Alpha (AMR) Q1 2026 Earnings Call TranscriptMay 8, 2026
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DATE
Friday, May 8, 2026 at 10:00 a.m. ET
CALL PARTICIPANTS
Chief Executive Officer — Andy Eidson Chief Financial Officer — J. Todd Munsey President — Daniel E. Horn Chief Operating Officer — Jason E. Whitehead
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Full Conference Call Transcript
Andy Eidson: Given this and since we expect improved operational performance in both coal volumes and cost of coal sales for the balance of 2026, we believe it is still possible to finish the year within the top end of our existing cost guidance range of $95 to $101 per ton. However, if the Iranian conflict and its resulting inflationary impacts persist, we will likely adjust our cost guidance upward. Our realizations improved quarter over quarter largely due to increases in the low-vol indexes that occurred in recent months due to supply-related issues from flooding in Australia. However, there are historically unusual divergences within the indexes that have either persisted or gotten more pronounced in recent weeks.
Within low-vol pricing, the Australian PLV is currently $45 per metric ton higher, or 23% more, than the U.S. East Coast Low Vol Index. And of particular importance to us and our portfolio, there is a further $36 per ton gap down from the U.S. East Coast Low Vol to the U.S. East Coast High Vol A, another difference of 23%. The U.S. East Coast spread from Low Vol to High Vol A is likely related to how oversupplied the market for high vol has become with additional tons recently brought to market in an already weak environment.
We continually evaluate the productive capacity of our portfolio alongside the needs of the market, both in the near future and from a longer-term perspective. We are watching to see if either of those index spreads tie into a more normalized level or if the divergence persists. Across the organization, our employees are working hard to maintain safe, efficient operations despite the external headwinds we are facing. Within the first quarter, many Alpha Metallurgical Resources, Inc. teams received third-party recognition for exceptional work in the areas of operational safety, mine rescue, environmental stewardship, and reclamation. I commend each of our team members who make positive contributions through their work every day.
Our sales team also tackled a difficult challenge by successfully planning for and mitigating the potential disruption of a four-week outage in March at Dominion Terminal. They diligently worked to keep as much Alpha Metallurgical Resources, Inc. coal moving as possible both before and after the downtime, while strategically utilizing our Hampton Roads terminal capacity beyond DTA. We are grateful to all of our partners for helping us overcome these challenges, and we are especially appreciative of the DTA team for their work to do so many equipment maintenance tasks and upgrades in such a short time. With that, I will turn the call over to Todd for a review of our first quarter financial results.
Story Continues
J. Todd Munsey: Thanks, Andy. Adjusted EBITDA for the first quarter was $30 million, up from $28.5 million in 2025. We sold 3.6 million tons in Q1, down from 3.8 million tons. Met segment realizations increased quarter over quarter with an average realization of $124.39 in the first quarter, up from $115.31 in Q4. Export met tons priced against Atlantic indices and other pricing mechanisms in the first quarter realized $110.32 per ton, while export coal priced on Australian indices realized $144.09 per ton. These results are compared to realizations of $106.01 per ton and $114.96 per ton, respectively, in the fourth quarter.
Realization for our metallurgical sales in the first quarter was a total weighted average of $128.40 per ton, up from $118.10 per ton in Q4. Realizations in the incidental thermal portion of the met segment decreased to $69.41 per ton in the first quarter, down from $77.80 per ton in Q4. Cost of coal sales for our met segment increased to $107.98 per ton in Q1, up from $101.43 per ton in the fourth quarter. Alongside lower productive volumes for the quarter, higher diesel and other supply and repair costs were the primary drivers of the quarter-over-quarter cost increase.
For the first quarter, SG&A, excluding noncash stock compensation and nonrecurring items, increased to $13.5 million as compared to $10.9 million in the fourth quarter. Moving to the balance sheet and cash flows. As of March 31, 2026, Alpha Metallurgical Resources, Inc. had $317.2 million in unrestricted cash and $49.6 million in short-term investments as compared to $366.0 million of unrestricted cash and $49.6 million in short-term investments as of December 31, 2025. There was $184.3 million in unused availability under our ABL at the end of the first quarter, partially offset by a minimum required liquidity of $75 million. As of March, Alpha Metallurgical Resources, Inc. had total liquidity of $476.2 million, down from $524.3 million at December.
CapEx for the first quarter was $40.7 million, up from $29.0 million in Q4. Cash provided by operating activities was $29.0 million in the first quarter, up from $19.0 million in the fourth quarter. As of March 31, 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, 48% of our metallurgical tonnage in the met segment is committed and priced at an average price of $132.03 per ton. Another 43% 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 $74.53 per ton. From a market perspective, geopolitical and weather-related supply issues influenced metallurgical coal markets in 2026, with the war in Iran causing increased volatility in the energy sector. While not directly linked to war-related electricity generation and power concerns, metallurgical coal markets also moved during the quarter with modest increases across the met coal quality spectrum. Of the four indices Alpha Metallurgical Resources, Inc. closely monitors, the Australian Premium Low Vol Index represents the largest quarterly increase of 8.6%.
The Aussie PLV index increased from $218 per metric ton on January 2 to $236.80 per metric ton on March 31, 2026. The U.S. East Coast Low Vol Index rose from $185 per metric ton in early January to $195 per metric ton by March. The U.S. East Coast High Vol A index increased from $150.5 per metric ton at the beginning of the quarter to $159.5 per metric ton at the quarter's close. And the U.S. East Coast High Vol B index increased from $144.2 per metric ton to $149.5 per metric ton at the end of the quarter.
Since then, the Australian PLV index has increased to $239.8 per metric ton as of May 7, 2026, while the U.S. East Coast Low Vol is at $195 per ton, exactly the same as at quarter end. U.S. East Coast High Vol A and High Vol B indices are also largely unchanged from quarter close at $159 and $149 per ton, respectively, as of May 7, 2026. In the seaborne thermal market, the API2 index was $95.5 per metric ton in January and increased to $125.75 per metric ton in March. Since then, the API2 index has dropped to $111.5 per metric ton as of May 7, 2026.
With that, operator, we are now ready to open the call for questions.
Operator: We will now open the call for questions. At this time, we will be conducting a question and answer session. Our first question comes from Nick Giles with B. Riley. Your line is now live.
Nick Giles: Yes. Thank you, operator. Good morning, everyone. Obviously, some higher costs in Q1 and some of it, or a lot of it, outside of your control. I was just hoping to get some more color on just kind of cost cadence starting here in Q2, just with diesel prices remaining elevated here and now. How much of that cost pressure kind of carries over into Q2? And what should we really be roughly penciling in for the quarter? Thanks. And maybe on the other side, realizations moved up. It is nice to see. Just was curious on are there any opportunities to shift more tons to kind of an Aussie-linked basis?
What kind of incremental opportunities are you seeing in South Asia, maybe as Australian supply, especially for higher-quality met, remains tight? Thanks. And maybe a last one for me is just what are you seeing in Central App in terms of some of your competitors out there? Are you seeing any production that could come back? Just an update more broadly on kind of the surrounding production areas would be helpful.
Andy Eidson: Hey, Nick. I do not want to guide too early because we are only partway through the quarter. I think diesel contributed a couple of dollars a ton of the cost pressure. Of course, that was just really a late February–March impact. So it will look like we will see a full quarter's impact of it, so you could see a little bit more than that. And also, that is the direct diesel cost.
The piece that you do not see that is buried is diesel impacts delivery cost of pretty much everything that we buy, and so you are going to see the indirect portion of that coming through supplies and maintenance, which we have also seen a step up there as well. We do expect, just from increased productive activity during the quarter compared to the first quarter, we should see some of that cost getting spread over more tons, particularly our fixed cost spread. So I do expect it to be coming down from Q1, but it is a little bit too early to tell the quantum on that.
Daniel E. Horn: Hey, Nick. This is Dan. On your question about shifting to Aussie-linked pricing and opportunities in Asia, I think the short answer is yes to the extent that we have some medium-vol and low-vol coals that we can place into the Asian markets. The landscape for high vol coals into Asia is pretty tough right now. You are essentially matching the lowest price the competitor throws out that day. So even if it is linked to the Aussie index, it is discounted pretty heavily. We are pretty selective on which opportunities we pursue. It is not so much about the indexes; it is about the ultimate price and the netback to our coal mines.
But I think there is some upside as demand increases, and if the Aussie production for the higher-quality coals remains a little bit short, there are opportunities.
Andy Eidson: Yeah. Nick, I will take your Central App question first, and I will ask Dan to jump in if he has anything additional. We obviously have seen some tons coming offline really earlier in Q1, but as the quarter has gone on, it has been some smaller incremental batches. I do not think it is anything that is terribly needle moving thus far. I think the quantum has been less than what is required to fill some of the gaps in the supply and demand situation. Dan, any thoughts on that?
Daniel E. Horn: No, I think you said it well, Andy. I mean, you look at today versus where we were a couple of years ago, there is probably something like 11 million tons of new longwall high vol production that is in the marketplace, and the round numbers of how many tons have come out of Central App is probably 1 million to 2 million, somewhere in that range. So still a pretty good imbalance. Global demand for the use of high vol coals is something less than it was a couple of years ago too. So as demand improves, that will help somewhat with the rebalancing.
Nick Giles: Got it. Understood. Okay. Well, thanks, guys, and best of luck.
Operator: Our next question comes from Nathan Martin with The Benchmark Company. Please proceed with your question.
Nathan Martin: Thanks, operator. Good morning, everyone. I think it would be helpful to get some thoughts on shipping cadence for the balance of the year. I think, Andy, you said you expect Q2 to improve for the reasons we already talked about. Does that get made up mainly in Q2, or do you kind of expect those tons to be spread out in subsequent quarters? And then maybe, Dan, obviously freight rates elevated post the start of the conflict in the Middle East. I believe you guys have traditionally sold very little based on CFR prices. Is that still true? And then, the spot market maybe a little bit quiet—you just mentioned High Vol especially.
What do you think needs to happen for things to pick up there?
Andy Eidson: Hey, Nate. I would expect—because normally we have a bit of a bell curve during a regular year where Q1 and Q4 are going to be your lightest quarters, and Q2 and Q3 through the summer have your best shipments—I think it will probably look similar to that this year. I do think most of the makeup, where it happens, will happen in the middle two quarters. And then we will probably start tailing off a little bit as we get to the end of the year with the holidays and that kind of stuff. So it is going to look like a normal year; it is just a little bit steeper curve from Q1 into Q3.
Daniel E. Horn: Yes, on the freight, you are correct. Most of our business is FOB vessel. To the extent we do some chartering, we have seen freight increase—pick a number—around a 40% increase in the freight rates. To the extent that coal travels halfway around the world to South Asia and places like that, that is a pretty significant hit. And the impact of that is some of that freight will be shared between the buyer and the seller. It is not necessarily all passed over, particularly on new business. If you are chasing new spot business, freight is absolutely a factor, as opposed to a term contract where you have a set price.
In that instance, the freight responsibility shifts to the buyer. As to what has to happen for the spot market to pick up, like I mentioned to Nick, I think we have to see some demand improvement and some continued supply discipline. We are more oversupplied than we have seen in a while. We have seen it before in the marketplace, but at this moment in time, it is a pretty significant hill to climb for most of the U.S. producers here.
Nathan Martin: And then maybe the 3.1 million tons of export met that you guys have committed and priced—can you give us an idea of that mix by quality? And could we get an update on Kingston Wildcat? Maybe from Jason? It seems like those tons coming online may be opportune timing given the wide relativities we are seeing between premium low vol and high vol.
Daniel E. Horn: It is primarily high vols and mid vols with a little low vol thrown in there. We do not give an exact breakdown. I will point out, and kind of to your question on the ship cadence too, as the Wildcat mine—our low-vol mine—ramps during the year, that mix will include, we expect, more low vol going into that mix. I cannot quantify it any more than that, but our long-term strategy was to put more of the high-rank, higher-quality coke strength coals into our portfolio. That should continue this year and next.
Jason E. Whitehead: Sure. Good morning. The Wildcat mine is on coal and there are tons coming out of the mine. They are still in the development phases, but we actually plan for that to conclude here in Q2, and in Q3 and Q4 we actually see a ramp of production coming out of the mine.
Operator: Our next question comes from Matthew Key with Texas Capital Securities. Please proceed with your question.
Matthew Key: Good morning, everyone, and thanks for taking my questions. Kind of piggybacking off of the diesel discussions, I was wondering if you could provide a sensitivity to diesel pricing that we could use as a general rule of thumb moving forward? And is there anything that the company could do to manage some of these inflationary cost pressures? Do you currently do any diesel hedging, and would that be something you would consider in the future?
Andy Eidson: That is a tough one, Matt, as far as knowing that off the top of my head. I am looking at Todd right now to see if he has some viewpoints on that.
J. Todd Munsey: Yes, Matt. In a typical year, we use about 22 million to 23 million gallons of diesel. If you think about the balance of the year, with the movement we have had in diesel prices—and to the point Andy made earlier—the diesel we use, we expect that to be a couple of bucks influence on the cost. But then there are also the surcharges and whatnot that will flow through from transportation-related costs. Hopefully that helps a little bit as you think about the balance of the year. Obviously, we all hope that issue goes away, but if not, that is kind of how we think about it.
Andy Eidson: Yes. Historically, we have done some, not necessarily diesel hedging, but buying forwards through our diesel providers to lock in pricing around budget time. We have done that some of the past three to four years. Most of the time, it has actually gone upside down on us. This year, of course, happens to be the one where we chose not to do those forwards because back in August and September, who could have seen this coming.
But it is something that we are discussing actively simply because the world seems to be getting more and more politically volatile, to a degree where it may require locking in as many of your inputs as possible whenever you have the opportunity, just because things do seem to be changing at a pace that is faster than the world can actually keep up with.
Matthew Key: Got it. That is super helpful. I will stop there. Appreciate the time, and best of luck.
Operator: Our next question comes from Analyst with Jefferies. Please proceed with your question.
Analyst: Hey, guys. Thanks. It is Chris Lafemina from Jefferies here. Just wanted to go back to the market. We are all kind of waiting for the high vol discounts to narrow, and this has been an issue for quite a long time. Now we have iron ore prices rising, energy prices globally rising, premium low-vol met coal prices strengthening pretty materially, global steel markets appear to be okay, but the high vol discount is widening. I am wondering if something else is going on.
I understand the point about there being quite a bit of high vol supply that has come online, but I would have thought, if anything, that would have brought the premium low vol price down rather than just result in a wider spread. So is there anything else going on in that market that is more structurally problematic, or is this purely a short-term cyclical issue that we should expect to resolve? And if it is a cyclical issue, why has it not resolved yet? It has been going on for quite an extended period of time, and the spreads have been wider than we have ever seen and do not seem to be reversing at all.
Just trying to figure out what is going on there. Thanks.
Daniel E. Horn: Chris, this is Dan. I will try to unpack that a little bit. The PLV is its own creature. It is an index that follows primarily Australian coals. We use it; we link our higher-quality low vols and medium vols to that index. We do believe that the U.S. East Coast Low Vol Index is too far below the Aussie index. When there is a shortage of Australian PLV, we get phone calls and we—U.S. producers that produce low vol—ship our coal to replace that PLV. So we believe that the gap between East Coast Low Vol and PLV is too wide, to your point. The high vol coals are used differently.
They do not contribute to the coke strength; they are used for plastic properties and, arguably at times, just as a cheap filler. They move differently, but they have been depressed, and again, I think that is more of just old-fashioned supply and demand working on that. Buyers are trying—when they see the potential for low price or big discounts, they will adjust their blends to try to buy more of that. I think they will run into the ocean freight issue—that those tons of coal that have to go halfway around the world at a high freight number are not going to travel well if they are low-value coals.
I would not lump all that together the way you did; I think you have to break that apart.
Andy Eidson: And, Chris, this is Andy. If I could add one more piece to that. The differential between East Coast High Vol A and East Coast Low Vol is somewhat of a recent phenomenon. If you go back to the first of 2025, that differential was only $5. Now it has climbed to $38. And so I do think that is pretty directly attributable to all the new tonnage that has come online, both in Northern Appalachia and in Alabama, just hitting a market that is having trouble absorbing it.
Analyst: Understood. Thanks a lot for that. Appreciate it. Good luck.
Operator: We have a follow-up question from Nick Giles with B. Riley. Please proceed with your question.
Nick Giles: Yes, thanks for taking my follow-up. Just wanted to ask more broadly—we had the Presidential Memorandum Section 303 a few weeks back in April, and I wanted to ask if this has really translated to your business or if you could expect to see any benefit or funding from these actions by the administration. I think maybe some of this is more related to the thermal side; they call out baseload power generation explicitly, but even export terminals are mentioned. So could DTA, for instance, be a candidate for some sort of government support? Thanks.
Andy Eidson: Yeah, that one is still developing, as with most of these executive orders and other proclamations going back into last fall. A lot of the details are still developing real time. We are involved to a high degree with the federal government on evaluating the different programs and seeing what is out there. From what we have seen thus far, it does seem that it is mostly thermal-focused. There are some smaller areas where there may be some benefit, but as of yet, I do not think we are seeing anything that is hugely material to what we are doing right now.
Fingers crossed that some of it translates to bigger benefit on the met side of the house, but I am not sure we have seen anything in that regard yet.
Operator: We have reached the end of the question and answer session. I would now turn the call over to Andy Eidson for closing remarks.
Andy Eidson: Yes. We appreciate everyone joining us this morning for the earnings call, and we hope everyone has a great weekend. Thank you.
Operator: This concludes today's conference. You may disconnect your lines at this time, and we thank you for your participation.
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Alpha (AMR) Q1 2026 Earnings Call Transcript was originally published by The Motley Fool
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Alpha Releases First Quarter 2026 Financial ResultsMay 8, 2026
Reports first quarter net loss of $11.0 million Posts Adjusted EBITDA of $30.0 million for the quarter
BRISTOL, Tenn., May 8, 2026 /PRNewswire/ -- Alpha Metallurgical Resources, Inc. (NYSE: AMR), a leading U.S. supplier of metallurgical products for the steel industry, today reported financial results for the first quarter ending March 31, 2026.(PRNewsfoto/Alpha Metallurgical Resources, Inc.)
(millions, except per share) Three months ended Mar. 31, 2026 Dec. 31, 2025 Mar. 31, 2025 Net loss ($11.0) ($17.3) ($33.9) Net loss per diluted share ($0.86) ($1.34) ($2.60) Adjusted EBITDA(1) $30.0 $28.5 $5.7 Operating cash flow $29.0 $19.0 $22.2 Capital expenditures ($40.7) ($29.0) ($38.5) Tons of coal sold 3.6 3.8 3.8
__________________________________ 1. This is a non-GAAP financial measure. A reconciliation of Net Loss to Adjusted EBITDA is included in tables accompanying the financial schedules.
"Our results for the first quarter 2026 were driven by lower volumes and higher costs," said Andy Eidson, Alpha's chief executive officer. "While we anticipated a slower shipping quarter in connection with planned outages at Dominion Terminal Associates, we experienced a greater-than-expected impact on costs in Q1 as a result of war-related increases to diesel and other supply prices, which we hope will be temporary. Therefore, we are maintaining our cost of coal sales guidance range for the year with the expectation of better cost performance in subsequent quarters. If the Iran conflict persists throughout the year, we expect the resulting impact on diesel and supply costs would require us to revise our cost of coal sales guidance range upward."
Financial Performance
Alpha reported a net loss of $11.0 million, or $0.86 per diluted share, for the first quarter 2026, as compared to net loss of $17.3 million, or $1.34 per diluted share, in the fourth quarter 2025.
Total Adjusted EBITDA was $30 million for the first quarter, compared to $28.5 million in the fourth quarter 2025.
Coal Revenues
(millions) Three months ended Mar. 31, 2026 Dec. 31, 2025 Met segment $523.5 $519.1 Met segment (excl. freight & handling)(1) $447.3 $436.3 Tons Sold (millions) Three months ended Mar. 31, 2026 Dec. 31, 2025 Met segment 3.6 3.8
__________________________________ 1. Represents Non-GAAP coal revenues which is defined and reconciled under "Non-GAAP Financial Measures" and "Results of Operations."
Coal Sales Realization(1)
(per ton) Three months ended Mar. 31, 2026 Dec. 31, 2025 Met segment $124.39 $115.31
__________________________________ 1. Represents Non-GAAP coal sales realization which is defined and reconciled under "Non-GAAP Financial Measures" and "Results of Operations."
First quarter net realized pricing for the Met segment was $124.39 per ton.
Story Continues
The table below provides a breakdown of our Met segment coal sold in the first quarter by pricing mechanism.
(in millions, except per ton data) Met Segment Sales Three months ended Mar. 31, 2026 Tons Sold Coal Revenues Realization/ton(1) % of Met Tons
Sold Domestic 0.8 $111.1 $137.27 24 % Export - Australian indexed 1.1 $162.3 $144.95 33 % Export - other pricing mechanisms 1.4 $157.0 $110.32 43 % Total Met coal revenues 3.4 $430.4 $128.40 100 % Thermal coal revenues 0.2 $16.9 $69.41 Total Met segment coal revenues
(excl. freight & handling)(1) 3.6 $447.3 $124.39
__________________________________ 1. Represents Non-GAAP coal sales realization which is defined and reconciled under "Non-GAAP Financial Measures" and "Results of Operations."
Cost of Coal Sales
(in millions, except per ton data) Three months ended Mar. 31, 2026 Dec. 31, 2025 Met segment $474.4 $478.5 Met segment (excl. freight & handling/idle)(1) $388.3 $383.8 (per ton) Met segment(1) $107.98 $101.43
__________________________________ 1. Represents Non-GAAP cost of coal sales and Non-GAAP cost of coal sales per ton which is defined and reconciled under "Non-GAAP Financial Measures" and "Results of Operations."
Alpha's Met segment cost of coal sales increased to an average of $107.98 per ton in the first quarter, compared to $101.43 per ton in the fourth quarter 2025. Higher diesel and other supply costs were the primary contributors to the increase in costs.
Liquidity and Capital Resources
Cash provided by operating activities in the first quarter increased to $29.0 million as compared to $19.0 million in the fourth quarter 2025. Capital expenditures for the first quarter were $40.7 million compared to $29.0 million for the fourth quarter 2025.
As of March 31, 2026, the company had total liquidity of $476.2 million, including cash and cash equivalents of $317.2 million, short-term investments of $49.6 million, and $184.3 million of unused availability under the asset-based revolving credit facility (ABL), partially offset by a minimum required liquidity of $75.0 million as required by the ABL. As of March 31, 2026, the company had no borrowings and $40.7 million in letters of credit outstanding under the ABL. Total long-term debt, including the current portion of long-term debt as of March 31, 2026, was $12.2 million.
Share Repurchase Program
As previously announced, Alpha's board of directors authorized a share repurchase program allowing for the expenditure of up to $1.5 billion for the repurchase of the company's common stock. As of April 30, 2026, the company had acquired approximately 7.0 million shares of common stock at a cost of approximately $1.2 billion, or approximately $166.18 per share. The number of common stock shares outstanding as of April 30, 2026 was 12,714,624, not including the potential effect of unvested equity awards.
The timing and amount of share repurchases will be based on various factors, including but not limited to market conditions, the trading price of the stock, applicable legal requirements, compliance with the provisions of the company's debt agreements, and other factors.
Results of Alpha's 2026 Annual Meeting of Stockholders
The company's annual meeting of stockholders was held on May 6, 2026, and stockholders re-elected all six members of Alpha's board of directors to additional one-year terms and approved all other items proposed by the board for consideration at the meeting. The complete voting results from the annual meeting have been filed with the Securities and Exchange Commission on Form 8-K.
2026 Operational Performance Update
As of April 29, 2026, Alpha has committed and priced approximately 48% of its metallurgical coal for 2026 at an average price of $132.37 per ton. At the midpoint of guidance, Alpha's thermal coal is fully committed for the year at an average price of $74.53 per ton.
2026 Guidance in millions of tons Low High Metallurgical 14.4 15.4 Thermal 0.7 1.1 Met segment - total shipments 15.1 16.5 Committed/Priced1,2,3 Committed Volume (in millions of
tons) Average Price Metallurgical - domestic 4.1 $136.38 Metallurgical - export 3.1 $127.02 Metallurgical total 48 % 7.2 $132.37 Thermal 100 % 1.2 $74.53 Met segment 53 % 8.4 $124.37 Committed/Unpriced1,3 Committed Metallurgical total 43 % Thermal — % Met segment 40 % Costs per ton4 Low High Met segment $95.00 $101.00 In millions (except taxes) Low High SG&A5 $53 $59 Idle operations expense $24 $32 Net cash interest income $2 $6 DD&A $160 $174 Capital expenditures $148 $168 Capital contributions to equity affiliates6 $35 $45 Cash tax rate 0 % 5 %
Notes: 1. Based on committed and priced coal shipments as of April 29, 2026. Committed percentage based on the midpoint of shipment guidance range. 2. Actual average per-ton realizations on committed and priced tons recognized in future periods may vary based on actual freight expense in future periods relative to assumed freight expense embedded in projected average per-ton realizations. 3. Includes estimates of future coal shipments based upon contract terms and anticipated delivery schedules. Actual coal shipments may vary from these estimates. 4. Note: The Company is unable to present a quantitative reconciliation of its forward-looking non-GAAP cost of coal sales per ton sold financial measures to the most directly comparable GAAP measures without unreasonable efforts due to the inherent difficulty in forecasting and quantifying with reasonable accuracy significant items required for the reconciliation. The most directly comparable GAAP measure, GAAP cost of sales, is not accessible without unreasonable efforts on a forward-looking basis. The reconciling items include freight and handling costs, which are a component of GAAP cost of sales. Management is unable to predict without unreasonable efforts freight and handling costs due to uncertainty as to the end market and FOB point for uncommitted sales volumes and the final shipping point for export shipments. These amounts have varied historically and may continue to vary significantly from quarter to quarter and material changes to these items could have a significant effect on our future GAAP results. 5. Excludes expenses related to non-cash stock compensation and non-recurring expenses. 6. Includes contributions to fund normal operations at our DTA export facility and expected capital investments related to the facility upgrades.
Conference Call
The company plans to hold a conference call regarding its first quarter results on May 8, 2026, at 10:00 a.m. Eastern time. The conference call will be available live on the investor section of the company's website at https://alphametresources.com/investors. Analysts who would like to participate in the conference call should dial 877-407-0832 (domestic toll-free) or 201-689-8433 (international) approximately 15 minutes prior to start time.
About Alpha Metallurgical Resources
Alpha Metallurgical Resources (NYSE: AMR) is a Tennessee-based mining company with operations across Virginia and West Virginia. With customers across the globe, high-quality reserves and significant port capacity, Alpha reliably supplies metallurgical products to the steel industry. For more information, visit www.AlphaMetResources.com.
Forward-Looking Statements
This news release includes forward-looking statements. These forward-looking statements are based on Alpha's expectations and beliefs concerning future events and involve risks and uncertainties that may cause actual results to differ materially from current expectations. These factors are difficult to predict accurately and may be beyond Alpha's control. Forward-looking statements in this news release or elsewhere speak only as of the date made. New uncertainties and risks arise from time to time, and it is impossible for Alpha to predict these events or how they may affect Alpha. Except as required by law, Alpha has no duty to, and does not intend to, update or revise the forward-looking statements in this news release or elsewhere after the date this release is issued. In light of these risks and uncertainties, investors should keep in mind that results, events or developments discussed in any forward-looking statement made in this news release may not occur. See Alpha's filings with the U.S. Securities and Exchange Commission for more information.
FINANCIAL TABLES FOLLOW
Non-GAAP Financial Measures
The discussion below contains "non-GAAP financial measures." These are financial measures that either exclude or include amounts that are not excluded or included in the most directly comparable measures calculated and presented in accordance with generally accepted accounting principles in the United States ("U.S. GAAP" or "GAAP"). Specifically, we make use of the non-GAAP financial measures "Adjusted EBITDA," "non-GAAP coal revenues," "non-GAAP coal sales realization per ton," "non-GAAP cost of coal sales," "non-GAAP cost of coal sales per ton," "non-GAAP coal margin," and "non-GAAP coal margin per ton." In addition to net income (loss), we use Adjusted EBITDA to measure the operating performance of our reportable segment. Adjusted EBITDA does not purport to be an alternative to net income (loss) as a measure of operating performance or any other measure of operating results, financial performance, or liquidity presented in accordance with GAAP. Moreover, this measure is not calculated identically by all companies and therefore may not be comparable to similarly titled measures used by other companies. Adjusted EBITDA is presented because management believes it is a useful indicator of the financial performance of our coal operations. We use non-GAAP coal revenues to present coal revenues generated, excluding freight and handling fulfillment revenues. Non-GAAP coal sales realization per ton is calculated as non-GAAP coal revenues divided by tons sold. We use non-GAAP cost of coal sales to adjust cost of coal sales to remove freight and handling costs, depreciation, depletion and amortization - production (excluding the depreciation, depletion and amortization related to selling, general and administrative functions), accretion on asset retirement obligations, amortization of acquired intangibles, and idled and closed mine costs. Non-GAAP cost of coal sales per ton is calculated as non-GAAP cost of coal sales divided by tons sold. Non-GAAP coal margin is calculated as non-GAAP coal revenues less non-GAAP cost of coal sales. Non-GAAP coal margin per ton is calculated as non-GAAP coal margin divided by tons sold. The presentation of these measures should not be considered in isolation, or as a substitute for analysis of our results as reported under GAAP.
Management uses non-GAAP financial measures to supplement GAAP results to provide a more complete understanding of the factors and trends affecting the business than GAAP results alone. The definition of these non-GAAP measures may be changed periodically by management to adjust for significant items important to an understanding of operating trends and to adjust for items that may not reflect the trend of future results by excluding transactions that are not indicative of our core operating performance. Furthermore, analogous measures are used by industry analysts to evaluate our operating performance. Because not all companies use identical calculations, the presentations of these measures may not be comparable to other similarly titled measures of other companies and can differ significantly from company to company depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which companies operate, capital investments and other factors.
Included below are reconciliations of non-GAAP financial measures to GAAP financial measures.
ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Amounts in thousands, except share and per share data) Three Months Ended March 31, 2026 2025 Revenues: Coal revenues $ 523,533 $ 529,667 Other revenues 1,454 2,290 Total revenues 524,987 531,957 Costs and expenses: Cost of coal sales (exclusive of items shown separately below) 474,389 504,584 Depreciation, depletion and amortization 39,926 43,910 Accretion on asset retirement obligations 5,215 5,614 Amortization of acquired intangibles 876 1,357 Selling, general and administrative expenses (exclusive of
depreciation, depletion and amortization shown separately above) 16,598 15,424 Other operating (income) loss (1,585) 1,243 Total costs and expenses 535,419 572,132 Loss from operations (10,432) (40,175) Other (expense) income: Interest expense (841) (763) Interest income 4,206 4,046 Equity loss in affiliates (5,733) (4,960) Miscellaneous expense, net (3,558) (3,532) Total other expense, net (5,926) (5,209) Loss before income taxes (16,358) (45,384) Income tax benefit 5,326 11,437 Net loss $ (11,032) $ (33,947) Basic loss per common share $ (0.86) $ (2.60) Diluted loss per common share $ (0.86) $ (2.60) Weighted average shares – basic 12,800,037 13,047,607 Weighted average shares – diluted 12,800,037 13,047,607
ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Amounts in thousands, except share and per share data) March 31, 2026 December 31, 2025 Assets Current assets: Cash and cash equivalents $ 317,231 $ 365,974 Short-term investments 49,646 49,582 Trade accounts receivable, net of allowance for credit losses of $2,858 and $2,519
as of March 31, 2026 and December 31, 2025, respectively 302,136 278,620 Inventories, net 213,102 193,000 Prepaid expenses and other current assets 27,360 31,132 Total current assets 909,475 918,308 Property, plant, and equipment, net of accumulated depreciation and amortization
of $805,966 and $774,101 as of March 31, 2026 and December 31, 2025, respectively 625,145 621,866 Owned and leased mineral rights, net of accumulated depletion and amortization of
$157,070 and $150,616 as of March 31, 2026 and December 31, 2025, respectively 410,489 416,944 Other acquired intangibles, net of accumulated amortization of $43,948 and $43,072
as of March 31, 2026 and December 31, 2025, respectively 33,576 34,452 Long-term restricted cash 127,217 126,911 Long-term restricted investments 34,399 34,356 Deferred income taxes 8,210 8,087 Other non-current assets 133,926 119,702 Total assets $ 2,282,437 $ 2,280,626 Liabilities and Stockholders' Equity Current liabilities: Current portion of long-term debt $ 3,231 $ 3,575 Trade accounts payable 92,984 66,169 Accrued expenses and other current liabilities 151,772 135,778 Total current liabilities 247,987 205,522 Long-term debt 8,977 9,841 Workers' compensation and black lung obligations 189,527 190,965 Pension obligations 83,281 87,317 Asset retirement obligations 203,632 204,745 Deferred income taxes 10,711 15,433 Other non-current liabilities 21,367 21,308 Total liabilities 765,482 735,131 Commitments and Contingencies Stockholders' Equity Preferred stock - par value $0.01, 5,000,000 shares authorized, none issued — — Common stock - par value $0.01, 50,000,000 shares authorized, 22,494,813 issued
and 12,752,824 outstanding at March 31, 2026 and 22,437,379 issued and
12,805,909 outstanding at December 31, 2025 225 224 Additional paid-in capital 855,765 852,030 Accumulated other comprehensive loss (58,698) (60,433) Treasury stock, at cost: 9,741,989 shares at March 31, 2026 and 9,631,470 shares
at December 31, 2025 (1,364,022) (1,341,027) Retained earnings 2,083,685 2,094,701 Total stockholders' equity 1,516,955 1,545,495 Total liabilities and stockholders' equity $ 2,282,437 $ 2,280,626
ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Amounts in thousands) Three Months Ended March 31, 2026 2025 Operating activities: Net loss $ (11,032) $ (33,947) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation, depletion and amortization 39,926 43,910 Amortization of acquired intangibles 876 1,357 Gain on disposal of assets, net (2,053) (37) Accretion on asset retirement obligations 5,215 5,614 Employee benefit plans, net 6,266 5,618 Deferred tax benefit (5,329) (11,416) Stock-based compensation 3,736 3,437 Equity loss in affiliates 5,733 4,960 Other, net 2,476 135 Changes in operating assets and liabilities (16,768) 2,550 Net cash provided by operating activities 29,046 22,181 Investing activities: Capital expenditures (40,668) (38,450) Capital contributions to equity affiliates (13,403) (9,836) Purchases of investment securities (27,826) (14,663) Sales and maturities of investment securities 28,240 15,080 Other, net 62 94 Net cash used in investing activities (53,595) (47,775) Financing activities: Principal repayments of long-term debt (915) (822) Common stock repurchases and related expenses (22,901) (5,155) Other, net (72) (415) Net cash used in financing activities (23,888) (6,392) Net decrease in cash and cash equivalents and restricted cash (48,437) (31,986) Cash and cash equivalents and restricted cash at beginning of period 492,885 604,161 Cash and cash equivalents and restricted cash at end of period $ 444,448 $ 572,175 Supplemental disclosure of noncash investing and financing activities: Accrued capital expenditures $ 11,089 $ 10,785
The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Condensed Consolidated Statements of Cash Flows.
As of March 31, 2026 2025 Cash and cash equivalents $ 317,231 $ 447,990 Long-term restricted cash 127,217 124,185 Total cash and cash equivalents and restricted cash shown in the
Condensed Consolidated Statements of Cash Flows $ 444,448 $ 572,175
ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES ADJUSTED EBITDA RECONCILIATION (Amounts in thousands) Three Months Ended March 31, 2026 December 31, 2025 March 31, 2025 Net loss $ (11,032) $ (17,271) $ (33,947) Interest expense 841 730 763 Interest income (4,206) (3,273) (4,046) Income tax benefit (5,326) (9,757) (11,437) Depreciation, depletion and amortization 39,926 41,893 43,910 Non-cash stock compensation expense 3,736 3,193 3,437 Accretion on asset retirement obligations 5,215 5,501 5,614 Amortization of acquired intangibles 876 1,356 1,357 Non-recurring mine flood costs (1) — 6,098 — Adjusted EBITDA $ 30,030 $ 28,470 $ 5,651
(1) Non-recurring mine recovery and idle costs due to the water inundation at the Rolling Thunder mine in November 2025.
ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES RESULTS OF OPERATIONS Three Months Ended (In thousands, except for per ton data) March 31, 2026 December 31, 2025 March 31, 2025 Coal revenues $ 523,533 $ 519,060 $ 529,667 Less: freight and handling fulfillment revenues (76,214) (82,730) (83,924) Non-GAAP coal revenues $ 447,319 $ 436,330 $ 445,743 Non-GAAP coal sales realization per ton $ 124.39 $ 115.31 $ 118.61 Cost of coal sales (exclusive of items shown separately below) $ 474,389 $ 478,519 $ 504,584 Depreciation, depletion and amortization - production (1) 39,606 41,571 43,592 Accretion on asset retirement obligations 5,215 5,501 5,614 Amortization of acquired intangibles 876 1,356 1,357 Total cost of coal sales 520,086 526,947 555,147 Less: freight and handling costs (76,214) (82,730) (83,924) Less: depreciation, depletion and amortization - production (1) (39,606) (41,571) (43,592) Less: accretion on asset retirement obligations (5,215) (5,501) (5,614) Less: amortization of acquired intangibles (876) (1,356) (1,357) Less: idled and closed mine costs (9,872) (11,960) (5,991) Non-GAAP cost of coal sales $ 388,303 $ 383,829 $ 414,669 Non-GAAP cost of coal sales per ton $ 107.98 $ 101.43 $ 110.34 GAAP coal margin $ 3,447 $ (7,887) $ (25,480) GAAP coal margin per ton $ 0.96 $ (2.08) $ (6.78) Non-GAAP coal margin $ 59,016 $ 52,501 $ 31,074 Non-GAAP coal margin per ton $ 16.41 $ 13.87 $ 8.27 Tons sold 3,596 3,784 3,758
(1) Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.
Three Months Ended March 31, 2026 (In thousands, except for per ton data) Tons Sold Coal Revenues Non-GAAP
Coal sales
realization per
ton % of Met Tons
Sold Domestic 809 $ 111,053 $ 137.27 24 % Export - Australian indexed 1,120 162,348 $ 144.95 33 % Export - other pricing mechanisms 1,423 156,981 $ 110.32 43 % Total Met segment - met coal 3,352 430,382 $ 128.40 100 % Met segment - thermal coal 244 16,937 $ 69.41 Non-GAAP coal revenues 3,596 447,319 $ 124.39 Add: freight and handling fulfillment revenues — 76,214 Coal revenues 3,596 $ 523,533
INVESTOR & MEDIA CONTACT: EMILY O'QUINN
InvestorRelations@AlphaMetResources.com
CorporateCommunications@AlphaMetResources.com
(423) 573-0369Cision
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