Warrior Met Coal, Inc.

Revenue was $510 million, up from $298 million a year ago. Net income was $87 million, or $1.65 per diluted share, versus $6 million, or $0.11 per diluted share, in the second quarter of 2025. Adjusted EBITDA was $157 million, up 193% year over year, and adjusted EBITDA margin improved to 31% from 18%; per-ton adjusted EBITDA margin rose to $43 from $24. Sales volume reached a quarterly record of 3.7 million short tons, up 65%, and production volume was 3.3 million short tons, up 45%. Free cash flow was $103 million in the quarter, and $11 million for the first half of 2026. Management raised full-year sales and production volume guidance by 0.5 million tons, taking Blue Creek sales volume to 5 million short tons for the year, with 90% under contract. On costs, cash cost of sales per short ton FOB port was about $93 versus $101 last year, and total liquidity was $453 million. Management said inflation could add a few dollars per ton in the back half, but did not give a specific next-quarter EPS or revenue guide.

Walt Scheller framed the quarter as a key inflection point, saying Warrior is now seeing the incremental earnings and cash flow from Blue Creek and moving into a phase focused on free cash flow, balance sheet strength, and stockholder returns. He emphasized record volumes, margin expansion, and strong customer reception for Blue Creek trial tons, saying the mine is helping Warrior gain market share with strategic customers. His tone was constructive but cautious on pricing, noting steel fundamentals are not strong enough to sustain earlier price momentum and that second-tier indices remain depressed relative to PLV.

Dale Boyles highlighted the financial step-up: revenue of $510 million, net income of $87 million, adjusted EBITDA of $157 million, and adjusted EBITDA margin of 31%. He pointed to lower cash cost of sales of about $93 per short ton FOB port versus $101 last year, with about $3 per ton of the year-over-year benefit tied to 45X credits, and said free cash flow was $103 million in the quarter. He also said liquidity ended at $453 million, cash is ideally held in a $350 million to $400 million range, annual maintenance CapEx on existing mines is guided at $105 million to $115 million excluding Blue Creek, and the company expects a few dollars per ton of added cost pressure later in the year from inflation and higher pricing assumptions.

Analysts pressed management on why realized pricing fell quarter over quarter despite mostly flat indices, and Dale said the main drivers were more volume into Europe at lower U.S. East Coast prices, a reduced Asia mix, and materially higher freight rates. Questions also focused on shareholder returns, with Dale saying higher free cash flow should lead to higher returns over time, but only after the company continues generating cash. Management also addressed costs, saying inflation is not yet material but could contribute a few dollars per ton in the second half, while Blue Creek’s lower cost structure supported the improved outlook and raised full-year volume guidance.