Natural Resource Partners Reports Decline in Revenue and Net Income for Q2 and First Half of 2026

Natural Resource Partners L.P. (NRP) reported its financial results for the second quarter and the first half of 2026, revealing a decline in both revenue and net income compared to the same periods in 2025. For the three months ended June 30, 2026, NRP generated total revenues of $48.1 million, a decrease of 4% from $50.1 million in the prior year. The company’s net income for the quarter was $25.2 million, down from $34.2 million in the same quarter of 2025. For the first half of 2026, total revenues were $87.5 million, a 21% decline from $110.6 million in the first half of 2025, with net income falling to $44.8 million from $74.5 million.

The decrease in revenue was primarily attributed to a significant drop in the Soda Ash segment, which reported a loss of $12.7 million for the first half of 2026, compared to a profit of $7.1 million in the previous year. This downturn was largely due to lower sales prices and a lack of distributions from Sisecam Wyoming, in which NRP holds a 49% interest. In contrast, the Mineral Rights segment saw a slight decrease in revenue, down 3% to $100.2 million, driven by lower coal sales volumes and prices.

Operationally, NRP's coal royalty revenues increased by 10% in the second quarter, reflecting higher sales volumes, particularly in the Appalachia and Illinois Basin regions. However, the average coal royalty revenue per ton decreased by 18%, indicating pricing pressures. The company reported a total of 8.2 million tons of coal sold in the second quarter, a 35% increase year-over-year. Despite this increase in volume, the overall financial performance was impacted by rising operating expenses, which surged by 62% to $21.9 million, primarily due to increased depreciation and maintenance costs.

Looking ahead, NRP's management expressed caution regarding future performance, particularly in the Soda Ash segment, which is expected to remain weak due to oversupply and sluggish demand in the global market. The company has made a $39.2 million capital investment in Sisecam Wyoming to support its operations, but it does not anticipate receiving distributions from this investment for several years. NRP maintains a strong liquidity position with $30.1 million in cash and $186.9 million available under its credit facility, resulting in a leverage ratio of 0.2x as of June 30, 2026. Future distributions to unitholders will be evaluated quarterly based on profitability, cash flow, and market conditions.