Warrior Met Coal 2025 Q2 Earnings Sharp Net Income Drop Amid Strong Operational Results

Warrior Met Coal (HCC) reported its fiscal 2025 Q2 earnings on August 6, 2025. The results showed a sharp decline in net income and earnings per share, but the company maintained positive cash flows and highlighted progress on key growth initiatives.

Warrior Met Coal’s Q2 2025 earnings fell significantly below the prior-year period, with net income plummeting 92.1% to $5.61 million from $70.71 million in 2024 Q2. The company’s EPS also dropped 91.9% to $0.11. Although the results missed expectations, the company raised guidance for long-term growth and outlined positive operational performance. Warrior Met Coal maintained a disciplined cost structure, delivered strong cash margins, and accelerated the Blue Creek longwall startup, indicating a cautious but optimistic outlook for the remainder of the year.

Revenue
Warrior Met Coal’s total revenue for the second quarter of 2025 declined by 26.1% to $288.49 million, compared to $390.42 million in the same period of 2024. The drop reflects broader market conditions and softer demand for steelmaking coal, despite strong operational output. The company did not provide segment-specific revenue figures.

Earnings/Net Income
Warrior Met Coal’s net income for Q2 2025 plunged to $5.61 million, marking a 92.1% decline from $70.71 million in the prior-year period. The earnings per share (EPS) fell from $1.35 to $0.11, a reduction of 91.9%. These results represent a significant deterioration in profitability, underscoring the challenges the company faces in a volatile market environment.

Price Action
The stock of Warrior Met Coal has shown resilience in the short term, with a 1.26% increase during the latest trading day and an 8.21% gain over the past full trading week. Month-to-date, the share price has surged 11.53%, reflecting investor optimism around the company’s operational progress and long-term growth strategy.

Post-Earnings Price Action Review
A strategy of purchasing Warrior Met Coal shares following a quarterly revenue increase and holding for 30 days has historically yielded strong returns. Over the past three years, this approach generated a total return of 90.34%, outperforming the benchmark by 41.75%. The compound annual growth rate (CAGR) stands at 24.88%, with a maximum drawdown of 0.00%, indicating strong risk-adjusted performance. The Sharpe ratio of 0.56 and volatility of 44.20% further highlight the strategy’s robustness.

CEO Commentary
Walt Scheller, CEO, emphasized Warrior Met Coal’s strong operational results, positive cash margins, and disciplined cost management despite weaker market conditions. He noted the first commercial sales of Blue Creek steelmaking coal, a key milestone in reducing costs and accelerating revenue. The CEO reiterated the company’s focus on margin protection, cash flow preservation, and executing its long-term growth strategy.

Guidance
Warrior Met Coal expects to maintain positive cash margins and consistent operational performance in line with Q2 results. The company has accelerated the Blue Creek longwall startup to early Q1 2026 and remains focused on cost control and operational efficiency.

Additional News
In related news, Warrior Met Coal released a report on August 6, 2025, titled “Warrior Met Coal Q2 2025 slides: Production gains offset by…” which discussed the company’s production progress amid challenging market conditions. Although the full details are restricted, the report is expected to provide further insights into operational efficiencies and cost management initiatives. No major announcements regarding M&A activity, C-level executive changes, or dividend adjustments were reported within the past three weeks.