Alpha Metallurgical Resources — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported a preliminary net loss of $9.3 million, or $0.73 per diluted share, for the three months ended September 30, 2026.
• Reported preliminary Adjusted EBITDA of $29.4 million.
• Total coal revenues were $560.6 million, with non-GAAP coal revenues (excluding freight and handling) at $474.1 million.
• Sold 3.9 million tons of coal, generating a non-GAAP coal sales realization of $121.09 per ton.
• Total cost of coal sales was $509.7 million, with non-GAAP cost of coal sales (excluding freight, handling, depreciation, depletion, amortization, accretion, and idled mine costs) at $418.6 million.
• GAAP coal margin was $9.6 million ($2.45 per ton), while non-GAAP coal margin was $55.5 million ($14.16 per ton).
• Interest expense was $0.97 million, and interest income was $2.56 million.
• Income tax benefit was $5.68 million.
• Depreciation, depletion, and amortization totaled $35.5 million.
• Non-cash stock compensation expense was $4.38 million.
• Accretion on asset retirement obligations was $5.25 million.
• Amortization of acquired intangibles was $0.88 million.

Guidance and Future Outlook:

• Management expects to provide more information regarding results and the 2027 outlook when definitive third-quarter financial results are announced on November 6, 2026.
• Preliminary results reflect stronger volumes compared to the first half of 2026, though cost pressures continue.
• Realizations were influenced by market volatility in the preceding months.

Business Segments and Product Lines:

• The Met segment sold 3.6 million tons of met coal and 0.3 million tons of thermal coal.
• Domestic sales accounted for 1.0 million tons (27% of Met tons sold) at a realization of $136.17 per ton.
• Export sales indexed to Australia accounted for 0.8 million tons (22% of Met tons sold) at a realization of $150.46 per ton.
• Export sales using other pricing mechanisms accounted for 1.8 million tons (51% of Met tons sold) at a realization of $107.03 per ton.
• Thermal coal revenues totaled $23.7 million with a realization of $79.44 per ton.

Market and Competitive Landscape:

• The company operates as a leading U.S. supplier of metallurgical products for the steel industry with customers across the globe.
• Operations are located in Virginia and West Virginia, supported by significant port capacity.
• Market volatility impacted realizations during the quarter.

Risks and Challenges:

• The company faces continued cost pressures.
• Preliminary financial results are subject to change based on financial closing procedures, final adjustments, and other developments; actual results may differ materially.
• Forward-looking statements involve risks and uncertainties that may cause actual results to differ from expectations, including factors beyond the company's control.

Management Commentary and Tone:

• Andy Eidson, Chief Executive Officer, stated that results "reflect stronger volumes than in the first half but continued cost pressure."
• Management noted that realizations were influenced by market volatility and expressed anticipation for providing further details on the 2027 outlook.

Other Key Points:

• Total liquidity as of September 30, 2026, was $443.4 million, comprising $334.1 million in cash and cash equivalents and $184.3 million in unused availability under the asset-based revolving credit facility (ABL), partially offset by a $75.0 million minimum required liquidity.
• There were no borrowings under the ABL, with $40.7 million in letters of credit outstanding.
• Total long-term debt, including the current portion, was $10.6 million.
• The board authorized a share repurchase program allowing up to $1.5 billion in expenditures.
• Since the program's inception, the company has acquired approximately 7.1 million shares for a cost of $1.2 billion.
• During the third quarter, the company spent approximately $3.0 million to repurchase roughly 18,000 shares.
• Shares outstanding as of September 30, 2026, were 12,667,855, excluding unvested equity awards.
• Definitive financial results and a conference call are scheduled for November 6, 2026.