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 of 2026 and $5.5 million ($0.42 per share) in the same period of 2025.
• Adjusted EBITDA was $29.4 million for the third quarter, an increase from $25.6 million in the second quarter and down 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; total operating cash flow for the nine months ended September 30, 2026, was $115.8 million.
• Capital expenditures were $33.8 million in the third quarter, down from $45.1 million in the second quarter; total capital expenditures for the nine months ended September 30, 2026, were $119.6 million.
• Coal revenues for the Met segment were $560.6 million in the third quarter, up from $491.5 million in the second quarter.
• Non-GAAP coal revenues (excluding freight and handling) were $474.1 million in the third quarter, compared to $421.3 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 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.
• Total long-term debt was $10.6 million as of September 30, 2026.
• Cash and cash equivalents were $334.1 million as of September 30, 2026, with $184.3 million of unused availability under the asset-based revolving credit facility.

Guidance and Future Outlook:

• Issued 2027 operational guidance expecting shipment volumes of 13.1 million to 14.1 million metallurgical tons and 1.2 million to 1.6 million tons of incidental thermal coal, for a total 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.
• Projects 2027 depreciation, depletion, and amortization between $148 million and $162 million.
• Expects 2027 capital expenditures, including carryover, development, and maintenance, to range from $145 million to $165 million.
• Anticipates 2027 contributions to equity affiliates between $28 million and $37 million.
• Expects 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; thermal coal was 100% committed at an average of $76.06 per ton.

Business Segments and Product Lines:

• The Met segment accounted for 3.6 million tons of met coal sold in the third quarter, generating $450.4 million in revenue.
• Thermal coal sales totaled 0.3 million tons in the third quarter, generating $23.7 million in revenue.
• Domestic sales comprised 1.0 million tons (27% of Met tons) at an average realization of $136.17 per ton.
• Export sales via Australian indexing comprised 0.8 million tons (22% of Met tons) at an average realization of $150.46 per ton.
• Export sales via other pricing mechanisms comprised 1.8 million tons (51% of Met tons) at an average realization of $107.03 per ton.
• Announced 2027 domestic sales commitments of 3.5 million tons at an average price of $135.48 per ton.
• 2027 export commitments are 0.1 million tons at an average price of $100.32 per ton.

Market and Competitive Landscape:

• Management noted that third-quarter volumes improved compared to the first two quarters of 2026.
• Cost pressures continue to influence financial results.
• The company maintains significant port capacity and high-quality reserves to supply the global steel industry.

Risks and Challenges:

• Ongoing cost pressures affecting financial results.
• Equipment damage at Dominion Terminal Associates (DTA) caused by a high-wind storm in June, resulting in a lengthy timeline for replacing the stacker reclaimer.
• Uncertainty regarding future freight and handling costs due to the end market and FOB point for uncommitted sales volumes and export shipments.
• Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from expectations.

Management Commentary and Tone:

• CEO Andy Eidson stated that while volumes improved, cost pressures remain a challenge, and the company is committed to managing these costs.
• Management expressed optimism about providing excellent customer service in 2027 and beyond despite the DTA equipment replacement timeline.
• Eidson highlighted that 2027 operational guidance incorporates analysis of the financial impact of the DTA storm damage and terminal capabilities.
• Management noted that conversations with DTA's insurance provider are progressing positively and does not anticipate significant capital outlays for the replacement process.
• The company plans to utilize throughput capacity at other Hampton Roads terminals to minimize disruption to sales and logistics.

Other Key Points:

• The board of directors 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 $166.31 per share.
• Total liquidity as of September 30, 2026, was $443.4 million, including a minimum required liquidity of $75.0 million under the ABL facility.
• There were $40.7 million in letters of credit outstanding under the ABL facility as of September 30, 2026, with no amounts borrowed.
• The company held a conference call on November 6, 2026, to discuss the results.