Swedish mining company LKAB reported a net profit of SEK 934 million ($95.22 million) in the third quarter of 2026, compared with a loss of SEK 1.85 billion a year earlier. Revenue rose 6.2% to SEK 8.05 billion ($820.67 million), as higher shipments offset lower iron ore prices.
Operating profit reached SEK 1.60 billion, against an operating loss of SEK 2.42 billion in the third quarter of 2025. LKAB said the improvement was mainly due to significantly lower costs related to urban transformation in Kiruna, which had weighed heavily on results a year ago.
LKAB produced 6.7 million metric tons of iron ore during the quarter, down 2.9% year on year. Shipments increased by 9.7% to 6.8 million metric tons. Output was affected by extended scheduled maintenance stoppages and geotechnical challenges at the Kiruna mine. However, all of the company’s processing plants operated in the second and third quarters, avoiding a temporary shutdown that had previously been anticipated.
Stable railway and port operations supported shipments. LKAB largely mitigated disruption in the Middle East and around the Strait of Hormuz by redirecting deliveries to other customers.
Nine-month results
For January–September, LKAB’s net profit fell 3.8% to SEK 2.36 billion ($240.63 million), while revenue declined 7.5% to SEK 23.15 billion ($2.36 billion). Operating profit, however, rose 10.1% to SEK 2.52 billion ($256.94 million). Revenue was affected by a stronger Swedish krona and lower ore prices. Lower urban-transformation costs drove the increase in operating profit, while higher electricity prices, maintenance expenses and development activities weighed on profitability.
Iron ore production for the nine months fell 1% to 19.2 million metric tons, while shipments rose 1.6% to 19.1 million metric tons. Conflict in the Middle East and periodic closures of the Strait of Hormuz disrupted deliveries early in the year, but LKAB used alternative routes and reallocated shipments.
Projects and outlook
Construction of a new sorting plant in Malmberget is under way, with the first section of the foundations completed. The plant is designed to process 25 million metric tons of ore a year and is being prepared for future apatite processing. 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 permits are required before mining can begin. Construction of the company’s critical minerals demonstration plant in Luleå is continuing on schedule.
According to LKAB, the average spot price for iron ore with 65% iron content was $113 per metric ton in the third quarter, compared with $117 a year earlier and $122 in the second quarter of 2026. The premium for blast-furnace pellets increased from $27 to $28 per ton, while the premium for direct-reduction pellets rose from $37 to $50. Higher ocean freight costs, changing shipping routes and strong demand for vessels also affected the market.
LKAB said geopolitical and global economic uncertainty remains high. Better availability of crushed ore at Kiruna allowed the company to limit a previously announced processing-plant closure to an extended maintenance shutdown. However, delays to planned autumn work on the Iron Ore Line will require additional closures and could affect shipment volumes. LKAB also cited the risk of prolonged disruption in the Strait of Hormuz, along with permitting, energy supply and railway capacity challenges.
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