NACCO INDUSTRIES ANNOUNCES FIRST QUARTER 2025 RESULTS

Core Insights - NACCO Industries reported a consolidated operating profit of $7.7 million for Q1 2025, a 61.5% increase from $4.8 million in Q1 2024, driven primarily by improvements in the Coal Mining segment and Mitigation Resources of North America [2][3][9] - Net income for Q1 2025 was $4.9 million, reflecting a 7.2% increase year-over-year, while diluted EPS rose to $0.66 from $0.61 [2][4][9] - The company anticipates moderate year-over-year growth in consolidated operating profit for 2025, supported by favorable macroeconomic trends and customer demand in the Coal Mining segment [19][20][32] Financial Performance - Revenues for Q1 2025 reached $65.6 million, up 23.2% from $53.3 million in Q1 2024 [2][38] - Consolidated EBITDA for Q1 2025 was $12.8 million, a 14% increase from $11.2 million in Q1 2024 [2][40] - The effective income tax rate significantly decreased in Q1 2025, contributing to the increase in net income [4] Segment Performance - Coal Mining segment revenues increased to $19.2 million in Q1 2025 from $15.5 million in Q1 2024, with operating profit rising to $3.8 million from a loss of $0.4 million [12][41] - North American Mining revenues grew by 28.8% to $31.5 million, although operating profit decreased to $2.0 million from $2.4 million due to lower delivery volumes [13][14][15][41] - Minerals Management segment revenues increased by 4.8% to $10.9 million, with operating profit slightly declining to $7.9 million [16][17][41] Liquidity and Capital Management - As of March 31, 2025, the company had consolidated cash of $61.9 million and total debt of $95.8 million, with $90.5 million available under its revolving credit facility [5] - The company paid $1.7 million in dividends and repurchased approximately 22,200 shares for $0.7 million during Q1 2025 [6] Future Outlook - The Coal Mining segment expects solid customer demand and a modest increase in deliveries in 2025, despite anticipated reductions in contractually determined sales prices [20][21] - North American Mining is projected to improve profitability over time due to new contracts and operational efficiencies [22] - The Minerals Management segment is expected to see significant improvements in the second half of 2025, driven by trends in oil and natural gas prices [24][25]