Natural Resource Partners (NRP) Q2 2025 earnings summary

Executive summary

• Generated $46 million of free cash flow in Q2 2025 and $203 million over the last 12 months, despite cyclical lows in coal and soda ash prices.

• Revenues and net income declined year-over-year due to lower metallurgical coal and soda ash prices and volumes, with a 22% drop in total revenues for the six months ended June 30, 2025 compared to 2024.

• Maintained robust cash flow and continued deleveraging, aiming to pay off nearly all debt by mid-next year and increase unitholder distributions starting next August.

• Distributions to common unitholders continued, including a special distribution to cover tax liabilities, and the company remains in compliance with all debt covenants.

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

Financial highlights

• Q2 2025 net income was $34 million; operating and free cash flow were $46 million.

• Six-month revenues fell to $110.6 million from $142.0 million year-over-year, and net income dropped to $74.5 million from $102.3 million.

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

• Adjusted EBITDA for the six months was $88.0 million, down from $130.8 million in the prior year period.

• Quarterly distribution of $0.75 per common unit announced for Q2 2025, with a special $1.21 per unit distribution paid in March 2025.

Outlook and guidance

• Expect to pay off substantially all debt in the coming months and significantly increase unitholder distributions starting next August.

• Management expects continued weak pricing for metallurgical and thermal coal and soda ash for the remainder of 2025 and into 2026.

• Distributions from Şişecam Wyoming expected to remain at historically low levels for the foreseeable future.

• No significant progress on carbon neutral initiatives; market remains stagnant due to uncertainties.

• Management anticipates freeing up cash for higher distributions as debt is paid off next year.