Coronado Global Resources (CRN) H1 2026 earnings summary

Executive summary

• Operational performance improved in Q2 2026, with a 39% increase in sellable production and a return to positive adjusted EBITDA, following weather disruptions and a temporary mine suspension in Q1.

• The RESET program and structural changes at Curragh are focused on productivity, cost reduction, and margin maximization, with early benefits realized.

• Buchanan mine completed its expansion, maintaining positive earnings and establishing a higher production baseline.

• Strategic relationships, especially with Stanwell, provide financial flexibility and downside protection.

• The company is positioned to benefit from future met coal demand growth, especially from India, leveraging long-life assets and Tier 1 jurisdictions.

Financial highlights

• H1 FY26 total revenues reached $981.3 million, up 7% year-over-year from $917.1 million in H1 FY25.

• Adjusted EBITDA for H1 FY26 was $46.5 million, down 77% from H1 FY25, but Q2 FY26 saw a $96 million quarter-on-quarter improvement.

• Net loss for H1 2026 was $418.0 million, up from $172.4 million in H1 2025, driven by higher costs, impairment charges, and increased interest expense.

• Free cash flow improved by $70 million year-over-year, despite timing and inflationary headwinds.

• Average realized metallurgical coal price increased 12% year-over-year to $168/ton.

Outlook and guidance

• Production guidance for 2023 is 16–17 million tons (met and thermal), but not all may be saleable by year-end due to inventory management and plant constraints.

• Management expects sufficient liquidity to fund operations for at least one year, supported by cash, forecasted cash flows, and new Glencore prepayment agreements.

• Focus remains on margin and cash flow, not maximizing low-margin thermal output, with ongoing cost reduction and operational improvement initiatives.

• Reset initiatives are expected to deliver further cost savings and margin improvements, maximizing exposure to the next metallurgical coal price cycle.

• Forecasts remain sensitive to production targets, coal prices, and economic conditions.