August 11, 2026 - Canonsburg, Pa.-based Core Natural Resources Inc. expects U.S. thermal coal demand to increase in the coming years as surging electricity needs from artificial intelligence (AI) data centers and reindustrialization put new pressure on a power grid where coal plants are operating at less than half of their capacity, the company said on Aug. 6. 

While demand softened during the second quarter because of mild weather, low natural gas prices, and high utility stockpiles, the Pennsylvania coal producer said it sees stronger market conditions in the second half of the year and thinks long-term fundamentals are improving.

The company reported second-quarter net income of $126.5 million, or $2.51 per diluted share, on $1.1 billion in revenue. Adjusted EBITDA totaled $323.6 million, while the company also recognized the remaining $125.4 million from the settlement of its Leer South mine insurance claim.

“While U.S. thermal coal demand was pressured by moderate temperatures, low natural gas prices, and inflated customer stockpiles during Q2, Core expects improving market dynamics in the year’s second half and views the longer term outlook as promising,” the company said in its market update.

U.S. grid operators are forecasting substantial growth in electricity demand through the end of the decade, driven by expanding AI data centers and a broader push toward reindustrialization, said Core. 

At the same time, the company noted that the existing U.S. coal fleet is operating at an average capacity factor of less than 50 percent, creating room for higher utilization if power demand accelerates.

“With the U.S. coal fleet operating at an average capacity factor of less than 50 percent — and with the Trump administration moving to ensure the long-term viability of the U.S. coal fleet — Core expects U.S. thermal coal demand to climb,” the company said.

Core also pointed to strengthening international demand for thermal coal, citing rapid infrastructure development in India that is driving cement production. 

The company noted the International Energy Agency expects global electricity demand to increase by 3.6 percent annually through the remainder of the decade.

In metallurgical coal markets, Core said conditions remain weak after two years of declining global hot metal production, and U.S. East Coast coking coal prices continue to trail Australian benchmarks by historically wide margins. 

However, the company expects those prices to recover as steel demand improves and Asian buyers seek lower-priced U.S. supplies.

Core said it is continuing to market its Leer brand coal as a substitute for Australian premium low-volatility coking coal and expects Southeast Asia’s expanding economies and continued investment in blast furnace capacity to support long-term demand for high-quality metallurgical coal.

Looking ahead, Chairman and CEO Jimmy Brock said the company is positioning itself to benefit from improving coal markets while maintaining a focus on productivity and shareholder returns.

“Our goal is to drive strong and improving capital returns in the current soft market environment while laying the foundation for truly exceptional returns as coal markets rebound,” Brock said. “We see compelling, long-term market opportunities ahead — including resurgent U.S. power demand, tightening global energy markets, and an ongoing infrastructure build-out in the developing world — and we are preparing Core to capitalize on all fronts.”