Jan Moström's LKAB Slashes Dividend as Profits Plummet

State-owned mining giant LKAB reduced its annual dividend to 1.5 billion kronor following a significant drop in fourth-quarter operating profits. CEO Jan Moström cited a weakened USA dollar and the rising costs of social transformation in Kiruna as the primary drivers of the financial decline. Despite the lower earnings, the company reported a record production increase to 25.9 million tons for the full year after stabilizing its operations.The board of directors proposed the lower payout after operating profit fell from 2.6 billion kronor to 986 million kronor in the final quarter of 2025. Revenue also decreased to 8.3 billion kronor while the global spot price for iron ore products averaged $106 per ton during the same period. Stable delivery volumes helped offset some currency losses, but the dividend represents an 88 percent decrease from the record high reached in 2021.LKAB expects to continue managing high operational expenses and currency volatility as it proceeds with the relocation projects in the northern mining district. Production remained consistently stable during the quarter with fewer disruptions compared to the previous year when technical issues hampered the ore railway. The proposed dividend reflects approximately 50 percent of the total profit for the 2025 fiscal year.