LKAB reports lower earnings for second quarter due to currency effects and higher costs
Mining company LKAB reported a decrease in earnings for the second quarter of 2026 compared to the same period last year. Stable delivery volumes were offset by negative foreign exchange effects and increased costs.
Mining company LKAB concluded the first half of 2026 with a decline in second-quarter earnings compared to the previous year. Despite consistent delivery volumes, the company's profitability was impacted by unfavorable foreign exchange movements and rising expenses.
Net sales for the second quarter of 2026 stood at MSEK 7,187, a decrease from MSEK 7,820 in the comparable period of the prior year. The reduction in sales revenue was primarily attributed to foreign exchange effects stemming from the hedging of US dollar transactions.
Operating profit for the quarter fell significantly to MSEK 63, down from MSEK 1,074 in the second quarter of 2025. This decline was mainly driven by the lower sales revenue, alongside increased costs related to energy.
The company's interim report for the first six months of 2026 shows a marked impact on earnings during the second quarter, despite maintaining stable operational output.