Warrior Met Coal Forecasts FY25 Coal Sales of 8.8-9.5 Million Short Tons

Warrior Met Coal expects FY25 coal sales to be between 8.8-9.5 million short tons, with coal production between 8.3-9.1 million short tons. The company also forecasts a cash cost of sales of $110-$120 per short ton and capital expenditures for sustaining existing mines at $90M-$100M.

Warrior Met Coal, Inc. (HCC), a leading U.S.-based producer and exporter of high-quality steelmaking coal, reported its second-quarter (Q2) 2025 results, reflecting a challenging market environment. The company's net income for the period decreased to $5.6 million, or $0.11 per diluted share, compared to $70.7 million, or $1.35 per diluted share, in Q2 2024 [2].

Revenue for Q2 2025 fell by 25.0% to $297.5 million from $396.5 million in Q2 2024, primarily driven by a 24% lower average index price for premium low-vol steelmaking coal [2]. The company's adjusted EBITDA also declined to $53.6 million from $115.9 million in the prior year [2].

Key operational highlights for Q2 2025 include:
- Achieving the first commercial sales of 239 thousand short tons of steelmaking coal from the Blue Creek mine ahead of schedule.
- Producing 348 thousand short tons from continuous miner development on the first longwall panel at Blue Creek.
- Completing the installation of the truck dump and rail loadout at Blue Creek, enabling the first shipments to customers.
- Reporting a 6% increase in total sales and production volumes compared to the prior year, driven primarily by Blue Creek.
- Reducing the cash cost of sales (free-on-board port) per short ton to $101.17 from $123.78 in the previous quarter, driven by operational efficiency and cost control [2].

Looking ahead to the full year 2025 (FY25), Warrior Met Coal expects coal sales to range between 8.8-9.5 million short tons, with coal production between 8.3-9.1 million short tons. The company also forecasts a cash cost of sales of $110-$120 per short ton and capital expenditures for sustaining existing mines at $90M-$100M [2].

Walt Scheller, CEO of Warrior Met Coal, 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."

References:
[1] https://www.rttnews.com/3563014/warrior-met-coal-inc-bottom-line-falls-in-q2.aspx?type=ern
[2] https://www.marketscreener.com/news/warrior-reports-second-quarter-2025-results-and-updates-outlook-ce7c5ededb8bf224