Alpha Metallurgical Resources soars on Q2 earnings beat

Published 08/08/2025, 12:42
 Alpha Metallurgical Resources soars on Q2 earnings beat

Investing.com -- Alpha Metallurgical Resources, a leading U.S. supplier of metallurgical products for the steel industry, reported a smaller-than-expected second quarter loss on Thursday, sending shares up 3.5% as cost-cutting measures began to take effect.

The company posted a net loss of $5.0 million, or -$0.38 per diluted share for the second quarter, significantly better than analyst expectations of -$2.04 per share.

Revenue came in at $548.7 million, slightly below the consensus estimate of $552.15 million and down from the comparable quarter last year when the company reported net income of $58.9 million.

Alpha’s impressive cost performance was a key highlight of the quarter, with Met segment cost of coal sales decreasing to $100.06 per ton from $110.34 per ton in the first quarter.

This improvement prompted the company to lower its full-year cost guidance to $101-$107 per ton, down from the previous range of $103-$110 per ton.

"I want to commend our team on a great quarter and an especially impressive cost performance," said Andy Eidson, Alpha’s chief executive officer. "We achieved significant improvement in our cost of coal sales for the quarter as our previously announced savings initiatives began to take effect."

The company reported Adjusted EBITDA of $46.1 million for the quarter, a substantial improvement from $5.7 million in the first quarter. Alpha also strengthened its financial position, achieving total liquidity of $556.9 million as of June 30.

Alpha has committed and priced approximately 69% of its metallurgical coal for 2025 at an average price of $127.37 per ton and 100% of its thermal coal at an average price of $80.52 per ton.

In addition to reducing cost guidance, the company lowered its SG&A expense forecast to $48-$54 million from $53-$59 million, while raising its net cash interest income guidance to $6-$12 million, up from $2-$10 million previously.

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