Alliance Resource Partners (ARLP) Q3 2026 earnings summary

Executive summary

• Q3 2026 revenue rose 5.5% YoY to $603.0M; net income attributable to ARLP increased 46.8% to $139.6M, or $1.08 per unit, and Adjusted EBITDA attributable to ARLP rose 26.3% to $233.9M.

• Results improved YoY and QoQ on higher coal volumes, lower per-ton costs and the first full quarter of AllDale III and IV contributions.

• Nine-month revenue increased 0.7% to $1.671B; net income attributable to ARLP was $228.3M, essentially flat YoY, while Adjusted EBITDA attributable to ARLP rose 13.4% to $573.3M.

Financial highlights

• QoQ revenue increased 9.3%, net income attributable to ARLP increased 75.5%, and Adjusted EBITDA attributable to ARLP rose 26.4%.

• Q3 operating income was $147.4M versus $105.0M YoY; diluted EPS was $1.08 versus $0.73.

• Net income growth included a $16.5M digital-asset fair-value gain and a $6.3M AllDale III remeasurement gain; a $7.3M derivative loss and higher taxes partly offset the increases.

• Equity-method income was $12.8M versus $4.5M YoY and $9.5M QoQ, primarily reflecting Gavin Power Plant and NGP Fund income and valuations.

• Cash from operations was $511.5M for nine months versus $507.3M; cash and equivalents totaled $84.8M at September 30.

Outlook and guidance

• 2026 coal sales guidance is 34.5–35.5M tons, with total coal sales price guidance of $54.25–$54.75/ton and segment Adjusted EBITDA expense guidance of $37.50–$38.50/ton.

• 2026 capital expenditures are estimated at $270M–$290M; average annual maintenance capex over the next five years is projected at ~$7.23 per ton produced.

• 31.7M tons are committed and priced for 2027, including 700,000 Mettiki tons; 2027 coal-segment revenue is expected to equal or slightly exceed 2026, with stronger per-ton pricing in 2028.

• Mettiki 2027 production is expected to be ~550,000 tons above 2026, with lower EBITDA expense per ton; a transition to two room-and-pillar sections on two shifts is planned by end-Q1 2027.

• Export opportunities could add 500,000–1M tons if logistics ease; 2027 guidance is expected with Q4 results in February.