Alpha Metallurgical Resources — Second Quarter 2026 Earnings Summary

Financial Performance

• Reported a net loss of $12.3 million ($0.96 per diluted share) for the quarter ended June 30, 2026, compared to a net loss of $11.0 million ($0.86 per share) in the first quarter of 2026 and $5.0 million ($0.38 per share) in the second quarter of 2025.
• Adjusted EBITDA was $25.6 million for the second quarter, down from $30.0 million in the first quarter and $46.1 million in the second quarter of 2025.
• Operating cash flow increased to $39.9 million in the second quarter from $29.0 million in the first quarter, compared to $53.2 million in the second quarter of 2025.
• Capital expenditures were $45.1 million in the second quarter, up from $40.7 million in the first quarter and $34.6 million in the second quarter of 2025.
• Total revenues were $492.9 million for the quarter, down from $550.3 million in the second quarter of 2025.
• Coal revenues were $491.5 million for the quarter, down from $548.7 million in the second quarter of 2025.
• Met segment coal revenues were $491.5 million for the quarter, down from $523.5 million in the first quarter of 2026.
• Non-GAAP coal revenues were $421.3 million for the quarter, down from $447.3 million in the first quarter of 2026.
• Non-GAAP cost of coal sales was $365.8 million for the quarter, down from $388.3 million in the first quarter of 2026.
• Non-GAAP coal sales realization was $118.71 per ton for the quarter, down from $124.39 per ton in the first quarter of 2026.
• Non-GAAP cost of coal sales per ton was $103.07 for the quarter, down from $107.98 per ton in the first quarter of 2026.
• As of June 30, 2026, total liquidity was $447.8 million, including $307.6 million in cash and cash equivalents, $30.9 million in short-term investments, and $184.3 million of unused availability under the asset-based revolving credit facility (ABL).
• Total long-term debt was $11.4 million as of June 30, 2026, with no amounts borrowed under the ABL and $40.7 million in letters of credit outstanding.

Guidance and Future Outlook

• Released adjusted guidance ranges for sales volumes and cost of coal sales for the remainder of 2026, incorporating expectations of reduced efficiency at the Dominion Terminal Associates (DTA) terminal due to high-wind storm damage.
• 2026 Met segment total shipments guidance range is 14.2 million to 15.4 million tons.
• 2026 Met segment cost of coal sales guidance range is $103.00 to $107.00 per ton.
• 2026 SG&A guidance range is $53 million to $59 million.
• 2026 Idle operations expense guidance range is $24 million to $32 million.
• 2026 Capital expenditures guidance range is $148 million to $168 million.
• 2026 Capital contributions to equity affiliates guidance range is $35 million to $45 million.
• 2026 Net cash interest income guidance range is $2 million to $6 million.
• 2026 DD&A guidance range is $160 million to $174 million.
• 2026 Cash tax rate guidance range is 0% to 5%.
• As of July 30, 2026, approximately 70% of 2026 metallurgical coal was committed and priced at an average price of $128.17 per ton.
• As of July 30, 2026, 100% of 2026 thermal coal was committed at an average price of $75.94 per ton.
• Met segment shipments as of July 30, 2026, show 73% committed/priced at an average price of $121.94 per ton.

Business Segments and Product Lines

• Met segment tons sold were 3.5 million in the second quarter, down from 3.6 million in the first quarter and 3.9 million in the second quarter of 2025.
• Met segment coal sales realization by pricing mechanism in the second quarter: Domestic ($134.37/ton, 30% of tons), Export - Australian indexed ($143.82/ton, 22% of tons), and Export - other pricing mechanisms ($109.08/ton, 48% of tons).
• Thermal coal revenues were $35.1 million for the quarter, with 0.4 million tons sold.
• The company is utilizing throughput capacity at other East Coast terminals to mitigate reduced efficiency at the DTA terminal.

Market and Competitive Landscape

• Management noted persisting soft metallurgical market conditions.
• The company continues to engage with terminal leaders at DTA regarding high-wind storm damage and the replacement of the stacker reclaimer.

Risks and Challenges

• High-wind storm damage at the DTA terminal in June resulted in reduced efficiency and lower tons shipped.
• Higher supply costs are expected to continue, impacting the cost of coal sales.
• The insurance claims process for terminal damage is ongoing, with clarity on the long-term replacement plan for the stacker reclaimer pending.
• Forward-looking statements regarding cost of coal sales per ton cannot be quantitatively reconciled to GAAP measures without unreasonable efforts due to the difficulty in forecasting freight and handling costs.

Management Commentary and Tone

• CEO Andy Eidson stated that the first half of 2026 closed with fewer tons shipped and higher costs than expected, which informed the decision to release adjusted guidance ranges.
• Management expressed appreciation for the cooperation from DTA leaders in keeping the terminal running as well as possible under the circumstances.
• The tone acknowledges operational challenges while highlighting plans to mitigate impacts through alternative terminal usage and ongoing insurance and equipment discussions.

Other Key Points

• The board of directors authorized a share repurchase program allowing for up to $1.5 billion in expenditures.
• As of July 31, 2026, the company had acquired approximately 7.0 million shares at a cost of approximately $1.2 billion, or $166.29 per share.
• The number of common stock shares outstanding was 12,679,045 as of July 31, 2026.
• A conference call regarding the second quarter results was scheduled for August 7, 2026, at 10:00 a.m. Eastern time.
• The company operates mining facilities in Virginia and West Virginia with global customers.