Performance Indicators
QoQ: -18.95% | YoY:-24.25%
Key Insights
Revenue: 4,734,542 (YoY -24.25%; QoQ -18.95%).
Gross Profit: 3,631,208 (Gross margin ~76.7%).
Operating Income: 3,631,208 (Margin ~76.7%).
Net Income: 3,631,208 (Margin ~76.7%).
EPS: 0.28 (Diluted 0.28).
EBITDA: 3,631,208.
Cash flow from operations: 2,080,661.
Dividends paid (financing): -78,064,060.
Net cash change: -75,983,399.
Cash at end of period: 24,221,132.
Total assets: 27,428,572.
Total liabilities: 7,816,850.
Total stockholders’ equity: 19,611,722.
Net debt: -24,221,132 (net cash).
C...
Financial Highlights
Revenue: 4,734,542 (YoY -24.25%; QoQ -18.95%).
Gross Profit: 3,631,208 (Gross margin ~76.7%).
Operating Income: 3,631,208 (Margin ~76.7%).
Net Income: 3,631,208 (Margin ~76.7%).
EPS: 0.28 (Diluted 0.28).
EBITDA: 3,631,208.
Cash flow from operations: 2,080,661.
Dividends paid (financing): -78,064,060.
Net cash change: -75,983,399.
Cash at end of period: 24,221,132.
Total assets: 27,428,572.
Total liabilities: 7,816,850.
Total stockholders’ equity: 19,611,722.
Net debt: -24,221,132 (net cash).
Current assets: 27,428,569.
Current liabilities: 7,816,850.
Note: No long-term debt reported; royalty model drives cash distributions rather than reinvestment."
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
4.73M |
-24.25% |
-18.95% |
| Gross Profit |
3.63M |
4.23% |
-28.17% |
| Operating Income |
3.63M |
4.23% |
-27.99% |
| Net Income |
3.63M |
4.23% |
-40.15% |
| EPS |
0.28 |
3.70% |
-39.13% |
Management Commentary
Transcripts not provided in the supplied data. Consequently, no management quotes or thematic highlights from an earnings call are available for inclusion. If you provide the QQ1 2026 earnings call transcript or key quotes, I will synthesize themes (strategy, operations, market conditions) and contextualize them against the quarterly figures.
Forward Guidance
No explicit forward guidance was disclosed in the provided filing. Mesabi Trust’s outlook is inherently tied to the performance of its underlying iron ore royalty base. The key factors to monitor are:
- Iron ore price trajectory and sentiment in North American steel markets.
- Volume of ore shipments from the underlying Mesabi Range operations (royalties are volume- and price-dependent).
- Royalty cash flow coverage relative to distributions; the current quarter shows substantial distributions funded by cash on hand rather than recurring earnings, underscoring the need for ongoing royalty receipts to sustain distributions.
- Regulatory or operational changes affecting the underlying mining operations.
Assessment: If iron ore prices hold/recover and ore shipments stabilize or improve, Mesabi’s high-margin, debt-free profile supports steady distributions. However, a meaningful decline in ore price or shipment volumes could compress cash flow and pressure distribution coverage. Investors should watch the quarterly cadence of royalty receipts and any changes in the trust’s distribution policy or reserve cash balance.