Longwall operations at transformational Blue Creek mine ramped steadily toward full production<\/i><\/p>\n
Significantly increased net income and adjusted EBITDA due to record quarterly sales volumes and continued cost improvements from growing Blue Creek contribution<\/i><\/p>\n
Raised volume guidance for 2026 due to solid operational performance<\/i><\/p>\n
BROOKWOOD, Ala.–(BUSINESS WIRE<\/a>)– \nWarrior reported net income for the fourth quarter of 2025 of $23.0 million, or $0.44 per diluted share, compared to net income of $1.1 million, or $0.02 per diluted share, in the fourth quarter of 2024. Adjusted EBITDA in the fourth quarter of 2025 was $92.9 million, a significant increase from $53.2 million in the fourth quarter of 2024, reflecting improved operating performance and the initial ramp-up profitability contribution from the Blue Creek mine.<\/p>\n Fourth Quarter Highlights<\/b><\/p>\n \n\u201cOur team’s disciplined execution in the fourth quarter and throughout 2025 delivered exceptional progress at Blue Creek,\u201d said Walt Scheller, CEO of Warrior. \u201cWe are poised for a significant expansion in scale in 2026 as the early start of the Blue Creek longwall operation is already driving higher production, improved cost performance and record quarterly sales volumes.\u201d<\/p>\n \n\u201cEven in these early stages of production and sales, Blue Creek’s contributions to our financial results are having a notable impact \u2013 which we expect will only increase as the mine continues to ramp up toward full production. With a strengthened first quartile cost structure, a growing reserve base, and a clear pathway to higher volumes, Warrior is exceptionally well-positioned to capitalize on long-term demand for high-quality steelmaking coal. We continue to remain focused on disciplined capital deployment, operational reliability, and creating long-term shareholder value,\u201d Mr. Scheller concluded.<\/p>\n \nWarrior’s strong operational performance and meaningful cost reductions reflect the Company’s variable cost structure and the early benefits of Blue Creek. The results came despite challenging global steelmaking coal markets, where pricing has been driven primarily by depressed global steel demand, record high Chinese steel exports, and abundant global supply of steelmaking coal. The average index price for premium low-volatility coal was 22% lower year-over-year.<\/p>\n Full Year Performance<\/b><\/p>\n \nDespite lower pricing in 2025, Warrior delivered higher production, improved costs, and the commencement of longwall operations at Blue Creek, positioning the Company for materially higher volumes and enhanced profitability. Warrior generated net income of $57.0 million and Adjusted EBITDA of $256.5 million, reflecting lower average selling prices despite higher production and sales volumes driven by the Blue Creek longwall operations. While investments in Blue Creek and other development projects drove higher capital spending in 2025, the Company continued to maintain strong liquidity and delivered year-over-year improvements in cost efficiency, creating the potential for enhanced profitability as Blue Creek ramps toward full production.<\/p>\n Operating Results<\/b><\/p>\n \nSales volumes in the fourth quarter of 2025 were a record 2.9 million short tons compared to 1.9 million short tons in the fourth quarter of 2024, representing a 53% increase, driven primarily by sales of Blue Creek steelmaking coal of 881 thousand short tons. Sales volumes for the full year 2025 were a record 9.6 million short tons, or an increase of 21% compared to 2024, which was at the high end of our guidance range. The higher sales volumes for the full year 2025 were driven by sales of Blue Creek steelmaking coal of 1.5 million short tons.<\/p>\n \nThe Company produced a record 3.4 million short tons of steelmaking coal in the fourth quarter of 2025, compared to 2.1 million short tons in the fourth quarter of 2024, representing a 61% increase, including 1.3 million short tons produced at Blue Creek. For the full year 2025, the Company produced a record 10.2 million short tons, or an increase of 24% compared to 2024, which exceeded our guidance for the full year and is attributed to the early longwall operation startup at Blue Creek. Inventory levels increased to 1.6 million short tons as of December 31, 2025, compared to 1.1 million short tons as of September 30, 2025.<\/p>\n Additional Financial Results<\/b><\/p>\n \nTotal revenues were $384.0 million for the fourth quarter of 2025, which compares to total revenues of $297.5 million for the fourth quarter of 2024, reflecting the 53% increase in sales volumes, offset partially by a decline in the average net selling price. The average net selling price of the Company’s steelmaking coal decreased 16% from $154.54 per short ton in the fourth quarter of 2024 to $129.60 per short ton in the fourth quarter of 2025. The average gross selling price realization was approximately 75% of the Platts Premium Low Vol FOB Australian index price for the fourth quarter of 2025 compared to 86% for the fourth quarter of 2024, primarily driven by a 12% higher sales mix of high-vol A steelmaking coal and an 18% increase in sales into the Pacific Basin.<\/p>\n \nFor the full year 2025, total revenues were $1.3 billion, or a decrease of 14% compared to 2024, driven by a 30% decrease in the average net selling prices of the Company’s steelmaking coal offset partially by a 21% increase in sales volumes. The average net selling price of the Company’s steelmaking coal decreased 29% from $188.09 per short ton for the full year 2024 to $132.62 per short ton for the full year 2025. The average gross selling price realization was approximately 80% of the Platts Premium Low Vol FOB Australian index price for the full year 2025 compared to 89% for the full year 2024, primarily driven by 13% higher sales mix of high-vol A steelmaking coal sold primarily into the Pacific Basin, a lower price index relative to premium low-vol and elevated freight rates to the Pacific Basin.<\/p>\n \nCost of sales for the fourth quarter of 2025 were $270.7 million compared to $228.8 million for the fourth quarter of 2024. Cash cost of sales (free-on-board port) for the fourth quarter of 2025 were $269.6 million, or 72.2% of mining revenues, compared to $225.6 million, or 77.4% of mining revenues in the same period of 2024. Cash cost of sales (free-on-board port) per short ton decreased to $93.53 in the fourth quarter of 2025 from $119.55 in the fourth quarter of 2024. This was driven primarily by the sales mix of Blue Creek coal and its inherent lower cost structure and lower steelmaking coal prices and their effect on Warrior’s variable cost structure, primarily for wages, transportation and royalties. For the full year 2025, cash cost of sales (free-on-board port) per short ton was $101.30 and was better than Warrior’s guidance range.<\/p>\n \nDepreciation and depletion expenses for the fourth quarter of 2025 were $56.4 million, or 14.7% of total revenues and were higher than the same period last year of $39.2 million, or 13.2% of total revenues. This was primarily due to depreciation expense recognized on additional assets placed into service at Blue Creek and higher sales volumes. For the full year 2025, depreciation and depletion expenses of $188.6 million was at the low end of Warrior’s guidance range.<\/p>\n \nSelling, general and administrative expenses for the fourth quarter of 2025 were $18.1 million, or 4.7% of total revenues, and were higher than the same period last year of $17.7 million due to higher employee-related expenses. For the full year 2025, selling, general and administrative expenses of $65.7 million were at the low end of Warrior’s guidance range.<\/p>\n \nWarrior achieved net interest income of $1.2 million during the fourth quarter of 2025, which is lower than the prior year due to lower interest income on lower cash balances and lower earned rates of return combined with higher interest expense due to interest on new leased equipment. For the full year 2025, interest expense of $9.7 million was at the low end of Warrior’s guidance range and interest income earned of $18.5 million was within Warrior’s guidance range.<\/p>\n \nIncome tax expense was $12.9 million in the fourth quarter of 2025 on pre-tax income of $35.9 million. The effective income tax rate for the twelve months ended December 31, 2025 varied from the statutory federal income tax rate of 21%, primarily due to tax benefits recognized for depletion expense, marginal gas well tax credits and foreign-derived intangible income deduction. This compares to an income tax expense of $0.8 million on pre-tax income of $2.0 million in the fourth quarter of 2024.<\/p>\n Cash Flow and Liquidity<\/b><\/p>\n \nThe Company generated positive cash flows from operations of $76.1 million in the fourth quarter of 2025, compared to $54.2 million in the fourth quarter of 2024. Net working capital, excluding cash, for the fourth quarter of 2025 increased by $8.0 million from the third quarter of 2025, primarily reflecting higher accounts receivable and inventories primarily due to the ramp up of Blue Creek.<\/p>\n \nCash used in investing activities for capital expenditures and mine development for the fourth quarter of 2025 was $104.4 million compared to $142.2 million in the fourth quarter of 2024. The fourth quarter of 2025 includes $69.1 million of capital expenditures for the continued development of Blue Creek, which brings the total year-to-date capital expenditures to $240.3 million and project-to-date capital expenditures to $956.8 million. Free cash flows in the fourth quarter of 2025 were negative $28.3 million compared to free cash flows of negative $88.0 million in the fourth quarter of 2024, driven primarily by the continued development of Blue Creek.<\/p>\n \nCash flows used in financing activities for the fourth quarter of 2025 were $13.1 million, primarily due to principal repayments of financing lease obligations of $8.9 million and payment of a regular quarterly dividend of $4.2 million.<\/p>\n \nThe Company\u2019s total liquidity as of December 31, 2025 was $483.9 million, consisting of cash and cash equivalents of $300.0 million, short-term investments of $43.4 million, which is net of $9.9 million posted as collateral and available liquidity under its ABL Facility of $140.5 million, net of outstanding letters of credit of $2.5 million.<\/p>\n Capital Allocation<\/b><\/p>\n \nOn February 10, 2026, the Board declared a regular quarterly cash dividend of $0.08 per share, which the Company plans to distribute on March 2, 2026, to stockholders of record as of the close of business on February 23, 2026.<\/p>\n Finalization of Federal Lease Acquisition<\/b><\/p>\n \nIn the fourth quarter of 2025, the Company finalized two federal coal leases with the U.S. Department of Interior and Bureau of Land Management. The mining plans for these leases, which were approved in the first quarter of 2026, authorize development and mining activities across approximately 14,050 acres in Tuscaloosa County, Alabama, which contain approximately 53 million short tons of reserves, further strengthening the resource base underpinning our strategic growth initiatives. The approval of these mining plans marks an important milestone in supporting the long-term development of the Company’s high quality steelmaking coal operations, provides long-term visibility into future production and allows for incremental reserves to be mined at both Blue Creek and Mine No. 4.<\/p>\n Company Outlook<\/b><\/p>\n \nWarrior expects 2026 to reflect a substantial step-change in production and sales volumes, driven by Blue Creek operating for the full year and continued operational excellence at Mines No. 4 and 7. While volumes are expected to be higher, the Company anticipates a continued challenging pricing environment given weak demand, record high Chinese steel exports and ample global supply, particularly in the High Vol A quality tier. The Company’s outlook for 2026 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. The Company’s guidance for the full year 2026 is outlined below.<\/p>\n
\nWarrior Met Coal, Inc. (NYSE: HCC) (\u201cWarrior\u201d or the \u201cCompany\u201d) today announced results for the fourth quarter and full year 2025. Warrior delivered strong fourth-quarter and full-year results driven by record sales volumes, the commencement of operations at the transformational Blue Creek mine, and continued cost improvements. The ahead-of-schedule start of Blue Creek’s longwall in October 2025 is already reshaping Warrior’s production profile, cost structure, and earnings potential heading into 2026.<\/p>\n\n
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