Warrior Met Coal Exceeds Q2 Expectations, Coal Prices Likely to Rise

Warrior Met Coal reported strong Q2 results above expectations, driven by higher metallurgical coal prices and increased production. The company's Indigo Division saw a significant increase in production, with sales volumes up 34% year-over-year. Warrior Met Coal expects higher coal prices ahead, driven by strong demand from steelmakers and ongoing supply disruptions. The company's Blue Creek development project is expected to come online in Q1.

Warrior Met Coal, Inc. (NYSE: HCC) reported its second-quarter (Q2) 2025 financial results, demonstrating resilience in the face of challenging market conditions. Despite a 24% decline in average premium low-vol steelmaking coal prices compared to the same period last year, the company achieved strong operational results, positive cash margins, and positive operating cash flows.

The company's net income for Q2 2025 was $5.6 million, or $0.11 per diluted share, down from $70.7 million, or $1.35 per diluted share, in Q2 2024. Adjusted EBITDA for Q2 2025 was $53.6 million, compared to $115.9 million in Q2 2024. Sales volumes increased by 6%, driven primarily by the first commercial sales of steelmaking coal from the Blue Creek mine, which occurred ahead of schedule. The company produced 348 thousand short tons from continuous miner development on the first longwall panel at Blue Creek.

Cash cost of sales (free-on-board port) per short ton decreased by 18% quarter-over-quarter to $101.17, driven by lower steelmaking coal prices and a disciplined approach to cost control and operational efficiency. Despite these challenges, Warrior Met Coal generated $37.5 million in cash provided by operating activities.

The company's CEO, Walt Scheller, commented, "Despite headwinds in the global steelmaking industry, Warrior delivered strong operational results, maintained positive cash margins, and generated positive operating cash flows. These outcomes reflect the strength of our cost discipline, the flexibility of our variable cost structure, and the resilience of our team in managing volatile market conditions."

Warrior Met Coal expects higher coal prices ahead, driven by strong demand from steelmakers and ongoing supply disruptions. The company's Blue Creek development project is expected to come online in the first quarter (Q1) of 2026, ahead of schedule. The company's full-year 2025 outlook has been updated to reflect these expectations.

References:
[1] https://investors.warriormetcoal.com/news-releases/2025/08-06-2025-210538918