Alpha Metallurgical Resources (AMR) Q2 2025 earnings summary

Executive summary

• Adjusted EBITDA for Q2 2025 was $46.1 million, up from $5.7 million in Q1 but down 60.3% year-over-year, with 3.9 million tons shipped and a net loss of $5.0 million, reflecting strong operational execution despite a challenging market and lower coal prices.

• Liquidity reached $556.9 million as of June 30, 2025, with $449.0 million in cash and no borrowings under the ABL facility.

• Achieved #1 US position in metallurgical coal with 17.1 million tons sold in 2024 and $408 million Adjusted EBITDA, maintaining a diverse asset base and strong safety record.

• The board restarted the share buyback program after a five-quarter pause, with $5.2 million repurchased in H1 2025 and $400 million remaining authorization.

• Best quarterly cost of coal sales performance since 2021, driven by cost-saving initiatives and temporary idling of certain mines.

Financial highlights

• Q2 2025 coal revenues were $548.7 million, down 31.4% year-over-year, with tons sold dropping 14.6%; Adjusted EBITDA margin was 8.4%.

• Non-GAAP coal sales realization per ton was $119.43, with cost of coal sales at $100.06 per ton; non-GAAP coal margin per ton was $19.36.

• Operating cash flow was $53.2 million in Q2 2025, up from $22.2 million in Q1 2025.

• Capital expenditures for Q2 2025 were $34.6 million, down from $38.5 million in Q1 2025.

• Net leverage improved to (0.2)x and gross leverage to 0.0x by Q2 2025.

Outlook and guidance

• 2025 shipment guidance is 14.6–16.0 million tons, with 69–72% of metallurgical volumes committed and priced at $127.37/ton as of July 30, 2025.

• Cost of coal sales guidance for 2025 lowered to $101–$107 per ton; SG&A guidance reduced to $48–$54 million; net cash interest income guidance raised to $6–$12 million.

• Capital expenditures for 2025 guided at $130–$150 million, with $98 million for sustaining maintenance.

• Section 45X tax credit for metallurgical coal could provide $30–$50 million annual cash benefit from 2026–2029.

• Thermal byproduct portion fully committed and priced at $80.52 per ton.