Alpha Metallurgical Resources Reports 31.6% Revenue Decline in Q2 2025

Alpha Metallurgical Resources, Inc. reported a significant decline in financial performance for the second quarter of 2025, with total revenues of $550.3 million, down 31.6% from $804.0 million in the same period last year. Coal revenues specifically fell to $548.7 million, a decrease of 31.4% compared to $800.1 million in the prior year. The company experienced a net loss of $4.9 million, or $(0.38) per share, contrasting sharply with a net income of $58.9 million, or $4.53 per share, in the second quarter of 2024. For the first half of 2025, total revenues were $1.1 billion, down 35.1% from $1.7 billion in the first half of 2024, with coal revenues decreasing from $1.7 billion to $1.1 billion.

The decline in revenue and profitability was attributed to a 19.7% drop in average coal sales realization, driven by weakened global steel demand and a 14.6% decrease in coal sales volumes. The company reported that sales of metallurgical coal accounted for approximately 92% of total coal sales volume, with 3.5 million tons sold in the second quarter of 2025 compared to 4.2 million tons in the same quarter of 2024. The average realized price per ton of coal also fell, reflecting the challenging market conditions.

Operationally, Alpha Metallurgical continues to manage its costs effectively, with total costs and expenses decreasing by 25.3% to $547.6 million in the second quarter of 2025, down from $733.3 million in the previous year. This reduction was primarily due to lower coal sales volumes and cost-cutting measures, including wage reductions. The company reported a decrease in selling, general, and administrative expenses by 19.1%, reflecting ongoing efforts to streamline operations. As of June 30, 2025, Alpha had approximately 3,890 employees and operated 19 active mines and eight coal preparation and load-out facilities.

Looking ahead, Alpha Metallurgical's management expressed cautious optimism, noting that while the metallurgical coal market remains under pressure, they are focused on maintaining liquidity and managing operational costs. The company has a total liquidity of $556.9 million as of June 30, 2025, which includes cash and cash equivalents of $449.0 million and available credit under its asset-based revolving credit facility. The company anticipates that cash generated from operations will be sufficient to meet its working capital and capital expenditure needs for the foreseeable future. However, management acknowledged the potential impact of regulatory changes and market conditions on future performance, particularly regarding the new requirements for self-insured black lung obligations and ongoing legal challenges related to environmental regulations.