Nov 4, 2026, 4:04 PM ETBasic Materials

Warrior Met Coal — Third Quarter 2026 Earnings Summary

HCCWARRIOR MET COAL INC

Financial Performance

Total revenues for the third quarter of 2026 were $507.9 million, a 48% increase year-over-year driven by a 48% rise in sales volumes and a 6% increase in average net selling price.
Net income rose to $49.3 million for the quarter, compared to $36.6 million in the third quarter of 2025.
Adjusted EBITDA increased 76% to $124.0 million in the third quarter of 2026, up from $70.6 million in the prior year period.
Cash flows from operations were $166.0 million, and free cash flow was $138.9 million for the quarter.
Cost of sales was $368.5 million; cash cost of sales (free-on-board port) per short ton increased 4% to $104.98.
Average gross selling price realization declined to approximately 66% in the third quarter of 2026 from 83% in the third quarter of 2025.
Net working capital, excluding cash, decreased $33.7 million from the second quarter of 2026.
Total liquidity as of September 30, 2026, was $577.6 million, comprising $437.1 million in cash and cash equivalents and $140.5 million available under the ABL Facility.

The Company reaffirmed its full-year 2026 guidance, previously updated last quarter.
Full-year 2026 guidance includes:
- Coal sales: 13.0 - 14.0 million short tons.
- Coal production: 12.5 - 13.5 million short tons.
- Cash cost of sales (free-on-board port): $95 - $105 per short ton.
- Capital expenditures for sustaining existing mines: $105 - $115 million.
- Capital expenditures for Blue Creek project: $50 - $75 million.
- Depreciation and depletion: $225 - $250 million.
- Selling, general and administrative expenses: $75 - $85 million.
- Interest expense: $20 - $25 million.
- Interest income: $3 - $8 million.
Key factors affecting the outlook include one remaining longwall move in Q4, HCC index pricing, geography of sales, freight rates, global trade and tariff policies, new labor contracts, and inflationary pressures.

Sales volumes increased 48% to 3.5 million short tons, and production volumes increased 36% to 3.1 million short tons, driven by contributions from the Blue Creek mine.
Blue Creek longwall operations commenced approximately one year ago, eight months ahead of schedule, and construction was completed two quarters ahead of schedule.
The sales mix shifted to include 25% more High-Vol A steelmaking coal, predominantly sold into the Pacific Basin.
The Company monetized surplus amounts of High-Vol A coal inventories, contributing to lower inventories.

Improved steelmaking coal prices for both Premium Low-Vol (PLV) and High-Vol A coals contributed to higher average net selling prices.
Higher Pacific freight costs and associated demurrage rate increases, resulting from the ongoing conflict in the Middle East, partially offset price gains.
Vessel loading delays at the port impacted pricing realization.
The Company operates as a large-scale, low-cost producer of premium quality hard-coking coal (HCC) with very low sulfur content.

Risks include global trade and tariff uncertainties, market conditions in the steel and steelmaking coal industries, and overall global economic and competitive conditions.
Operational risks include the impact of the Russia-Ukraine war, ongoing conflicts in the Middle East, inflation, and potential labor strikes or slowdowns.
Logistical risks involve rail performance issues and weather or mechanical failures at the McDuffie Terminal at the Port of Mobile.
The Company cannot forecast certain GAAP items, such as non-cash asset retirement obligation accretion expenses, without unreasonable efforts.

CEO Walt Scheller stated that strong sales volumes and higher volumes combined with improved pricing generated significant free cash flow and strengthened the balance sheet.
Management highlighted that Blue Creek is already translating into value for stockholders, with the special dividend representing an important milestone.
The tone reflects confidence in the transformational investment at Blue Creek and the ability to return excess cash to stockholders.

On October 27, 2026, the Board declared a regular quarterly cash dividend of $0.08 per share, payable November 13, 2026.
The Board also declared a special cash dividend of $2.00 per share, totaling approximately $106 million, payable November 20, 2026.
Future special dividends will be at the discretion of the Board, subject to business conditions, financial performance, and strategic investment opportunities.
The Company will hold a conference call on November 4, 2026, at 4:30 p.m. ET to discuss results.
The Company does not provide reconciliations for its outlook on cash cost of sales to GAAP cost of sales due to the inability to forecast certain non-cash and non-recurring items without unreasonable efforts.