Core Natural Resources (NYSE:CEIX) Q4 2025 Earnings call February 12, 2026 10:00 AM ET Speaker8Good morning, ladies and gentlemen, and welcome to the Core Natural Resources, Inc. fourth quarter 2025 earnings call. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Thursday, February 12, 2026. I wou ...

Fourth Quarter 2025 Earnings Supplement February 12, 2026 FORWARD-LOOKING STATEMENTS This communication contains certain "forward-looking statements" within the meaning of federal securities laws. Forward-looking statements may be identified by words such as "years ahead," "look forward" and similar expressions. Forward-looking statements are not statements of historical fact and reflect Core's current views about future events. No assurances can be given that the forward-looking statements contained in thi ...

Exhibit 99.1 CANONSBURG, Pa., Feb. 12, 2026 /PRNewswire/ -- Today, Core Natural Resources, Inc. (NYSE: CNR) ("Core" or the "company") reported a net loss of $79.0 million, or ($1.54) per diluted share, in the fourth quarter of 2025. Additionally, Core reported adjusted EBITDA of $103.1 million in the quarter, which included fire extinguishment costs at Leer South and idle mine cash costs at Leer South and West Elk totaling $36.4 million, as well as a portion of the total insurance proceeds related to the Ba ...

Core Insights - Charlie Munger, vice chairman of Berkshire Hathaway, made a surprising investment in coal in 2023, resulting in over $50 million in paper gains [1][4]. Investment Strategy - Munger had avoided coal for six decades but decided to invest in Consol Energy and Alpha Metallurgical Resources, believing that many coal producers were undervalued, particularly those producing metallurgical coal essential for steelmaking [3][4]. - His investment in Consol Energy saw its stock double, while Alpha Metallurgical Resources also experienced significant gains by the time of Munger's death in late November 2023 [4]. Personal Context - Munger continued to engage in investment discussions with Warren Buffett, maintaining an active role despite not being involved in day-to-day operations at Berkshire Hathaway [5].

Core Insights - Charlie Munger's later years were marked by active investment decisions and new challenges rather than a quiet retirement [2][3] Investment Strategies - Munger made a significant investment in the coal industry, an area he had avoided for 60 years, resulting in over $50 million in paper gains [3][5] - He purchased shares in Consol Energy and Alpha Metallurgical Resources, both of which saw substantial stock price increases, with Consol's price doubling by the time of his passing [6][5] Real Estate Ventures - Munger collaborated with a young neighbor, Avi Mayer, to invest in real estate, leading to the establishment of Afton Properties, which now holds assets valued at approximately $3 billion [7][9] - The trio acquired nearly 10,000 low-rise apartments in Southern California, with Munger actively involved in various operational aspects [7][9] Personal Challenges and Social Engagement - Munger faced health challenges, including vision problems, but maintained a humorous outlook and engaged in social activities to combat loneliness [10] - He emphasized the importance of forming new friendships in his later years, participating in weekly breakfast meetings with business associates [10] Relationship with Warren Buffett - Munger maintained a close friendship and collaboration with Warren Buffett, communicating regularly despite challenges due to hearing issues [11][12] - Their final conversation occurred shortly before Munger's passing, highlighting the enduring bond between the two investment legends [12]

Core Insights - Charlie Munger's later years were marked by active investment decisions and new challenges, rather than a quiet retirement [2][3] - Munger made significant investments in the coal industry, an area he had avoided for 60 years, resulting in over $50 million in paper gains [5][6] - He also collaborated with a young neighbor to build a real estate empire valued at approximately $3 billion [8][9] Investment in Coal Industry - Munger's unexpected investment in coal stocks came as many investors were bearish on the sector due to declining usage [5] - He believed that global energy demand would keep coal necessary, and many producers remained profitable with undervalued stock prices [5] - In May 2023, he purchased shares of Consol Energy and later Alpha Metallurgical Resources, both of which saw significant stock price increases [6] Real Estate Ventures - Munger's real estate investment began with a mentorship of his young neighbor, Avi Mayer, who sought guidance in his career [8] - Together with Mayer and Reuven Gradon, they acquired nearly 10,000 low-rise apartments in Southern California starting around 2017 [8] - Afton Properties, the company they formed, now holds assets valued at about $3 billion, with Munger actively involved in decision-making [9] Health Challenges and Social Engagement - Munger faced significant health challenges, including vision loss, but maintained a humorous outlook and engaged socially to combat loneliness [10][11] - He adapted his lifestyle, including dietary changes, and emphasized the importance of forming new friendships in his later years [11] - Munger continued to communicate regularly with Warren Buffett, maintaining their long-standing partnership despite health issues [12][13]

Core Insights - Charlie Munger, Warren Buffett's long-time partner, made significant investments in the coal industry, an area he had previously avoided for 60 years, resulting in over $50 million in profits before his passing [2][5][6] - Munger also increased his investments in real estate, collaborating with a young neighbor to acquire nearly 10,000 garden-style apartments in Southern California, making them one of the largest low-rise apartment owners in the state [7][9] Investment in Coal Industry - Munger, who had historically overlooked coal stocks, began investing in coal companies in 2023, believing that despite a long-term decline in coal usage, the industry remains essential due to global energy demands [5][6] - He purchased shares in Consol Energy and Alpha Metallurgical Resources, with Consol's stock price doubling by the time of his death [5][6] Real Estate Investments - Munger supported a young neighbor, Avi Mayer, in real estate investments, leading to the establishment of Afton Properties, which has assets valued at approximately $3 billion [8][9] - Munger was actively involved in the business decisions of Afton Properties, emphasizing long-term financing strategies over short-term gains [8][9] Personal Insights and Legacy - Munger maintained a close relationship with Buffett, communicating regularly despite health challenges, and continued to engage in discussions about investments and life principles [5][11] - His final years were marked by a commitment to learning and sharing knowledge, providing valuable lessons for investors on aging gracefully and purposefully [11][12]

Investment in Coal Industry - Charlie Munger, known for avoiding the coal industry for 60 years, made significant investments in coal companies in 2023, resulting in over $50 million in profits [1][4] - Munger purchased shares in Consol Energy and Alpha Metallurgical Resources, with Consol's stock price doubling by the time of his passing [4][6] - Despite the general perception of a declining coal industry, Munger believed that coal remains essential due to increasing global energy demand [3][4] Real Estate Investments - Munger collaborated with a young neighbor, Avi Mayer, to invest in real estate, leading to the acquisition of nearly 10,000 garden-style apartments in Southern California [5][6] - The real estate company, Afton Properties, is now valued at approximately $3 billion, with Munger actively involved in various aspects of the business until his death [7] - Munger encouraged long-term financing strategies over short-term debt, emphasizing the importance of favorable interest rates and asset retention [6][7] Personal and Professional Legacy - Munger's final years were marked by health challenges, yet he maintained an active engagement in discussions about investments and life principles with friends and colleagues [8][10] - His approach to investing and life provided valuable lessons for investors, showcasing the importance of continuous learning and thoughtful decision-making [11]

Financial Data and Key Metrics Changes - The company reported a net income of $32 million, or $0.61 per diluted share, and adjusted EBITDA of $141 million for Q3 2025 [15] - Free cash flow generation was $39 million, with operating cash flow impacted by negative working capital changes of $52 million [15][16] - Total liquidity at the end of Q3 was $995 million, an increase of $47 million compared to Q2 [16] Business Line Data and Key Metrics Changes - High-CV thermal segment coal production was 7.6 million tons in Q3 2025, down from 8 million tons in Q2 2025, with realized coal revenue of $59.78 per ton and cash cost of $40.53 per ton [5] - Metallurgical segment coal production was 2.3 million tons, down from 2.4 million tons in Q2 2025, with realized coke and coal revenue of $112.94 per ton and cash costs of $94.18 per ton [6] - Powder River Basin (PRB) segment coal production increased to 12.9 million tons, with realized coal revenue of $14.09 per ton and cash cost of $13.04 per ton [8] Market Data and Key Metrics Changes - U.S. power demand remained robust, with coal-fired generation increasing by approximately 12% year-to-date [17] - The PJM RTO market saw a 16% increase in coal-fired generation year-to-date [17] - Internationally, cement demand in India is expected to grow approximately 50% by 2030 compared to 2024 levels [19] Company Strategy and Development Direction - The company is focusing on the recovery and repositioning of long-haul equipment at the Lyr-South mine and exploring the presence of rare earth elements and critical minerals in its operations [4][10] - A measured approach to shareholder returns is being maintained, targeting around 75% of free cash flow for share buybacks and dividends [9] - The company aims to fill out its sales book for 2026 and beyond, having layered in nearly 26 million tons of forward contracts [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in overcoming operational challenges and highlighted the potential for improved productivity at the West Elk mine due to transitioning to a thicker coal seam [13] - The company anticipates a performance step change in 2026 due to low-cost asset base and advanced logistics network [13] - Management remains optimistic about the long-term fundamentals of the metallurgical segment despite current pressures on global steel prices [19] Other Important Information - The company returned over 60% of Q3 2025 free cash flow to shareholders, deploying $19 million for share repurchases and $5 million for dividends [9] - The board declared a $0.10 per share dividend payable on December 15th to stockholders of record on November 28th [9] Q&A Session Summary Question: Update on West Elk mine and methane levels - Management confirmed that methane issues have been managed and production is expected to resume soon, with confidence in the future performance of the West Elk mine [29][30] Question: Breakdown of high CV coal for 2026 - The company has 17 million tons of committed high CV coal for 2026, with 14 million tons from PAMC and 3 million tons from West Elk, pricing in the upper 50s [31][32] Question: Insurance proceeds and business interruption claims - Management indicated that total costs related to fire and idling are approaching $100 million, with optimism about the overall insurance claim [37] Question: Confidence in maintaining low costs at PAMC - Management expressed confidence in maintaining low costs at PAMC and improving costs at West Elk as operations stabilize [42][44] Question: Rare earth elements and government involvement - The company is evaluating the potential for recovering rare earth elements and critical minerals, leveraging its scale and existing operations [54][56] Question: Domestic thermal market capacity factors - Management noted that domestic coal-fired generation could increase by 20-30%, driven by investments in coal fleet and data center demand [59][60]

Financial Performance - Core reported net income of $31.6 million, or $0.61 per diluted share, and adjusted EBITDA of $141.2 million in Q3 2025, which included $18.4 million of fire extinguishment and idle mine cash costs at Leer South and a $19.4 million initial recovery of insurance proceeds related to the Leer South combustion-related event[6] - The company generated net cash provided by operating activities of $87.9 million and free cash flow of $38.9 million[6] - Core increased cash and cash equivalents by $31.5 million and overall liquidity by $47.5 million[6] Capital Return Program - Core returned $24.6 million to stockholders via share repurchases and quarterly dividends in Q3 2025, increasing the year-to-date capital return total to $218.3 million[6] - Since February 20, 2025, Core has reduced shares outstanding by approximately 5.2%[19] - As of September 30, 2025, Core had $797.4 million of remaining authorization under its existing $1.0 billion share repurchase program[22] Operational Highlights - The company achieved a strong production and sales volume performance at the Pennsylvania Mining Complex[6] - Core transitioned to a more advantageous reserve area at the West Elk mine[6] - The company raised PRB volume guidance again, taking advantage of improving domestic coal generation[6] - Core signed commitments across all segments and all periods totaling nearly 26 million tons[6] - In 2024, the company's sales volume was 85 million tons and revenue was $4.6 billion[7] Market Position and Strategy - The company has a 35% interest in Dominion Terminal Associates ("DTA")[13] - The company has 27 Mtpa export capacity via ownership interests in two marine terminals[13] - The high calorific value thermal segment has a committed book of ~17 million tons and the Powder River Basin segment has a committed book of business of ~40 million tons for delivery in 2026[28]