Warrior Met Coal (NYSE:HCC) Announces Earnings Results

Key Points

• Warrior Met Coal beat quarterly expectations: EPS was $1.65 versus the $1.40 consensus, while revenue reached $509.69 million, up 71.3% year over year.
• Blue Creek drove strong operational growth: Sales volume rose 65% to a record 3.7 million short tons, adjusted EBITDA increased 193% to $157 million, and the company generated $103 million in free cash flow. Management also raised full-year production and sales guidance by 500,000 tons, including 5 million tons of Blue Creek sales.
• Second-half risks remain: Range-bound coking coal prices, higher freight and demurrage costs, and expected inflation in materials, supplies, and fuel could pressure net selling prices, profitability, and free cash flow.

Warrior Met Coal (NYSE:HCC - Get Free Report) released its quarterly earnings data on Wednesday. The company reported $1.65 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.40 by $0.25, FiscalAI reports. Warrior Met Coal had a return on equity of 6.44% and a net margin of 9.36%.The firm had revenue of $509.69 million during the quarter, compared to analyst estimates of $488.46 million. During the same period in the prior year, the company posted $0.11 earnings per share. The business's revenue for the quarter was up 71.3% compared to the same quarter last year.

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

• Blue Creek drove a major earnings inflection: Second-quarter sales volume rose 65% year over year to a record 3.7 million short tons, while adjusted EBITDA increased 193% to $157 million and adjusted EBITDA margin expanded to 31%.
• Warrior generated $103 million of free cash flow in the quarter, bringing first-half free cash flow to positive $11 million after completing Blue Creek development spending. Management said the shift toward cash generation could support increased shareholder returns, including potential buybacks.
• The company raised full-year 2026 production and sales guidance by 0.5 million tons, including 5 million tons of Blue Creek sales, 90% of which is already contracted; management continues to target maximizing the mine’s production capacity over time.
• Management expects coking coal prices to remain range-bound below the supply-driven highs seen earlier in 2026, with suppressed second-tier relativities and elevated freight and demurrage costs potentially pressuring second-half net selling prices, profitability, and free cash flow.
• Although Blue Creek is lowering unit costs, the company anticipates several dollars per ton of possible cost inflation in the second half from materials, supplies, and fuel, while recurring 2026 capital expenditures are expected at roughly $130 million to $150 million including Blue Creek.

Warrior Met Coal Trading Up 3.7%

NYSE:HCC traded up $3.04 during trading hours on Wednesday, hitting $84.54. 825,097 shares of the stock were exchanged, compared to its average volume of 652,379. The company has a market capitalization of $4.46 billion, a P/E ratio of 32.27 and a beta of 0.65. The company has a quick ratio of 2.42, a current ratio of 3.48 and a debt-to-equity ratio of 0.11. The company's 50 day moving average is $87.03 and its two-hundred day moving average is $88.13. Warrior Met Coal has a twelve month low of $53.03 and a twelve month high of $110.39.

Warrior Met Coal Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Monday, August 17th. Shareholders of record on Monday, August 10th will be issued a dividend of $0.08 per share. The ex-dividend date of this dividend is Monday, August 10th. This represents a $0.32 annualized dividend and a yield of 0.4%. Warrior Met Coal's dividend payout ratio is currently 12.21%.

Wall Street Analyst Weigh In

HCC has been the topic of a number of recent analyst reports. Citigroup restated a "buy" rating on shares of Warrior Met Coal in a research report on Wednesday, June 10th. Wall Street Zen cut Warrior Met Coal from a "buy" rating to a "hold" rating in a report on Saturday, July 18th. UBS Group reduced their price objective on Warrior Met Coal from $102.00 to $100.00 and set a "buy" rating on the stock in a research note on Tuesday, June 30th. Weiss Ratings cut Warrior Met Coal from a "hold (c+)" rating to a "hold (c)" rating in a report on Tuesday, June 30th. Finally, B. Riley Financial raised their target price on Warrior Met Coal from $117.00 to $123.00 and gave the company a "buy" rating in a research note on Wednesday, June 10th. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $103.00.

Insider Activity at Warrior Met Coal

In other news, insider Kelli K. Gant sold 20,000 shares of Warrior Met Coal stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $110.00, for a total value of $2,200,000.00. Following the completion of the sale, the insider directly owned 67,775 shares of the company's stock, valued at approximately $7,455,250. This trade represents a 22.79% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 2.10% of the company's stock.

Hedge Funds Weigh In On Warrior Met Coal

Several large investors have recently made changes to their positions in the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in Warrior Met Coal by 4.6% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 30,860 shares of the company's stock worth $1,473,000 after purchasing an additional 1,351 shares during the period. Intech Investment Management LLC lifted its position in Warrior Met Coal by 14.6% during the 1st quarter. Intech Investment Management LLC now owns 34,812 shares of the company's stock valued at $1,661,000 after purchasing an additional 4,441 shares during the period. Hsbc Holdings PLC lifted its position in Warrior Met Coal by 7.7% during the 2nd quarter. Hsbc Holdings PLC now owns 6,479 shares of the company's stock valued at $300,000 after purchasing an additional 464 shares during the period. EverSource Wealth Advisors LLC boosted its stake in shares of Warrior Met Coal by 217.2% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 682 shares of the company's stock valued at $31,000 after purchasing an additional 467 shares during the last quarter. Finally, Marshall Wace LLP boosted its stake in shares of Warrior Met Coal by 75.1% in the 2nd quarter. Marshall Wace LLP now owns 10,085 shares of the company's stock valued at $462,000 after purchasing an additional 4,324 shares during the last quarter. Institutional investors and hedge funds own 92.28% of the company's stock.

About Warrior Met Coal

Warrior Met Coal NYSE: HCC is a leading producer of premium metallurgical coal, operating deep underground mining complexes in Central Alabama's Blue Creek and Brookwood mining districts. The company focuses exclusively on the extraction and sale of high-grade hard coking coal, a critical raw material used in steel production. Its mining operations harness longwall mining technology and rigorous safety protocols to deliver consistent coal quality to customers worldwide.

Warrior Met Coal's product portfolio centers on premium hard coking coal, semisoft coking coal, and pulverized coal injection (PCI) products.

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