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Introduction & Market Context
Rana Gruber AS (OB:RANA) presented its second quarter and first half 2025 results on August 27, 2025, highlighting the company’s resilience in a challenging market environment. The Norwegian iron ore producer faced significant headwinds from volatile iron ore prices, which resulted in substantial year-over-year declines in revenue and profitability despite stable production volumes.
The company’s stock closed at 72.4 NOK on August 26, down 2.56% ahead of the presentation, and has been trading near its 52-week low of 60 NOK, reflecting investor concerns about the challenging market conditions in the iron ore sector.
Quarterly Performance Highlights
Rana Gruber maintained stable production in Q2 2025, continuing the strong production trend from previous quarters despite the annual maintenance stop that typically reduces volumes in the second quarter. Total production reached 440,000 metric tons, with hematite accounting for 91.1% (402,000 mt) and magnetite for 8.7% (38,000 mt) of the total volume.
As shown in the following chart of quarterly production volumes:
However, financial results were significantly impacted by lower iron ore prices. Revenue dropped to 326.8 million NOK, representing a 40.3% decrease compared to Q2 2024. This decline was primarily driven by lower realized prices for hematite, which fell to 668 NOK/mt in Q2 2025 from 931 NOK/mt in the same period last year.
The following chart illustrates the revenue breakdown and price trends:
Despite the challenging market conditions, Rana Gruber maintained its focus on cost discipline. Cash cost per ton produced decreased to 611 NOK/mt, a 5.7% improvement compared to Q2 2024, demonstrating the company’s commitment to operational efficiency.
The cash cost trend and cost breakdown are illustrated in the following charts:
Detailed Financial Analysis
The financial performance for Q2 2025 showed significant declines across key metrics compared to the same period in 2024. EBITDA fell by 54.9% to 92.5 million NOK, while net profit decreased by 59.1% to 49.7 million NOK. Adjusted net profit, which accounts for certain non-recurring items, dropped even more sharply by 74.8% to 34.7 million NOK.
The comprehensive financial results are presented in the following table:
Despite these challenges, Rana Gruber maintained its dividend policy, declaring a quarterly dividend of 0.66 NOK per share. This represents the company’s 18th consecutive quarter of dividend payments, totaling 1.5 billion NOK since its listing in February 2021. However, the current dividend is significantly lower than the 2.23 NOK per share paid in Q2 2024 and the 1.27 NOK per share reported in Q1 2025.
The company’s cash position decreased by 66 million NOK during the quarter, primarily due to working capital requirements, investments, and dividend payments. Free cash flow (FCF) remained positive at 134 million NOK, an improvement from 117 million NOK in the comparable period, with FCF per share increasing to 3.62 NOK from 3.16 NOK.
The cash flow dynamics are illustrated in the following waterfall chart:
Strategic Initiatives
Rana Gruber continues to progress with its strategic transition from the Ørtfjell open-pit mining to new production at Stensundtjern by the end of 2025. Preparations at Stensundtjern are advancing according to plan, ensuring operational readiness for this important transition.
In a significant development, the Board of Directors approved the Storforshei infrastructure investment, which will support future operations with payback expected over Stensundtjern’s lifetime. This investment underscores the company’s commitment to long-term competitiveness and sustainable operations.
The company also highlighted its focus on safety and environmental responsibility. One minor injury was recorded in the first quarter, resulting in a short absence from work. The annual maintenance stop, which covered nearly 400 work packages involving both internal and external personnel, was completed with zero incidents, demonstrating the company’s strong safety culture.
Forward-Looking Statements
Looking ahead, Rana Gruber remains committed to delivering on its cash cost target of USD 50-55 per ton, positioning the company to weather ongoing market volatility. The company emphasized its strong balance sheet, solid partnerships, and proven track record over 60 years as key factors supporting its resilience and future prospects.
As shown in the following financial position summary, Rana Gruber maintained a strong balance sheet with an equity ratio of 61.9%, up from 56.0% at the end of 2024:
The company’s next presentation is scheduled for its Capital Markets Day on November 12, 2025, where investors can expect further updates on strategic initiatives and operational progress.
Comparing the Q2 results with the strong Q1 2025 performance reported earlier (where EBITDA was 280 million NOK and adjusted EPS was 2.12 NOK), the significant quarter-over-quarter decline highlights the impact of market volatility on the company’s financial performance. However, management remains focused on operational efficiency and strategic investments to position the company for long-term success despite near-term challenges.
Full presentation:
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