What were the key takeaways from Warrior Met Coal's earnings call?

What were the key takeaways from Warrior Met Coal’s earnings call?

What is the revenue and EPS growth rate for Warrior Met Coal year over year?

What is Warrior Met Coal's gross profit margin?

What is the market's earnings forecast for Warrior Met Coal next quarter?

What is Warrior Met Coal's latest dividend and current dividend yield?

What guidance did Warrior Met Coal's management provide for the next earnings period?

What factors drove the changes in Warrior Met Coal's revenue and profit?

- **Blue Creek Breakthrough**: 8-month early start-up drives 10%+ production increase, with 1.8M tons sold in 2025. 
- **Strategic Expansion**: $47M federal lease acquisition adds 58M tons of reserves, extending mine life. 
- **Financial Resilience**: Q3 EBITDA of $71M, 27% sales growth, and $101/ton cash costs despite weak markets. 
- **Cost Efficiency**: 80% of Blue Creek production sold at lower costs, with 83% gross price realization. 
- **2026 Outlook**: 4.5-5M tons Blue Creek production target, $100-105/ton cost guidance, and $525M liquidity. 


**【CEO Summary Section】**
- **Blue Creek Early Start-Up**: Longwall operations began 8 months ahead of schedule, with 2025 production guidance raised by 10% to 1.8 million short tons (from 1 million). 
- **Federal Lease Acquisition**: Secured 58 million short tons of high-quality steelmaking coal reserves for $47 million, enhancing long-term operational efficiency. 
- **Market Challenges**: Despite weak steelmaking coal markets (1.5% global pig iron decline), Q3 sales volume reached 2.4 million short tons (+27% YoY), driven by contractual demand and Blue Creek contributions. 
- **Operational Excellence**: Blue Creek is on budget ($888M spent to date of $995M-$1.075B) and expected to generate free cash flow by Q1 2026. 

**【CFO Financial Commentary】**
- **Q3 Financials**: Adjusted EBITDA of $71M (+32% vs. Q2), net income $37M, and free cash flow of $67M (vs. -$20M YoY). 
- **Cost Efficiency**: Cash cost of sales per ton improved to $101 (vs. $123 YoY), with 80% of Blue Creek production sold at lower costs. 
- **Guidance Update**: Full-year 2025 production raised to 10.8-11.2 million tons (+10% midpoint), with cash cost guidance lowered to $100-105/ton. 
- **Liquidity**: $525M available liquidity, including $336M cash and $143M ABL facility. 

**【Q&A Highlights】**
- **Blue Creek 2026 Production**: CEO estimates 4.5-5 million tons, but final number will be market-driven. 
- **Capital Allocation**: CFO plans to return excess cash via dividends, buybacks, and maintaining $500M+ liquidity. 
- **Pricing Trends**: Gross price realization at 83% (vs. 93% YoY), with potential to return to 85-90% range if LVHCC/PLV relativity improves. 
- **Supply Dynamics**: 2026 expected to see new supply from Blue Creek and other mines, keeping market balanced. 
- **Hiring**: Plans to add ~100 employees over next year to support Blue Creek ramp-up. 


Warrior Met Coal, Inc.(HCC)-20251106-2025 Q3 Earnings call transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

HCC

HCC fundamentals

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