Alliance Resource Partners(US:ARLP) Newsfileยท2025-07-29 12:37Core Insights - Alliance Resource Partners, L.P. (ARLP) reported a resilient performance in Q2 2025 despite facing challenges such as lower coal pricing and decreased transportation revenues [1][8] - The company experienced a 7.7% year-over-year decline in total revenues, amounting to $547.5 million, primarily due to an 11.3% drop in average coal sales prices [1][8] - Net income for the quarter decreased to $59.4 million from $100.2 million in Q2 2024, influenced by lower revenues, increased depreciation, and a $25 million non-cash impairment on a battery materials equity investment [1] - Adjusted EBITDA was reported at $161.9 million, reflecting a 1.2% sequential increase [1][8] - The company updated its FY25 guidance, anticipating improved production at Tunnel Ridge and higher sales from the Illinois Basin, alongside cost efficiencies and strong contracted commitments [1] Revenue and Sales Performance - Total revenues for Q2 2025 were $547.5 million, down 7.7% year-over-year [1][8] - Average coal sales prices fell by 11.3%, contributing to the revenue decline [1] - Oil & Gas royalty volumes increased by 7.7% year-over-year, indicating a positive trend in this segment [8] Financial Metrics - Net income for Q2 2025 was $59.4 million, a significant decrease from $100.2 million in the same quarter of the previous year [1] - Adjusted EBITDA for the quarter was $161.9 million, showing a slight increase of 1.2% sequentially [1][8] - The company declared a quarterly cash distribution of $0.60 per unit [8] Future Outlook - Alliance Resource Partners added 17.4 million committed and priced tons for 2025-2029, enhancing long-term sales visibility [8] - The company remains optimistic about production improvements and cost efficiencies, which are expected to support its updated FY25 guidance [1]