LKAB Q2 2026: Earnings hit by USD hedging and higher costs

Financial results

Net sales for Q2 2026 amounted to MSEK 7,187 (7,820), with the lower revenue mainly negatively affected by foreign exchange effects from USD currency hedging. Operating profit for the quarter was MSEK 63 (1,074), driven down by the reduced sales revenue and higher costs for energy, maintenance measures and development work; higher costs for urban transformation also weighed on earnings.

Production and logistics

Production and delivery volumes were largely on par with the year‑earlier quarter despite operational challenges. Production was 6.0 Mt (5.8) and deliveries 6.0 Mt (6.1). LKAB reported production challenges in the Kiruna mine and delivery disruptions linked to the situation in the Strait of Hormuz, but maintained processing plant operations and redirected shipments from the Middle East to other customers and markets.

Market prices and FX

The average global spot price (Platts IO Fines Fe 65%) in Q2 was USD 122 (108) per tonne, while quoted pellet premiums were about USD 6 per tonne lower than a year earlier. The US dollar strengthened roughly 3% versus the Swedish krona since Q1 but was on average about 3% weaker than in the same quarter last year.

Permits and projects

During the quarter two environmental permits were granted: one for the planned industrial park for extracting critical minerals in Luleå and one for continued and expanded mining and processing in Malmberget in Gällivare. The Malmberget permit includes a demonstration plant for fossil‑free sponge iron production and an apatite plant to supply the planned Luleå industrial park; appeals in Gällivare have moved the case to the next review level.