Alliance Resource Partners (ARLP) Q2 2025 earnings summary

Executive summary

• Second quarter 2025 revenues were $547.5 million, down 7.7% year-over-year due to lower coal sales prices and transportation revenues, but up sequentially on higher coal sales volumes.

• Net income was $59.4 million ($0.46 per unit), down from $100.2 million ($0.77 per unit) year-over-year, impacted by lower revenues, higher depreciation, and a $25 million non-cash impairment on a battery materials investment.

• Adjusted EBITDA for Q2 2025 was $161.9 million, down 10.8% year-over-year but up 1.2% sequentially.

• Coal sales volumes rose 6.8% year-over-year to 8.4 million tons, with record shipments at Hamilton and River View mines in June 2025.

• Added 17.4 million committed and priced sales tons for 2025–2029, bringing total new commitments in 2025 to 35.1 million tons.

Financial highlights

• Average coal sales price per ton was $57.92, down 11.3% year-over-year and 3.9% sequentially, while coal sales volumes increased 6.8%.

• Segment Adjusted EBITDA expense per ton sold was $41.27, down 9% year-over-year.

• Free cash flow for Q2 2025 was $79 million after $65.3 million in coal operations investments.

• Total debt at quarter end was $477.4 million; total liquidity was $499.2 million, including $55 million in cash.

• Oil & gas royalties revenue was $35.5 million in Q2 2025, a 2.6% decrease year-over-year, with BOE volumes up 7.7%.

Outlook and guidance

• 2025 contracted position: 32.3 million tons committed, with 29.5 million for domestic and 2.8 million for export markets.

• Illinois Basin volume guidance raised to 25–25.75 million tons; Appalachia guidance reduced to 7.75–8.25 million tons.

• 2025 full-year sales expected at 32.75–34 million tons; 97% committed for 2025, 80% for 2026.

• 2025 average coal sales price guidance unchanged at $57–$61 per ton; 2026 price per ton expected ~5% below 2025 midpoint.

• Oil and gas royalty volume guidance increased across all streams; BOE guidance midpoint up 5%.

• Projected 2025 capital expenditures between $285 million and $320 million; maintenance capital expenditures estimated at $7.28 per ton produced.