Core Natural Resources Reports $1.017 Billion Revenue and $69.3 Million Net Loss Following Arch Resources Merger

Core Natural Resources, Inc. reported significant financial changes in its latest quarterly filing, reflecting the impact of its recent merger with Arch Resources, Inc. For the three months ending March 31, 2025, the company generated revenues of $1.017 billion, a substantial increase from $546.7 million in the same period last year. This growth was primarily driven by the merger, which expanded the company's operational footprint and product offerings. However, the company also reported a net loss of $69.3 million, compared to a net income of $101.9 million in the prior year, largely due to increased costs associated with the merger and operational challenges.

The merger, completed on January 14, 2025, resulted in a significant restructuring of the company, which now operates through four reportable segments: High CV Thermal, Metallurgical, Powder River Basin (PRB), and Baltimore Marine Terminal. The merger-related expenses totaled approximately $49.2 million for the quarter, contributing to the overall loss. Additionally, the company incurred a loss of $11.7 million on debt extinguishment related to refinancing activities. The total assets of Core Natural Resources increased dramatically to $6.252 billion from $2.880 billion at the end of 2024, reflecting the assets acquired through the merger.

Operationally, the company reported a total production of 10.7 million tons of coal in the PRB segment, which was newly acquired through the merger. The High CV Thermal segment produced 7.3 million tons, while the Metallurgical segment produced 2.1 million tons. The overall increase in production was accompanied by a rise in coal sales volumes, which increased by approximately 13.8 million tons year-over-year. However, the realized coal revenue per ton sold in the Metallurgical segment decreased significantly due to lower benchmark prices, impacting profitability.

As of March 31, 2025, Core Natural Resources had a total liquidity of $858 million, including cash and cash equivalents of $388 million and available borrowing capacity under its revolving credit facility. The company has also initiated a stock repurchase program, allowing for the repurchase of up to $1 billion in shares, with approximately $899 million remaining under this program as of May 8, 2025. Looking ahead, the company anticipates that the integration of Arch Resources will yield operational synergies and enhance its market position, although it remains cautious about market conditions and regulatory challenges that could impact future performance.