Warrior Met Coal (NYSE:HCC) Releases Earnings Results, Misses Estimates By $0.62 EPS

Key Points

• Warrior Met Coal reported quarterly EPS of $0.93, missing the $1.55 consensus estimate by $0.62. Revenue of $507.93 million slightly beat estimates and increased 54.6% year over year.
• Blue Creek’s ramp-up lifted sales volume 48% year over year to 3.5 million short tons; adjusted EBITDA rose 76% to $124 million, and the company reaffirmed its 2026 guidance. Higher freight and demurrage, royalties, inflation, and Mine 7 costs weighed on results.
• After generating $139 million in free cash flow, the company declared a $2-per-share special dividend alongside its regular quarterly dividend, citing strong cash generation and liquidity.

Warrior Met Coal (NYSE:HCC - Get Free Report) announced its earnings results on Wednesday. The company reported $0.93 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.55 by ($0.62), FiscalAI reports. Warrior Met Coal had a return on equity of 10.02% and a net margin of 13.05%. The company had revenue of $507.93 million for the quarter, compared to the consensus estimate of $505.84 million. During the same period in the prior year, the business earned $0.70 earnings per share. The firm's revenue for the quarter was up 54.6% on a year-over-year basis.

Here are the key takeaways from Warrior Met Coal's conference call:

• Blue Creek’s ramp-up drove a 48% year-over-year increase in sales volume to 3.5 million short tons. Adjusted EBITDA rose 76% to $124 million, and Warrior generated $139 million in free cash flow; the company reaffirmed its 2026 guidance.
• Strong cash generation and increased liquidity supported the board’s declaration of a $2-per-share special dividend, in addition to the regular quarterly dividend. Management said excess cash is expected to be returned to shareholders for now, while it assesses whether the market can absorb more Blue Creek production.
• Higher freight, demurrage, royalties and inflation weighed on results, while Mine 7’s longwall move and difficult geology raised unit costs. Management expects freight and demurrage costs to remain above normal through year-end, and potentially longer, although Mine 7 has returned to normal operations.
• Steelmaking coal prices rose during the quarter, supported by Chinese production restrictions and other supply disruptions, but management expects volatility as supply conditions shift and Chinese steel demand remains weak. Warrior said near-term prices may remain supported but below September’s peak.

Warrior Met Coal Stock Up 1.1%

NYSE:HCC traded up $0.90 during trading hours on Wednesday, reaching $81.56. The company had a trading volume of 1,101,898 shares, compared to its average volume of 627,554. Warrior Met Coal has a twelve month low of $64.66 and a twelve month high of $111.42. The company has a quick ratio of 2.79, a current ratio of 3.93 and a debt-to-equity ratio of 0.10. The firm has a market cap of $4.31 billion, a price-to-earnings ratio of 19.61 and a beta of 0.75. The business's 50-day simple moving average is $92.49 and its two-hundred day simple moving average is $89.95.

Warrior Met Coal Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, November 13th. Shareholders of record on Friday, November 6th will be issued a $0.08 dividend. This represents a $0.32 dividend on an annualized basis and a yield of 0.4%. The ex-dividend date is Friday, November 6th. Warrior Met Coal's dividend payout ratio (DPR) is presently 7.69%.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently issued reports on HCC shares. Royal Bank Of Canada raised their price objective on Warrior Met Coal from $90.00 to $110.00 and gave the stock a "sector perform" rating in a research report on Wednesday, September 16th. B. Riley Financial reduced their target price on Warrior Met Coal from $123.00 to $122.00 and set a "buy" rating on the stock in a report on Monday, October 26th. Jefferies Financial Group reissued a "buy" rating on shares of Warrior Met Coal in a research report on Thursday, October 29th. Zacks Research lowered shares of Warrior Met Coal from a "strong-buy" rating to a "hold" rating in a report on Friday, August 7th. Finally, Wall Street Zen downgraded shares of Warrior Met Coal from a "strong-buy" rating to a "buy" rating in a research report on Saturday. Four investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat, Warrior Met Coal presently has a consensus rating of "Moderate Buy" and an average target price of $104.33.

Insider Activity

In other news, CEO Walter J. Scheller sold 50,000 shares of the company's stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $105.00, for a total transaction of $5,250,000.00. Following the transaction, the chief executive officer owned 317,793 shares in the company, valued at approximately $33,368,265. This represents a 13.59% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Stephen Williams sold 4,800 shares of the firm's stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $104.23, for a total value of $500,304.00. Following the completion of the sale, the director owned 30,303 shares of the company's stock, valued at approximately $3,158,481.69. This represents a 13.67% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 104,800 shares of company stock worth $11,250,304 in the last quarter. Company insiders own 2.10% of the company's stock.

About Warrior Met Coal

Warrior Met Coal, Inc is a mining company focused on the production and export of high-quality metallurgical coal, also known as met coal. Its products are used primarily by steelmakers in the blast-furnace steelmaking process, where metallurgical coal is converted into coke to support the production of iron and steel.

The company operates underground coal mines and related processing facilities in the Brookwood coal-producing region of Alabama. Warrior Met Coal primarily produces premium hard coking coal and sells its products to customers in international steel markets, serving regions that include Europe, Asia, and the Americas.

Warrior Met Coal was formed from the assets of Walter Energy after Walter Energy's bankruptcy and began operating as an independent public company in 2016.

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