NORTH EUROPEAN OIL ROYALTY TRUST (NRT)·Q4 2025 Earnings Summary

Executive Summary

• Q4 2025 distribution was $0.31 per unit, a sharp year-over-year step-up vs $0.02 in Q4 2024, primarily driven by the absence of large negative royalty adjustments that depressed last year’s payout .
• Cumulative 12-month distribution rose to $0.81 per unit, up 69% ($0.33 per unit) from $0.48 per unit in the prior 12 months, underscoring improved cash flow from scheduled royalties and minimal negative adjustments this quarter .
• Q4 included only a small negative adjustment of $10,152 from the prior quarter, in contrast to the $3,395,332 carryover of negative adjustments impacting Q4 2024; management expects further detail in the upcoming 10-K .
• The Trust reaffirmed the mechanics of scheduled payments tied to the prior calendar quarter’s royalties; earlier (Q3) commentary had estimated scheduled royalty payments for Q4 at ~$2.6M, subject to FX and reconciliation adjustments .

What Went Well and What Went Wrong

What Went Well

• Distribution normalization: “The significant increase in the year-over-year fourth quarter distribution results primarily from the lack of negative adjustments,” lifting Q4 2025 to $0.31 per unit vs $0.02 in Q4 2024 .
• Strong trailing 12-month cash returns: The cumulative 12-month distribution reached $0.81 per unit, up 69% versus the prior 12 months ($0.48), reflecting improved royalty inflows and limited Q4 reconciliation headwinds .
• Visible payout mechanics: Management reiterated scheduled monthly royalty payments and adjustments to align with actual results, improving investor understanding of quarter-to-quarter distribution variability .

What Went Wrong

• Negative adjustments persist, albeit small: Q4 recorded a minor negative adjustment of $10,152 from the prior quarter; while manageable, reconciliations can still impact near-term distributions .
• Prior-year drag underscores vulnerability: Large carryover negative adjustments from Q3 FY24 and the calendar 2023 reconciliation totaling $3,395,332 materially depressed Q4 2024 payout, highlighting sensitivity to operator-reported volumes/prices .
• Macro and structural risks: Forward-looking disclosures cite depleting assets, gas price/volume variability, FX, operator performance uncertainties, potential disputes, and geopolitical risk tied to the Russia–Ukraine conflict .

Financial Results

Quarterly Distribution per Unit

YoY Quarterly Distribution

Royalty Adjustments and Scheduled Payments

Income Statement Snapshot (availability limited)

Values retrieved from S&P Global.*
Note: Quarterly revenue/EPS for Q3 and Q4 2025 were not available from our data sources at the time of this analysis.

Guidance Changes

No formal quantitative guidance ranges (revenue, margins, OpEx, tax) were provided. Management indicated further details will be available in the 10-K on or about Dec 31, 2025 .

Earnings Call Themes & Trends

No Q4 2025 earnings call transcript was found.

Management Commentary

• “The significant increase in the year-over-year fourth quarter distribution results primarily from the lack of negative adjustments.”
• “For the quarter ending October 31, 2025, there was a small negative adjustment of $10,152 from the prior quarter.”
• “The Trust’s monthly scheduled royalty payments are paid based on the amount of royalties that were payable to the Trust in the prior calendar quarter. Adjustments to the scheduled payments occur when scheduled payments differ from actual results.”
• Q3 setup for Q4: “Scheduled royalty payments for the fourth quarter of fiscal 2025 are estimated to be $2.6 million at the current exchange rate of 1.1755. The exchange rate on the date of transfer of funds will determine actual royalty income.”

Q&A Highlights

No analyst Q&A available; no earnings call transcript was found for Q4 2025.

Estimates Context

• Wall Street consensus (S&P Global) for Q4 2025 EPS and revenue was unavailable for NRT at the time of this review; as such, we cannot assess beats/misses versus consensus for Q4 2025.
• Prior-quarter (Q2 2025) reported values are shown above for context; quarterly estimates coverage appears limited for this royalty trust.*

Values retrieved from S&P Global.*

Key Takeaways for Investors

• Distribution normalization is the headline: Q4 2025 payout at $0.31 per unit versus $0.02 YoY reflects minimal negative adjustments, a key determinant of quarterly variability .
• Trailing 12-month yield momentum: $0.81 per unit over the last four quarters (+69% YoY) signals improved cash generation, though subject to reconciliation and FX .
• Watch operator reconciliations: Small Q4 negative adjustment ($10,152) is benign; outsized carryovers (e.g., $3.395M last year) can materially impact distributions .
• FX remains a swing factor: Prior commentary tied Q4’s scheduled payments to FX at transfer date; EUR/USD volatility can translate into distribution noise .
• Limited guidance and coverage: No formal guidance; Street estimates scarce, increasing reliance on Trust disclosures and upcoming 10-K for detailed drivers .
• Near-term trading implication: The visible step-up and clarity around adjustments may support sentiment; subsequent filings (10-K) could refine expectations for February’s distribution cadence .
• Medium-term thesis: Structural risks—depleting assets, production/price variability, and operator performance—warrant conservative expectations and monitoring of reconciliation patterns and FX .