Alpha Metallurgical Resources, Inc.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 8 May 2026: press release. Guidance figures: 10 new, 1 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Net loss narrowed, Adjusted EBITDA rose: Net loss was $11.0 million, or $0.86 per diluted share, compared with $17.3 million in the fourth quarter 2025 and $33.9 million a year earlier. Adjusted EBITDA was $30.0 million, against $28.5 million in the fourth quarter. Source
• Realized price per ton rose sequentially: Met segment non-GAAP realization was $124.39 per ton, up from $115.31 in the fourth quarter 2025. Non-GAAP coal revenues were $447.3 million, excluding freight and handling fulfillment revenues. Source
• Cost per ton rose on diesel and supply: Met segment non-GAAP cost of coal sales rose to $107.98 per ton from $101.43 in the fourth quarter 2025. Management identified diesel and other supply costs as the main contributors. Source
• Half of 2026 metallurgical coal priced: As of April 29, 2026, about 48% of 2026 metallurgical coal was committed and priced, at an average price stated by the company. Source
• Liquidity stood at $476.2 million: Liquidity included cash of $317.2 million, short-term investments of $49.6 million and $184.3 million of ABL availability, less a $75.0 million minimum liquidity requirement. Source
• Buybacks reached about $1.2 billion: Under the $1.5 billion authorization, about 7.0 million shares had been acquired at roughly $1.2 billion, or about $166.18 per share, through April 30, 2026. Source

“Our results for the first quarter 2026 were driven by lower volumes and higher costs”

Andy Eidson, Alpha’s chief executive officer

Guidance

What changed from last quarter

• New guidance: 2026 shipment, cost, expense and tax ranges appear in this release. The preliminary release of April 24 contained no 2026 guidance. Source
• Guidance kept: Management said it is maintaining the cost of coal sales guidance range for the year. Source
• New: Stockholders re-elected all six board members at the May 6, 2026 annual meeting. Source

First quarter results and drivers

• Net loss narrowed, Adjusted EBITDA rose: Net loss was $11.0 million, or $0.86 per diluted share, compared with $17.3 million in the fourth quarter 2025 and $33.9 million a year earlier. Adjusted EBITDA was $30.0 million, against $28.5 million in the fourth quarter. Source
• Lower volumes and higher costs drove results: Management attributed the quarter's results to lower volumes and higher costs. Planned outages at Dominion Terminal Associates slowed shipments, and supply cost increases were larger than expected. Source
• Realized price per ton rose sequentially: Met segment non-GAAP realization was $124.39 per ton, up from $115.31 in the fourth quarter 2025. Non-GAAP coal revenues were $447.3 million, excluding freight and handling fulfillment revenues. Source
• Non-GAAP coal margin improved per ton: Non-GAAP coal margin was $59.0 million, or $16.41 per ton, up from $13.87 per ton in the fourth quarter 2025 and $8.27 per ton a year earlier. Source
• GAAP coal margin turned positive: GAAP coal margin was $3.4 million, or $0.96 per ton, compared with a negative $7.9 million, or negative $2.08 per ton, in the fourth quarter 2025. Source

Costs, margins and pricing

• Cost per ton rose on diesel and supply: Met segment non-GAAP cost of coal sales rose to $107.98 per ton from $101.43 in the fourth quarter 2025. Management identified diesel and other supply costs as the main contributors. Source
• Cost impact exceeded expectations: Management said the cost impact was greater than expected because of war-related increases in diesel and other supply prices. Management said it hopes these increases will be temporary. Source
• Idled mine costs declined: Idled and closed mine costs were $9.9 million, down from $12.0 million in the fourth quarter 2025 and $6.0 million a year earlier, and are excluded from non-GAAP cost of coal sales. Source
• Freight revenue offset freight cost: Freight and handling fulfillment revenues and freight and handling costs were each $76.2 million, and both are removed from the non-GAAP measures. Source

“we experienced a greater-than-expected impact on costs in Q1 as a result of war-related increases to diesel and other supply prices, which we hope will be temporary”

Andy Eidson, Alpha’s chief executive officer

Segment and sales mix

• Met segment is the reported segment: Adjusted EBITDA is used to measure the operating performance of the single reportable segment, the Met segment. Source
• Australian-indexed exports realized most: Australian-indexed exports realized $144.95 per ton, above domestic sales at $137.27 per ton. Other export pricing mechanisms realized $110.32 per ton. Source
• Other export pricing carried largest share: Export sales under other pricing mechanisms made up 43% of Met tons sold, the largest share, at the lowest realization of the three categories. Source
• Thermal coal realized lower price: Thermal coal revenues were $16.9 million at $69.41 per ton, included in the Met segment total. Source

Order book and committed volumes

• Half of 2026 metallurgical coal priced: As of April 29, 2026, about 48% of 2026 metallurgical coal was committed and priced, at an average price stated by the company. Source
• Thermal coal fully committed at midpoint: At the midpoint of guidance, thermal coal is fully committed for 2026 at $74.53 per ton, according to management. Source
• Met segment committed share and unpriced tons: Met segment committed and priced share was 53% at $124.37 per ton. Committed but unpriced metallurgical tons were 43%, and Met segment committed but unpriced tons were 40%. Source
• Domestic and export committed tons split: Domestic metallurgical committed tons are priced at $136.38 per ton, and export committed tons at $127.02 per ton. Source
• Freight expense can shift realizations: Management said realizations on committed tons may vary in future periods if actual freight expense differs from the freight assumed in projected per-ton realizations. Source

“Despite our prior communication of these anticipated headwinds, consensus expectations for the quarter did not reflect these realities”

Andy Eidson, Alpha’s chief executive officer

2026 guidance basis

• Full-year ranges first given in release: The preliminary release said 2026 expectations would be provided with the definitive results, and this release contains the 2026 guidance table.
• Cost range maintained, upward revision possible: Management is holding the cost of coal sales range and expects better cost performance in later quarters. It said a continued conflict would likely lead to an upward revision. Source
• Guidance tied to committed tons: Committed percentages in the guidance are based on the midpoint of the shipment range and on committed and priced shipments as of April 29, 2026. Source

Liquidity and capital spending

• Operating cash flow rose on the quarter: Operating cash flow was $29.0 million, compared with $19.0 million in the fourth quarter 2025. Capital expenditures were $40.7 million, against $29.0 million in the fourth quarter. Source
• Liquidity stood at $476.2 million: Liquidity included cash of $317.2 million, short-term investments of $49.6 million and $184.3 million of ABL availability, less a $75.0 million minimum liquidity requirement. Source
• No ABL borrowings; letters of credit outstanding: The company had no ABL borrowings at quarter end and $40.7 million of letters of credit outstanding under the ABL. Total long-term debt was $12.2 million. Source
• Equity affiliate funding for DTA facility: Contributions to equity affiliates fund normal operations at the DTA export facility and expected upgrade investment there. Source

Share repurchases and governance

• Buybacks reached about $1.2 billion: Under the $1.5 billion authorization, about 7.0 million shares had been acquired at roughly $1.2 billion, or about $166.18 per share, through April 30, 2026. Source
• Shares outstanding fell slightly: Shares outstanding were 12,714,624 at April 30, 2026, excluding the potential effect of unvested equity awards. Source
• Repurchase cash outflow in quarter: Common stock repurchases and related expenses were $22.9 million in the quarter, shown in financing activities. Source
• All six directors re-elected: Stockholders re-elected all six board members to one-year terms and approved the other items the board proposed at the May 6, 2026 meeting. Source

Preliminary results and release timing

• Preliminary figures issued April 24: Preliminary net loss, diluted loss per share, Adjusted EBITDA and tons sold were released on April 24, 2026, before the definitive results on May 8.
• Definitive figures matched preliminary figures: The definitive release on May 8 kept the preliminary net loss, diluted loss per share, Adjusted EBITDA and tons sold, with the full statements and reconciliations added. Source

Coming up, as management said on 8 May 2026

• Expected DTA facility upgrade investment: Contributions to equity affiliates are expected to fund normal DTA operations and facility upgrade investment. Source

Figures management reported

Risks management discussed

• External: If the Iran conflict continues through the year, diesel and supply cost increases could require raising the cost of coal sales guidance range. Source
• Operational: Planned outages at the Dominion Terminal Associates facility slowed shipments in the quarter, as anticipated by management. Source
• Operational: Repair and maintenance needs across the portfolio were expected to raise first quarter costs, according to the preliminary release.
• Operational: Committed realizations may change if freight expense recognized in future periods differs from the freight assumed in projections. Source
• Demand: Freight and handling costs for uncommitted tons are uncertain because the end market and FOB point for those sales are not yet known. Source

Earlier plans management reported on

• Not stated: Management said lower volumes and higher costs had been discussed on the February earnings call and affected first quarter results.
• Not stated: A planned month-long outage for equipment upgrades at Dominion Terminal Associates lowered first quarter shipments relative to the anticipated cadence.
• Not stated: The $1.5 billion share repurchase program was authorized and announced before this release. Source

Other quarters

• Q2 FY2026 earnings call
• Q4 FY2025 results
• Q3 FY2025 results
• Q2 FY2025 results
• Q3 FY2026 earnings call

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.