Alpha Metallurgical Resources Reports 38.4% Revenue Decline and Net Loss in Q1 2025

Alpha Metallurgical Resources, Inc. reported a significant decline in financial performance for the first quarter of 2025, with total revenues falling to $531.96 million, a decrease of 38.4% from $864.07 million in the same period of 2024. The company's coal revenues specifically dropped by 38.5% to $529.67 million, primarily due to a 28.6% decline in average coal sales realization, attributed to weakened global steel demand. The volume of coal sold also decreased by 13.9%, from 4.37 million tons to 3.76 million tons, impacted by weather-related production and transportation disruptions.

In terms of profitability, Alpha reported a net loss of $33.95 million, compared to a net income of $126.99 million in the prior year. This resulted in a basic loss per share of $2.60, contrasting sharply with a profit of $9.77 per share in the first quarter of 2024. The company's operating loss was $40.18 million, a stark decline from an operating income of $141.88 million in the previous year. Total costs and expenses also decreased by 20.8% to $572.13 million, driven by lower coal sales volumes and a reduction in average costs per ton due to decreased royalties and taxes.

Strategically, Alpha continues to focus on its core operations in the Central Appalachia coal basin, maintaining 19 active mines and eight coal preparation facilities as of March 31, 2025. The company has approximately 3,960 employees and reported coal reserves of 298.6 million tons, including 287.8 million tons of metallurgical coal. The company is also investing in its coal export terminal, Dominion Terminal Associates (DTA), with expected capital investments averaging $27 million annually over the next five years to enhance functionality and minimize downtime.

Looking ahead, Alpha's management anticipates ongoing challenges in the metallurgical coal market due to economic uncertainties and fluctuating demand. The company is closely monitoring global economic indicators, including steel production rates and manufacturing activity, which could influence future coal pricing and sales. Additionally, regulatory changes, particularly concerning self-insured liabilities under the Black Lung Benefits Act, may require substantial collateral, potentially impacting liquidity. Alpha's liquidity position remains stable, with $447.99 million in cash and cash equivalents as of March 31, 2025, and access to a revolving credit facility. However, the company acknowledges that market conditions and regulatory environments could necessitate further adjustments to its operational and financial strategies.