NACCO Industries (NC) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 5% YoY to $80.5M and operating profit increased 37% to $9.3M, including $3.4M of solar curtailment costs.

• Net income fell 18% to $10.9M as higher income tax expense outweighed improved pretax income; Adjusted EBITDA rose 63% to $20.4M.

• Stronger Utility Coal and Contract Mining results were partly offset by solar costs and weaker Minerals and Royalties revenue.

Financial highlights

• Q3 gross profit rose 18% to $11.8M and income before taxes rose 110% to $12.5M; diluted EPS was $1.44 vs. $1.78.

• Nine-month revenue was $215.6M vs. $210.4M; operating profit was $18.0M vs. $14.4M and net income was $18.8M vs. $21.4M.

• Nine-month Consolidated Adjusted EBITDA increased to $47.9M from $33.5M; LTM Adjusted EBITDA through September was $67.0M.

• Nine-month operating cash flow was $29.2M vs. $39.5M; capital expenditures and mineral interests totaled $44.3M vs. $34.3M.

Outlook and guidance

• FY2026 consolidated operating profit is expected to be comparable YoY, including ~$15M of solar impairment and curtailment costs; Adjusted EBITDA, pretax income and net income are expected to rise.

• Q4 net income is expected to increase YoY, while operating profit and Adjusted EBITDA could be lower depending on solar curtailment timing.

• Utility Coal Mining FY2026 operating profit is expected above 2025; Q4 profit faces weaker MLMC demand, higher diesel costs and a lower Sabine reclamation contribution.

• Contract Mining operating profit and Segment Adjusted EBITDA are expected to grow substantially in Q4 and FY2026; 2027 consolidated earnings are expected to improve, supported by business growth.

• Minerals and Royalties Q4 and FY2026 profit and Segment Adjusted EBITDA are expected lower YoY; 2027 earnings remain meaningful, with operating profit moderating from 2026.