August 8, 2025 -  Alpha Metallurgical Resources, Inc. (NYSE: AMR), a leading U.S. supplier of metallurgical products for the steel industry, has reported financial results for the second quarter ending June 30, 2025.

"I want to commend our team on a great quarter and an especially impressive cost performance," said Andy Eidson, Alpha's chief executive officer. "We achieved significant improvement in our cost of coal sales for the quarter as our previously announced savings initiatives began to take effect. As a result, we are reducing our full year cost of coal sales guidance range by $2.50 per ton at the midpoint. The announcement of other guidance changes to SG&A, idle operations expense, and net interest income, reflects our updated expectations for the balance of the year."

Eidson continued: "I am also pleased to report that we had total liquidity of $557 million as of June 30, which is the culmination of our teams working together to position ourselves to capitalize on opportunities."

Financial Performance

Alpha reported a net loss of $5.0 million, or $0.38 per diluted share, for the second quarter 2025, as compared to net loss of $33.9 million, or $2.60 per diluted share, in the first quarter.

Total Adjusted EBITDA was $46.1 million for the second quarter, compared to $5.7 million in the first quarter. 

Second quarter net realized pricing for the Met segment was $119.43 per ton.

Alpha's Met segment cost of coal sales decreased to an average of $100.06 per ton in the second quarter, compared to $110.34 per ton in the first quarter. The primary drivers of the cost reduction include labor and supplies.

Liquidity and Capital Resources

Cash provided by operating activities in the second quarter increased to $53.2 million as compared to $22.2 million in the first quarter. Capital expenditures for the second quarter were $34.6 million compared to $38.5 million for the first quarter.

As of June 30, 2025, the company had total liquidity of $556.9 million, including cash and cash equivalents of $449.0 million and $182.9 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 June 30, 2025, the company had no borrowings and $42.1 million in letters of credit outstanding under the ABL. Total long-term debt, including the current portion of long-term debt as of June 30, 2025, was $5.8 million.

On July 4, 2025, President Trump signed into law legislation commonly referred to as the "One Big Beautiful Bill Act" ("OBBBA"). The OBBBA includes the addition of metallurgical coal to the list of "applicable critical minerals" for purposes of the Section 45X credit. The Section 45X credit (also known as the advanced manufacturing production credit), as amended, provides a refundable tax credit equal to 2.5% of the production costs for metallurgical coal produced during tax years 2026 through 2029. We are currently analyzing the financial impact of the Section 45X credit and expect that it will serve as a source of additional liquidity in future years. Based on preliminary analysis, the company currently believes the annual cash benefit of the tax credit may be in the range of $30 million to $50 million, dependent upon the amount of qualifying production costs incurred in a given year.

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, with remaining authorization of approximately $400 million. Due to softness in the metallurgical coal markets over approximately the last five quarters, the company has refrained from repurchasing shares, electing instead to focus on strengthening its liquidity position. Having achieved a meaningful increase in liquidity over that time period, the company plans to restart the share repurchase program on an opportunistic basis. 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.

2025 Guidance Adjustments and Performance Update

Alpha is lowering its cost of coal sales guidance for the year to a range of $101.00 per ton to $107.00 per ton, down from the prior range of $103.00 per ton to $110.00 per ton.

The company is also reducing its 2025 guidance for selling, general and administrative (SG&A) expenses. The new range is $48 million to $54 million, down from the previous range of $53 million to $59 million.

The company is increasing its expected idle operations expense for the year, moving to a range of $21 million to $29 million, up from the prior range of $18 million to $28 million.

Alpha expects increased net cash interest income for the year between $6 million and $12 million, up from the previously established range of $2 million to $10 million.

As of July 30, 2025, Alpha has committed and priced approximately 69% of its metallurgical coal for 2025 at an average price of $127.37 per ton and 100% of its thermal coal for the year at an average price of $80.52 per ton.

Conference Call

The company plans to hold a conference call regarding its second quarter results on August 8, 2025, 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.

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