Warrior Met Coal Reports Significant Revenue Decline and Net Loss in Q2 2025

Warrior Met Coal, Inc. reported a significant decline in financial performance for the second quarter of 2025, with total revenues of $297.5 million, down from $396.5 million in the same period last year. The decrease was primarily attributed to a 31% drop in sales revenue, which fell to $288.5 million from $390.4 million, driven by a 30% decline in the average net selling price per metric ton of steelmaking coal. The company produced 2.1 million metric tons of coal during the quarter, a 6% increase compared to the previous year, but this was not enough to offset the revenue losses.

For the first half of 2025, Warrior Met Coal reported total revenues of $597.5 million, down from $900.0 million in the first half of 2024. The company experienced a net loss of $2.6 million for the six months ended June 30, 2025, compared to a net income of $207.7 million in the prior year. The decline in profitability was influenced by increased costs, including a rise in cost of sales to 79% of total revenues, up from 60.8% in the previous year. The company’s operating loss for the first half of 2025 was $9.7 million, a stark contrast to the operating income of $220.0 million reported in the same period of 2024.

Strategically, Warrior Met Coal has made progress in the development of its Blue Creek mine, which is expected to enhance production capacity significantly. The company has invested approximately $823.5 million in the project to date, with plans to spend an additional $225 to $250 million in 2025. The Blue Creek mine is anticipated to start production in early 2026, with an expected output of 900,000 metric tons in 2025. The first commercial sales from this mine occurred ahead of schedule, marking a critical milestone in transitioning from capital investment to revenue generation.

Operationally, the company reported a slight increase in production volumes, with 4.1 million metric tons produced in the first half of 2025, compared to 3.8 million metric tons in the same period last year. However, the average net selling price per metric ton dropped to $146.48, down from $231.66 in the previous year, reflecting challenging market conditions. The geographic distribution of sales also shifted, with a notable increase in sales to Asia, which accounted for 47% of total sales volume in the first half of 2025.

Looking ahead, Warrior Met Coal faces a challenging market environment characterized by declining steelmaking coal prices and ongoing trade uncertainties. The company is closely monitoring the impact of tariffs and other economic factors on its operations. Despite the current challenges, Warrior Met Coal remains focused on optimizing its capital structure and enhancing shareholder returns through dividends and potential stock repurchases, while continuing to develop its strategic growth projects.