Core Natural Resources Reports Fourth Quarter 2025 Results

Core Insights - Core Natural Resources reported a net loss of $79.0 million, or ($1.54) per diluted share, in Q4 2025, despite generating revenues of $1.042 billion [1][3] - The company generated net cash provided by operating activities of $107.3 million and free cash flow of $27.0 million during the same quarter [1][2] - Core returned $26.8 million to stockholders in Q4 2025, totaling $245.1 million for the year [1][2] Operational Performance - The high calorific value thermal coal segment sold 7.8 million tons in Q4 2025, a 9% increase from Q3, with realized coal revenue per ton sold at $58.11 [1][2] - In the metallurgical segment, coking coal sales were 2.0 million tons, with realized coal revenue per ton sold at $114.25 [1][2] - The Powder River Basin segment reported sales volumes of 12.6 million tons, with realized coal revenue per ton sold increasing to $14.21 [1][2] Financial and Liquidity Update - As of December 31, 2025, Core had total liquidity of $948.9 million, including $432.2 million in cash [2][3] - The company announced a capital return framework targeting the return of around 75% of free cash flow to stockholders, primarily through share repurchases and a quarterly dividend of $0.10 per share [1][2] - Core has invested a total of $224.3 million to repurchase 3.1 million shares, representing approximately 6% of total shares outstanding [1][2] Market Dynamics - U.S. utility coal consumption increased by an estimated 45 million tons, or around 12%, in 2025, driven by robust power demand growth [2][3] - Global metallurgical coal markets are stabilizing, with premium low-vol coal prices in Queensland rising by approximately 25% to $250 per metric ton [2][3] - Core anticipates continued demand growth for thermal coal in the U.S. and a favorable long-term outlook for high-quality coking coals due to infrastructure investments in Southeast Asia [2][3] 2026 Guidance - Core expects to sell between 85.6 million to 91.4 million tons of coal in 2026, with specific targets for coking, high calorific value thermal, and Powder River Basin segments [2][3] - The company projects cash costs of coal sold per ton for metallurgical coal to be between $88.00 and $94.00, and for high calorific value thermal coal between $38.00 and $39.50 [2][3] - Capital expenditures for 2026 are estimated to be between $325 million and $375 million [2][3]