Core Natural Resources, Inc.

Core Natural Resources reported Q1 2026 net income of $21 million, or $0.41 per diluted share, and adjusted EBITDA of $180 million, versus a net loss of $79 million and adjusted EBITDA of $103 million in Q4 2025. Free cash flow was $56 million after $73 million of capital expenditures, though it was impacted by $52 million of negative working capital changes, including timing of the 45X tax credit accrual. Segment results included High CV Thermal coal sales of 7.7 million tons with realized coal revenue of $58.86 per ton and cash costs of $42.56 per ton; Metallurgical coal sales of 2.1 million tons with realized coking coal revenue of $122.11 per ton, average selling price of $112.03 per ton, cash costs of $92.35 per ton, and segment adjusted EBITDA of $58 million; PRB coal sales of 11.9 million tons with realized revenue of $14.39 per ton and cash costs of $13.64 per ton; and Core Marine Terminal adjusted EBITDA of $16 million. For 2026, management said it is generally maintaining guidance, while contracted volumes moved to 29.1 million tons in High CV Thermal, 8.3 million coking tons in Metallurgical, and approximately 48 million tons in PRB; High CV Thermal committed and collar tons are projected at $57.85 per ton, Metallurgical priced tons at $122.40 per ton, and PRB contracted tons at $14.20 per ton. The company ended the quarter with $935 million of total liquidity, including $413 million of unrestricted cash and cash equivalents.

Jimmy Brock framed the quarter as a strong start to 2026 after a difficult 2025, saying the operating platform is now fully operational and that the company is “running as a premier world-class longwall mine” at Leer South. He pointed to improving conditions at West Elk, better expected costs later in the year, and ongoing insurance recovery efforts tied to the Leer South fire. His tone was constructive and confident, emphasizing safety, execution, and the belief that the company has “just scratched the surface” of its capabilities.

Mitesh Thakkar highlighted the financial rebound, citing $21 million of net income, $0.41 EPS, $180 million of adjusted EBITDA, $73 million of capex, and $56 million of free cash flow. He noted that free cash flow was pressured by $52 million of negative working capital changes, including the timing of the 45X tax credit accrual versus cash benefit, and that liquidity finished at $935 million with $413 million in unrestricted cash. He also said the company expects about $100 million of additional insurance proceeds, and that cash SG&A should phase down as residual integration costs roll off; he pointed to a target cash SG&A top end of about $100 million versus about $153 million for the combined company’s last full pre-merger year.

Analysts focused on High CV cost sensitivity, 2027 contracted coverage, diesel inflation, PRB margins, West Elk logistics, and the pace of insurance recoveries. Management said High CV costs should normalize after Q1 disruptions from sand rock intrusions and elevated power prices, with about $1 per megawatt change equating to roughly $750,000 of impact, and reiterated that diesel hedging is being revisited as volatility settles. On insurance, Mitesh Thakkar said final claims have been submitted and that approvals could start trickling in during 2Q, with about $100 million of incremental proceeds expected. Management also said West Elk is gaining traction in eastern domestic markets and that the company continues to seek additional export capacity on the West Coast and via Canada.