Group 1 - The company primarily invests in turnarounds within the natural resource industries, with a typical holding period of 2-4 years, focusing on value for downside protection and upside participation [1] - The portfolio has achieved a compounded annual growth rate of 34% over the last 7 years, indicating strong performance [1] - Warrior Met Coal (HCC) is a U.S. metallurgical coal mining company with two operating mines and a development project, Blue Creek, which is ahead of schedule, starting longwall mining in October 2025 [2] Group 2 - The investment strategy emphasizes companies with quality characteristics that are trading at depressed valuations, allowing for participation in the upside of natural resource investing while mitigating extreme drawdowns [2]

Group 1 - The article does not provide any specific information or insights regarding a company or industry [1]

Core Insights - Warrior Met Coal (HCC) reported quarterly earnings of $0.7 per share, exceeding the Zacks Consensus Estimate of a loss of $0.2 per share, but down from $0.8 per share a year ago, representing an earnings surprise of +450.00% [1] - The company posted revenues of $328.59 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 8.58% and slightly up from $327.72 million year-over-year [2] - Warrior Met Coal shares have increased approximately 19.5% since the beginning of the year, outperforming the S&P 500's gain of 15.1% [3] Earnings Outlook - The future performance of Warrior Met Coal's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4] - The current consensus EPS estimate for the upcoming quarter is -$0.36 on revenues of $317.33 million, and -$0.61 on revenues of $1.22 billion for the current fiscal year [7] Industry Context - The coal industry, to which Warrior Met Coal belongs, is currently ranked in the bottom 4% of over 250 Zacks industries, indicating a challenging environment [8] - Another coal company, Core Natural Resources, is expected to report a quarterly loss of $1.40 per share, reflecting a year-over-year change of -143.5%, with its consensus EPS estimate revised 46.4% lower in the last 30 days [9]

Financial Data and Key Metrics Changes - The company reported a net income of $37 million or $0.70 per diluted share for Q3 2025, compared to $42 million or $0.80 per diluted share in Q3 2024, indicating a decrease in profitability year-over-year [25] - Adjusted EBITDA for Q3 2025 was $71 million, down from $78 million in the same quarter last year, with an adjusted EBITDA margin of 22% compared to 24% in the prior year [25][26] - Total revenues were $329 million in Q3 2025, slightly up from $328 million in the same quarter last year, primarily driven by a 27% increase in sales volume [26] Business Line Data and Key Metrics Changes - The company achieved record quarterly sales volume of 2.4 million short tons in Q3 2025, a 27% increase from 1.9 million short tons in the same quarter last year [17] - Production volume in Q3 2025 was 2.2 million short tons, up 17% from 1.9 million short tons in Q3 2024 [18] - The Blue Creek mine produced 175,000 short tons during Q3 2025, contributing to the overall increase in production volume [18] Market Data and Key Metrics Changes - The primary index, PLV FOB Australia, averaged $166 per short ton in Q3 2025, while the PLV CFR China index price averaged $162 per short ton, recovering from earlier lows [20] - The Australian LVHCC index price averaged $137 per short ton, and the US East Coast HVA index price averaged $141 per short ton during the same period [21] - The company sold 43% of its coal into Europe, 38% into Asia, and 18% into South America in Q3 2025 [17] Company Strategy and Development Direction - The company has raised its full-year 2025 production volume guidance by approximately 10% due to the earlier startup of Blue Creek longwall operations, now expected to produce approximately 1.8 million short tons of high-vol steelmaking coal [5][11] - The acquisition of 58 million short tons of high-quality steelmaking coal reserves is expected to enhance the company's long-term value proposition and extend the life of its core mining operations [6][12] - The company remains focused on operational excellence and strategic investments to drive shareholder value [4][35] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing weak steelmaking coal market conditions due to increased Chinese steel exports and subdued global demand, but expressed confidence in the company's operational successes driving strong financial performance [6][33] - The company anticipates continued pressure on steelmaking coal markets due to additional supply coming online and trade tensions affecting global market sentiment [33][48] - Despite challenges, management remains optimistic about long-term growth trajectories and the potential for new trade agreements to support market conditions [33] Other Important Information - The company achieved a gross price realization of 83% in Q3 2025, down from 93% in the same quarter last year, primarily due to relative index pricing and product mix [23] - Cash cost of sales per short ton was approximately $101 in Q3 2025, down from $123 in the same quarter last year, reflecting effective cost management [28] - Free cash flow was negative $20 million due to capital expenditures and mine development costs, but the company maintains a strong liquidity position with $525 million available [31][32] Q&A Session Summary Question: How should we think about production next year with the early Blue Creek startup? - Management indicated that production numbers will be market-driven and are still being evaluated [37] Question: Can you remind us how you are thinking about capital allocation? - The company plans to return excess free cash flow through dividends and possibly stock buybacks [38] Question: Do you still need incremental workers to ramp up production? - Management confirmed that additional hiring will continue over the next year to support operations [39] Question: How will sales shift quarter over quarter? - The company expects a significant increase in sales volume due to Blue Creek production [40] Question: How does the acquisition influence decisions on adding another longwall? - The acquisition enhances efficiency and control over reserves, making future operations more cost-effective [41] Question: What is the outlook for pricing and realizations going forward? - Management expressed cautious optimism about returning to targeted price realizations, depending on market conditions [49][50]

Financial Performance - Total revenues for the three months ended September 30, 2025, were $328.6 million, compared to $327.7 million for the same period in 2024, reflecting a slight increase of 0.3%[13] - Net income for the three months ended September 30, 2025, was $36.6 million, down from $41.8 million in the same period of 2024, representing a decrease of 5.2%[13] - Operating income for the nine months ended September 30, 2025, was $11.1 million, significantly lower than $259.1 million for the same period in 2024, indicating a decline of 95.7%[13] - For the nine months ended September 30, 2025, the net income was $36.6 million compared to $41.8 million for the same period in 2024, reflecting a decrease of approximately 12%[30] - Net income for the three months ended September 30, 2025, was $36.6 million, resulting in a basic net income per share of $0.70[48] - The Company reported a net income of $34.0 million for the nine months ended September 30, 2025, a significant decrease from $249.5 million in the same period of 2024[77] Cash and Liquidity - Cash and cash equivalents as of September 30, 2025, were $336.3 million, down from $491.5 million at the end of 2024, a decrease of 31.6%[16] - The company reported a net cash provided by operating activities of $153.2 million for the nine months ended September 30, 2025, down from $313.2 million in the same period of 2024, a decrease of 51.0%[18] - The Company incurred a net cash used in investing activities of $305.9 million for the nine months ended September 30, 2025, compared to $395.8 million in the same period of 2024, a decrease of 22.7%[18] - As of September 30, 2025, the Company had $140.5 million available under the Amended ABL Facility, with no loans outstanding and $2.5 million in letters of credit issued[44] Assets and Liabilities - Total assets increased to $2.68 billion as of September 30, 2025, compared to $2.59 billion at the end of 2024, marking an increase of 3.5%[16] - Total liabilities increased to $564.8 million as of September 30, 2025, compared to $500.7 million at the end of 2024, an increase of 12.8%[16] - Total stockholders' equity as of September 30, 2025, was $2.12 billion, an increase from $2.09 billion at the end of 2024, representing a growth of about 1.4%[30] - The Company had total debt of $154.1 million as of September 30, 2025, slightly up from $153.6 million at the end of 2024, reflecting a marginal increase of about 0.3%[40] Inventory and Capital Expenditures - The balance of inventories, net, as of September 30, 2025, was $219.1 million, up from $207.6 million at the end of 2024, indicating an increase of approximately 5.5%[36] - Capital expenditures for the Mining segment were $222.6 million for the nine months ended September 30, 2025, down from $321.1 million in the prior year, a decrease of 30.6%[75] Segment Performance - The Mining segment generated revenues of $903.4 million for the nine months ended September 30, 2025, down from $1.21 billion in the prior year, reflecting a decline of 25.4%[75] - Segment profit for the Mining segment was $191.7 million for the nine months ended September 30, 2025, compared to $429.9 million for the same period in 2024, representing a decrease of 55.4%[75] - The Company’s cash cost of sales (exclusive of depreciation and depletion) for the Mining segment was $705.7 million for the nine months ended September 30, 2025, compared to $773.6 million in the prior year, a decrease of 8.8%[75] Dividends and Share Repurchase - The company paid dividends of $0.08 per share for the three months ended September 30, 2025, consistent with the same period in 2024[13] - The Company declared a special dividend of $0.50 per share on February 9, 2024, along with quarterly dividends of $0.08 per share[60] - The Company repurchased 500,000 shares for approximately $10.6 million under its New Stock Repurchase Program, leaving $59.4 million authorized for future repurchases[59] Other Financial Activities - The effective income tax benefit for the nine months ended September 30, 2025, was $15.5 million, compared to an expense of $32.2 million for the same period in 2024, indicating a significant improvement[38] - The Company reported additional paid-in capital of $296.0 million as of September 30, 2025, compared to $282.7 million at the end of 2024, marking an increase of about 4.7%[30] - The Company’s long-term investments in fixed income securities amounted to $2.0 million as of September 30, 2025, down from $44.6 million at the end of 2024, reflecting a significant decrease of approximately 95.5%[31] - The Company had realized losses of $0.2 million and $1.1 million from natural gas swap contracts for the three and nine months ended September 30, 2025, respectively[63] - Coal royalty expenses for the three months ended September 30, 2025, were $17.6 million, compared to $25.6 million for the same period in 2024[54] Financing and Lease Obligations - Finance lease right-of-use assets increased to $138.4 million as of September 30, 2025, compared to $56.7 million as of December 31, 2024[46] - The total finance lease liabilities rose to $82.5 million as of September 30, 2025, up from $19.4 million at the end of 2024[46] - The weighted average remaining lease term for finance leases increased to 66.7 months as of September 30, 2025, from 17.9 months at the end of 2024[46] Miscellaneous - The Company continues to engage in negotiations for a new Collective Bargaining Agreement with the labor union, which expired on April 1, 2021, indicating ongoing labor relations efforts[24] - The estimated fair value of the Company's Notes as of September 30, 2025, was approximately $159.3 million based on observable market data[69] - The Company had 1,500,000 metric million British thermal unit gas swap contracts outstanding as of September 30, 2025, to hedge against natural gas price fluctuations[177] - The Company increased its Amended ABL Facility commitments by $27.0 million to a total of $143.0 million, with a maturity date extended to August 28, 2030[43]

Third Quarter 2025 Performance - Production volume increased by 17% to 2.249 million short tons compared to 1.917 million short tons in Q3 2024[17] - Sales volume increased by 27% to a record 2.355 million short tons, including 378 thousand short tons from the Blue Creek mine[11, 17] - Average net selling price decreased by 21% to $135.87 per short ton from $171.92 per short ton in Q3 2024[17] - Revenue remained relatively flat at $328.6 million compared to $327.7 million in Q3 2024[17] - Net income decreased by 12% to $36.6 million from $41.8 million in Q3 2024[17] - Cash cost of sales decreased by 18% to $100.73 per short ton from $123.45 per short ton in Q3 2024[12, 17] Nine Months Ended September 30, 2025 Performance - Production volume increased by 11% to 6.811 million short tons compared to 6.140 million short tons in the same period of 2024[19, 21] - Sales volume increased by 11% to 6.746 million short tons compared to 6.088 million short tons in the same period of 2024[19, 21] - Average net selling price decreased by 33% to $133.92 per short ton from $198.48 per short ton in the same period of 2024[19, 21] - Revenue decreased by 25% to $926.1 million from $1.2278 billion in the same period of 2024[19, 21] - Net income decreased significantly by 86% to $34.0 million from $249.5 million in the same period of 2024[19, 21]

Exhibit 99.1 Warrior Reports Third Quarter 2025 Results and Updates Outlook Commences longwall operations at transformational Blue Creek mine, eight months ahead of schedule and on budget Raises full year outlook to reflect strong operational performance and Blue Creek ramp-up Potential for strategic expansion through federal lease acquisition win BROOKWOOD, AL - November 5, 2025 - Warrior Met Coal, Inc. (NYSE: HCC) ("Warrior" or the "Company") today announced results for the third quarter of 2025. Warrior ...

Core Viewpoint - Warrior Met Coal, Inc. has announced a regular quarterly cash dividend of $0.08 per share, reflecting the company's commitment to returning value to its shareholders [1]. Company Overview - Warrior Met Coal is a U.S.-based supplier focused on environmentally and socially responsible practices within the global steel industry [1]. - The company specializes in mining non-thermal metallurgical coal, which is essential for steel production, catering to metal manufacturers in Europe, South America, and Asia [1]. - Warrior is recognized as a large-scale, low-cost producer and exporter of premium quality hard coking coal (HCC), operating efficient longwall operations in its underground mines located in Alabama [1]. - The HCC produced from the Blue Creek coal seam is characterized by very low sulfur content and strong coking properties, making it an ideal feed coal for steel manufacturers [1].

Group 1 - Warrior Met Coal Inc. stock price is currently at $64.64, reflecting a 2.91% drop in the current market session, but has increased by 2.78% over the past month and 5.72% over the past year [1] - The company's P/E ratio stands at 87.61, which is significantly higher than the aggregate P/E ratio of 21.36 in the Metals & Mining industry, suggesting that shareholders may expect better performance from Warrior Met Coal Inc. compared to its peers [6] - A higher P/E ratio may indicate that the stock is overvalued, as it suggests that shareholders have high expectations for future growth [6][9] Group 2 - The P/E ratio is a critical metric for assessing a company's market performance, but it should not be used in isolation; other financial metrics and qualitative analyses are also important for informed investment decisions [9] - A lower P/E ratio could indicate undervaluation or a lack of expected future growth from shareholders, highlighting the need for a comprehensive analysis [5][9]

Core Insights - The Trump administration has revitalized the coal industry by designating coal as a critical mineral in April [1] - The U.S. Energy Department has announced significant investments aimed at supporting the coal sector [1] Industry Developments - The designation of coal as a critical mineral is expected to enhance its market position and attract further investments [1] - Recent government actions indicate a strategic shift towards supporting traditional energy sources, particularly coal [1]