May 1, 2026 - Warrior Met Coal, Inc. (NYSE: HCC) has announced results for the first quarter of 2026. Warrior is the leading dedicated U.S.-based producer and exporter of high-quality steelmaking coal for the global steel industry.

Warrior reported net income for the first quarter of 2026 of $72.3 million, or $1.37 per diluted share, an increase from a net loss of $8.2 million, or $0.16 per diluted share, in the first quarter of 2025. Adjusted EBITDA in the first quarter of 2026 was $143.4 million, a 263% increase from $39.5 million in the first quarter of 2025, reflecting the continued ramp-up in the profitability contribution from the Blue Creek mine and slightly improved steelmaking coal prices. Sales and production volumes were ahead of budget for the first quarter and remain on track with Warrior's outlook and guidance for the full year 2026.

First Quarter Highlights

• Completed construction of the Blue Creek mine with a final investment of $66.1 million, bringing total project spending to $1,022.9 million;

• Achieved record quarterly sales volumes of 3.0 million short tons of steelmaking coal; and

• Reduced cash cost of sales (free-on-board port) per short ton by 14% to $96.17 from the year earlier period, driven primarily by the inherently lower cost structure of Blue Creek and a benefit from the Section 45X Advanced Manufacturing Production Tax Credit (the “45X Credit”).

“The first quarter marked a defining milestone for Warrior as we completed the final project spending for the development of our transformational Blue Creek mine, delivering the project ahead of schedule and fully in line with our capital expenditure guidance,” commented Walt Scheller, CEO of Warrior. “Blue Creek is already making a meaningful contribution to our financial performance with its volumes a key driver of record sales volume during the first quarter and its lower cost structure a critical foundation for our ability to expand margins and drive free cash flow despite continued challenging market conditions for steelmaking coal.

As trade restrictions with China persist and global supply continues to pressure pricing, especially in the High Vol A segment, India remains the key growth demand driver for steelmaking coal. The recent conflict in the Middle East adds additional uncertainty and potential inflationary pressures into the global markets. Importantly, we have the tools to drive continued value creation in this environment because we have been successfully executing a strategy enabling us to optimize production and control costs.

With our strong and low-cost assets now fully operational, and construction capital expenditures behind us, we are well positioned for the future,” Mr. Scheller concluded.

Operating Results

Sales volumes in the first quarter of 2026 were a record 3.0 million short tons compared to 2.2 million short tons in the first quarter of 2025, representing a 38% increase, driven primarily by sales of Blue Creek steelmaking coal.

The Company produced 3.5 million short tons of steelmaking coal in the first quarter of 2026, compared to 2.3 million short tons in the first quarter of 2025, representing a 55% increase. Inventory levels increased to 1.9 million short tons as of March 31, 2026, compared to 1.6 million short tons as of December 31, 2025.

Additional Financial Results

Total revenues were $458.6 million for the first quarter of 2026, which compares to total revenues of $299.9 million for the first quarter of 2025, reflecting the 38% increase in sales volumes combined with a 10% increase in the average net selling price. The average net selling price of the Company's steelmaking coal increased from $135.79 per short ton in the first quarter of 2025 to $149.39 per short ton in the first quarter of 2026. The average gross selling price realization was approximately 72% of the Platts Premium Low Vol (“PLV”) FOB Australian index price for the first quarter of 2026 compared to 83% for the first quarter of 2025. This result was primarily driven by a 17% higher sales mix of high-vol A steelmaking coal predominantly sold into the Pacific Basin at elevated freight rates and persistently low second tier price relativities compared to the PLV.

Cost of sales for the first quarter of 2026 were $290.4 million compared to $245.7 million for the first quarter of 2025. Cash cost of sales (free-on-board port) for the first quarter of 2026 were $288.7 million, or 64.4% of mining revenues, compared to $244.0 million, or 82.7% of mining revenues in the same period of 2025. Cash cost of sales (free-on-board port) per short ton decreased to $96.17 in the first quarter of 2026 from $112.35 in the first quarter of 2025. This was driven primarily by the sales mix of Blue Creek coal and its inherent lower cost structure and a benefit from the 45X Credit offset partially by higher steelmaking coal prices and their effect on Warrior's variable cost structure, primarily for wages, transportation and royalties.

Depreciation and depletion expenses for the first quarter of 2026 were $52.3 million, or 11.4% of total revenues and were higher than the same period last year of $45.3 million, or 15.1% of total revenues. This was primarily due to depreciation expense recognized on additional assets placed into service at Blue Creek and higher sales volumes.

Selling, general and administrative expenses for the first quarter of 2026 were $28.2 million, or 6.1% of total revenues, and were higher than the same period last year of $18.4 million due to higher employee-related expenses.

Net interest expense for the first quarter of 2026 were $584 thousand, which compares to net interest income in the prior year due to lower interest income on lower cash balances and lower earned rates of return combined with higher interest expense due to interest on new leased equipment.

Income tax expense was $6.4 million in the first quarter of 2026 on pre-tax income of $78.8 million compared to an income tax benefit of $6.0 million in the first quarter of 2025 on a pre-tax loss of $14.2 million.

Cash Flow and Liquidity

Cash used in operating activities in the first quarter of 2026 was $11.7 million, compared to cash generated from operations of $10.9 million in the first quarter of 2025. Net working capital, excluding cash, for the first quarter of 2026 increased by $145.8 million from the fourth quarter of 2025, primarily reflecting higher accounts receivable, higher inventories and lower accrued expenses. The higher accounts receivable were attributed to the increase in sales volume that was more weighted toward the end of the first quarter and higher steelmaking coal prices.

Cash used in investing activities for capital expenditures and mine development for the first quarter of 2026 was $57.4 million compared to $77.8 million in the first quarter of 2025. The first quarter of 2026 included $66.1 million of the final capital expenditures spent on the development of Blue Creek, which brings the total capital expenditures spent on the Blue Creek project to $1,022.9 million, which was in line with Warrior's guidance for the total project. Free cash flows in the first quarter of 2026 were negative $91.9 million compared to free cash flows of negative $68.4 million in the first quarter of 2025, primarily reflecting the project capital spending associated with the completion of the Blue Creek mine and the working capital impact of higher Blue Creek sales volumes.

Cash flows used in financing activities for the first quarter of 2026 were $28.1 million, primarily due to payments for taxes related to net share settlement of equity awards of $14.8 million, principal repayments of financing lease obligations of $8.6 million and payment of a regular quarterly dividend of $4.7 million.

The Company’s total liquidity as of March 31, 2026 was $363.7 million, consisting of cash and cash equivalents of $202.6 million, short-term investments of $20.6 million, which is net of $10.0 million posted as collateral and available liquidity under its ABL Facility of $140.5 million, net of outstanding letters of credit of $2.5 million.

Capital Allocation

On April 20, 2026, the Board declared a regular quarterly cash dividend of $0.08 per share, which the Company plans to distribute on May 7, 2026, to stockholders of record as of the close of business on May 1, 2026.

Company Outlook

The Company reaffirmed its guidance for the full year 2026. This guidance is subject to many risks that may impact performance, such as global trade and tariff uncertainties, market conditions in the steel and steelmaking coal industries and overall global economic and competitive conditions.

Key factors that may affect the full year 2026 outlook include:

• four planned longwall moves (two in Q2, one in Q3, one in Q4);

• HCC index pricing, geography of sales and freight rates;

• global trade and tariff policies;

• exclusion of other non-recurring costs;

• new labor contract; and

• inflationary pressures.

The Company does not provide reconciliations of its outlook for cash cost of sales (free-on-board port) to cost of sales in reliance on the unreasonable efforts exception provided for under Item 10(e)(1)(i)(B) of Regulation S-K. The Company is unable, without unreasonable efforts, to forecast certain items required to develop the meaningful comparable Generally Accepted Accounting Principles ("GAAP") cost of sales. These items typically include non-cash asset retirement obligation accretion expenses and other non-recurring indirect mining expenses that are difficult to predict in advance in order to include in a GAAP estimate. The unavailable information could have a significant impact on the Company's reported financial results.

Use of Non-GAAP Financial Measures

This release contains the use of certain non-GAAP financial measures. These non-GAAP financial measures are provided as supplemental information for financial measures prepared in accordance with GAAP. Management believes that these non-GAAP financial measures provide additional insights into the performance of the Company, and they reflect how management analyzes Company performance and compares that performance against other companies. These non-GAAP financial measures may not be comparable to other similarly titled measures used by other entities. The definition of these non-GAAP financial measures and a reconciliation of non-GAAP to GAAP financial measures is provided in the financial tables section of this release.

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