Natural Resource Partners (NRP) Q1 2025 earnings summary

Executive summary

• Generated $35.1 million of free cash flow in Q1 2025 and $214 million over the last twelve months.

• Net income for Q1 2025 was $40.3 million, down from $56.2 million in Q1 2024, reflecting declines in both Mineral Rights and Soda Ash segments.

• Revenues and other income for Q1 2025 decreased 21% year-over-year to $60.5 million, driven by lower metallurgical coal sales prices and volumes and a weaker soda ash market.

• Declared Q1 2025 distribution of $0.75 per common unit and paid a special $1.21 per unit distribution for 2024 tax liabilities.

• Available liquidity at March 31, 2025 was $120.5 million, including $30.9 million in cash and $89.6 million in credit facility capacity.

Financial highlights

• Q1 2025 revenues were $60.5 million, down from $76.4 million in Q1 2024.

• Operating cash flow for Q1 2025 was $34.4 million, down from $71.5 million in Q1 2024; free cash flow was $35.1 million.

• Adjusted EBITDA for Q1 2025 was $45.3 million, a decrease of $27.9 million from the prior year.

• Distributable cash flow for Q1 2025 was $35.4 million, a $36.9 million decrease year-over-year.

• Debt at March 31, 2025 was $139 million, with a consolidated leverage ratio of 0.7x.

Outlook and guidance

• Metallurgical and thermal coal pricing expected to remain muted in 2025 due to soft global steel demand and elevated power plant inventories.

• Soda ash market faces continued pressure from global overcapacity and weak demand, with distributions from Sisecam Wyoming expected to remain low.

• Anticipates continued price support above historical norms due to input cost inflation and supply constraints.

• Management continues to explore carbon neutral and renewable energy opportunities, though timing and cash flow impact remain uncertain.

• Distributions will be prioritized after liquidity and balance sheet strength.