Alpha Metallurgical Resources (AMR) Q4 2024 earnings summary

Executive summary

• Reported adjusted EBITDA of $53.2 million for Q4 2024, with 4.1 million tons shipped, despite weak coal markets and severe weather impacting operations.

• Full-year 2024 Adjusted EBITDA was $408 million on 17.1 million tons sold, with 76% of sales exported and a strong safety and environmental record.

• Management remains focused on cash preservation, operational excellence, and evaluating M&A opportunities.

• Severe winter weather and weak global steel demand negatively impacted production, shipments, and cost guidance for Q1 and Q2 2025.

• Recognized as the #1 US producer of metallurgical coal, operating 20 mines and 8 preparation plants, with a 65% stake in the DTA export terminal.

Financial highlights

• 2024 revenue reached $2.96 billion, with a 14% Adjusted EBITDA margin and $408 million in Adjusted EBITDA.

• Q4 2024 coal revenues were $615.4 million, down from $669.8 million in Q3 2024.

• Free cash flow for 2024 was $349 million, with an 85% FCF conversion rate.

• CapEx increased to $42.7 million in Q4 from $31.5 million in Q3; 2024 capital expenditures were $199 million.

• Cash provided by operating activities was $56.3 million in Q4, down from $189.5 million in Q3.

Outlook and guidance

• 2025 metallurgical coal shipment guidance reduced to 14.5–15.5 million tons due to weather impacts.

• Cost of coal sales guidance for the met segment increased to $103–$110/ton.

• 32% of 2025 met tonnage committed and priced at $143.81/ton; 95% of thermal byproduct committed and priced at $80.74/ton.

• 2025 capital expenditures expected in the range of $152–$182 million.

• Q1 and Q2 2025 expected to be difficult due to ongoing weather and market challenges.