Financial Data and Key Metrics Changes - The company reported a fourth quarter operating profit increase of 95% year-over-year and almost 12% sequentially, with Adjusted EBITDA rising 59% year-over-year to $14.3 million [5][12] - Consolidated gross profit for the fourth quarter was $12 million, a 42% increase year-over-year, while revenues increased by 5% to $66.8 million [12][13] - The company recognized a net loss of $3.8 million for the fourth quarter, compared to a net income of $7.6 million in the previous year [13] Business Line Data and Key Metrics Changes - The utility coal mining segment reported an operating profit of $7.2 million, significantly up from $2 million in the prior year, with Adjusted EBITDA increasing to $9.7 million from $4.2 million [13][14] - The contract mining segment saw a 9% revenue growth year-over-year, driven by higher part sales, although operating profit remained comparable to the prior year at $900,000 [14][15] - The minerals and royalty segment experienced year-over-year growth in revenues and operating profit due to increased royalty revenues from natural gas, despite lower oil prices impacting results [15][16] Market Data and Key Metrics Changes - The Mississippi Lignite Mining Company is expected to see improvements in 2026 due to an anticipated increase in the contractually determined price per ton, although demand may be affected by maintenance outages at the customer's power plant [8][14] - The company anticipates meaningful year-over-year improvements in consolidated operating profit, net income, and EBITDA in 2026, despite potential commodity price fluctuations due to geopolitical events [16] Company Strategy and Development Direction - The company is focused on long-term contracts and investments to drive future growth, with significant capital investments planned for 2026 [10][11] - The reestablishment of the National Coal Council is expected to reinforce the strategic role of coal in U.S. energy policy, which aligns with the company's growth opportunities [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory and long-term opportunities, emphasizing the importance of reliable energy sources [18][19] - The company is entering 2026 with clear opportunities to build on the momentum from 2025, focusing on execution and operational discipline [11][19] Other Important Information - The company completed the termination of its pension plan, resulting in a non-cash pension settlement charge of $7.8 million [13] - Total liquidity at year-end was $124.2 million, consisting of $49.7 million in cash and $74.5 million available under the revolving credit facility [17] Q&A Session Summary Question: Can you quantify how much the step down in Sabine work is? - The company has not quantified that number [23] Question: Is there a seasonal element to the price index benefit? - There is no seasonal component to price, but deliveries may have seasonal variations [30] Question: How substantial is the Army Corps of Engineers contract? - It is a significant contract, providing an opportunity to apply skills in a new market [40] Question: What is the timing for the Army Corps of Engineers project to reach full production? - Production is already ramping up throughout the year [41] Question: Is most of the revenue in the unallocated line from Mitigation Resources? - Yes, most of the revenue in the unallocated line is from Mitigation Resources [63] Question: How does the company feel about the growth of Mitigation Resources? - The company expects Mitigation Resources to reach profitability and grow from there [66]

Financial Data and Key Metrics Changes - The company reported a 95% increase in fourth quarter operating profit year-over-year, reaching almost 12% sequentially [5] - Consolidated gross profit for the fourth quarter was $12 million, a 42% increase year-over-year, while revenues increased by 5% to $66.8 million [12] - Adjusted EBITDA rose 59% to $14.3 million compared to $9 million for the same period last year [12][13] - The company recorded a net loss of $3.8 million for the fourth quarter, compared to a net income of $7.6 million in the previous year [13] Business Line Data and Key Metrics Changes - The utility coal mining segment reported an operating profit of $7.2 million, significantly up from $2 million in the fourth quarter of 2024, with Adjusted EBITDA increasing to $9.7 million from $4.2 million [13][14] - The contract mining segment's revenues grew by 9% year-over-year, driven by higher part sales, while operating profit remained comparable to the prior year at $900,000 [15] - The minerals and royalty segment experienced year-over-year growth in revenues and operating profit due to increased royalty revenues from natural gas, despite lower oil prices impacting results [15][16] Market Data and Key Metrics Changes - The Mississippi Lignite Mining Company is expected to see improvements in 2026 due to an anticipated increase in the contractually determined price per ton, although demand may be affected by maintenance outages at the customer's power plant [8][14] - The company expects meaningful year-over-year improvements in consolidated operating profit, net income, and EBITDA in 2026 [16] Company Strategy and Development Direction - The company is focused on long-term contracts and investments to drive future growth, with significant capital investments planned for 2026 [10][11] - The reestablishment of the National Coal Council is expected to reinforce the strategic role of coal in U.S. energy policy, which aligns with the company's growth opportunities [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory and long-term opportunities, emphasizing the importance of uninterrupted energy and the strengthening fundamentals for natural resources [18][19] - The company is entering 2026 with clear opportunities to build on the momentum from 2025, with a focus on operational discipline and delivering long-term returns for shareholders [11][19] Other Important Information - The company successfully settled all future pension obligations, resulting in a $6 million after-tax termination charge [5][13] - Cash from operations for the full year 2025 was $50.9 million, compared to $22.3 million in 2024, with total liquidity at $124.2 million [17] Q&A Session Summary Question: Can you quantify how much the step down in Sabine work is? - The company has not quantified that number [23] Question: Is there a seasonal element to the price index benefit? - There is no seasonal component to price, but there is a seasonal component to deliveries [30] Question: How large is the Army Corps of Engineers contract? - It is a significant contract, and the company is excited about the opportunity [40] Question: What is the timing for the Army Corps of Engineers project? - Production is already ramping up throughout the year [41] Question: Is most of the revenue in the unallocated line from Mitigation Resources? - Yes, most of the revenue in the unallocated line is from Mitigation Resources [63] Question: How does the company feel about the growth of Mitigation Resources? - The company expects Mitigation Resources to reach profitability and grow from there [64]

Financial Data and Key Metrics Changes - In Q4 2025, the company reported a consolidated gross profit of $12 million, a 42% increase year-over-year, while revenues increased by 5% to $66.8 million [12][13] - Consolidated operating profit rose to $7.6 million from $3.9 million in Q4 2024, driven by improvements across all reportable segments [12][13] - Adjusted EBITDA increased by 59% to $14.3 million compared to $9 million in the same period last year [12][13] - The company reported a net loss of $3.8 million or $0.52 per share, compared to net income of $7.6 million or $1.02 per share in 2024 [13] Business Line Data and Key Metrics Changes - The utility coal mining segment reported an operating profit of $7.2 million in Q4 2025, significantly up from $2 million in Q4 2024, with Adjusted EBITDA increasing to $9.7 million from $4.2 million [14][15] - The contract mining segment saw revenues grow by 9% year-over-year, primarily due to higher part sales, with operating profit remaining stable at $900,000 [15][16] - The minerals and royalty segment experienced year-over-year growth in revenues and operating profit, driven by increased royalty revenues from natural gas, despite lower oil prices impacting results [16][17] Market Data and Key Metrics Changes - The utility coal mining segment is expected to see improvements in 2026 due to an anticipated increase in the contractually determined price per ton, although demand fluctuations may impact results [8][15] - The minerals and royalties segment is projected to face a decrease in operating profit and Adjusted EBITDA in the second half of 2026 due to commodity price forecasts and market conditions [17] Company Strategy and Development Direction - The company is focused on long-term contracts and investments to drive future growth, with significant capital investments planned for 2026 [10][11] - The contract mining segment is viewed as a growth platform, with ongoing operational and strategic initiatives enhancing profitability [9] - The reestablishment of the National Coal Council is expected to reinforce the strategic role of coal in U.S. energy policy, which aligns with the company's long-term growth opportunities [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory and long-term opportunities, emphasizing the critical need for reliable energy sources [19][20] - The company anticipates meaningful year-over-year improvements in consolidated operating profit, net income, and EBITDA in 2026 [17][18] Other Important Information - The company successfully terminated its pension plan, resulting in a non-cash pension settlement charge of $7.8 million, impacting the net loss for the quarter [13] - Cash from operations for the full year 2025 was $50.9 million, compared to $22.3 million in 2024, with total liquidity at $124.2 million [18] Q&A Session Summary Question: Can you quantify how much the step down in Sabine work is? - The company has not quantified that number [25] Question: Does the price index go up this year? - The company believes there will be an increase in price during the course of the year [28] Question: How large is the Army Corps of Engineers contract? - It is a significant contract, and the company is excited about the opportunity [43] Question: What is the timing for the Army Corps of Engineers project? - Production is already ramping up, with full production expected to be reached throughout the year [44] Question: Is most of the revenue in the unallocated line from Mitigation Resources? - Yes, most of the revenue in the unallocated line is from Mitigation Resources [66]

Financial Data and Key Metrics Changes - The third quarter operating profit was almost $7 million, an improvement from the second quarter's break-even results [4] - Q3 2025 EBITDA increased to $12.5 million, up from $9.3 million in Q2 [4] - Consolidated revenues were $76.6 million, up 24% year over year, while gross profit improved 38% to $10 million [10] - Net income for Q3 2025 was $13.3 million, or $1.78 per share, compared to $15.6 million, or $2.14 per share in 2024 [11] - EBITDA for Q3 2025 was $12.5 million versus $25.7 million for the same period last year [11] Business Line Data and Key Metrics Changes - Utility coal mining segment's results were impacted by contractual pricing mechanics, leading to a reduced per ton sales price [4] - Contract mining segment saw tons delivered grow 20% year over year and 3% sequentially, driven by higher customer demand [5] - Minerals and royalties segment's operating profit increased due to improved earnings from equity investments and higher royalty revenues [14] Market Data and Key Metrics Changes - The Mississippi Lignite Mining Company's results were affected by a reduced contractually determined per ton sales price in 2025 [11] - The contract mining segment is positioned as a core driver of future growth, with a strong pipeline of potential new deals [6] Company Strategy and Development Direction - The long-term strategy aims for $150 million of annual EBITDA in the next five to seven years [8] - The company is focused on execution, operational discipline, and driving long-term returns for shareholders [18] - Recent government support is strengthening all business segments [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the trajectory and future growth, citing strong demand for energy and services [18] - Anticipated improvements in profitability for 2026, driven by expected improvements in sales price and cost per ton delivered [12] Other Important Information - The company is terminating its pension plan, which will trigger a non-cash settlement charge [15] - Total debt outstanding decreased to $80.2 million from $95.5 million at June 30 [16] - The company is forecasting up to $44 million in capital spending for the remainder of the year and up to $70 million in 2026 [17] Q&A Session Summary Question: Inquiry about contract mining segment's ROIC - Management indicated that the current ROIC is affected by both past and future projects, with a mismatch between assets and current profitability [22][24] Question: Preference between drag line and surface work - Management stated that they are flexible and can provide various mining services, emphasizing the importance of finding long-term partners [29][30] Question: Status of solar project - Management confirmed that they are diligently working on getting solar projects safe harbored for tax credit purposes [53]

Financial Data and Key Metrics Changes - Consolidated revenues increased to $68 million, up 30% year over year, primarily driven by the utility coal mining segment [15] - Consolidated net income decreased to $3.3 million from $6 million in the prior year, with diluted earnings per share down 46% year on year [16] - EBITDA was reported at $9.3 million compared to $13.5 million in the same period last year [16] Business Line Data and Key Metrics Changes - Utility Coal Mining segment faced operational disruptions, leading to a decline in operating profit and segment adjusted EBITDA, primarily due to challenges at Mississippi Lignite Mining Company [16][18] - North American Mining revenues net of reimbursed costs rose 3%, driven by increased parts sales, but were offset by fewer tons delivered and higher operating costs [18] - Minerals and Royalties segment saw a 30% rise in revenues, largely due to higher natural gas prices, with operating profit and EBITDA increasing when excluding last year's one-time gain [18][19] Market Data and Key Metrics Changes - The utility coal mining segment's challenges were linked to customer inefficiencies at power plants, affecting coal mining operations [8] - The contract mining segment experienced fewer trends delivered due to temporary mechanical issues, but parts sales helped offset some losses [9] - The company anticipates stronger results in the latter half of the year as new contracts and parts sales contribute positively [9] Company Strategy and Development Direction - The company is focused on long-term contracts and investments that produce steady earnings and cash flows, aiming for a compounding growth model [12][13] - New segment names were introduced to enhance communication with stakeholders, reflecting a strategic effort to clarify business activities [5][14] - The company is optimistic about future growth, particularly in the contract mining segment, and is actively pursuing new long-term projects [48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate temporary challenges and expects improving results in the second half of the year [7][22] - The operational discipline and focus on long-term returns for shareholders remain a priority, with optimism about prospects for 2026 and beyond [22] - Management acknowledged the favorable environment for energy demand and government support, which is expected to benefit all business segments [22] Other Important Information - The company plans to terminate its pension plan by the end of the year, which will trigger a non-cash settlement charge but simplify its financial structure [20] - Total debt outstanding as of June 30 was $95.5 million, with total liquidity at $139.9 million [20] - The company is forecasting up to $86 million in capital spending for the year, primarily for new business development [21] Q&A Session Summary Question: Why were volumes lighter in the coal segment? - Management indicated it was a collection of minor issues and not a cause for concern going forward [25][27] Question: Will MMLC return to profit next year? - Management confirmed expectations for MMLC to return to gross profit, contingent on improved pricing and consistent operations [28][29] Question: Why did North American Mining volumes drop? - The drop was attributed to reduced customer demand and mechanical issues with equipment, but repairs have been successful [41][42] Question: What is the allocation of the increased CapEx? - Most of the CapEx is related to growth initiatives and securing new contracts, with a focus on long-term projects [43][45] Question: How does the company view its leverage post CapEx cycle? - Management aims for less leverage over time, maintaining a conservative balance sheet to mitigate risks [75][76] Question: Can you elaborate on the parts business in contract mining? - The parts business is an evolution of the model to better serve customers by stocking hard-to-find components on-site [80] Question: Are draglines moved from coal mines to new quarries? - Draglines used in contract mining are separate from those in coal mining, and new quarries may utilize existing equipment or new acquisitions [82][83]