Aug 6, 2026, 7:06 AM ETBasic Materials

Core Natural Resources — Second Quarter 2026 Earnings Summary

CNRCORE NATURAL RESOURCES INC

Financial Performance

Reported net income of $126.5 million ($2.51 per diluted share) for the quarter ended June 30, 2026.
Reported adjusted EBITDA of $323.6 million.
Total revenues reached $1.1 billion.
Generated net cash provided by operating activities of $250.4 million.
Reported free cash flow of $148 million.
Cash cost of coal sold per ton improved to $38.58 in the High C.V. Thermal segment (9% QoQ improvement) and $85.65 in the Metallurgical segment (7% QoQ improvement).
Cash cost of coal sold per ton in the Powder River Basin segment increased to $14.85 (9% QoQ increase) due to lower fixed cost absorption and higher fuel costs.
Total liquidity stood at $1.0 billion, including $474.0 million in cash and cash equivalents and short-term investments.

Provided 2026 sales volume guidance: Coking coal (8.8–9.4 million tons), High C.V. Thermal (31.5–33.0 million tons), and Powder River Basin (47.0–50.0 million tons), totaling 87.3–92.4 million tons.
Provided 2026 cost guidance: Metallurgical cash cost ($86.00–$91.00 per ton), High C.V. Thermal cash cost ($39.00–$40.50 per ton), and Powder River Basin cash cost ($13.25–$13.75 per ton).
Provided 2026 corporate expense guidance: Capital expenditures ($325–$375 million), Depreciation/Depletion/Amortization ($600–$650 million), and Cash Basis G&A ($85–$100 million).
Expects improving market dynamics in the second half of 2026, driven by U.S. power demand growth from reindustrialization and AI data centers, and global electricity demand growth of 3.6% annually.
Anticipates U.S. East Coast metallurgical prices to recover as global hot metal demand rebounds and Asian buyers seek price spreads.
Expects substantial improvement in Powder River Basin sales volumes and unit costs in the second half of the year.

High C.V. Thermal Segment: Sold 8.4 million tons (9% QoQ increase) with realized revenue per ton of $58.11.
Metallurgical Segment: Sold 2.6 million tons (8% QoQ improvement), including 2.3 million tons of coking coal. Realized revenue per ton for coking coal was $121.43, and $114.13 for the segment overall.
Powder River Basin Segment: Sold 10.2 million tons, reflecting seasonally depressed spring shipment levels. Realized revenue per ton was $14.28.
Secured 16 million tons of new sales commitments for future delivery across all segments at prices expected to support advantageous margins.
Settled the Leer South insurance claim for a full limit recovery, netting $155 million total ($88.1 million collected in Q2, $37.9 million in July).

U.S. thermal coal demand faced pressure in Q2 from moderate temperatures, low natural gas prices, and inflated customer stockpiles.
Seaborne metallurgical markets remain muted due to two years of contraction in global hot metal output, with U.S. East Coast prices lagging Australian indices.
India's cement demand is climbing significantly due to infrastructure build-out, supporting industrial coal demand.
Core is marketing its Leer brand coal as a high value-in-use substitute for Australian premium low-vol coals.
The U.S. coal fleet operates at an average capacity factor of less than 50%, with the Trump Administration moving to ensure long-term fleet viability.

Forward-looking statements highlight risks including potential combustion-related activity at the Leer South mine, volatility in coal prices, and changes in customer consumption patterns.
Risks include equipment downtime, inability to obtain parts, inflation, foreign currency fluctuations, and regulatory changes regarding climate change and emissions.
Potential risks involve the integration of operations following the merger with Arch Resources, the ability to mine rare earth elements, and the impact of ESG practices on investment funds.

CEO Jimmy Brock stated the team made "excellent progress" in driving operational excellence and generating strong free cash flow.
CFO Mitesh Thakkar noted the company performed at "world-class levels" and demonstrated the value of its diversified portfolio despite a soft market environment.
Management expressed confidence that the stage is set for "even stronger capital returns" and an accelerated reduction in share count in the second half of the year.
The tone emphasizes a focus on "world-class productivity," "industry-leading cost performance," and alignment with safety and compliance values.

No specific analyst questions and answers were included in the press release text.

Returned $68 million to stockholders in Q2 2026, bringing the total returned since the program's launch in February 2025 to $360.1 million.
Repurchased 719,904 shares for $63.0 million in Q2 2026; total repurchases since launch amount to 4.3 million shares for $329.2 million.
Board declared a $0.10 per share quarterly dividend payable on September 18, 2026.
Capital return framework targets returning approximately 75% of free cash flow to stockholders, with the majority directed to share repurchases.
As of June 30, 2026, $670.8 million of authorization remained under the $1.0 billion share repurchase program.
Core was created in January 2025 via the merger of CONSOL Energy and Arch Resources.