May 1, 2025 - Warrior Met Coal, Inc. (NYSE: HCC) (“Warrior” or the “Company”) today announced results for the first quarter of 2025. Warrior is the leading dedicated U.S.-based producer and exporter of high-quality steelmaking coal for the global steel industry.

Warrior reported a net loss for the first quarter of 2025 of $8.2 million, or $0.16 per diluted share, a decrease from net income of $137.0 million, or $2.62 per diluted share, in the first quarter of 2024. The Company reported Adjusted EBITDA of $39.5 million in the first quarter of 2025 compared to Adjusted EBITDA of $200.2 million in the first quarter of 2024. These results were substantially impacted by significantly weaker steelmaking coal market conditions reflected in the 40% lower index price for premium low-vol steelmaking coal year-over-year.

First Quarter Highlights

Reported a 10% increase in total production volumes, primarily attributable to the Blue Creek growth project, and a 2% increase in sales volumes;

Leveraged variable cost model to tightly manage costs in the current pricing environment, with cash cost of sales (free-on-board port) per short ton decreasing to $112.35 from $133.48 year-over-year;

Produced 251 thousand short tons from continuous miner development on the first longwall panel at Blue Creek project;

Continued to make significant progress on the development of Blue Creek, with the longwall startup expected no later than the second quarter of 2026; and

Recorded $10.9 million of cash provided by operating activities despite an average Platts Premium Low Vol FOB Australian index price of $167.90 per short ton during the quarter which represents a 9% and 40% decrease, respectively, from the previous quarter and prior year comparable quarter.

“While weak market conditions continued as expected, we were able to leverage our operational strength and financial discipline to deliver an increase in volume and strong cost performance at our mines, enabling us to maintain positive cash margins. At the same time, we continued to make excellent progress at Blue Creek, as we move closer to the finish line of the world-class growth project,” commented Walt Scheller, CEO of Warrior. “I would like to thank our employees for their outstanding performance and hard work to accomplish these goals.”

“The combination of broad economic uncertainty around global trade, seasonal demand weakness, and ample spot supply is expected to result in continued pressure on steelmaking coal prices. In this environment, we are increasing our focus on what is within our control: protecting margins and cash flow. We are confident that our unique asset base, highly flexible cost structure, and high-performing workforce will allow us to navigate successfully through the remainder of the year and beyond.”

“Given the current lack of economic clarity, our 2025 guidance remains unchanged at this time and does not reflect any potential impact from the recent tariff announcements. Until there is more clarity on trade and tariff policy, including any retaliatory tariffs that may be implemented against the U.S., we are unable to quantify the potential impact of these changes on Warrior. We expect to provide further updates to our financial outlook in connection with our second quarter earnings call to be held in early August 2025,” Mr. Scheller concluded.

Operating Results

Sales volumes in the first quarter of 2025 were 2.2 million short tons compared to 2.1 million short tons in the first quarter of 2024, representing a 2% increase.

The Company produced 2.3 million short tons of steelmaking coal in the first quarter of 2025, compared to 2.1 million short tons in the first quarter of 2023, representing a 10% increase and includes 251 thousand short tons produced at Blue Creek. Inventory levels remained consistent at 1.1 million short tons as of March 31, 2025 compared to December 31, 2024.

Additional Financial Results

Total revenues were $299.9 million for the first quarter of 2025, which compares to total revenues of $503.5 million for the first quarter of 2024. The average net selling price of the Company's steelmaking coal decreased 41.9% from $233.91 per short ton in the first quarter of 2024 to $135.79 per short ton in the first quarter of 2025. Our average gross selling price realization was approximately 83% of the Platts Premium Low Vol FOB Australian index price for the first quarter of 2025.

Cost of sales for the first quarter of 2025 were $245.7 million compared to $285.6 million for the first quarter of 2024. Cash cost of sales (free-on-board port) for the first quarter of 2025 were $244.0 million, or 82.7% of mining revenues, compared to $284.2 million, or 57.1% of mining revenues in the same period of 2024. Despite current levels of inflation, cash cost of sales (free-on-board port) per short ton decreased to $112.35 in the first quarter of 2025 from $133.48 in the first quarter of 2024, driven primarily by lower steelmaking coal prices and its effect on our variable cost structure, primarily for wages, transportation and royalties combined with the increase in tons produced while tightly managing our costs.

Selling, general and administrative expenses for the first quarter of 2025 were $18.4 million and were slightly lower than the same period last year due to lower stock compensation expense.

Depreciation and depletion expenses for the first quarter of 2025 were $45.3 million, or 15.1% of total revenues and were higher than the same period last year of 7.9% of total revenues primarily due to depreciation expense recognized on additional assets placed into service at Blue Creek and higher sales volumes. Warrior achieved net interest income of $3.2 million during the first quarter of 2025, which is lower than the prior year due to lower cash balances and lower earned rates of return.

Income tax benefit was $6.0 million in the first quarter of 2025 on a pre-tax loss of $14.2 million primarily driven by the pre-tax loss and an income tax benefit for foreign-derived intangible income and depletion expense. This compares to an income tax expense of $19.1 million on pre-tax income of $156.1 million in the first quarter of 2024.

Cash Flow and Liquidity

The Company generated positive cash flows from operations of $10.9 million in the first quarter of 2025, compared to $104.1 million in the first quarter of 2024. Capital expenditures and mine development for the first quarter of 2025 were $79.3 million compared to $101.7 million in the first quarter of 2024. The first quarter of 2025 includes $55.3 million of capital expenditures for the continued development of Blue Creek, which brings the total project capital expenditures to $771.8 million. Free cash flows in the first quarter of 2025 were negative $68.4 million compared to free cash flows of $2.4 million in the first quarter of 2024.

Net working capital, excluding cash, for the first quarter of 2025 increased by $31.8 million from the fourth quarter of 2024, primarily reflecting higher sales volumes, lower accrued expenses and higher accounts payable.

Cash flows provided by financing activities for the first quarter of 2025 were $30.3 million, primarily due to $48.8 million of proceeds received from equipment financing, offset partially by payments for taxes related to net share settlement of vested equity awards of $9.4 million, payment of a regular quarterly dividend of $5.2 million and principal repayments of financing lease obligations of $3.9 million.

The Company’s total liquidity as of March 31, 2025 was $616.6 million, consisting of cash and cash equivalents of $454.9 million, short-term investments of $23.5 million, net of $9.6 million posted as collateral, long-term investments of $24.6 million and available liquidity under its ABL Facility of $113.5 million, net of outstanding letters of credit of $2.5 million.

Capital Allocation

On April 23, 2025, our Board declared a regular quarterly cash dividend of $0.08 per share, which the Company plans to distribute on May 12, 2025, to stockholders of record as of the close of business on May 5, 2025.

Company Outlook

The Company's guidance for the full year 2025 remains unchanged at this time and does not reflect any potential impact from the recent tariff announcements. This guidance is subject to many risks that may impact performance, such as recent tariff announcements, market conditions in the steel and steelmaking coal industries and overall global economic and competitive conditions, all as more fully described under Forward-Looking Statements. Warrior will continue to evaluate the impact of the tariff announcements on its business for the remainder of the fiscal year, with the goal of providing further updates to its financial outlook in connection with its second quarter earnings call to be held in early August 2025.

Key factors that may affect outlook include:

Three planned longwall moves (one in Q2 and two in Q3),  

HCC index pricing, geography of sales and freight rates, 

Trade and tariff policies, 

Exclusion of other non-recurring costs,

New labor contract, and  

Inflationary pressures.

The Company's guidance for its capital expenditures consists of sustaining capital spending of approximately $90-$100 million, including regulatory gas requirements and final 4 North bunker construction, and discretionary capital spending of $225-$250 million for the development of the Blue Creek reserves.

The Company's 2025 production and sales guidance contains approximately 1.0 million short tons of High Vol A steelmaking coal from the Blue Creek continuous miner units, which are expected to be sold in the second half of 2025 when the preparation plant comes online.

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.

Conference Call

The Company will hold a conference call to discuss its first quarter 2025 results today, April 30, 2025, at 4:30 p.m. ET. To listen to the event, live or access an archived recording, please visit http://investors.warriormetcoal.com. Analysts and investors who would like to participate in the conference call should dial 1-844-340-9047 (domestic) or 1-412-858-5206 (international) 10 minutes prior to the start time and reference the Warrior Met Coal conference call. Telephone playback will also be available from 6:30 p.m. ET on April 30, 2025 until 6:30 p.m. ET on May 7, 2025. The replay will be available by calling: 1-877-344-7529 (domestic) or 1-412-317-0088 (international) and entering passcode 8536808.

About Warrior

Warrior is a U.S.-based, environmentally and socially minded supplier to the global steel industry. It is dedicated entirely to mining non-thermal metallurgical (met) steelmaking coal used as a critical component of steel production by metal manufacturers in Europe, South America and Asia. Warrior is a large-scale, low-cost producer and exporter of premium quality met coal, also known as hard-coking coal (HCC), operating highly efficient longwall operations in its underground mines based in Alabama. The HCC that Warrior produces from the Blue Creek coal seam contains very low sulfur and has strong coking properties. The premium nature of Warrior’s HCC makes it ideally suited as a base feed coal for steel makers. For more information, please visit www.warriormetcoal.com.

To see the full results with financial figures included, click here.