NACCO Industries Reports 30.4% Revenue Growth in Q2 2025, Net Income Declines

NACCO Industries, Inc. reported its financial results for the second quarter and first half of 2025, revealing a revenue increase of 30.4% to $68.2 million for the quarter, compared to $52.3 million in the same period last year. For the first six months, revenues rose to $133.8 million from $105.6 million. However, net income for the second quarter decreased to $3.3 million, or $0.44 per share, down from $6.0 million, or $0.81 per share, in the prior year. The decline in profitability was attributed to increased operating expenses and a decrease in earnings from unconsolidated operations.

The company's financial performance showed significant changes compared to the previous fiscal period, particularly in the Utility Coal Mining segment, which saw revenues jump 90.9% to $28.6 million for the second quarter, driven by increased customer requirements. However, the segment also reported a gross loss of $1.7 million, reflecting a decrease in the contractual sales price per ton. The Contract Mining segment's revenues increased to $30.7 million, while the Minerals and Royalties segment reported a 29.9% rise in revenues to $7.3 million, primarily due to higher natural gas prices.

Operationally, NACCO has made strategic developments, including the acquisition of mineral interests in the Midland Basin for $4.2 million, which is expected to enhance future cash flows. The company also updated the names of its reportable segments to better reflect their business activities. As of June 30, 2025, NACCO's total assets stood at $631.3 million, with stockholders' equity increasing to $413.1 million from $404.9 million at the end of 2024. The company reported a decrease in cash and cash equivalents to $49.4 million, down from $72.8 million at the end of 2024.

NACCO's operational metrics indicate a mixed performance, with total tons delivered in the Utility Coal Mining segment decreasing to 4.6 million from 5.4 million in the previous year. The Contract Mining segment also experienced a decline in tons delivered, reflecting reduced customer requirements. The company reported a total employee headcount of 1,200, consistent with the previous year. The filing noted that the company is focused on maintaining a strong capital structure while pursuing growth opportunities in its various segments.

Looking ahead, NACCO anticipates a substantial increase in consolidated operating profit in the second half of 2025, although full-year results are expected to be lower than the previous year due to a significant non-cash pension settlement charge anticipated upon the termination of its defined benefit pension plan. The company remains optimistic about its long-term growth prospects, driven by stable demand in its Utility Coal Mining segment and ongoing expansion in its Contract Mining and Minerals and Royalties segments.