Alpha Metallurgical Resources Q4 Earnings Call Highlights

27 Feb 2026, 23:48 by Mitch Edgeman · The Markets Daily

Alpha Metallurgical Resources (NYSE:AMR) outlined fourth quarter 2025 results and provided detailed commentary on market conditions, contracting activity, liquidity, and the ongoing ramp of its Kingston Wildcat low-vol mine during its earnings call.

Fourth quarter results and full-year context

Chief Executive Officer Andy Eidson said the company closed out a “challenging” 2025 marked by continued market weakness, while also citing “markedly improved cost performance across the company and resilience” during the year. For the fourth quarter, Alpha reported Adjusted EBITDA of $28.5 million on 3.8 million tons shipped.

Chief Financial Officer Todd Munsey said fourth quarter Adjusted EBITDA declined from $41.7 million in the third quarter, while tons sold dipped slightly from 3.9 million in the prior quarter. He also noted that SG&A (excluding non-cash stock compensation and non-recurring items) fell to $10.9 million from $13.2 million, driven by reduced professional services spending and lower labor costs.

Pricing and realizations

Munsey said met segment realizations increased modestly quarter-over-quarter. Alpha’s average met realization was $115.31 per ton in Q4, up from $114.94 per ton in Q3. Export met tons priced against Atlantic indices and other mechanisms realized $106.13 per ton, while export coal priced on Australian indices realized $114.96 per ton. The total weighted average realization for metallurgical sales was $118.10 per ton, up from $117.62 per ton in Q3.

Realizations in the incidental thermal portion of the met segment decreased to $77.80 per ton from $81.64 per ton. Munsey also cited a higher coal sales cost for the met segment at $101.43 per ton in Q4 versus $97.27 per ton in Q3, attributing the increase primarily to lower volumes and a reduction in coal inventory value.

Liquidity, cash flow, CapEx, and 2026 contracting

On the balance sheet, Munsey said Alpha ended 2025 with $366 million in unrestricted cash and $49.6 million in short-term investments, compared with $408.5 million and $49.4 million, respectively, at September 30. The company had $183.7 million of unused availability under its ABL facility at quarter-end, partially offset by a $75 million minimum required liquidity level. Total liquidity was $524.3 million at December 31, down from $568.5 million at the end of September. The ABL had no borrowings and $41.3 million of letters of credit outstanding.

Capital expenditures were $29 million in Q4, up from $25.1 million in Q3. Cash provided by operating activities totaled $19 million in the quarter, down from $50.6 million in the third quarter.

Looking ahead to 2026, Eidson said the company has been building its domestic sales base. Since issuing 2026 guidance and announcing 3.6 million tons of domestic commitments, Alpha added another 500,000 contracted tons, bringing total domestic commitments to 4.1 million tons at an average price of $136.30. Eidson said committed North American tons help support cash flow planning, while the remainder of the sales book carries market risk.

Munsey added detail on the 2026 committed book at the midpoint of guidance:

37% of metallurgical tons are committed and priced at an average of $134.02.
53% of metallurgical tons are committed but not yet priced.
The thermal byproduct portion is 77% committed and priced at an average of $73.17.

Market conditions: index divergence, supply disruptions, and steel demand

Management emphasized that recent strength in coal markets has been concentrated in the Australian Premium Low-Vol (PLV) Index. Eidson attributed much of the move to supply disruptions tied to flooding in Queensland in December and January, which he characterized as “likely isolated and temporary.” He also pointed to a widening divergence between Australian-linked indices and U.S. East Coast pricing and noted a lower trend in recent weeks.

Chief Commercial Officer Daniel Horn said metallurgical markets continue to be structurally influenced by steel demand and broader macro factors, including economic conditions, policy decisions, geopolitical tensions, tariffs, and trade negotiations. Horn provided index movements during Q4 2025:

Australian PLV rose 14.6% from $190.20 per metric ton on October 1 to $218 on December 31.
U.S. East Coast low-vol increased from $177 to $185 per metric ton (up 4.5%), averaging about $178 during Q4.
U.S. East Coast High-Vol A was effectively flat, ending Q4 at $150.50 per metric ton.
U.S. East Coast High-Vol B was similarly flat, ending at $144.20 per metric ton.

Horn said all four indices increased after quarter-end, though by varying degrees as of February 26, including Australian PLV at $237 and U.S. East Coast low-vol at $196, with high-vol A at $159 and high-vol B at $149. He also noted the API2 seaborne thermal index increased from $94.55 on October 1 to $96.90 on December 31, and to $106.75 as of February 26.

Eidson said growing oversupply of high-vol coal is contributing to a widening spread versus low-vol and that, given Alpha’s typical quality mix, sustained high-vol pricing weakness would likely pressure the company’s realizations. Management said it is looking for durable improvements in global steel demand as a catalyst for a more sustainable met market recovery.

Operations: Kingston Wildcat development and logistics update

President and COO Jason Whitehead highlighted Alpha’s internal Best in Class awards, naming the Bandmill Prep plant and Marmet River Dock as 2025 winners based on safety, environmental stewardship, and efficiency criteria.

On the new Kingston Wildcat longwall mine, Whitehead said the Wildcat Slope intercepted the Sewell coal seam in September 2025 and that development work and infrastructure installation have continued. He said a 2-mile power line and tap construction is complete and the mine is now on permanent utility power. Whitehead also said the stockpile reclaim tunnel and raw coal railroad loadout are complete, with overland belts expected to wrap up in the second quarter. Ventilation shafts have been bored, with lining and ventilation work ongoing. At the Mammoth preparation plant, he said rock rail car offloaders are complete and functioning, and raw coal transfer belts from rail to plant are also complete.

Whitehead said Alpha expects to produce roughly 500,000 tons from Wildcat in 2026 as the mine ramps toward what the company believes is nearly 1 million tons per year of full productivity capacity.

On logistics, Horn said Dominion Terminal Associates will conduct a four-week planned outage beginning in March for equipment upgrades. He said Alpha does not anticipate any material negative impacts and expects the upgrades to strengthen future shipping capabilities.

About Alpha Metallurgical Resources (NYSE:AMR)

Alpha Metallurgical Resources, Inc (NYSE: AMR) is a leading pure-play producer of high-grade metallurgical coal, primarily serving the global steelmaking industry. Headquartered in Bristol, Virginia, the company operates multiple underground and surface mining complexes across the central Appalachian and Illinois basins. Its production portfolio focuses on premium raw and semi-soft coking coal products tailored to meet the specifications of steel producers worldwide.

Formed in July 2021 through the spin-out of Contura Energy’s metallurgical coal business, Alpha Metallurgical Resources has built a reputation for operational excellence and cost-efficient mining.