Alpha Metallurgical Resources Q2 2026 Earnings Report

Alpha Metallurgical Resources EPS Results

• Actual EPS: -$0.96
• Consensus EPS: -$0.97
• Beat/Miss: Beat by +$0.01
• One Year Ago EPS: -$0.38

Alpha Metallurgical Resources Revenue Results

• Actual Revenue: $421.29 million
• Expected Revenue: $521.61 million
• Beat/Miss: Missed by -$100.32 million
• YoY Revenue Growth: -10.40%

Alpha Metallurgical Resources Announcement Details

• Quarter: Q2 2026
• Date: 8/7/2026
• Time: Before Market Opens
• Conference Call Date: Friday, August 7, 2026
• Conference Call Time: 10:00AM ET

Alpha Metallurgical Resources (NYSE:AMR) (NYSE: AMR) is a leading pure-play producer of high-grade metallurgical coal, primarily serving the global steelmaking industry. Headquartered in Bristol, Virginia, the company operates multiple underground and surface mining complexes across the central Appalachian and Illinois basins. Its production portfolio focuses on premium raw and semi-soft coking coal products tailored to meet the specifications of steel producers worldwide.

Formed in July 2021 through the spin-out of Contura Energy’s metallurgical coal business, Alpha Metallurgical Resources has built a reputation for operational excellence and cost-efficient mining. The company’s asset base includes both legacy operations and strategically acquired properties that benefit from well-developed infrastructure and established rail and port logistics. This integrated approach enables AMR to deliver consistent product quality while maintaining tight control over freight and handling costs.

Under the leadership of President and Chief Executive Officer Robert C. Williams III, AMR emphasizes sustainable mining practices and environmental stewardship. The company invests in advanced mining technologies, reclamation projects, and community engagement programs designed to minimize its environmental footprint and support the long-term vitality of the regions in which it operates. AMR’s management team brings decades of collective experience in coal mining, supply chain management and capital allocation.

Alpha Metallurgical Resources markets its metallurgical coal products to steel manufacturers in North America, Europe and Asia. By focusing exclusively on the metallurgical segment, AMR seeks to capitalize on industry trends toward higher-quality coal blends and to position itself as a reliable partner for steelmakers aiming to enhance furnace productivity and reduce coke-making costs. The company’s strategic emphasis on high-BTU, low-impurity coal varieties underpins its competitive positioning in the global coking coal market.

Alpha Metallurgical Resources Q2 2026 Earnings Call Transcript

Key Takeaways

• Negative Sentiment: 2026 guidance was lowered on shipments and raised on costs. The company now expects 14.2–15.4 million tons shipped and cost of coal sales of $103–$107 per ton, reflecting weaker-than-expected first-half volumes and higher diesel, supplies and materials costs.
• Negative Sentiment: Storm damage at the DTA terminal remains a significant operational risk. One of two stacker reclaimers was severely damaged, and the company has not provided a timeline for restoring full capacity; revised guidance assumes reduced throughput through year-end.
• Negative Sentiment: Metallurgical coal markets remain pressured by weak global steel demand and excess high-vol supply. Australian premium low-vol prices fell roughly 12% from quarter-end to August 6, while U.S. East Coast indices remained largely stagnant.
• Positive Sentiment: The balance sheet remains relatively strong, with $447.8 million of total liquidity and no ABL borrowings. At the midpoint of guidance, 70% of 2026 metallurgical tons are committed and priced at an average $128.17 per ton, providing some revenue visibility.
• Positive Sentiment: Wildcat is beginning production and is expected to increase the company’s low-volatility coal mix. Management also cited solid North American blast-furnace utilization as potential support for domestic low-vol demand during upcoming contract negotiations.

Presentation

[Operator]

Greetings, welcome to the Alpha Metallurgical Resources second quarter 2026 conference call. This time, all participants are on a listen-only mode. An answer session will follow the formal presentation. Please note this conference is being recorded. I will now turn the conference over to your host, Emily O'Quinn, Senior Vice President, Investor Relations and Communications. You may now begin.

[Emily O'Quinn, SVP of Investor Relations and Communications at Alpha Metallurgical Resources]

Thank you, Rob, good morning, everyone. Before we get started, let me remind you that during our prepared remarks, our comments regarding anticipated business and financial performance contain forward-looking statements, and actual results may differ materially from those discussed. For more information regarding forward-looking statements and some of the factors that can affect them, please refer to the company's second quarter 2026 earnings release and the associated SEC filing. Please also see those documents for information about our use of non-GAAP measures and their reconciliation to GAAP measures. On the call today, I'm joined by Alpha's Chief Executive Officer, Andy Eidson, and Chief Financial Officer, Todd Munsey, who will provide prepared remarks. Also participating on the call are our President and Chief Operating Officer, Jason Whitehead, and our Chief Commercial Officer, Dan Horn. Following our prepared remarks, we will be available to answer questions.

[Emily O'Quinn, SVP of Investor Relations and Communications at Alpha Metallurgical Resources]

With that, I'll turn the call over to Andy.

[Andy Eidson, CEO at Alpha Metallurgical Resources]

Thanks, Emily. Good morning, everyone. Today, we released our definitive second quarter financial results, which included adjusted EBITDA of $25.6 million and 3.5 million tons shipped. We closed out the first half of 2026 with fewer tons shipped and higher costs than expected. Given our performance to date and our outlook for the rest of the year, we recently issued new guidance ranges for shipment volumes and cost of coal sales. Looking at the cost first, we increased our midpoint of guidance by $7 per ton as compared to our early estimations. This increase is largely due to higher costs on supplies and materials, including diesel. As we communicated last quarter, the impact of the Iran war has resulted in dramatic fluctuations and significant increases to our diesel spend. Other mining supplies have also increased in cost.

[Andy Eidson, CEO at Alpha Metallurgical Resources]

We're projecting the need to spread these elevated costs across slightly fewer tons overall for the year. All of these factors are incorporated in our new cost guidance range of $103 to $107 per ton. In terms of sales volumes, we brought down the midpoint of the guidance by 1 million tons for the year as compared to our initial expectations. Several factors informed our decision-making here, including continued met market weakness. The new range of 14.2 million to 15.4 million tons not only incorporates our lighter than usual shipment performance in the first half, but it also accounts for a reduced efficiency rate at DTA. As we previously announced, one of the two stacker reclaimer machines at DTA sustained significant damage during a storm on June 14. High winds reached over 80 mi per hour during the weather event, resulting in significant harm to the machine.

[Andy Eidson, CEO at Alpha Metallurgical Resources]

The team at DTA has been exceptional, working diligently to safely and resourcefully keep as much coal moving through the terminal as possible while simultaneously working through various processes with third-party equipment providers, structural engineers, and the terminal's insurance carrier. DTA has also filed an insurance claim because of the storm damage. The plans for returning the terminal to full operational capacity hinge on many processes that are still underway. We don't have a definitive timeline to share just yet. We remain engaged in discussions with our partners at Core Natural Resources and DTA's leadership as appropriate to help advance those processes and gain clarity on the path ahead. In the meantime, we're very pleased with their efforts to keep the coal moving. We expect to be able to mitigate isolated delays in coal handling that would have been normally been accomplished by the damaged stacker reclaimer.

[Andy Eidson, CEO at Alpha Metallurgical Resources]

Our new shipment guidance rates, for example, contemplates the continuation of the currently reduced operational capacity at DTA. It also reflects our ability to utilize throughput availability at other East Coast terminals. In summary, we're appreciative of DTA leadership and the way they have quickly established alternate workflows to maximize the terminal's capabilities under these unfortunate circumstances. We will provide updates as appropriate once longer-term plans are solidified. Our views on the met coal markets remain largely unchanged since last quarter as we continue to see weakness driven by sluggish global steel demand. The U.S. East Coast indexes have hardly moved. In recent weeks, the Aussie PLV has begun to retreat.

[Andy Eidson, CEO at Alpha Metallurgical Resources]

With its latest movement, the spread between Aussie PLV and U.S. East Coast low vol has tightened, with the PLV roughly 14% higher than U.S. East Coast low vol, as compared to about 23% higher when we announced first quarter earnings in May. The further $32 drop from U.S. East Coast low vol down to U.S. East Coast high vol A sits at about 20% as compared to 22% a quarter ago. We continue to believe that this is unsustainable. As I wrap up my prepared remarks, I want to congratulate several of our West Virginia operations on their recognition by the Joseph A. Holmes Safety Association. 13 of our mines, plants, and docks were given awards for their outstanding performance in 2025. Additionally, our outstanding mine rescue teams have brought home top honors in numerous category competitions as well as overall championships in two mine rescue contests this summer.

[Andy Eidson, CEO at Alpha Metallurgical Resources]

We're proud of your accomplishments and grateful for your commitment to this important work. I will now turn the call over to Todd Munsey for a review of our second quarter financial results.

[Todd Munsey, CFO at Alpha Metallurgical Resources]

Thanks, Andy Eidson. Adjusted EBITDA for the second quarter was $25.6 million, down from $30 million in the first quarter. We sold 3.5 million tons in Q2, down from 3.6 million tons in Q1. Met segment realizations decreased quarter-over-quarter with an average realization of $118.71 in the second quarter, compared to $124.39 in the first quarter. Export Met tons priced against Atlantic indices and other pricing mechanisms in the second quarter realized $109.08 per ton, while export coal priced on the Australian indices realized $143.82 per ton.

[Todd Munsey, CFO at Alpha Metallurgical Resources]

These results are compared to realizations of $110.32 per ton and $144.95, respectively, in the first quarter. Realization for our metallurgical sales in the second quarter was a total weighted average of $124.30 per ton, down from $128.40 per ton in Q1. Realizations in the incidental thermal portion of the Met segment increased to $79.36 per ton in the second quarter, up from $69.41 per ton in Q1. Cost of coal sales for our Met segment decreased to $103.07 per ton in Q2, down from $107.98 per ton in the first quarter.

[Todd Munsey, CFO at Alpha Metallurgical Resources]

For the second quarter, SG&A, excluding non-cash stock compensation and non-recurring items, increased to $13.7 million as compared to $13.5 million in the first quarter. Moving to the balance sheet and cash flows, as of June 30th, we had $307.6 million in unrestricted cash and $30.9 million in short-term investments, as compared to $317.2 million of unrestricted cash and $49.6 million in short-term investments as of March 31st. We had $184.3 million in unused availability under our ABL at the end of the second quarter, partially offset by a minimum required liquidity of $75 million. As of the end of June, Alpha Metallurgical Resources had total liquidity of $447.8 million, down from $476.2 million at the end of March. CapEx for the second quarter was $45.1 million, up from $40.7 million in Q1.

[Todd Munsey, CFO at Alpha Metallurgical Resources]

Cash provided by operating activities was $39.9 million in the second quarter, up from $29 million in the first quarter. As of June 30th, our ABL facility had no borrowings and $40.7 million of letters of credit outstanding. In terms of our committed position for 2026, at the midpoint of guidance, 70% of our metallurgical tonnage in the met segment is committed and priced at an average price of $128.17. Another 30% of our met tonnage for the year is committed but not yet priced. The thermal byproduct portion of the met segment is fully committed and priced at the midpoint of guidance at an average price of $75.94. From a market perspective, metallurgical coal markets were subdued in the second quarter. Continued uncertainty and volatility resulting from the war in Iran and broader global economic conditions influenced markets alongside persistently weak steel demand.

[Todd Munsey, CFO at Alpha Metallurgical Resources]

The Australian PLV index increased from $236.80 per metric ton on April 1st to $243.50 on June 30th. The U.S. East Coast low-vol index dropped from $195 per metric ton in early April to $190 by the end of June. The U.S. East Coast high-vol index decreased from $159.50 per metric ton at the beginning of the quarter to $157 at the quarter's close. The U.S. East Coast high-vol B index declined from $149.50 per metric ton to $147 at the end of the quarter. Since then, the Australian premium low-vol index has decreased to $214.30 per metric ton as of August 6th, representing a drop of roughly 12% since quarter close. The U.S. East Coast indices are stagnant with low-vol at $188 per ton, virtually flat to the quarter-end level.

[Todd Munsey, CFO at Alpha Metallurgical Resources]

The U.S. East Coast high-vol A and high-vol B indices are also largely unchanged from quarter close at $156 and $146.50 per ton, respectively, as of August 6th. In the seaborne thermal market, the API2 index was $117.80 per metric ton at the beginning of April, decreased to $115.65 at the end of June. Since then, the API2 index is roughly flat at $115.75 as of August 6th. With that, operator, we are now ready to open the call for questions.

[Operator]

Thank you. At this time, we'll be conducting a question and answer session. If you'd like to ask a question, please press star one on your telephone keypad. One moment please while we poll for questions. Our first question comes from Nick Giles with B. Riley Securities. Your line is now live.

[Nick Giles, Analyst at B. Riley Securities]

Yeah. Thanks, operator. Hey, good morning, guys. Maybe first just on DTA. It sounds like there are still a fair few unknowns, just curious how you might quantify the optimization that you can achieve with just one stacker reclaimer, and how much of that optimization could we see show up in maybe 3Q versus further improvements in 4Q as temporary fixes are installed, if you will?

[Andy Eidson, CEO at Alpha Metallurgical Resources]

Hey, Nick. It's Andy. Good morning. I think the folks at Core did a pretty good job answering this question yesterday. Our view is exactly the same. There's a lot of moving parts here, up to and including insurance settlements and really engineering work. If you've ever been to DTA, and you just see the scale and the size of these machines, and the amount of damage that it sustained, it's a pretty big undertaking to figure this out and try to optimize.

[Andy Eidson, CEO at Alpha Metallurgical Resources]

I can't give you any specifics, again, I think our revised guidance covers what we believe we can accomplish. Hopefully, there may be a little bit of upside to that, a lot of it's going to depend on how quickly we can get just the logistics worked out and moving the damaged SR off of the current plot, moving it over to a yard where it can be disassembled, and we can start the work on just clearing out the space so we can start moving pieces around.

[Andy Eidson, CEO at Alpha Metallurgical Resources]

The team down there has done a fantastic job handling the situation and keeping us as efficient as possible. We are seeing some reduced efficiency and some throughput. As I said, that's all reflected in our guidance for the rest of the year.

[Nick Giles, Analyst at B. Riley Securities]

Understood. Thanks for that, Andy, Sorry to stay on the topic, just, do you have any initial sense for if there was 100% utilization with both stacker reclaimers, kind of what utilization you could achieve with just one as we look out to 2027?

[Andy Eidson, CEO at Alpha Metallurgical Resources]

No. That's an unanswerable question, Nick. We don't have any plans to contemplate it that way. We're devising those as we go. Yeah, really, it's going to be a while before I could tell you that.

[Nick Giles, Analyst at B. Riley Securities]

Understood. No, fair enough. Maybe just switching gears on the cost side. Costs are obviously impacted from DTA and from the kind of higher diesel prices as well. Are there any areas where you're seeing relief or any kind of further efforts that you can do operationally just to drive costs lower?

[Andy Eidson, CEO at Alpha Metallurgical Resources]

Yeah, we are. Right now it's more of just looking at the portfolio, and obviously the guidance reduction was looking at whether it's something as simple as schedule changes versus surface mines are easier to ramp up or ramp down based on the situation. We're continuing to look through that and see what tons are most at risk. It's not always just about cost, it's about margin. That's the number that we're worried about. If you've got a low cost mine that is achieving a very low realization, then it needs to be at risk rather than something that's higher cost but achieves higher margins. We continue to go through that and evaluate the portfolio to see what other actions that could be taken.

[Andy Eidson, CEO at Alpha Metallurgical Resources]

Of course, Jason and his team always have a couple of tricks up their sleeve as far as identifying efficiencies or areas where costs can be taken out. We'll just let that develop as the rest of the year moves on.

[Nick Giles, Analyst at B. Riley Securities]

Understood. Okay. I'll turn it over, bud. Appreciate the update.

[Andy Eidson, CEO at Alpha Metallurgical Resources]

Appreciate you.

[Operator]

As a reminder, if you'd like to ask a question, please press star one on your telephone. One moment, please, while we poll for questions. Our next question comes from Nathan Martin with The Benchmark Company.

[Nathan Martin, Analyst at The Benchmark Company]

Thanks, operator. Good morning, everyone. Tell me if we could get your thoughts on shipping cadence for the balance of the year. What gets you to that, the high or the low end of your new guidance? Then how long does the shipment guidance assume the damaged DTA stacker reclaimer remains out of commission?

[Andy Eidson, CEO at Alpha Metallurgical Resources]

Well, good morning, Nathan, by the way. I'll take those in reverse order. Obviously, our guidance runs through the end of the year, that's the assumption. As far as the cadence, if you take just the pro rata for the back half of the year and look at our typical seasonal trends between Q3 and Q4, I think that would probably apply. There's been a little bit of back and forth that timing could get us. We are in concert with this market. We're seeing some of our customers pushing back on some cargo, that could flip a boat from one quarter into the next. I think generally speaking, our seasonal trend will probably still apply just at a lower overall rate.

[Nathan Martin, Analyst at The Benchmark Company]

Appreciate that, Andy. That's helpful. Maybe a question for Dan. I noticed in your updated committed and priced table, the domestic tonnage declined, I think, to $3.8 million from $4.1 million previously. First, I was just hoping to get some color on that.

[Dan Horn, EVP and Chief Commercial Officer at Alpha Metallurgical Resources]

Yeah, Nathan. This is Dan. The domestic piece, we had some customers that had some optionality built in there, some options they can declare or not declare. Some of those were not declared. Generally speaking, we're shipping more or less what we thought. That happens most every year. There's some optionality built into our domestic contracts that as the year progresses, they either nominate them or don't nominate them, this year they didn't nominate them. That's the main reason.

[Nathan Martin, Analyst at The Benchmark Company]

Got it, Dan. That makes sense. Appreciate that. While I have you, looks like you guys still have about 30% of your met tons that are committed but still unpriced. How should we think about the quality mix of what you guys have left to sell for the year and which markets do you expect those committed tons to move into?

[Dan Horn, EVP and Chief Commercial Officer at Alpha Metallurgical Resources]

Well, Nathan, it's all of the above, frankly. Some are going to go to Aussie. I would apply the same percentages that.

[Dan Horn, EVP and Chief Commercial Officer at Alpha Metallurgical Resources]

That we've already stated in there to those tons, too. They tend to be some to Europe, some to Asia, and the domestic. That ratio doesn't. I don't expect it would change a lot. There's not a lot of spot opportunities. We don't have a whole lot, as you can see from our committed uncommitted, we don't have a whole lot of spot tons left anyway. They're going to ship under the term contracts to the known markets.

[Nathan Martin, Analyst at The Benchmark Company]

All right. Appreciate that. I'll go ahead and pass it on, guys. Thank you for the time, and good luck going forward.

[Andy Eidson, CEO at Alpha Metallurgical Resources]

Thanks. Appreciate it.

[Operator]

Our next question comes from Matthew Key with Texas Capital Securities.

[Matthew Key, Analyst at Texas Capital Securities]

Good morning, thanks for taking my questions. I just have a quick one on the macro, just regarding high-vol A pricing. What do you think needs to happen to get some momentum there? Do you think this is mostly just a supply-driven story, we need to see some volume get taken offline? Also, is that something that you would be considering as we get to 2027, if the market doesn't improve from these levels?

[Andy Eidson, CEO at Alpha Metallurgical Resources]

I'll let Dan throw in his thoughts on the gory details, generally speaking, I don't know that this is. The supply has grown a bit. We have seen some tons coming off through the first half of the year from some of the smaller producers, particularly in Central Appalachia. It still seems like this is a demand story until the global economy kicks into gear. That's going to be the point of inflection. I don't think anyone can cut enough production at this point to get pricing where it needs to be. That being said, we always look at our portfolio, the cuts that have been made, the schedule changes. Those kinds of things have been focused on the lower-rank coals, the high-vol Bs particularly, and some high-vol As where appropriate. Dan, your thoughts on the market?

[Dan Horn, EVP and Chief Commercial Officer at Alpha Metallurgical Resources]

I think Andy nailed it pretty well. Everyone knew there was going to be high-vol supply coming on. At the same time, everybody expected the steel market globally to be stronger than it is today. That a normal seaborne coal market would have absorbed those high-vol tons. There's something like 500,000, maybe probably a little more, of new high-vol tons that are being produced each month that weren't being produced a year or two ago. Those three or four or five vessels per month are finding homes in the spot market at low realizations in Asia. Largely being sold by the longwall mines. We've stayed away from most of those low-priced opportunities. We've sold into our better markets, and frankly, some of our higher BTU high-vol B tons were moving into the thermal market at basically the same realizations.

[Dan Horn, EVP and Chief Commercial Officer at Alpha Metallurgical Resources]

We're taking advantage of an improved thermal market to move some tons as well. It wasn't a surprise that the supply would be increasing. I guess a bit of a surprise is that the global economy is a little weaker and particularly due to the steel exports out of China, they continue to hurt our markets in South America and around the world with cheaper imported steel. We need our customers to produce more steel, frankly.

[Matthew Key, Analyst at Texas Capital Securities]

Got it. Just on a follow-up on that, are there any kind of additional levers that you could pull to adjust your sales mix at all? Like maybe to a slightly heavier weight in low-vol versus high-vol A or any other kind of adjustments you could do there?

[Dan Horn, EVP and Chief Commercial Officer at Alpha Metallurgical Resources]

Yeah, Matthew, I guess you're my straight man. We have a new mine coming online, Wildcat, that is in production now and be ramping up over the course of Q3 and Q4. Absolutely, our mix will shift into more low-vol. We've had that on our drawing board now for a couple of years, it's finally rolling out. The short answer is yes.

[Matthew Key, Analyst at Texas Capital Securities]

All right. Well, thank you for your time, and best of luck.

[Andy Eidson, CEO at Alpha Metallurgical Resources]

Thanks. Appreciate you.

[Operator]

We have an additional question from Nick.

[Nick Giles, Analyst at B. Riley Securities]

Yeah. Thanks for taking my follow-up. I just wanted to ask about domestic negotiations, which I assume are underway. U.S. prices have been weaker year-over-year, but I imagine that we're kind of getting close enough to the cost curve that maybe there's some resilience there. Just curious if you had any comments on that thus far.

[Dan Horn, EVP and Chief Commercial Officer at Alpha Metallurgical Resources]

Not particularly, Nick, at this point. Everything you said is correct. The domestic prices have gone down in the last couple of years. If you take a look at our customers, the years they're having, they're producing steel and selling it at some pretty high numbers this year. We hope that we'll participate in some of that uplift in the market next year.

[Nick Giles, Analyst at B. Riley Securities]

Maybe just on that point on the low-vol side. Do you see any material change in mix that you would be willing to send domestic versus preserving the optionality for just kind of the better low-vol prices in the seaborne market?

[Dan Horn, EVP and Chief Commercial Officer at Alpha Metallurgical Resources]

Not particularly. I think as we wade into the negotiations, we'll see where the customers' interests are, where they align and where they don't. We really don't have a fixed number of, "Oh, let's sell this much high-vol, this much low-vol." We have a new mine that we're interested in shipping some of that to customers, obviously. No. I think we have to hear from the customers and hear what their requirements are first. It's really premature to get into what that mix would look like. Let me just add that the demand seems to be good. With as many blast furnaces in North America that are running, the demand for coke should be pretty good this year, and therefore, the demand for coking coal should be good.

[Dan Horn, EVP and Chief Commercial Officer at Alpha Metallurgical Resources]

We would expect probably in that kind of environment, they'll use more low-vol in their mixes to produce higher quality coke in shorter coking times. That's typically what happens in these years.

[Nick Giles, Analyst at B. Riley Securities]

Understood. That's helpful context. We'll stay tuned there, thanks again, guys.

[Dan Horn, EVP and Chief Commercial Officer at Alpha Metallurgical Resources]

Thank you.

[Operator]

We have reached the end of the question and answer session. I will now turn the call over to Andy Eidson for closing remarks.

[Andy Eidson, CEO at Alpha Metallurgical Resources]

Well, thank you all for your interest in Alpha and for joining our call this morning. We hope you all have a great weekend. Talk to you next quarter.

[Operator]

This concludes today's conference. You may disconnect your lines at this time, and we thank you for your participation.

Participants

Executives

• Emily O'Quinn, SVP of Investor Relations and Communications
• Andy Eidson, CEO
• Todd Munsey, CFO
• Dan Horn, EVP and Chief Commercial Officer

Analysts

• Nick Giles, Analyst at B. Riley Securities
• Nathan Martin, Analyst at The Benchmark Company
• Matthew Key, Analyst at Texas Capital Securities