Financial Data and Key Metrics Changes - Adjusted EBITDA for Q3 2025 was $41.7 million, down from $46.1 million in Q2 2025 [6] - Cost of coal sales decreased to $97.27 per ton in Q3, down from $100.06 per ton in Q2 [7] - Cash provided by operating activities was $50.6 million in Q3, down from $53.2 million in Q2 [8] - Total liquidity increased to $568.5 million at the end of Q3, up from $556.9 million at the end of Q2 [8] Business Line Data and Key Metrics Changes - The company shipped 3.9 million tons in Q3, the same amount as in Q2 [6] - Metallurgical segment realizations decreased to an average of $114.94 per ton in Q3, down from $119.43 in Q2 [6] - Realizations in the incidental thermal portion of the metallurgical segment increased to $81.64 per ton in Q3, compared to $78.01 per ton in Q2 [7] Market Data and Key Metrics Changes - The Australian Premium Low-Vol Index increased by 9.6% during Q3, rising from $173.50 per metric ton to $190.20 per metric ton [13] - The US East Coast Low-Vol Index increased from $174 per metric ton at the beginning of the quarter to $177 per metric ton at quarter close [14] - The API-2 Index in the seaborne thermal market decreased from $107.95 per metric ton to $95.40 per metric ton during Q3, but has since increased to $100.70 as of November 4th [14] Company Strategy and Development Direction - The company is focused on maintaining cost discipline while navigating a challenging market cycle, with plans for 2026 already in progress [4] - Discussions with North American customers regarding domestic sales commitments for 2026 are ongoing, with guidance not yet issued [5][16] - The company is exploring opportunities in rare earth elements but does not expect significant economic impact from these efforts at this time [27] Management's Comments on Operating Environment and Future Outlook - Management noted that the current economic conditions affecting steel demand are vulnerable to uncertainty and lackluster growth expectations [4] - The company is preparing for potentially another challenging year in the coal industry in 2026 [4] - Management expressed confidence in their ability to manage costs and operate safely while navigating market fluctuations [10] Other Important Information - The company had $408.5 million in unrestricted cash and $49.4 million in short-term investments as of September 30, 2025 [8] - Capital expenditures for Q3 were $25.1 million, down from $34.6 million in Q2 [7] - The Kingston Wildcat mine is in development production, with expectations to ramp up to a full annual run rate of approximately 1 million tons in 2026 [11] Q&A Session Summary Question: Sustainability of Cost Cuts - Management acknowledged the volatility in costs and production but highlighted the operations team's success in reducing costs while maintaining safety [19][21] Question: Domestic Contracts and Volume Flexibility - Management indicated that domestic customers typically prefer fixed-price contracts, and while there may be fluctuations, significant changes in volume are not expected [23][24] Question: Rare Earth Opportunities - Management has explored rare earth opportunities but does not see them as a strategic focus at this time, preferring to concentrate on metallurgical coal [26][27] Question: CSX Train Derailment Impact - Management reported that the rail line affected by the derailment is expected to reopen soon, and they have sufficient inventory to meet customer contracts [31] Question: Market Conditions and Competition - Management expressed confidence in navigating market conditions and emphasized their position as a preferred supplier despite new competition [38] Question: CapEx Expectations for 2026 - Management indicated that they are not ready to provide detailed CapEx expectations for 2026 but noted ongoing projects like the Kingston Wildcat mine [44] Question: M&A Opportunities - Management is cautious about M&A in the current market but remains interested in opportunities that enhance control and cost reduction [50][51] Question: Safety Procedures Amid MSHA Shutdown - Management stated that safety performance is driven internally and has not been negatively impacted by the MSHA shutdown [52]

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q3 2025 was $41.7 million, down from $46.1 million in Q2 2025 [6] - Cost of coal sales decreased to $97.27 per ton in Q3, down from $100.06 per ton in Q2 [7] - Cash provided by operating activities was $50.6 million in Q3, down from $53.2 million in Q2 [9] - Total liquidity increased to $568.5 million at the end of Q3, up from $556.9 million at the end of Q2 [9] Business Line Data and Key Metrics Changes - The company shipped 3.9 million tons in Q3, the same amount as in Q2 [6] - Metallurgical segment realizations decreased to an average of $114.94 per ton in Q3, down from $119.43 in Q2 [6] - Realizations in the incidental thermal portion of the metallurgical segment increased to $81.64 per ton in Q3, compared to $78.01 per ton in Q2 [7] Market Data and Key Metrics Changes - The Australian Premium Low-Vol Index increased by 9.6% during Q3, rising from $173.50 per metric ton to $190.20 per metric ton [14] - The US East Coast Low-Vol Index increased from $174 per metric ton at the beginning of the quarter to $177 per metric ton at quarter close [14] - The API-2 Index in the seaborne thermal market decreased from $107.95 per metric ton to $95.40 per metric ton during Q3, but increased to $100.70 per metric ton as of November 4 [15] Company Strategy and Development Direction - The company is focused on maintaining cost discipline while navigating a challenging market cycle, with plans for 2026 already in progress [4] - Discussions with North American customers regarding domestic sales commitments for 2026 are ongoing, with guidance not yet issued [5] - The company is exploring opportunities in rare earth elements but does not see it as a strategic priority at this moment [27] Management's Comments on Operating Environment and Future Outlook - Management noted that the underlying economic conditions affecting steel demand remain vulnerable to uncertainty and lackluster growth expectations [4] - The company is preparing for potentially another challenging year for the coal industry in 2026 [4] - Management emphasized the importance of safety and operational efficiency, with recent achievements in safety performance [11] Other Important Information - Capital expenditures for Q3 were $25.1 million, down from $34.6 million in Q2 [8] - The company has $408.5 million in unrestricted cash and $49.4 million in short-term investments as of September 30, 2025 [9] - The Kingston Wildcat mine is in development production, with expectations to ramp up to a full annual run rate of approximately 1 million tons in 2026 [12] Q&A Session Summary Question: Sustainability of Cost Cuts - Management acknowledged the volatility in costs and production but highlighted the operations team's success in maintaining cost reductions while ensuring safety [20][21] Question: Domestic Contracts and Volume Flexibility - Management indicated that domestic contracts are typically fixed price, and while there may be fluctuations, significant changes in volume are not expected [22][24] Question: Rare Earth Opportunities - Management stated that while they are exploring rare earth opportunities, it is not a primary focus, and they are content with their current metallurgical coal operations [26][27] Question: CSX Derailment Impact - Management confirmed that the CSX line is expected to reopen soon, and they have sufficient inventory to meet customer contracts [31][32] Question: Market Conditions and Competition - Management expressed confidence in navigating market conditions and emphasized their position as a preferred supplier despite new competition [39] Question: CapEx Expectations for 2026 - Management indicated that they are not ready to provide detailed CapEx expectations for 2026 but mentioned ongoing projects like the Kingston Wildcat Mine [45] Question: M&A Opportunities - Management is cautious about M&A in the current market but remains open to opportunities that align with their strategic goals [51][52] Question: Safety Procedures Amid MSHA Shutdown - Management reported that MSHA enforcement remains active despite the shutdown, and the company is committed to maintaining high safety standards [53]

Business Overview - Alpha sold 171 million tons of coal in 2024, with 76% for export and 24% for domestic markets[11] - Adjusted EBITDA in 2024 was $408 million[11] - The company has a diverse sales mix, including 37% High Vol-A, 31% High Vol-B, 19% Mid Vol, and 13% Low Vol[11] Production and Reserves - Total production in 2024 was 157 million tons, and total reserves as of year-end 2024 were 299 million tons[18] - Marfork complex accounted for 31% of total reserves, while McClure / Toms Creek accounted for 22%[18] Financial Performance - In 2024, the average realized price was $143 per ton[61] - Free cash flow in 2024 was $349 million[62] Capital Expenditures - Planned capital expenditures for 2025 are approximately $140 million, including $98 million for maintenance, $32 million for development projects, and $10 million carryover[64] Safety and Environment - The company has a ~24% lower Total Reportable Incident Rate vs Industry Avg[16] - The company has a ~50% Lower Non-Fatal Days Lost vs Industry Avg[16] Market Outlook - Global finished steel demand is expected to grow by ~40Mt or ~26% from 2029E to 2034E[27]

Core Insights - Alpha Metallurgical reported a quarterly loss of $0.42 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.35, and a decline from earnings of $0.29 per share a year ago, indicating an earnings surprise of -20.00% [1] - The company generated revenues of $526.78 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 2.5% and down from $671.9 million in the same quarter last year [2] - Alpha Metallurgical shares have decreased by approximately 13.1% year-to-date, contrasting with the S&P 500's gain of 15.6% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.64 on revenues of $549 million, and for the current fiscal year, it is -$3.97 on revenues of $2.17 billion [7] - The trend of estimate revisions for Alpha Metallurgical has been unfavorable, resulting in a Zacks Rank 4 (Sell), suggesting expected underperformance in the near future [6] Industry Context - The Mining - Miscellaneous industry, to which Alpha Metallurgical belongs, is currently ranked in the top 33% of over 250 Zacks industries, indicating a relatively strong position within the market [8] - Another company in the same industry, American Resources Corporation, is expected to report a quarterly loss of $0.13 per share, with revenues anticipated to increase by 334.8% from the year-ago quarter [9]

Financial Forecast and Usage - As of September 30, 2025, the company has forecasted diesel fuel usage of 21.4 million gallons, with 96.0% priced at an average of $2.74 per gallon[191] - The company maintains a senior secured asset-based revolving credit facility with a borrowing capacity of up to $225.0 million, with no cash borrowings outstanding as of September 30, 2025[192] - Investments in trading securities amounted to $83.6 million as of September 30, 2025, compared to $43.1 million as of December 31, 2024[194] Risk Management - The company has exposure to commodity price risk for coal sales, managed through coal supply agreements[189] - The company does not have material exposure to foreign currency exchange-rate risks, as transactions are denominated in U.S. dollars[195] Corporate Developments - The company completed a merger with ANR, Inc. and Alpha Natural Resources Holdings, Inc. on November 9, 2018, enhancing its market position[21] Operational Metrics - The company’s coal reserves are defined as the economically mineable part of a measured coal resource, which includes allowances for losses during extraction[16] - The company’s operating margin is calculated as coal revenues less the cost of coal sales, reflecting operational efficiency[23] - The company’s productivity is measured in clean metric tons of coal produced per underground man hour worked, as published by MSHA[24] Environmental Responsibility - The company is focused on reclamation processes to restore land and the environment post-mining, which is closely regulated by state and federal law[26]

Financial Performance - Alpha reported a net loss of $5.5 million for Q3 2025, compared to a net loss of $5.0 million in Q2 2025 and a net income of $3.8 million in Q3 2024[2][4]. - Total revenues for the nine months ended September 30, 2025, were $1.61 billion, down 31.2% from $2.34 billion in the same period of 2024[28]. - For the nine months ended September 30, 2025, the company reported a net loss of $44.416 million compared to a net income of $189.708 million for the same period in 2024[33]. - Basic loss per share for Q3 2025 was $0.42, compared to earnings of $0.29 per share in Q3 2024[28]. - The company reported a GAAP coal margin of $4.999 million for the nine months ended September 30, 2025, significantly lower than $271.018 million in 2024[39]. Revenue and Sales - Coal revenues for Q3 2025 were $525.2 million, a decrease of 21.6% from $669.8 million in Q3 2024[28]. - Coal revenues for the Met segment were $525.2 million in Q3 2025, a decrease from $548.7 million in Q2 2025[6]. - Non-GAAP coal revenues for the nine months ended September 30, 2025, were $1.353 billion, a decrease of 29.6% from $1.924 billion in 2024[39]. - The company sold 11,496 tons of coal in the nine months ended September 30, 2025, compared to 13,065 tons in 2024, reflecting a decrease of 12%[39]. - The non-GAAP coal sales realization per ton for the nine months ended September 30, 2025, was $117.66, down from $147.26 in 2024[39]. Costs and Expenses - The company reported a total cost of coal sales of $461.6 million for Q3 2025, a decrease of 22.9% from $598.7 million in Q3 2024[28]. - The total cost of coal sales for the nine months ended September 30, 2025, was $1.599 billion, down 22.3% from $2.060 billion in 2024[39]. - Selling, general and administrative expenses for the nine months ended September 30, 2025, were $46.3 million, down 18.9% from $57.2 million in the same period of 2024[28]. - The cost of coal sales for the Met segment decreased to $97.27 per ton in Q3 2025, compared to $100.06 per ton in Q2 2025[11][12]. Liquidity and Capital Expenditures - Total liquidity as of September 30, 2025, was $568.5 million, including cash and cash equivalents of $408.5 million[3][14]. - Cash and cash equivalents were $408.5 million as of September 30, 2025, down from $481.6 million at December 31, 2024[30]. - Capital expenditures for Q3 2025 were $25.1 million, down from $34.6 million in Q2 2025[13]. - The company experienced a net cash used in investing activities of $165.692 million for the nine months ended September 30, 2025, compared to $178.731 million in 2024[33]. Guidance and Future Commitments - Alpha is lowering its 2025 guidance range for capital contributions to equity affiliates to between $35 million and $41 million, down from $44 million to $54 million[17]. - Approximately 85% of metallurgical coal for 2025 has been committed and priced at an average price of $122.57 per ton[17]. - The company has authorized a share repurchase program of up to $1.5 billion, with approximately 6.8 million shares repurchased at a cost of about $1.1 billion as of October 31, 2025[15][16]. Asset and Liability Changes - Total current assets decreased to $989.9 million as of September 30, 2025, from $1.04 billion at December 31, 2024[30]. - Total liabilities decreased to $753.2 million as of September 30, 2025, from $789.2 million at December 31, 2024[30]. - Cash and cash equivalents at the end of the period were $534.315 million, down from $605.637 million at the end of September 2024[34]. EBITDA Performance - Adjusted EBITDA for the third quarter was $41.7 million, down from $46.1 million in the previous quarter[5]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $93.397 million, a decline of 73.6% from $354.599 million in 2024[36].

Financial Performance - Alpha Metallurgical Resources reported a net loss of $5.5 million for Q3 2025, compared to a net loss of $5.0 million in Q2 2025 and a net income of $3.8 million in Q3 2024 [3][7] - Adjusted EBITDA for the third quarter was $41.7 million, down from $46.1 million in the previous quarter [3][7] - Operating cash flow decreased to $50.6 million from $53.2 million in the prior quarter [9] Coal Revenues - Total coal revenues for Q3 2025 were $525.2 million, a decrease from $548.7 million in Q2 2025 [3][7] - The metallurgical segment's coal sales realization was $114.94 per ton, down from $119.43 per ton in the previous quarter [4][8] - Tons of coal sold remained stable at 3.9 million tons for both Q3 2025 and Q2 2025 [3][5] Cost Management - The cost of coal sales in the metallurgical segment decreased to $461.6 million in Q3 2025 from $480.0 million in Q2 2025 [6][8] - The average cost of coal sales per ton in the metallurgical segment was $97.27, down from $100.06 in the previous quarter [8] - The company achieved record quarterly cost performance for coal sales, marking a significant achievement in cost reduction [7][2] Liquidity and Capital Resources - As of September 30, 2025, total liquidity was $568.5 million, including cash and cash equivalents of $408.5 million [10] - Capital expenditures for Q3 2025 were $25.1 million, a decrease from $34.6 million in Q2 2025 [9][10] Share Repurchase Program - The board of directors authorized a share repurchase program of up to $1.5 billion, with approximately 6.8 million shares repurchased at a cost of about $1.1 billion as of October 31, 2025 [11][12] 2025 Guidance Adjustments - The company lowered its 2025 guidance range for capital contributions to equity affiliates to between $35 million and $41 million, down from $44 million to $54 million [13] - Approximately 85% of metallurgical coal for 2025 has been committed and priced at an average price of $122.57 per ton [13][14]

Core Points - Alpha Metallurgical Resources, Inc. plans to announce its third quarter 2025 financial results on November 6, 2025, before market opens [1] - A conference call to discuss the results will be held at 10:00 a.m. Eastern time on the same day, featuring key executives [2] - The conference call will be accessible live on the company's investor website, with specific dial-in numbers provided for analysts [3] Company Overview - Alpha Metallurgical Resources is a Tennessee-based mining company operating in Virginia and West Virginia, supplying metallurgical products to the global steel industry [4]

Group 1 - Alpha Metallurgical Coal is the largest domestic producer of coking coal for steel production [1] - The company has been compared to peers such as Warrior Met Coal and Arch [1]

Group 1 - A mine electrician at the Marfork Preparation Plant suffered a fatal accident, identified as Eric Bartram, who had nearly two decades of experience [1] - The CEO of Alpha Metallurgical Resources expressed deep sadness over the incident and extended condolences to the family of the deceased [1] - The Marfork Preparation Plant is operated by Marfork Coal Company, LLC, a subsidiary of Alpha Metallurgical Resources [1][3] Group 2 - The company is collaborating with federal and state agencies to investigate the circumstances surrounding the accident [2] - Alpha Metallurgical Resources is a Tennessee-based mining company with operations in Virginia and West Virginia, supplying metallurgical products to the global steel industry [3]