Warrior Reports First Quarter 2026 Results
Sales and production volumes grow by 38% and 55%, respectively
Full year outlook and guidance reaffirmed
Warrior reported net income for the first quarter of 2026 of
First Quarter Highlights
-
Completed construction of the
Blue Creek mine with a final investment of$66.1 million , bringing total project spending to$1,022.9 million ;
- Achieved record quarterly sales volumes of 3.0 million short tons of steelmaking coal; and
-
Reduced cash cost of sales (free-on-board port) per short ton by 14% to
$96.17 from the year earlier period, driven primarily by the inherently lower cost structure ofBlue Creek and a benefit from the Section 45X Advanced Manufacturing Production Tax Credit (the “45X Credit”).
“The first quarter marked a defining milestone for Warrior as we completed the final project spending for the development of our transformational
As trade restrictions with
With our strong and low-cost assets now fully operational, and construction capital expenditures behind us, we are well positioned for the future,”
Operating Results
Sales volumes in the first quarter of 2026 were a record 3.0 million short tons compared to 2.2 million short tons in the first quarter of 2025, representing a 38% increase, driven primarily by sales of
The Company produced 3.5 million short tons of steelmaking coal in the first quarter of 2026, compared to 2.3 million short tons in the first quarter of 2025, representing a 55% increase. Inventory levels increased to 1.9 million short tons as of
Additional Financial Results
Total revenues were
Cost of sales for the first quarter of 2026 were
Depreciation and depletion expenses for the first quarter of 2026 were
Selling, general and administrative expenses for the first quarter of 2026 were
Net interest expense for the first quarter of 2026 were
Income tax expense was
Cash Flow and Liquidity
Cash used in operating activities in the first quarter of 2026 was
Cash used in investing activities for capital expenditures and mine development for the first quarter of 2026 was
Cash flows used in financing activities for the first quarter of 2026 were
The Company’s total liquidity as of
Capital Allocation
On
Company Outlook
The Company reaffirmed its guidance for the full year 2026. This guidance is subject to many risks that may impact performance, such as global trade and tariff uncertainties, market conditions in the steel and steelmaking coal industries and overall global economic and competitive conditions, all as more fully described under Forward-Looking Statements.
|
Coal sales |
12.5 - 13.5 million short tons |
|
Coal production |
12.0 - 13.0 million short tons |
|
Cash cost of sales (free-on-board port) |
|
|
Capital expenditures for sustaining existing mines |
|
|
Capital expenditures for |
|
|
Depreciation and depletion |
|
|
Selling, general and administrative expenses |
|
|
Interest expense |
|
|
Interest income |
|
Key factors that may affect the full year 2026 outlook include:
- four planned longwall moves (two in Q2, one in Q3, one in Q4);
- HCC index pricing, geography of sales and freight rates;
- global trade and tariff policies;
- exclusion of other non-recurring costs;
- new labor contract; and
- inflationary pressures.
The Company does not provide reconciliations of its outlook for cash cost of sales (free-on-board port) to cost of sales in reliance on the unreasonable efforts exception provided for under Item 10(e)(1)(i)(B) of Regulation S-K.
Use of Non-GAAP Financial Measures
This release contains the use of certain non-GAAP financial measures. These non-GAAP financial measures are provided as supplemental information for financial measures prepared in accordance with GAAP. Management believes that these non-GAAP financial measures provide additional insights into the performance of the Company, and they reflect how management analyzes Company performance and compares that performance against other companies. These non-GAAP financial measures may not be comparable to other similarly titled measures used by other entities. The definition of these non-GAAP financial measures and a reconciliation of non-GAAP to GAAP financial measures is provided in the financial tables section of this release.
Conference Call
The Company will hold a conference call to discuss its first quarter 2026 results today,
About Warrior
Warrior is a
Forward-Looking Statements
This press release contains, and the Company’s officers and representatives may from time to time make, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements, including statements regarding 2026 guidance, sales and production growth, ability to maintain cost structure, demand, pricing trends, management of liquidity, cash flows, expenses and expected capital expenditures, the Company's future ability to create value for stockholders, as well as statements regarding production, inflationary pressures, future production and profitability from
Any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, the Company does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for the Company to predict all such factors.
|
|
||||||||
|
|
|
For the three months ended |
|
|||||
|
|
|
2026 |
|
|
2025 |
|
||
|
Revenues: |
|
|
|
|
|
|
||
|
Sales |
|
$ |
448,469 |
|
|
$ |
294,933 |
|
|
Other revenues |
|
|
10,119 |
|
|
|
5,010 |
|
|
Total revenues |
|
|
458,588 |
|
|
|
299,943 |
|
|
Costs and expenses: |
|
|
|
|
|
|
||
|
Cost of sales (exclusive of items shown separately below) |
|
|
290,418 |
|
|
|
245,735 |
|
|
Cost of other revenues (exclusive of items shown separately below) |
|
|
8,330 |
|
|
|
7,873 |
|
|
Depreciation and depletion |
|
|
52,273 |
|
|
|
45,277 |
|
|
Selling, general and administrative |
|
|
28,199 |
|
|
|
18,442 |
|
|
Total costs and expenses |
|
|
379,220 |
|
|
|
317,327 |
|
|
Operating income (loss) |
|
|
79,368 |
|
|
|
(17,384 |
) |
|
Interest expense |
|
|
(3,171 |
) |
|
|
(2,107 |
) |
|
Interest income |
|
|
2,587 |
|
|
|
5,293 |
|
|
Income before income tax expense (benefit) |
|
|
78,784 |
|
|
|
(14,198 |
) |
|
Income tax expense (benefit) |
|
|
6,443 |
|
|
|
(6,030 |
) |
|
Net income (loss) |
|
$ |
72,341 |
|
|
$ |
(8,168 |
) |
|
Basic and diluted net income (loss) per share: |
|
|
|
|
|
|
||
|
Net income (loss) per share—basic |
|
$ |
1.37 |
|
|
$ |
(0.16 |
) |
|
Net income (loss) per share—diluted |
|
$ |
1.37 |
|
|
$ |
(0.16 |
) |
|
Weighted average number of shares outstanding—basic |
|
|
52,724 |
|
|
|
52,464 |
|
|
Weighted average number of shares outstanding—diluted |
|
|
52,760 |
|
|
|
52,464 |
|
|
Dividends per share: |
|
$ |
0.08 |
|
|
$ |
0.08 |
|
|
QUARTERLY SUPPLEMENTAL FINANCIAL DATA:
|
||||||||
|
(short tons in thousands)(1) |
|
For the three months ended |
|
|||||
|
|
|
2026 |
|
|
2025 |
|
||
|
Tons sold |
|
|
3,002 |
|
|
|
2,172 |
|
|
Tons produced |
|
|
3,498 |
|
|
|
2,254 |
|
|
Average net selling price |
|
$ |
149.39 |
|
|
$ |
135.79 |
|
|
Cash cost of sales (free-on-board port) per short ton(2) |
|
$ |
96.17 |
|
|
$ |
112.35 |
|
|
Cost of production % |
|
|
64 |
% |
|
|
66 |
% |
|
Transportation and royalties % |
|
|
39 |
% |
|
|
34 |
% |
|
Cash margin per ton(3) |
|
$ |
53.22 |
|
|
$ |
23.44 |
|
|
(1) 1 short ton is equivalent to 0.907185 metric tons. |
||||||||
|
RECONCILIATION OF CASH COST OF SALES (FREE-ON-BOARD PORT) TO COST OF SALES REPORTED UNDER
|
||||||||
|
(in thousands) |
|
For the three months ended |
|
|||||
|
|
|
2026 |
|
|
2025 |
|
||
|
Cost of sales |
|
$ |
290,418 |
|
|
$ |
245,735 |
|
|
Asset retirement obligation accretion |
|
|
(806 |
) |
|
|
(965 |
) |
|
Stock compensation expense |
|
|
(917 |
) |
|
|
(742 |
) |
|
Cash cost of sales (free-on-board port)(2) |
|
$ |
288,695 |
|
|
$ |
244,028 |
|
|
(2)
Cash cost of sales (free-on-board port) is based on reported cost of sales and includes items such as freight, royalties, labor, fuel and other similar production and sales cost items, and may be adjusted for other items that, pursuant to GAAP, are classified in the Condensed Statements of Operations as costs other than cost of sales, but relate directly to the costs incurred to produce met coal. Our cash cost of sales per short ton is calculated as cash cost of sales divided by the short tons sold. Cash cost of sales (free-on-board port) is a non-GAAP financial measure which is not calculated in conformity with (3) Cash margin per ton is defined as average net selling price less cash cost of sales (free-on-board port) per short ton. |
||||||||
|
RECONCILIATION OF ADJUSTED EBITDA TO AMOUNTS REPORTED UNDER
|
||||||||
|
(in thousands) |
|
For the three months ended |
|
|||||
|
|
|
2026 |
|
|
2025 |
|
||
|
Net income (loss) |
|
$ |
72,341 |
|
|
$ |
(8,168 |
) |
|
Interest income, net |
|
|
584 |
|
|
|
(3,185 |
) |
|
Income tax expense (benefit) |
|
|
6,443 |
|
|
|
(6,030 |
) |
|
Depreciation and depletion |
|
|
52,273 |
|
|
|
45,277 |
|
|
Asset retirement obligation accretion |
|
|
1,112 |
|
|
|
1,331 |
|
|
Stock compensation expense |
|
|
10,099 |
|
|
|
8,053 |
|
|
Other non-cash actuarial accretion |
|
|
495 |
|
|
|
494 |
|
|
Non-cash mark-to-market loss on gas hedges |
|
|
- |
|
|
|
1,718 |
|
|
Business interruption |
|
|
8 |
|
|
|
(2 |
) |
|
Adjusted EBITDA(4) |
|
$ |
143,355 |
|
|
$ |
39,488 |
|
|
Adjusted EBITDA margin(5) |
|
|
31.3 |
% |
|
|
13.2 |
% |
|
Adjusted EBITDA per short ton(6) |
|
$ |
47.75 |
|
|
$ |
18.18 |
|
|
(4) Adjusted EBITDA is defined as net income (loss) before net interest income, net, income tax expense (benefit), depreciation and depletion, non-cash asset retirement obligation accretion, non-cash stock compensation expense, other non-cash accretion, non-cash mark-to-market gain on gas hedges and business interruption expenses. Adjusted EBITDA is not a measure of financial performance in accordance with GAAP, and we believe items excluded from Adjusted EBITDA are significant to a reader in understanding and assessing our financial condition. Therefore, Adjusted EBITDA should not be considered in isolation, nor as an alternative to net income (loss), income from operations, cash flows from operations or as a measure of our profitability, liquidity or performance under GAAP. We believe that Adjusted EBITDA presents a useful measure of our ability to incur and service debt based on ongoing operations. Furthermore, analogous measures are used by industry analysts to evaluate our operating performance. Investors should be aware that our presentation of Adjusted EBITDA may not be comparable to similarly titled measures used by other companies. (5) Adjusted EBITDA margin is defined as Adjusted EBITDA divided by total revenues. (6) Adjusted EBITDA per ton is defined as Adjusted EBITDA divided by short tons sold. |
||||||||
|
RECONCILIATION OF FREE CASH FLOW TO AMOUNTS REPORTED UNDER
|
||||||||
|
(in thousands) |
|
For the three months ended |
|
|||||
|
|
|
2026 |
|
|
2025 |
|
||
|
Net cash (used in) provided by operating activities |
|
$ |
(11,726 |
) |
|
$ |
10,917 |
|
|
Purchases of property, plant and equipment and mine development costs |
|
|
(80,129 |
) |
|
|
(79,347 |
) |
|
Free cash flow(7) |
|
$ |
(91,855 |
) |
|
$ |
(68,430 |
) |
|
Free cash flow conversion(8) |
|
|
(64.1 |
)% |
|
|
(173.3 |
)% |
|
(7) Free cash flow is defined as net cash (used in) provided by operating activities less purchases of property, plant and equipment and mine development costs. Free cash flow is not a measure of financial performance in accordance with GAAP, and we believe items excluded from net cash provided by operating activities are significant to the reader in understanding and assessing our results of operations. Therefore, free cash flow should not be considered in isolation, nor as an alternative to net cash provided by operating activities under GAAP. We believe free cash flow is a useful measure of performance and we believe it aids some investors and analysts in comparing us against other companies to help analyze our current and future potential performance. Free cash flow may not be comparable to similarly titled measures used by other companies. (8) Free cash flow conversion is defined as free cash flow divided by Adjusted EBITDA. |
||||||||
|
|
||||||||
|
|
|
For the three months ended |
|
|||||
|
|
|
2026 |
|
|
2025 |
|
||
|
OPERATING ACTIVITIES: |
|
|
|
|
|
|
||
|
Net income (loss) |
|
$ |
72,341 |
|
|
$ |
(8,168 |
) |
|
Non-cash adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities |
|
|
61,984 |
|
|
|
50,245 |
|
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
||
|
Trade accounts receivable |
|
|
(114,557 |
) |
|
|
(30,593 |
) |
|
Inventories, net |
|
|
(15,608 |
) |
|
|
7,721 |
|
|
Prepaid expenses and other receivables |
|
|
8,299 |
|
|
|
(5,965 |
) |
|
Accounts payable |
|
|
3,294 |
|
|
|
15,438 |
|
|
Accrued expenses and other current liabilities |
|
|
(27,234 |
) |
|
|
(18,435 |
) |
|
Other |
|
|
(245 |
) |
|
|
674 |
|
|
Net cash (used in) provided by operating activities |
|
|
(11,726 |
) |
|
|
10,917 |
|
|
INVESTING ACTIVITIES: |
|
|
|
|
|
|
||
|
Purchase of property, plant, and equipment |
|
|
(80,129 |
) |
|
|
(68,510 |
) |
|
Deferred mine development costs |
|
|
- |
|
|
|
(10,837 |
) |
|
Proceeds from investments |
|
|
22,700 |
|
|
|
1,582 |
|
|
Net cash used in investing activities |
|
|
(57,429 |
) |
|
|
(77,765 |
) |
|
FINANCING ACTIVITIES: |
|
|
|
|
|
|
||
|
Dividends paid |
|
|
(4,738 |
) |
|
|
(5,184 |
) |
|
Principal repayments of finance lease obligations |
|
|
(8,636 |
) |
|
|
(3,894 |
) |
|
Proceeds from financing lease obligations |
|
|
- |
|
|
|
48,771 |
|
|
Payments for taxes related to net share settlement of equity awards |
|
|
(14,771 |
) |
|
|
(9,384 |
) |
|
Net cash (used in) provided by financing activities |
|
|
(28,145 |
) |
|
|
30,309 |
|
|
Net decrease in cash, cash equivalents and restricted cash |
|
|
(97,300 |
) |
|
|
(36,539 |
) |
|
Cash, cash equivalents and restricted cash at beginning of period |
|
|
307,849 |
|
|
|
499,132 |
|
|
Cash, cash equivalents and restricted cash at end of period |
|
$ |
210,549 |
|
|
$ |
462,593 |
|
|
|
||||||||
|
|
|
|
|
|
|
|
||
|
|
|
(Unaudited) |
|
|
|
|
||
|
ASSETS |
|
|
|
|
|
|
||
|
Cash and cash equivalents |
|
$ |
202,598 |
|
|
$ |
299,963 |
|
|
Short-term investments |
|
|
30,641 |
|
|
|
53,252 |
|
|
Trade accounts receivable |
|
|
296,148 |
|
|
|
181,591 |
|
|
Inventories, net |
|
|
251,538 |
|
|
|
235,936 |
|
|
Prepaid expenses and other receivables |
|
|
46,788 |
|
|
|
49,513 |
|
|
Total current assets |
|
|
827,713 |
|
|
|
820,255 |
|
|
Restricted cash |
|
|
7,951 |
|
|
|
7,886 |
|
|
Mineral interests, net |
|
|
105,224 |
|
|
|
107,258 |
|
|
Property, plant and equipment, net |
|
|
1,851,390 |
|
|
|
1,817,364 |
|
|
Deferred income taxes |
|
|
2,898 |
|
|
|
2,947 |
|
|
Other long-term assets |
|
|
28,348 |
|
|
|
28,089 |
|
|
Total assets |
|
$ |
2,823,524 |
|
|
$ |
2,783,799 |
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
||
|
Accounts payable |
|
$ |
72,222 |
|
|
$ |
66,077 |
|
|
Accrued expenses |
|
|
117,156 |
|
|
|
131,881 |
|
|
Asset retirement obligations |
|
|
5,473 |
|
|
|
5,473 |
|
|
Short-term financing lease liabilities |
|
|
29,080 |
|
|
|
29,669 |
|
|
Federal coal lease obligations |
|
|
8,844 |
|
|
|
8,844 |
|
|
Other current liabilities |
|
|
5,168 |
|
|
|
15,077 |
|
|
Total current liabilities |
|
|
237,943 |
|
|
|
257,021 |
|
|
Long-term debt |
|
|
154,421 |
|
|
|
154,252 |
|
|
Asset retirement obligations |
|
|
65,828 |
|
|
|
64,755 |
|
|
Black lung obligations |
|
|
34,384 |
|
|
|
34,036 |
|
|
Long-term financing lease liabilities |
|
|
50,476 |
|
|
|
54,492 |
|
|
Deferred income taxes |
|
|
52,256 |
|
|
|
54,179 |
|
|
Federal coal lease obligations |
|
|
23,679 |
|
|
|
23,679 |
|
|
Total liabilities |
|
|
618,987 |
|
|
|
642,414 |
|
|
Stockholders’ Equity: |
|
|
|
|
|
|
||
|
Common stock, |
|
|
550 |
|
|
|
548 |
|
|
Preferred stock, |
|
|
— |
|
|
|
— |
|
|
|
|
|
(50,576 |
) |
|
|
(50,576 |
) |
|
Additional paid in capital |
|
|
296,035 |
|
|
|
300,710 |
|
|
Retained earnings |
|
|
1,958,528 |
|
|
|
1,890,703 |
|
|
Total stockholders’ equity |
|
|
2,204,537 |
|
|
|
2,141,385 |
|
|
Total liabilities and stockholders’ equity |
|
$ |
2,823,524 |
|
|
$ |
2,783,799 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20260430309251/en/
For Investors:
dale.boyles@warriormetcoal.com
For Media:
dandre.wright@warriormetcoal.com
Source:
