Swedish iron ore producer LKAB has issued its financial and operational results for the third quarter and first nine months of the current year.
In the third quarter, the company registered a net profit of SEK 934 million ($95.22 million), compared to a net loss of SEK 1.85 billion in the third quarter of 2025, while its sales revenues increased by 6.2 percent year on year to SEK 8.05 billion ($820.67 million), mainly due to higher delivery volumes, partially offset by lower iron ore prices. In addition, LKAB recorded an operating profit of SEK 1.60 billion ($163.14 million), compared to an operating loss of SEK 2.42 billion in the same quarter of the previous year. The improvement was mainly attributable to significantly lower costs related to urban transformation in Kiruna, which had negatively affected the company's results in the corresponding period of 2025.
In the given quarter, the company's iron ore output amounted to 6.7 million mt, down 2.9 percent year on year, while its iron ore shipments increased by 9.7 percent to 6.8 million mt. Production was affected by extensions of planned maintenance stoppages, although LKAB maintained a generally stable production rate despite geotechnical challenges at the Kiruna mine. The company kept all its processing plants operating during both the second and third quarters, eliminating the need for a previously anticipated temporary closure. Meanwhile, stable railway and port operations supported shipments, while the impact of disruptions in the Middle East and around the Strait of Hormuz was largely mitigated by redirecting deliveries to other customers.
Meanwhile, in the first nine months, the net profit of LKAB amounted to SEK 2.36 billion ($240.63 million), falling by 3.8 percent from SEK 2.45 billion recorded in the same period of the previous year, while its sales revenues decreased by 7.5 percent year on year to SEK 23.15 billion ($2.36 billion). The company's operating profit for the January-September period came to SEK 2.52 billion ($256.94 million), up 10.1 percent from SEK 2.29 billion in the corresponding period of 2025. The lower sales revenues were attributed to a stronger Swedish krona and lower iron ore prices, while the improvement in operating profit was mainly driven by significantly lower costs for urban transformation. Higher electricity prices and increased costs for maintenance measures and development activities had a negative impact on profitability.
In the given period, the iron ore output of LKAB decreased by one percent year on year to 19.2 million mt, while its iron ore shipments increased by 1.6 percent to 19.1 million mt. The conflict in the Middle East and the periodic closure of the Strait of Hormuz affected deliveries at the beginning of the year, but LKAB subsequently managed the disruptions through alternative transport routes and the reallocation of shipments to other customers.
Regarding investments and development projects, LKAB stated that construction of its new sorting plant in Malmberget is progressing, with the first part of the foundations completed. The plant is designed to handle 25 million mt of crude ore annually and is being prepared for the future processing of apatite. Meanwhile, the County Administrative Board approved LKAB's application for an exploitation concession for the Per Geijer iron ore deposit in Kiruna, which also contains significant quantities of rare earth elements. Further permitting procedures are required before mining operations can begin. In addition, the company continued construction of its critical minerals demonstration plant in Luleå, with the project progressing according to plan.
Regarding market conditions, LKAB stated that the global steel and iron ore market continued to be characterized by geopolitical uncertainty in the third quarter, particularly amid the conflicts in the Middle East and Ukraine. Global crude steel production decreased by nearly one percent year on year, with output declining in China and Europe, while production increased in India, several other Asian countries and North America. The average spot price for 65 percent Fe iron ore decreased to $113/mt in the third quarter from $117/mt in the same period last year and $122/mt in the second quarter of 2026. Meanwhile, the average premium for blast furnace pellets increased to $28/mt from $27/mt a year earlier, while the premium for direct reduction pellets rose to $50/mt from $37/mt. Higher ocean freight costs, driven by increased oil prices, changes in shipping routes and strong demand for vessel capacity, also affected the market.
As for the outlook, LKAB stated that geopolitical and global economic uncertainty remains high amid tariffs, import restrictions and ongoing conflicts. The company noted that improved crushed ore availability at the Kiruna mine has allowed it to limit the previously announced closure of a processing plant to an extended maintenance shutdown. However, delays in planned maintenance work on the Iron Ore Line during the autumn will require more closures than previously anticipated, potentially affecting delivery volumes. LKAB also warned that prolonged disruptions in the Strait of Hormuz could affect shipments. Nevertheless, the company continues its efforts to strengthen its competitiveness and ability to supply raw materials for fossil-free steel production, while identifying permitting procedures, energy supply, railway capacity and uncertain operating conditions as ongoing challenges.
