Alpha Metallurgical Resources(AMR) - 2025 Q2 - Quarterly Results

Financial Highlights and CEO Commentary Alpha's Q2 2025 financial highlights, key metrics, and CEO commentary on performance and outlook are presented Second Quarter 2025 Financial Highlights Alpha reported a Q2 2025 net loss of $5.0 million, Adjusted EBITDA of $46.1 million, improved cost of coal sales, and strong liquidity Financial Highlights (in millions USD, except per share and tons) | Financial Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net (loss) income | ($5.0 million) | ($33.9 million) | $58.9 million | | Net (loss) income per diluted share | ($0.38) | ($2.60) | $4.49 | | Adjusted EBITDA | $46.1 million | $5.7 million | $116.0 million | | Operating cash flow | $53.2 million | $22.2 million | $138.1 million | | Tons of coal sold (millions) | 3.9 | 3.8 | 4.6 | - Achieved total liquidity of $556.9 million as of June 30 - Realized the best quarterly cost of coal sales performance since 2021 - Lowered 2025 cost of coal sales guidance to $101-$107 per ton - Reduced SG&A guidance to $48-$54 million - Increased net cash interest income guidance to $6-$12 million[4] CEO Commentary CEO Andy Eidson praised cost performance from savings initiatives, reducing full-year guidance, and highlighted strong liquidity - The CEO highlighted significant improvement in the cost of coal sales due to previously announced savings initiatives taking effect[5] - The company's total liquidity reached $557 million as of June 30, positioning it to capitalize on opportunities[5] Operational and Financial Performance Alpha's Q2 2025 overall financial performance, coal revenues, sales realization, and cost of coal sales are detailed Overall Financial Performance Q2 2025 net loss was $5.0 million ($0.38 per share), a significant improvement from Q1, with Adjusted EBITDA growing to $46.1 million Net Loss Performance (in millions USD, except per share) | Metric | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Net Loss | ($5.0 million) | ($33.9 million) | | Net Loss per Diluted Share | ($0.38) | ($2.60) | Adjusted EBITDA Performance (in millions USD) | Metric | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Total Adjusted EBITDA | $46.1 million | $5.7 million | Coal Revenues and Sales Realization Met Segment coal revenues rose to $548.7 million in Q2 2025, with net realized pricing per ton increasing to $119.43, driven by export sales Met Segment Coal Revenues and Tons Sold (in millions USD and tons) | Metric (Met Segment) | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Coal Revenues | $548.7 million | $529.7 million | | Tons Sold (millions) | 3.9 | 3.8 | Met Segment Coal Sales Realization (per ton) | Metric (Met Segment) | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Coal Sales Realization (per ton) | $119.43 | $118.61 | Met Segment Sales Breakdown (Q2 2025) | Met Segment Sales Breakdown (Q2 2025) | Tons Sold (Millions) | Realization/ton | % of Met Tons Sold | | :--- | :--- | :--- | :--- | | Export - Other Pricing Mechanisms | 1.7 | $113.82 | 47% | | Domestic | 0.9 | $152.28 | 26% | | Export - Australian Indexed | 1.0 | $109.75 | 27% | | Total Met Coal | 3.6 | $122.84 | 100% | Cost of Coal Sales Met segment's cost of coal sales per ton improved to $100.06 in Q2 2025, primarily due to lower labor and supplies expenses Met Segment Cost of Coal Sales (per ton) | Metric (Met Segment, per ton) | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Cost of Coal Sales | $100.06 | $110.34 | - The primary drivers for the reduction in cost of coal sales were lower expenses related to labor and supplies[14] Capital Management and Outlook Alpha's liquidity, capital resources, share repurchase plans, and updated 2025 guidance are presented Liquidity and Capital Resources Alpha's liquidity reached $556.9 million by Q2 2025, with increased operating cash flow, and a new tax credit is expected to provide $30-50 million annually - As of June 30, 2025, total liquidity was $556.9 million, consisting of $449.0 million in cash and $182.9 million of unused ABL availability[17] - Cash provided by operating activities rose to $53.2 million in Q2 2025, up from $22.2 million in Q1 2025, while capital expenditures decreased to $34.6 million from $38.5 million[15] - The 'One Big Beautiful Bill Act' introduces a Section 45X tax credit for metallurgical coal. The company estimates this could provide an annual cash benefit of $30 million to $50 million for tax years 2026 through 2029[18] Share Repurchase Program Alpha plans to restart its opportunistic share repurchase program, with approximately $400 million remaining under its $1.5 billion authorization - The company intends to restart its share repurchase program opportunistically after having strengthened its liquidity position[19] - There is approximately $400 million remaining under the $1.5 billion share repurchase authorization[19] 2025 Guidance Alpha updated its 2025 guidance, lowering cost of coal sales and SG&A, while raising idle operations expense and net cash interest income, with 69% of metallurgical coal committed 2025 Guidance Updates (in millions USD, except per ton) | 2025 Guidance Item | Previous Range | New Range | | :--- | :--- | :--- | | Cost of Coal Sales (per ton) | $103.00 - $110.00 | $101.00 - $107.00 | | SG&A | $53 million - $59 million | $48 million - $54 million | | Idle Operations Expense | $18 million - $28 million | $21 million - $29 million | | Net Cash Interest Income | $2 million - $10 million | $6 million - $12 million | - As of July 30, 2025, the company has committed and priced 69% of its 2025 metallurgical coal at an average price of $127.37 per ton, and 100% of its thermal coal at $80.52 per ton[22] Key 2025 Guidance Metrics (in millions of tons and USD) | 2025 Guidance | Low | High | | :--- | :--- | :--- | | Shipments (millions of tons) | | | | Met Segment - Total | 14.6 | 16.0 | | Costs per ton | | | | Met Segment | $101.00 | $107.00 | | Expenses (millions) | | | | SG&A | $48 | $54 | | Capital Expenditures | $130 | $150 | Financial Statements Alpha's condensed consolidated statements of operations, balance sheets, cash flows, and non-GAAP reconciliations are presented Condensed Consolidated Statements of Operations The statement shows a net loss of $5.0 million for Q2 2025, a downturn from Q2 2024's net income, primarily due to lower coal revenues Condensed Consolidated Statements of Operations (in thousands USD, except per share) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total revenues | $550,274 | $803,969 | | Income (loss) from operations | $2,655 | $70,676 | | Net (loss) income | $(4,954) | $58,909 | | Diluted (loss) income per common share | $(0.38) | $4.49 | Condensed Consolidated Balance Sheets As of June 30, 2025, total assets were $2.37 billion, liabilities $759.4 million, cash $449.0 million, and equity $1.61 billion Condensed Consolidated Balance Sheets (in thousands USD) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $449,027 | $481,578 | | Total current assets | $988,225 | $1,036,669 | | Total assets | $2,373,114 | $2,438,708 | | Total current liabilities | $243,341 | $251,109 | | Total liabilities | $759,404 | $789,211 | | Total stockholders' equity | $1,613,710 | $1,649,497 | Condensed Consolidated Statements of Cash Flows For the first six months of 2025, net cash from operating activities decreased to $75.4 million, with $95.2 million used in investing activities Condensed Consolidated Statements of Cash Flows (in thousands USD) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $75,412 | $334,199 | | Net cash used in investing activities | $(95,167) | $(140,531) | | Net cash used in financing activities | $(9,273) | $(122,538) | | Net (decrease) increase in cash | $(29,028) | $71,130 | Adjusted EBITDA Reconciliation This table reconciles the GAAP net loss of $5.0 million to a non-GAAP Adjusted EBITDA of $46.1 million for Q2 2025, adjusting for DD&A Adjusted EBITDA Reconciliation (in thousands USD) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net (loss) income | $(4,954) | $(33,947) | $58,909 | | Adjustments (Interest, Taxes, DD&A, etc.) | $51,019 | $39,598 | $57,086 | | Adjusted EBITDA | $46,065 | $5,651 | $115,995 | Results of Operations (Non-GAAP Reconciliation) This section reconciles GAAP to non-GAAP coal revenues and cost of coal sales, showing a Q2 2025 Non-GAAP coal margin of $19.36 per ton Non-GAAP Coal Operations Reconciliation (per ton) | Metric (per ton) | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Non-GAAP Coal sales realization | $119.43 | $118.61 | $141.86 | | Non-GAAP Cost of coal sales | $100.06 | $110.34 | $109.31 | | Non-GAAP Coal margin | $19.36 | $8.27 | $32.54 | Appendix This section includes non-GAAP financial measure explanations, conference call details, and forward-looking statements Non-GAAP Financial Measures The company explains its use of non-GAAP measures like Adjusted EBITDA and non-GAAP coal margin for clearer understanding of core operating trends - The company uses non-GAAP measures like Adjusted EBITDA and non-GAAP coal margin to supplement GAAP results, believing they are useful indicators of financial performance and help in understanding core operating trends[32][33] Conference Call Information Alpha Metallurgical Resources will host a conference call on August 8, 2025, at 10:00 a.m. Eastern time to discuss Q2 2025 results - A conference call is scheduled for August 8, 2025, at 10:00 a.m. Eastern time to discuss the quarterly results[27] Forward-Looking Statements This section contains a safe harbor statement, cautioning that forward-looking statements involve risks and uncertainties, and actual results may differ - The report contains forward-looking statements that are subject to risks and uncertainties, and actual results may differ. The company does not intend to update these statements[29]