Alliance Resource Partners (ARLP) Q4 2025 earnings summary

Executive summary

• Adjusted EBITDA for Q4 2025 was $191.1 million, up 54.1% year-over-year and 2.8% sequentially; net income attributable to unitholders was $82.7 million ($0.64/unit), up 406.2% year-over-year.

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

• Total revenues were $535.5 million in Q4 2025, down from $590.1 million year-over-year, mainly due to lower coal sales and transportation revenues, partially offset by record oil and gas royalty volumes.

• Record oil & gas royalty volumes for both the quarter and full year, up 20.2% and 7.2% year-over-year, respectively.

• Strong balance sheet with total liquidity of $518.5 million and net leverage ratio of 0.56x.

Financial highlights

• Investment income of $20 million in Q4 2025, including $17.5 million from an equity method investee's coal-fired power plant.

• Coal sales price per ton was $57.57, down 4% year-over-year and 2.1% sequentially; Illinois Basin sales price per ton fell 6.5% year-over-year.

• Segment Adjusted EBITDA Expense per ton sold for coal was $40.24, down 16.3% year-over-year; Appalachia segment expense per ton down 17.5%.

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

• Distribution coverage ratio was 1.29x for Q4 and 1.13x for full year 2025.

Outlook and guidance

• 2026 coal sales volumes expected to rise to 33.75–35.25 million tons, with over 93% of expected volumes already committed and priced.

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

• 2026 average realized coal pricing projected to be 3–6% below Q4 2025 levels.

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

• 2026 capital expenditures forecasted at $280–$300 million; maintenance capital per ton produced estimated at $7.23.