Generates $166.0 million of operating cash flows leading to recently announced $2.00 per-share special dividend<\/i><\/p>\n
Sales and production volumes increase 48% and 36% year-over-year, respectively<\/i><\/p>\n
Net income rises to $49.3 million and Adjusted EBITDA increases 76% to $124.0 million<\/i><\/p>\n
BROOKWOOD, Ala.–(BUSINESS WIRE<\/a>)– \n\u201cWe delivered strong sales volumes in the third quarter as Blue Creek continued to expand our production base and strengthen our cash-generating capacity,\u201d commented Walt Scheller, CEO of Warrior. \u201cHigher volumes and improved pricing generated significant free cash flow and further strengthened our balance sheet, in line with our priorities for the next phase of our growth strategy.<\/p>\n \n\u201cApproximately one year after commencing longwall operations at Blue Creek, eight months ahead of schedule, and only two quarters after completing construction ahead of schedule, we are already seeing the benefits of this transformational investment in our cash generation and our ability to return excess cash to stockholders. The special dividend announced this quarter represents an important milestone for Warrior and demonstrates how quickly Blue Creek is beginning to translate into value for our stockholders,” Mr. Scheller concluded.<\/p>\n Highlights<\/b><\/p>\n Financial and Operating Results<\/b><\/p>\n \nTotal revenues were $507.9 million for the third quarter of 2026, reflecting a 48% increase in sales volumes and a 6% increase in the average net selling price. The increase in the average net selling price reflects improved steelmaking coal prices for both Premium Low-Vol (\u201cPLV\u201d) and High-Vol A coals, but was partially offset by higher Pacific freight costs and associated demurrage rate increases resulting from the ongoing conflict in the Middle East, as well as vessel loading delays at the port. Warrior\u2019s average gross selling price realization declined to approximately 66% in the third quarter of 2026 compared to 83% in the third quarter of 2025, driven primarily by a 25% higher sales mix of High-Vol A steelmaking coal predominantly sold into the Pacific Basin at higher freight rates and at lower second tier price relativities to the Platts PLV FOB Australian index.<\/p>\n \nCost of sales for the third quarter of 2026 was $368.5 million. Cash cost of sales (free-on-board port) per short ton increased 4% to $104.98, primarily reflecting the impact of higher year-over-year steelmaking coal prices on Warrior\u2019s variable cost structure (including transportation and royalties), lower production volumes at Mine No. 7, which resulted in production costs being absorbed over fewer tons, and inflationary cost increases. These increases were partially offset by the lower-cost contribution from the Blue Creek mine and the benefit of the Section 45X Advanced Manufacturing Production Tax Credit.<\/p>\n Cash Flow and Liquidity<\/b><\/p>\n \nHigher earnings and improved operating performance generated cash flows from operations of $166.0 million and free cash flow of $138.9 million in the third quarter of 2026. Net working capital, excluding cash, for the third quarter decreased $33.7 million from the second quarter of 2026, primarily due to lower inventories reflecting Warrior\u2019s proactive decision to monetize surplus amounts of High-Vol A coal inventories.<\/p>\n \nThe Company\u2019s total liquidity as of September 30, 2026 was $577.6 million, consisting of cash and cash equivalents of $437.1 million, and available liquidity under its ABL Facility of $140.5 million (which is net of outstanding letters of credit of $2.5 million).<\/p>\n Capital Allocation<\/b><\/p>\n \nOn October 27, 2026, the Board declared a regular quarterly cash dividend of $0.08 per share, which the Company plans to distribute on November 13, 2026, to stockholders of record as of the close of business on November 6, 2026.<\/p>\n \nIn addition, on October 27, 2026, the Board declared a special cash dividend(1)<\/sup> of $2.00 per share, totaling approximately $106 million, which the Company plans to distribute on November 20, 2026, to stockholders of record as of the close of business on November 9, 2026.<\/p>\n (1)<\/sup>Any future special dividends from excess cash flows will be at the discretion of the Board and subject to consideration of several factors, including business and market conditions, future financial performance and other strategic investment opportunities.<\/i><\/p>\n Company Outlook<\/b><\/p>\n \nThe Company reaffirmed its guidance for the full year 2026, as updated last quarter. This guidance is subject to many risks that may impact performance, such as global trade and tariff uncertainties, market conditions in the steel and steelmaking coal industries and overall global economic and competitive conditions, all as more fully described under Forward-Looking Statements.<\/p>\n
\nWarrior Met Coal, Inc. (NYSE: HCC) (\u201cWarrior\u201d or the \u201cCompany\u201d) today announced results for the third quarter of 2026. Warrior is the leading dedicated U.S.-based producer and exporter of high-quality steelmaking coal for the global steel industry.<\/p>\n\n
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