Alliance Resource Partners (ARLP) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenues were $540.5 million, down 17.1% year-over-year due to lower coal sales volumes, prices, and reduced transportation revenues.

• Net income for the quarter was $74.0 million, down from $158.1 million in Q1 2024, reflecting lower coal sales and a $5.6 million decrease in digital asset fair value.

• Adjusted EBITDA for Q1 2025 was $159.9 million, down from $238.4 million year-over-year but up $36.0 million sequentially.

• Over 96% of 2025 expected coal sales volumes are committed and priced, with 17.7 million tons of new contract commitments added for 2025–2028.

• The company remains the second largest coal producer in the eastern U.S., with diversified operations in coal mining and oil & gas royalties.

Financial highlights

• Average coal sales price per ton was $60.29, down 6.9% year-over-year; coal sales revenue dropped 16.6% to $468.5 million.

• Coal production was 8.5 million tons (down 7.2% YoY); coal sales volumes were 7.8 million tons (down 10.4% YoY).

• Free cash flow for Q1 2025 was $52.7 million after $83.4 million invested in coal operations; distributable cash flow was $84.1 million.

• Quarterly distribution declared at $0.70 per unit, annualized at $2.80 per unit, unchanged from prior periods.

• Capital expenditures for Q1 2025 were $86.8 million, with full-year 2025 guidance at $285–$320 million.

Outlook and guidance

• Full-year 2025 coal sales guidance raised to 32.75–34.75 million tons, with 96% of 2025 and 61% of 2026 sales contracted.

• Second quarter 2025 coal sales volumes expected to be 8–12% higher than Q1; cost per ton anticipated to decline in the second half.

• Full-year segment-adjusted EBITDA expense per ton guided at $35–$38 in Illinois Basin and $53–$60 in Appalachia.

• 2026 average coal sales price per ton projected to be 4–5% below 2025 guidance midpoint as higher-priced contracts roll off.

• Management expects sufficient cash flow and liquidity to meet 2025 requirements and remain in compliance with debt covenants.