Alliance Resource Partners (ARLP) Q3 2025 earnings summary

Executive summary

• Third quarter 2025 revenues were $571.4 million, down 6.9% year-over-year but up 4.4% sequentially, mainly due to lower coal sales prices and reduced transportation revenues, partially offset by higher coal sales volumes.

• Net income attributable to unitholders was $95.1 million, up 10.2% year-over-year, driven by reduced operating expenses and higher investment income.

• Adjusted EBITDA for Q3 2025 was $185.8 million, up 9% year-over-year and 14.8% sequentially.

• Free cash flow for the quarter was $151.4 million, and distributable cash flow was $106.4 million, both up sequentially.

• For the nine months ended September 30, 2025, revenues declined 10.7% to $1.66 billion, and net income fell 33.7% to $228.5 million.

Financial highlights

• Average coal sales price per ton was $58.78, down 7.5% year-over-year but up 1.5% sequentially; coal sales for Q3 were $511.6 million.

• Total coal production was 8.4 million tons (up 8.5% year-over-year), and coal sales volumes were 8.7 million tons (up 3.9% year-over-year).

• Segment Adjusted EBITDA for Q3 2025 increased 7.8% to $207.2 million; margin was 36.3%.

• Operating expenses for Q3 2025 decreased 8.8% to $359.3 million, with per ton costs in coal operations down 11.1% to $40.99.

• Total liquidity at quarter end was $541.8 million, including $94.5 million in cash and 568 Bitcoin valued at $64.8 million.

Outlook and guidance

• Full-year 2025 coal sales guidance tightened to 32.5–33.25 million tons, with 32.8 million tons already committed and priced.

• 2026 contracted and priced sales tons increased to 29.1 million, up 9% from last quarter.

• Segment-adjusted EBITDA expense per ton for 2025 expected at $60–$62 in Appalachia and $34–$36 in Illinois Basin.

• Maintenance capital expenditures estimated at $7.28 per ton produced for 2025.

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