Warrior Met Coal(US:HCC)2026-02-12 21:04Financial Performance - Warrior reported a net income of $23.0 million, or $0.44 per diluted share, for Q4 2025, a significant increase from $1.1 million, or $0.02 per diluted share, in Q4 2024[2]. - Adjusted EBITDA for Q4 2025 was $92.9 million, up from $53.2 million in Q4 2024, reflecting improved operating performance and contributions from the Blue Creek mine[2]. - Total revenues for Q4 2025 were $384.0 million, a 29% increase from $297.5 million in Q4 2024, driven by higher sales volumes[10]. - Net income for Q4 2025 was $22,962,000, a significant increase from $1,136,000 in Q4 2024[40]. - Adjusted EBITDA for Q4 2025 reached $92,852,000, compared to $53,216,000 in Q4 2024, resulting in an Adjusted EBITDA margin of 24.2%[40][41]. - Operating income for the twelve months ended December 31, 2025, was $45.709 million, down from $254.890 million in 2024[36]. Sales and Production - Record quarterly sales volumes reached 2.9 million short tons of steelmaking coal in Q4 2025, a 53% increase from 1.9 million short tons in Q4 2024, including 881 thousand short tons from Blue Creek[7]. - Tons sold in Q4 2025 reached 2.883 million, up from 1.887 million in Q4 2024, marking a 53% increase[37]. - The company produced 3.392 million tons in Q4 2025, compared to 2.108 million tons in Q4 2024, representing a 61% increase[37]. - Warrior expects coal sales for 2026 to be between 12.5 and 13.5 million short tons, with production guidance of 12.0 to 13.0 million short tons[24]. Cost and Pricing - Cash cost of sales per short ton decreased by 22% to $93.53 in Q4 2025 from $119.55 in Q4 2024, driven by the lower cost structure of Blue Creek[3]. - The average net selling price of steelmaking coal decreased by 16% to $129.60 per short ton in Q4 2025 from $154.54 in Q4 2024[10]. - Average net selling price per ton in Q4 2025 was $129.60, down from $154.54 in Q4 2024, reflecting a decrease of 16%[37]. - The cash margin per ton for Q4 2025 was $36.07, compared to $34.99 in Q4 2024, showing a slight increase of 3%[39]. Capital Expenditures and Investments - Capital expenditures for the Blue Creek project are projected to be between $50 million and $75 million, with total project costs expected to reach $995 million to $1.075 billion[24]. - The company incurred $104,368,000 in capital expenditures during Q4 2025, down from $142,195,000 in Q4 2024[42]. Assets and Liabilities - Total assets increased to $2,783,799,000 as of December 31, 2025, up from $2,591,516,000 in 2024[46]. - Total liabilities increased to $642,414,000 in 2025 from $500,699,000 in 2024[47]. - Property, plant, and equipment net value rose to $1,817,364,000 in 2025, compared to $1,549,470,000 in 2024[47]. - Retained earnings grew to $1,890,703,000 in 2025, up from $1,851,040,000 in 2024[47]. Cash Flow and Liquidity - The company reported a net cash provided by operating activities of $76,089,000 for Q4 2025, compared to $54,207,000 in Q4 2024[45]. - Free cash flow for Q4 2025 was $(28,279,000), an improvement from $(87,988,000) in Q4 2024, with a free cash flow conversion rate of (30.5)%[42][43]. - Cash and cash equivalents decreased to $299,963,000 in Q4 2025 from $491,547,000 in Q4 2024[47]. Future Outlook - The company expects to maintain its cost structure and manage liquidity effectively in 2026, despite potential inflationary pressures[31]. - The Blue Creek project is anticipated to enhance the company's production capacity and profitability in the future[31]. - The Company finalized two federal coal leases in Q4 2025, covering approximately 14,050 acres and containing about 53 million short tons of reserves, enhancing its resource base for future growth[22].