NACCO Industries(NC) - 2025 Q3 - Quarterly Results

Financial Performance - Revenues for Q3 2025 were $76.6 million, a 24% increase compared to Q3 2024, while gross profit improved by 38% to $10.0 million[4] - Net income for Q3 2025 was $13.3 million, a decrease of 15% from $15.6 million in Q3 2024[4] - Revenues for the three months ended September 30, 2025, were $76,614,000, a 24.2% increase from $61,656,000 in the same period of 2024[38] - Gross profit for the nine months ended September 30, 2025, was $26,445,000, compared to $21,280,000 in 2024, reflecting a 24.3% increase[38] - Net income for the three months ended September 30, 2025, was $13,254,000, down from $15,635,000 in 2024, representing a decrease of 8.7%[38] - Total revenues for the three months ended September 30, 2025, were $76.614 million, an increase from $61.656 million in the same period of 2024, representing a growth of 24.2%[41] - For the nine months ended September 30, 2025, total revenues reached $210.420 million, compared to $167.290 million in the same period of 2024, marking an increase of 25.8%[43] Segment Performance - The Utility Coal Mining segment's revenues increased by 11% in Q3 2025 due to higher tons delivered, despite the absence of prior year insurance recoveries[12] - The Contract Mining segment's revenues grew by 41% year-over-year to $45.6 million, driven by increased tons delivered and higher customer demand[15] - The Minerals and Royalties segment reported revenues of $9.3 million, up 5% from $8.8 million in Q3 2024, with operating profit increasing to $8.0 million[18] Profitability Metrics - Operating profit for Q3 2025 was $6.8 million, down 66% from $19.7 million in Q3 2024, which included a $13.6 million business interruption insurance recovery[4] - Consolidated EBITDA for the three months ended September 30, 2025, was $12,530,000, compared to $25,685,000 in the same quarter of 2024[40] - The company reported operating profit of $6,777,000 for the three months ended September 30, 2025, down from $19,699,000 in 2024, a decrease of 65.6%[38] - The operating profit for the nine months ended September 30, 2025, was $14.408 million, a decrease from $31.822 million in the same period of 2024, representing a decline of 54.7%[43] Expenses and Investments - Selling, general and administrative expenses increased to $19,549,000 for the three months ended September 30, 2025, from $16,487,000 in 2024, a rise of 12.5%[38] - Capital expenditures are projected at approximately $44 million for the remainder of 2025 and up to $70 million in 2026, primarily for future business development[29] - Operating expenses for the three months ended September 30, 2025, totaled $19.716 million, up from $16.618 million in the same period of 2024, reflecting a rise of 12.7%[41] Future Outlook - The company anticipates Q4 2025 operating profit to be comparable to the prior year, but full-year operating profit is expected to decline due to lower results in Q2 2025[23] - A significant non-cash settlement charge is anticipated upon the termination of the defined benefit pension plan in Q4 2025, impacting net income and EBITDA[23] - The company expects to see substantial improvements in cash provided by operations in 2025, although this will be offset by anticipated capital investments[29] - The company emphasized a commitment to generating increasing cash flows and returning value to stockholders through reinvestment and direct returns[30] - Management highlighted a conservative approach to maintaining a strong capital structure and operating discipline to minimize risk[30] - The company plans to pursue strategic, measured expansion opportunities with longer-term horizons and higher returns[30] Other Financial Metrics - Basic earnings per share for the nine months ended September 30, 2025, were $2.89, compared to $3.55 in 2024, indicating a decline of 18.6%[38] - Segment Adjusted EBITDA for the three months ended September 30, 2025, was $12.971 million, compared to $25.950 million for the same period in 2024, indicating a decrease of 50%[41] - The gross profit for the three months ended September 30, 2025, was $9.971 million, up from $7.244 million in the same period of 2024, reflecting a growth of 37.6%[41] - The cost of sales for the three months ended September 30, 2025, was $66.643 million, compared to $54.412 million in the same period of 2024, an increase of 22.5%[41] - Earnings from unconsolidated operations for the three months ended September 30, 2025, were $16.494 million, compared to $15.155 million in the same period of 2024, an increase of 8.8%[41] - The depreciation, depletion, and amortization expense for the nine months ended September 30, 2025, was $19.078 million, compared to $18.950 million in the same period of 2024, a slight increase of 0.7%[43] - The company reported a gross profit loss in the Utility Coal segment for the three months ended September 30, 2025, of $(1.857) million, compared to a loss of $(348) million in the same period of 2024[41]