Alpha Metallurgical Resources — Third Quarter 2026 Earnings Summary

Financial Performance

• Reported a net loss of $9.3 million ($0.73 per diluted share) for the three months ended September 30, 2026, compared to a net loss of $12.3 million ($0.96 per share) in the second quarter and $5.5 million ($0.42 per share) in the same period last year.
• Adjusted EBITDA was $29.4 million for the third quarter, an increase from $25.6 million in the second quarter and a decrease from $41.7 million in the third quarter of 2025.
• Operating cash flow increased to $46.9 million in the third quarter from $39.9 million in the second quarter and decreased from $50.6 million in the third quarter of 2025.
• Capital expenditures were $33.8 million in the third quarter, down from $45.1 million in the second quarter and up from $25.1 million in the third quarter of 2025.
• Coal revenues for the Met segment were $560.6 million in the third quarter, compared to $491.5 million in the second quarter.
• Non-GAAP coal revenues for the Met segment were $474.1 million in the third quarter, compared to $421.3 million in the second quarter.
• Tons sold in the Met segment were 3.9 million in the third quarter, matching the 3.9 million tons sold in the third quarter of 2025 and up from 3.5 million in the second quarter.
• Non-GAAP coal sales realization was $121.09 per ton in the third quarter, up from $118.71 per ton in the second quarter.
• Non-GAAP cost of coal sales per ton increased to $106.93 in the third quarter from $103.07 per ton in the second quarter.
• Total liquidity as of September 30, 2026, was $443.4 million, comprising $334.1 million in cash and cash equivalents and $184.3 million of unused availability under the asset-based revolving credit facility (ABL).
• Total long-term debt, including the current portion, was $10.6 million as of September 30, 2026.
• The company had no amounts borrowed under the ABL and $40.7 million in letters of credit outstanding as of September 30, 2026.

Guidance and Future Outlook

• Issued 2027 operational guidance expecting to ship between 13.1 million and 14.1 million metallurgical tons and 1.2 million to 1.6 million tons of incidental thermal coal, for a total shipment range of 14.3 million to 15.7 million tons.
• Projects 2027 cost of coal sales between $104.00 and $110.00 per ton.
• Expects 2027 SG&A costs between $53 million and $59 million, excluding non-recurring expenses and non-cash stock compensation.
• Anticipates 2027 idle operations expense between $25 million and $33 million.
• Forecasts 2027 net cash interest income of $2 million to $4 million and depreciation, depletion, and amortization of $148 million to $162 million.
• Projects 2027 capital expenditures, including carryover, development, and maintenance, in the range of $145 million to $165 million.
• Expects contributions to equity affiliates in 2027 to range from $28 million to $37 million.
• Anticipates a 2027 cash tax rate between 0% and 5%.
• As of October 29, 2026, approximately 87% of 2026 metallurgical coal was committed and priced at an average of $126.69 per ton, while thermal coal was fully committed at an average of $76.06 per ton.

Business Segments and Product Lines

• Announced sales commitments for 3.5 million tons of metallurgical coal to domestic customers for shipment in 2027 at an average price of $135.48 per ton.
• Third quarter Met segment sales breakdown by pricing mechanism: Domestic (1.0 million tons, $136.17/ton), Export - Australian indexed (0.8 million tons, $150.46/ton), and Export - other pricing mechanisms (1.8 million tons, $107.03/ton).
• Thermal coal revenues were $23.7 million for 0.3 million tons sold in the third quarter.

Market and Competitive Landscape

• Management noted that third quarter volumes improved compared to the first two quarters of the year, though cost pressures continue to influence financial results.
• The company is utilizing throughput capacity at other Hampton Roads terminals to minimize disruption to sales and logistics while replacing damaged equipment at Dominion Terminal Associates (DTA).

Risks and Challenges

• Ongoing storm damage to a stacker reclaimer at Dominion Terminal Associates (DTA) in Newport News is expected to result in a lengthy timeline for equipment replacement.
• Cost pressures continue to impact financial results.
• Management notes that actual average per-ton realizations on committed and priced tons may vary based on future freight expenses relative to assumed freight embedded in projections.
• Management is unable to predict freight and handling costs without unreasonable efforts due to uncertainty regarding end markets and FOB points for uncommitted sales volumes.

Management Commentary and Tone

• CEO Andy Eidson stated the company remains committed to managing cost challenges and evaluating the portfolio against metallurgical coal market needs.
• Eidson expressed optimism about the ability to continue providing excellent customer service in 2027 and beyond, citing normalized third quarter shipment volumes.
• Management reported that conversations with DTA's insurance provider are progressing positively regarding the equipment damage.
• The company does not anticipate significant capital outlays associated with the replacement of the damaged DTA equipment.

Other Key Points

• The board authorized a share repurchase program allowing up to $1.5 billion for common stock repurchases.
• As of October 31, 2026, the company had acquired approximately 7.1 million shares at a cost of $1.2 billion, or approximately $166.31 per share.
• Shares outstanding as of October 31, 2026, were 12,662,046.
• The company held a conference call on November 6, 2026, to discuss the results.