Natural Resource Partners (NRP) Q3 2026 earnings summary

Executive summary

• Q3 revenue and other income fell 10% YoY to $44.8M; net income was $26.5M versus $30.9M, and Adjusted EBITDA was $37.7M versus $38.9M.

• Q3 free cash flow was $44.8M; $31.7M, or $2.34 per unit, was available for distribution after $13.1M of credit-facility repayment.

• 9M revenue and other income was $132.3M versus $160.6M, net income was $71.3M versus $105.4M, and operating cash flow was $118.0M.

• LTM free cash flow was $166M before the soda ash investment and $126.6M after the $39.2M investment.

Financial highlights

• Q3 operating income was $27.1M versus $32.7M; diluted EPS was $1.95 versus $2.28 YoY.

• Q3 operating cash flow was $44.0M; free cash flow available for common unitholder and GP distributions was $31.7M, or $2.34 per unit.

• Q3 royalty and other mineral rights revenue was $47.0M versus $49.6M; transportation and processing revenue rose to $2.0M from $1.8M.

• 9M free cash flow was $81.1M; operating expenses increased 21% to $58.4M, mainly due to a $13.7M increase in depreciation, depletion and amortization.

Outlook and guidance

• No meaningful coal price change is expected in 2027; soft global steel demand is expected to continue pressuring metallurgical coal prices.

• Soda ash distributions are not expected to resume until demand improves and market capacity rationalizes; recovery is not expected in the near term and 2027 is expected to be harder than 2026.

• Future distributions will be determined quarterly based on cash flow, profitability, debt service, market outlook, tax considerations, liquidity and reserve needs.