Summary of Alpha Metallurgical Resources Q2 2026 Earnings Call

1Key Financial Results and Metrics

Adjusted EBITDA: $25.6 million, down from $30 million in Q1 2026.

Tons Shipped: 3.5 million, a slight decrease from 3.6 million tons in Q1.

Met Segment Realizations: Average realization decreased to $124.30 per ton from $128.40 in Q1.

Cost of Coal Sales: Decreased to $103.07 per ton from $107.98 in Q1.

Cash Position: Unrestricted cash of $307.6 million and short-term investments of $30.9 million as of June 30, down from $317.2 million and $49.6 million, respectively, at the end of Q1.

CapEx: Increased to $45.1 million from $40.7 million in Q1.

Liquidity: Total liquidity of $447.8 million, down from $476.2 million at the end of Q1.

2Strategic Updates and Business Highlights

Operational Challenges: A stacker reclaimer at the DTA terminal was damaged during a storm, impacting throughput. The company is working with insurance and engineering teams to address this.

Market Conditions: Continued weakness in the met coal market due to sluggish global steel demand. The spread between U.S. East Coast and Australian pricing has narrowed.

Safety Recognition: 13 West Virginia operations received awards from the Holmes Safety Association for outstanding safety performance.

3Forward Guidance and Outlook

Revised Shipment Guidance: Adjusted down by 1 million tons to a range of 14.2 million to 15.4 million tons for the year.

Cost Guidance: Increased midpoint by $7 per ton to a range of $103 to $107 per ton, reflecting higher supply costs, particularly diesel.

Market Expectations: The company expects continued challenges in the met coal market, with a focus on maintaining margins amid rising costs.

4Bad News, Challenges, or Points of Concern

Operational Disruption: The damaged stacker reclaimer at DTA is expected to reduce operational capacity, with no clear timeline for full restoration.

Market Weakness: Ongoing sluggish demand for met coal and steel, particularly influenced by global economic conditions and the war in Iran.

Declining Realizations: Notable decreases in coal realizations and continued pressure on pricing from increased supply in the market.

5Notable Q&A Insights

DTA Optimization: Management acknowledged challenges in optimizing operations with only one stacker reclaimer and indicated that efficiency would be reduced until repairs are made.

Cost Management: Discussions on operational adjustments to mitigate costs were highlighted, with a focus on balancing cost and margin.

Domestic Market Dynamics: The company noted that domestic customers have not nominated as much tonnage as expected, impacting committed tonnage.

Sales Mix Adjustments: There is potential for a shift towards more low-vol coal sales as a new mine ramps up, depending on market conditions and customer demand. Overall, Alpha Metallurgical Resources is navigating operational challenges and a weak market environment while adjusting its guidance and focusing on maintaining liquidity and safety standards.