Warrior Met Coal Reports Significant Revenue Decline and Net Loss in Q1 2025

Warrior Met Coal, Inc. reported a significant decline in financial performance for the first quarter of 2025, with total revenues of $299.9 million, down from $503.5 million in the same period of 2024. The decrease was primarily attributed to a drop in sales, which fell to $294.9 million from $498.0 million, driven by a $108.19 decline in the average net selling price per metric ton of steelmaking coal, which decreased from $257.90 to $149.71. The company also recorded a net loss of $8.2 million, compared to a net income of $137.0 million in the prior year, resulting in a basic and diluted net loss per share of $0.16.

In terms of operational metrics, Warrior Met Coal produced 2.0 million metric tons of steelmaking coal, a 9.9% increase from 1.9 million metric tons in the first quarter of 2024. The increase in production was attributed to the development of the Blue Creek mine, which is expected to enhance the company's production capacity significantly. However, the company faced challenges with costs, as the cost of sales rose to $245.7 million, representing 81.9% of total revenues, compared to 56.7% in the previous year. This increase was influenced by a rise in cash costs per metric ton, which decreased to $123.87 from $147.16.

Strategically, Warrior Met Coal is focused on the development of its Blue Creek mine, which is projected to significantly increase production capacity. The company has invested approximately $771.8 million in the project to date, with plans to spend an additional $225 to $250 million in 2025. The Blue Creek mine is expected to produce premium High Vol A steelmaking coal, which is anticipated to yield high margins and strong returns. The company has also increased the nameplate capacity of the Blue Creek mine by 25%, raising it to 5.4 million metric tons.

Looking ahead, Warrior Met Coal faces several uncertainties, including fluctuating steelmaking coal prices and the impact of tariffs on its operations. The company is currently analyzing the potential effects of new tariffs announced by the U.S. government, which could influence demand and pricing for steelmaking coal. Despite these challenges, the company maintains a strong liquidity position, with $616.6 million in total liquidity as of March 31, 2025, including cash and cash equivalents of $454.9 million and $113.5 million available under its asset-based revolving credit facility. The company remains committed to optimizing its capital structure while pursuing growth opportunities in the steelmaking coal market.