Alliance Resource Partners (ARLP) Q4 2025 earnings summary

Executive summary

• Q4 2025 adjusted EBITDA was $191.1 million, up 54.1% year-over-year; net income attributable to unitholders rose 406.2% to $82.7 million ($0.64/unit).

• Full year 2025 net income was $311.2 million on $2.2 billion in revenue; adjusted EBITDA reached $698.7 million.

• Total revenues for Q4 2025 were $535.5 million, down 9.2% year-over-year, mainly due to lower coal sales and transportation revenues, partially offset by record oil and gas royalty volumes.

• Lower operating expenses, reduced impairment charges, and higher investment income, including a $17.5 million gain from an equity method investee, contributed to improved profitability.

• Quarterly cash distribution of $0.60 per unit declared, annualized at $2.40 per unit.

Financial highlights

• Average coal sales price per ton was $57.57, down 4% year-over-year and 2.1% sequentially.

• Coal production was 8.2 million tons, up 18.7% year-over-year; coal sales volumes were 8.1 million tons, down from 8.4 million tons year-over-year.

• Segment Adjusted EBITDA Expense per ton sold for coal was $40.24, down 16.3% year-over-year.

• Free cash flow for Q4 2025 was $93.8 million after $44.8 million in capital expenditures.

• Distributable cash flow was $100.1 million, with a distribution coverage ratio of 1.29x.

Outlook and guidance

• 2026 coal sales volumes expected to be 33.75–35.25 million tons, up 0.75–2.3 million tons from 2025, with over 93% already committed and priced.

• 2026 oil & gas royalty volumes expected near 2025 record levels at the high end of guidance.

• Coal royalty tons sold in 2026 projected to be 25% above 2025, driven by higher volumes at Hamilton and Tunnel Ridge mines.

• Segment Adjusted EBITDA expense per ton in 2026 projected at $33–$35 in Illinois Basin and $49–$53 in Appalachia.

• 2026 capital expenditures expected to be $280–$300 million.