Alpha Metallurgical Resources reported a net loss of $5.5 million, or $0.42 per diluted share, for the third quarter ended September 30, 2025. The loss widened from the $5.0 million loss in the prior quarter, but the company’s earnings beat analyst expectations by $0.03, largely because of disciplined cost management that lowered the cost of coal sales to $97.27 per ton, a $2.79 improvement over the $100.06 per ton recorded in Q2.
Total coal revenue for the quarter was $525.2 million, down 6.5% year‑over‑year and below the consensus estimate of $540.3 million. The revenue decline reflects weaker pricing and softer market conditions, with the company’s sales realization falling to $114.94 per ton from $119.43 per ton in Q2. Adjusted EBITDA contracted to $41.7 million from $46.1 million, driven by the revenue shortfall despite the cost‑saving gains.
Liquidity remained robust, with total liquidity of $568.5 million, including $408.5 million in cash and $49.4 million in short‑term investments, and $185.5 million of unused ABL capacity. The company also continued its share‑repurchase program, having bought back approximately 6.8 million shares at a cost of $1.1 billion since the program’s launch.
Management updated its 2025 guidance, lowering the capital contribution range to equity affiliates to $35 million–$41 million from the previous $44 million–$54 million. The company reaffirmed its shipment guidance for metallurgical coal at 13.8 million–14.8 million tons and thermal coal at 0.8 million–1.2 million tons, and maintained its cost‑of‑sales guidance at $101.00–$107.00 per ton. The guidance reflects a cautious outlook amid ongoing market headwinds, but signals confidence that cost discipline will help preserve margins.
CEO Andy Eidson emphasized that “in back‑to‑back quarters, the highlight of our quarterly results is our cost performance.” He noted that the company’s cost‑control efforts have allowed it to limit losses even as revenue fell, and that the firm remains focused on securing future contracts and building a budget for the coming year. The market reacted positively, with the stock trading up 1.55% in pre‑market trading, driven by the EPS beat and the company’s strong liquidity position.
The results underscore the company’s resilience in a challenging steel‑industry environment. While revenue and earnings fell, disciplined cost management and a solid liquidity base provide a buffer against further market softness. The guidance update signals a conservative stance on capital contributions and shipment volumes, reflecting management’s concern about near‑term demand uncertainty but confidence that the company can navigate the current headwinds.
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