February 12, 2026 - Today, Core Natural Resources, Inc. (NYSE: CNR) reported a net loss of $79.0 million, or ($1.54) per diluted share, in the fourth quarter of 2025. Additionally, Core reported adjusted EBITDA¹ of $103.1 million in the quarter, which included fire extinguishment costs at Leer South and idle mine cash costs at Leer South and West Elk totaling $36.4 million, as well as a portion of the total insurance proceeds related to the Baltimore bridge collapse of $23.9 million. Revenues totaled $1.042 billion in Q4.

"During Q4, the Core team set the stage for a significant, value-driving step-change in both operational execution and financial performance in 2026," said Jimmy Brock, Core's chairman and chief executive officer. "With the return to form of our world-class Leer South and West Elk mines, Core expects to demonstrate operational excellence across the entire mining portfolio in 2026, while showcasing the substantial synergistic value created by last year's merger. In addition, Core anticipates incremental insurance recoveries stemming from the combustion-related event at Leer South, buoying  further the outlook for free cash flow generation and capital returns."

"In short, Core is now poised to deliver on its full potential as a low-cost, diversified, logistically advantaged supplier of high-quality coal products to growing steel and industrial markets around the world, as well as to a resurgent U.S. power generation market," Brock added. "Most importantly, the Core team continues to operate in tight alignment with our core values – safety and compliance, continuous improvement, and financial performance."

Operational and Marketing Update

During the fourth quarter of 2025, Core's high calorific value thermal coal segment had coal sales of 7.8 million tons, which was 9 percent higher than in Q3, and achieved realized coal revenue per ton sold¹ of $58.11, which was modestly lower than in Q3 due principally to weaker pricing on seaborne shipments. The segment had cash cost of coal sold per ton¹ of $41.42, which was adversely affected by higher maintenance-related expenses at the PAMC as well as still-depressed volumes at West Elk as that mine completed the transition to the B-Seam, where — as expected — both seam thickness and coal quality are proving to be markedly better.

In Core's metallurgical segment, coking coal sales totaled 2.0 million tons in Q4 and thermal byproduct sales totaled 0.3 million tons, largely consistent with Q3 levels. The segment achieved realized coal revenue per ton sold¹ for coking coal of $114.25 and realized coal revenue per ton sold¹ for the thermal byproduct of $47.50, with realized coal revenue per ton sold¹ for the metallurgical segment as a whole of $105.45. The metallurgical segment reported a cash cost of coal sold per ton¹ of $103.49, reflecting the absence of longwall production at Leer South until late in the quarter.

In the Powder River Basin segment, sales volumes totaled 12.6 million tons in Q4, which was modestly lower than Q3's strong shipment levels. Realized coal revenue per ton sold¹ increased to $14.21, reflecting improving pricing on spot sales, and cash cost of coal sold per ton¹ came in at $13.62, reflecting higher maintenance costs and lower fixed cost absorption quarter-over-quarter. On a year-over-year basis, both revenues and costs in the PRB segment were lower, largely due to the recently enacted reduction in the royalty rate for federal coal coupled with provisions in many existing contracts requiring that cost savings associated with certain policy-related changes be passed along to the customer.

During the quarter, the marketing team signed commitments for delivery in 2026 and future years — across the high calorific value thermal segment, the metallurgical segment, and the Powder River Basin segment — totaling more than 38 million tons, at prices projected to drive advantageous margins and healthy free cash flow. Core has now locked in a committed book of 2026 business totaling 23.5 million tons in the high calorific value thermal segment and 47.4 million tons in the Powder River Basin segment. Core has also signed commitments of approximately 6.7 million tons of coking coal, including 2.0 million tons for delivery to North American customers at a fixed price of around $125 per ton.

Financial, Liquidity, and Capital Return Update

In February 2025, Core announced a new capital return framework targeting the return to stockholders of around 75 percent of free cash flow¹, with the significant majority of that return directed to share repurchases complemented by a sustaining quarterly dividend of $0.10 per share.

During Q4 2025, Core generated net cash provided by operating activities of $107.3 million and free cash flow¹ of $27.0 million. The company invested $21.7 million to repurchase 264,487 shares of its common stock at an average share price of $81.95. Core has now invested a total of $224.3 million to repurchase 3.1 million shares of common stock, or roughly 6 percent of total shares outstanding as of the program's launch, at an average share price of $72.61, and a total of $245.1 million, inclusive of dividend payments, in the capital return program overall. During fiscal year 2025, Core returned approximately 100 percent of its free cash flow¹ to stockholders via its capital return program. As of December 31, 2025, Core had $775.7 million of remaining authorization under its existing $1.0 billion share repurchase program.

In addition, the board declared a $0.10 per share quarterly dividend payable on March 16, 2026, to stockholders of record on March 2, 2026.

"Looking ahead, we expect strong and improving free cash flow generation in 2026, supported by an improved cost performance in our key operating segments, higher overall sales volumes, improving dynamics in major market segments, and incremental insurance proceeds stemming from the Leer South outage," said Mitesh Thakkar, Core's president and chief financial officer. "We expect that strong outlook to drive another year of robust capital returns to our stockholders, anchored by share repurchases."

At December 31, 2025, Core had total liquidity of $948.9 million, including $432.2 million in cash and cash equivalents.

Market Update

Market dynamics appear to be strengthening in several of Core's key market segments.

In 2025, U.S. utility coal consumption increased by an estimated 45 million tons, or around 12 percent, fueled by a second straight year of robust U.S. power demand growth. U.S. grid operators are preparing for that demand trajectory to continue through the remainder of the decade, spurred by the AI-driven data center build-out. With the U.S. coal fleet still operating at a capacity factor of less than 50 percent – and with the Trump Administration moving aggressively to ensure the long-term viability of the U.S. coal fleet – Core expects U.S. thermal coal demand to continue to climb.

In addition, global metallurgical coal markets appear to be shifting into better balance, effectuated by the continuing rationalization of high-cost supply as well as recent weather-related disruptions in Australia that serve to underscore the fragility of the global supply chain. Since the beginning of December, the price of premium low-vol coal in Queensland has increased by around 25 percent, to approximately $250 per metric ton. Looking ahead, Core expects the ongoing, steel-dependent build-out of Southeast Asian economies – along with sustained investment in new blast furnace capacity across that region – to support a constructive, long-term market outlook for high-quality coking coals.

Moreover, Core continues to capitalize on the ability to direct its sought-after and exceptionally high-rank thermal coals to the most advantageous segments of the seaborne market, even as the major market indices remain range-bound. In particular, Indian cement markets have strengthened markedly in recent weeks and are expected to continue to grow in the years ahead.

Outlook

"With Core's mining portfolio at full strength and the vast majority of the merger-related operating synergies in full effect, we expect 2026 to mark an inflection point in Core's operational and financial execution," Brock stated. "We believe Core's diversified portfolio of world-class assets – in concert with our extensive and strategic logistical network – positions us to capitalize on the most compelling market opportunities in the coal space, including resurgent power demand growth here in the United States, tightening global energy markets, and the ongoing infrastructure build-out in the developing world. Looking ahead, we expect to generate substantial amounts of free cash flow for deployment in our capital return program in future quarters, and to continue to showcase Core's ability to generate stockholder value in a wide range of market environments."

1 - Adjusted EBITDA and Free Cash Flow are non-GAAP financial measures and Realized Coal Revenue per Ton Sold and Cash Cost of Coal Sold per Ton are operating ratios derived from non-GAAP financial measures, each of which is reconciled to the most directly comparable GAAP financial measures below, under the caption "Reconciliation of Non-GAAP Financial Measures."

To see the full results with financial figures, click here.