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Related articleQuarter not tagged2026-10-14Core Natural Resources (CNR) Earnings And Rare Earths Push Put Valuation Back In Focus
Simply Wall St.
Core Natural Resources (CNR) Earnings And Rare Earths Push Put Valuation Back In Focus
Core Natural Resources (CNR) has drawn fresh attention after its Q2 2026 results, which included a $155 million Leer South insurance settlement, expanded shareholder payouts, and progress on coal operations and cost control. Core Natural Resources shares now trade at US$89.60, with the stock easing 2.12% on a 1 day share price basis but still up 7.19% over 90 days. The 1 year total shareholder return is down 1.61%, and the 5 year total shareholder return is up 215.12%. This indicates that shorter term momentum has cooled after a strong multi year run as investors reassess both growth potential and risks around coal exposure and new projects such as rare earths extraction and the Northrop Grumman partnership. Scan for other coal and resource plays showing similar catalysts to Core Natural Resources by checking the hand picked 32 best rare earth metal stocks focused on critical minerals and energy demand. So after a long run, a softer 1 year return and a one off insurance boost, does Core Natural Resources still offer enough upside to justify the coal, project and policy risks on the table, or has the balance tipped? Against a last close of $89.60, the most followed Core Natural Resources narrative anchors on a fair value estimate of $109.50, which implies meaningful upside and hinges largely on future cash generation, margin repair, and capital returns. Strong execution on cost efficiencies, flexible market strategy, and shareholder returns are expected to drive margin expansion, stable cash flow, and increased intrinsic value. See why 26 investors see Core Natural Resources as 18% undervalued. Result: Fair Value of $109.50 (UNDERVALUED) Still, Core Natural Resources carries two big swing factors for that undervalued story: future coal demand under tightening ESG pressure, and any setback at Leer South or Itmann. Find out about the key risks to this Core Natural Resources narrative. The SWS fair ratio tells a very different story. Core Natural Resources trades on a P/E of 44.4x, while the US Oil and Gas group sits at 12.3x, and the fair ratio points to 25.5x. That gap leans toward valuation risk rather than a simple mispricing. Which signal matters more to you? See what the numbers say about this price — find out in our valuation breakdown. Mixed signals or clear message? With Core Natural Resources carrying both flagged risks and identified upsides, move qui…Read full documentShow less
Core Natural Resources (CNR) has drawn fresh attention after its Q2 2026 results, which included a $155 million Leer South insurance settlement, expanded shareholder payouts, and progress on coal operations and cost control. Core Natural Resources shares now trade at US$89.60, with the stock easing 2.12% on a 1 day share price basis but still up 7.19% over 90 days. The 1 year total shareholder return is down 1.61%, and the 5 year total shareholder return is up 215.12%. This indicates that shorter term momentum has cooled after a strong multi year run as investors reassess both growth potential and risks around coal exposure and new projects such as rare earths extraction and the Northrop Grumman partnership. Scan for other coal and resource plays showing similar catalysts to Core Natural Resources by checking the hand picked 32 best rare earth metal stocks focused on critical minerals and energy demand. So after a long run, a softer 1 year return and a one off insurance boost, does Core Natural Resources still offer enough upside to justify the coal, project and policy risks on the table, or has the balance tipped? Against a last close of $89.60, the most followed Core Natural Resources narrative anchors on a fair value estimate of $109.50, which implies meaningful upside and hinges largely on future cash generation, margin repair, and capital returns. Strong execution on cost efficiencies, flexible market strategy, and shareholder returns are expected to drive margin expansion, stable cash flow, and increased intrinsic value. See why 26 investors see Core Natural Resources as 18% undervalued. Result: Fair Value of $109.50 (UNDERVALUED) Still, Core Natural Resources carries two big swing factors for that undervalued story: future coal demand under tightening ESG pressure, and any setback at Leer South or Itmann. Find out about the key risks to this Core Natural Resources narrative. The SWS fair ratio tells a very different story. Core Natural Resources trades on a P/E of 44.4x, while the US Oil and Gas group sits at 12.3x, and the fair ratio points to 25.5x. That gap leans toward valuation risk rather than a simple mispricing. Which signal matters more to you? See what the numbers say about this price — find out in our valuation breakdown. Mixed signals or clear message? With Core Natural Resources carrying both flagged risks and identified upsides, move quickly, review the data, and weigh the 4 key rewards and 1 important warning sign. If Core Natural Resources has sharpened your focus, do not stop here. Broaden your watchlist with fresh ideas that match your style and risk comfort. - Target potential bargains by scanning a curated pool of companies that combine quality fundamentals with appealing valuations through the 33 high quality undervalued stocks. - Strengthen your income focus by reviewing a hand picked universe of high yield payers using the 7 dividend fortresses. - Prioritise resilience by filtering for businesses with robust balance sheets and solid fundamentals inside the list of solid balance sheet and fundamentals (25 results). This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include CNR. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]
Related articleQuarter not tagged2026-08-29Core Natural Resources (CNR) Stock May Trade Above Fair Value On Earnings
Simply Wall St.
Core Natural Resources (CNR) Stock May Trade Above Fair Value On Earnings
Core Natural Resources stock has delivered very strong returns over the past five years, yet the broader valuation checks suggest the current share price leans expensive rather than clearly cheap. The stock trades on the richer side of market multiples, which sits awkwardly next to a low value score and a recent sharp move. Over 5 years the stock has returned about 349.4%, which places a lot of recent optimism into the current valuation. Expectations that Core Natural Resources can continue to convert its resource base into reliable cash flow may support the current price. Any pressure on project execution or funding needs could weigh heavily on what investors are willing to pay. The broader checks give Core Natural Resources a low value score, with only 2 of 6 indicators screening as attractive. This points to a stock that is not a clear bargain on this framework. The issue now is whether Core Natural Resources offers enough fundamental support to justify a share price that already reflects such a strong five year return profile. Spot potential alternatives to Core Natural Resources by scanning our hand picked 44 high quality undervalued stocks, which combine stronger value checks with solid fundamentals. The P/E multiple is a natural focus for Core Natural Resources because earnings are a key driver of how investors weigh oil and gas stocks. Core Natural Resources trades on a P/E of about 50.0x, which is well above the oil and gas industry average of 12.7x and also higher than the peer group average of 29.5x. The fair P/E ratio from this framework is 26.6x. That is roughly half of where the stock currently trades, which signals a rich earnings multiple even after adjusting for the company’s specific profile. On this view, investors are paying a premium price for each dollar of Core Natural Resources earnings compared with both the sector and closer peers. On the P/E measure, Core Natural Resources stock screens as overvalued relative to what this model suggests investors might usually pay for its earnings profile. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for Core Natural Resources pick up from this valuation puzzle and explain what assumptions about Core Natural Resources' future growth, margins and earnings would need to hold for the stock to be worth materially more or materially less than…Read full documentShow less
Core Natural Resources stock has delivered very strong returns over the past five years, yet the broader valuation checks suggest the current share price leans expensive rather than clearly cheap. The stock trades on the richer side of market multiples, which sits awkwardly next to a low value score and a recent sharp move. Over 5 years the stock has returned about 349.4%, which places a lot of recent optimism into the current valuation. Expectations that Core Natural Resources can continue to convert its resource base into reliable cash flow may support the current price. Any pressure on project execution or funding needs could weigh heavily on what investors are willing to pay. The broader checks give Core Natural Resources a low value score, with only 2 of 6 indicators screening as attractive. This points to a stock that is not a clear bargain on this framework. The issue now is whether Core Natural Resources offers enough fundamental support to justify a share price that already reflects such a strong five year return profile. Spot potential alternatives to Core Natural Resources by scanning our hand picked 44 high quality undervalued stocks, which combine stronger value checks with solid fundamentals. The P/E multiple is a natural focus for Core Natural Resources because earnings are a key driver of how investors weigh oil and gas stocks. Core Natural Resources trades on a P/E of about 50.0x, which is well above the oil and gas industry average of 12.7x and also higher than the peer group average of 29.5x. The fair P/E ratio from this framework is 26.6x. That is roughly half of where the stock currently trades, which signals a rich earnings multiple even after adjusting for the company’s specific profile. On this view, investors are paying a premium price for each dollar of Core Natural Resources earnings compared with both the sector and closer peers. On the P/E measure, Core Natural Resources stock screens as overvalued relative to what this model suggests investors might usually pay for its earnings profile. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for Core Natural Resources pick up from this valuation puzzle and explain what assumptions about Core Natural Resources' future growth, margins and earnings would need to hold for the stock to be worth materially more or materially less than today. Each narrative links a specific story about the company's potential catalysts and risks to an implied fair value. This helps you track over time which version of events seems closer to reality on the Community page. Community views on Core Natural Resources sit on very different paths, with one group focused on upside from coal demand and buybacks and the other on long term decarbonisation risk. Bull case: 13% undervalued Read the full Bull Case to see why Core Natural Resources could be undervalued Bear case: roughly fairly valued Read the full Bear Case to see why Core Natural Resources could be overvalued Do you think there's more to the story for Core Natural Resources? Head over to our Community to see what others are saying! Core Natural Resources currently screens as overvalued on earnings multiples, especially against its industry and peer group. The broader checklist also looks weak, which suggests the valuation is leaning heavily on optimistic expectations rather than clear fundamental support. From here the key question is whether Core Natural Resources can deliver the cash flow and project execution that would make this premium P/E feel justified, or whether any stumble in those assumptions prompts a reset in what investors are willing to pay. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include CNR. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]
Related articleQuarter not tagged2026-08-19Core Natural Resources Seeing Improving Performance, Limited Earnings Leverage, UBS Says
MT Newswires
Core Natural Resources Seeing Improving Performance, Limited Earnings Leverage, UBS Says
Core Natural Resources' (CNR) operations have seen meaningful improvements amid rising EBITDA and de
Related articleQuarter not tagged2026-08-12Earnings Estimates Moving Higher for Core Natural Resources (CNR): Time to Buy?
Zacks
Earnings Estimates Moving Higher for Core Natural Resources (CNR): Time to Buy?
Core Natural Resources (CNR) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving. The upward trend in estimate revisions for this coal company reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- is principally built on this insight. The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008. For Core Natural Resources, strong agreement among the covering analysts in revising earnings estimates upward has resulted in meaningful improvement in consensus estimates for the next quarter and full year. The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate: For the current quarter, the company is expected to earn $0.83 per share, which is a change of +36.1% from the year-ago reported number. Over the last 30 days, the Zacks Consensus Estimate for Core Natural Resources has increased 38.33% because one estimate has moved higher compared to no negative revisions. For the full year, the earnings estimate of $4.92 per share represents a change of +265.1% from the year-ago number. In terms of estimate revisions, the trend for the current year also appears quite encouraging for Core Natural Resources. Over the past month, one estimate has moved higher compared to no negative revisions, helping the consensus estimate increase 20.82%. Thanks to promising estimate revisions, Core Natural Resources currently carries a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500. Investors have been betting on Core N…Read full documentShow less
Core Natural Resources (CNR) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving. The upward trend in estimate revisions for this coal company reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- is principally built on this insight. The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008. For Core Natural Resources, strong agreement among the covering analysts in revising earnings estimates upward has resulted in meaningful improvement in consensus estimates for the next quarter and full year. The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate: For the current quarter, the company is expected to earn $0.83 per share, which is a change of +36.1% from the year-ago reported number. Over the last 30 days, the Zacks Consensus Estimate for Core Natural Resources has increased 38.33% because one estimate has moved higher compared to no negative revisions. For the full year, the earnings estimate of $4.92 per share represents a change of +265.1% from the year-ago number. In terms of estimate revisions, the trend for the current year also appears quite encouraging for Core Natural Resources. Over the past month, one estimate has moved higher compared to no negative revisions, helping the consensus estimate increase 20.82%. Thanks to promising estimate revisions, Core Natural Resources currently carries a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500. Investors have been betting on Core Natural Resources because of its solid estimate revisions, as evident from the stock's 8.4% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Core Natural Resources, Inc. (CNR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research
Related articleQuarter not tagged2026-08-06Core Natural Resources Reports Second Quarter 2026 Results
PR Newswire
Core Natural Resources Reports Second Quarter 2026 Results
Reports net income of $126 million and adjusted EBITDA1 of $324 millionGenerates net cash provided by operating activities of $250 million and free cash flow1 of $148 millionDrives significant per-ton cost and operating margin improvements in marquee high c.v. thermal and metallurgical segmentsSecures 16 million tons of advantageous new sales commitments for delivery in future periodsCompletes the settlement of its Leer South insurance claim for a full limit recovery netting $155 millionReturns $68 million to stockholders, bringing the total returned since February 2025 to $360 million CANONSBURG, Pa., Aug. 6, 2026 /PRNewswire/ -- Today, Core Natural Resources, Inc. (NYSE: CNR) ("Core" or the "company") reported net income of $126.5 million, or $2.51 per diluted share, in the second quarter of 2026. Additionally, Core reported adjusted EBITDA1 of $323.6 million in the quarter. During Q2, Core settled the Leer South insurance claim for the full limit recovery and recognized the remaining $125.4 million of proceeds. Second quarter revenues totaled $1.1 billion. "During Q2, the Core team made excellent progress in driving operational excellence across the combined mining platform while generating strong free cash flow and robust capital returns," said Jimmy Brock, Core's chairman and CEO. "With our marquee operating segments now shifting into high gear, we expect to showcase Core's full, cash-generating potential moving forward, thus powering a further acceleration of our already substantial capital return program." Operational and Marketing Update During the second quarter of 2026, Core's high calorific value thermal segment had coal sales of 8.4 million tons, representing a 9 percent quarter-over-quarter increase, and achieved realized coal revenue per ton sold1 of $58.11. The segment had cash cost of coal sold per ton1 of $38.58, representing a 9 percent quarter-over-quarter improvement. In Core's metallurgical segment during Q2, coking coal sales totaled 2.3 million tons, representing an 8 percent quarter-over-quarter improvement, and thermal byproduct sales totaled 0.3 million tons. The segment achieved realized coal revenue per ton sold1 for coking coal of $121.43, representing a slight decline versus Q1 2026. Realized coal revenue per ton sold1 for the metallurgical segment as a whole was $114.13. The metallurgical segment reported a cash cost of coal so…Read full documentShow less
Reports net income of $126 million and adjusted EBITDA1 of $324 millionGenerates net cash provided by operating activities of $250 million and free cash flow1 of $148 millionDrives significant per-ton cost and operating margin improvements in marquee high c.v. thermal and metallurgical segmentsSecures 16 million tons of advantageous new sales commitments for delivery in future periodsCompletes the settlement of its Leer South insurance claim for a full limit recovery netting $155 millionReturns $68 million to stockholders, bringing the total returned since February 2025 to $360 million CANONSBURG, Pa., Aug. 6, 2026 /PRNewswire/ -- Today, Core Natural Resources, Inc. (NYSE: CNR) ("Core" or the "company") reported net income of $126.5 million, or $2.51 per diluted share, in the second quarter of 2026. Additionally, Core reported adjusted EBITDA1 of $323.6 million in the quarter. During Q2, Core settled the Leer South insurance claim for the full limit recovery and recognized the remaining $125.4 million of proceeds. Second quarter revenues totaled $1.1 billion. "During Q2, the Core team made excellent progress in driving operational excellence across the combined mining platform while generating strong free cash flow and robust capital returns," said Jimmy Brock, Core's chairman and CEO. "With our marquee operating segments now shifting into high gear, we expect to showcase Core's full, cash-generating potential moving forward, thus powering a further acceleration of our already substantial capital return program." Operational and Marketing Update During the second quarter of 2026, Core's high calorific value thermal segment had coal sales of 8.4 million tons, representing a 9 percent quarter-over-quarter increase, and achieved realized coal revenue per ton sold1 of $58.11. The segment had cash cost of coal sold per ton1 of $38.58, representing a 9 percent quarter-over-quarter improvement. In Core's metallurgical segment during Q2, coking coal sales totaled 2.3 million tons, representing an 8 percent quarter-over-quarter improvement, and thermal byproduct sales totaled 0.3 million tons. The segment achieved realized coal revenue per ton sold1 for coking coal of $121.43, representing a slight decline versus Q1 2026. Realized coal revenue per ton sold1 for the metallurgical segment as a whole was $114.13. The metallurgical segment reported a cash cost of coal sold per ton1 of $85.65, representing a 7 percent improvement from the previous quarter. In the Powder River Basin segment, Q2 sales volumes totaled 10.2 million tons, reflecting seasonally depressed spring shipment levels. Realized coal revenue per ton sold1 was $14.28, which was generally in line with Q1 2026, and cash cost of coal sold per ton1 came in at $14.85, representing a 9 percent increase due to lower fixed cost absorption stemming from the lower shipment levels as well as increased fuel costs. Core expects a substantial improvement in the segment's sales volumes and unit costs in the year's back half. During Q2, the marketing team secured 16 million tons of new sales commitments across all segments for delivery in future periods, at prices expected to support advantageous margins. The following table presents operational results by reportable segment (in millions, except per ton information): Financial, Liquidity, and Capital Return Update Core's capital return framework targets the return to stockholders of around 75 percent of free cash flow1, with the significant majority of that return directed to share repurchases complemented by a sustaining quarterly dividend of $0.10 per share. During Q2 2026, the company invested $63.0 million to repurchase 719,904 shares of its common stock at an average share price of $87.54. Core has now invested a total of $329.2 million to repurchase 4.3 million shares of common stock, or roughly 7.9 percent of total shares outstanding as of the program's launch, at an average share price of $77.04, and a total of $360.1 million, inclusive of dividend payments, in the capital return program overall. Since the inception of its capital return program in February 2025, Core has returned approximately 80 percent of its free cash flow1 to stockholders via its capital return program. As of June 30, 2026, Core had $670.8 million of remaining authorization under its existing $1.0 billion share repurchase program. In addition, the board declared a $0.10 per share quarterly dividend payable on September 18, 2026, to stockholders of record on August 31, 2026. "During Q2, Core continued to perform at world-class levels and once again demonstrated the value of its diversified, strategic, world-class mining portfolio by generating substantial levels of free cash flow and funding robust capital returns despite a relatively soft market environment," said Mitesh Thakkar, Core's president and chief financial officer. "Given Core's step-change in operational execution, strong cash balance, incremental cash proceeds from insurance settlements, projected drawdown of coal inventories, and an improving shipping outlook in the Powder River Basin, we believe the stage is set for even stronger capital returns — and an accelerated reduction in share count — in the year's second half." As part of the full limit recovery of its Leer South insurance claim, which netted a total of $154.5 million across all periods, Core collected $88.1 million of insurance proceeds in Q2 and the remaining $37.9 million in July. At June 30, 2026, Core had total liquidity of $1.0 billion, including $474.0 million in cash and cash equivalents and short-term investments. Market Update While U.S. thermal coal demand was pressured by moderate temperatures, low natural gas prices, and inflated customer stockpiles during Q2, Core expects improving market dynamics in the year's second half and views the longer term outlook as promising. U.S. grid operators project substantial power demand growth through the remainder of the decade, spurred by reindustrialization and the AI-driven data center build-out. With the U.S. coal fleet operating at an average capacity factor of less than 50 percent – and with the Trump Administration moving aggressively to ensure the long-term viability of the U.S. coal fleet – Core expects U.S. thermal coal demand to climb. The outlook for seaborne industrial coal demand appears positive as well. India's cement demand is climbing at a significant pace, propelled by that country's infrastructure build-out, and the International Energy Agency expects global electricity demand to grow at 3.6 percent per year through the remainder of the decade. Seaborne metallurgical markets remain muted in the face of two years of contraction in global hot metal output, and coking coal price assessments on the U.S. East Coast continue to lag Australian price indices by a historically wide margin. Core expects U.S. East Coast prices to recover over time as global hot metal demand rebounds and as Asian buyers seek to take advantage of the wide price spread. Meanwhile, Core continues to make good progress in marketing its Leer brand coal as an advantageous and high value-in-use substitute for Australian premium low-vol coals. Core expects the ongoing, steel-dependent build-out of Southeast Asian economies – along with sustained investment in new blast furnace capacity across that region – to support a constructive, long-term market outlook for high-quality coking coals. Outlook "Looking ahead, we remain laser-focused on achieving world-class productivity and industry-leading cost performance across our entire mining portfolio while operating in tight alignment with our core values of safety and compliance, continuous improvement, and financial performance," Brock said. "Our goal is to drive strong and improving capital returns in the current soft market environment while laying the foundation for truly exceptional returns as coal markets rebound. We see compelling, long-term market opportunities ahead — including resurgent U.S. power demand, tightening global energy markets, and an ongoing infrastructure build-out in the developing world — and we are preparing Core to capitalize on all fronts." 1 - Adjusted EBITDA and Free Cash Flow are non-GAAP financial measures and Realized Coal Revenue per Ton Sold and Cash Cost of Coal Sold per Ton are operating ratios derived from non-GAAP financial measures, each of which is reconciled to the most directly comparable GAAP financial measures below, under the caption "Reconciliation of Non-GAAP Financial Measures." Cash Margin per Ton Sold is an operating ratio derived from non-GAAP financial measures and is defined as realized coal revenue per ton sold less cash cost of coal sold per ton. 2026 Guidance Availability of Additional Information Please refer to our website, www.corenaturalresources.com, for additional information regarding the company. In addition, we may provide other information about the company from time to time on our website. Investors seeking our detailed financial statements can refer to the Quarterly Report on Form 10-Q once it has been filed with the Securities and Exchange Commission ("SEC"). About Core Natural Resources, Inc. Core Natural Resources, Inc. (NYSE: CNR) is a world-class producer of high-quality metallurgical and high calorific value thermal coals for the global marketplace. Core's highly skilled workforce operates a best-in-sector portfolio of large-scale, low-cost longwall mines, including the Pennsylvania Mining Complex, Leer, Leer South, and West Elk mines, along with one of the world's largest and most productive surface mines, Black Thunder. The company plays an essential role in meeting the world's growing need for steel, infrastructure, and energy, while simultaneously serving the resurgent requirements of the U.S. power generation fleet. Core has an extensive and strategic logistical network – anchored by ownership positions in two East Coast marine export terminals – that provides reliable and efficient access to seaborne coal markets. The company's deeply ingrained culture is grounded in safety and compliance, continuous improvement, and financial performance, with an emphasis on stakeholder engagement and stockholder returns. Core was created in January 2025 via the merger of long-time industry leaders CONSOL Energy and Arch Resources and is based in Canonsburg, Pennsylvania. Condensed Consolidated Statement of Cash Flows The following table presents the condensed consolidated statement of cash flows for the three months ended June 30, 2026 (in thousands): Reconciliation of Non-GAAP Financial Measures We define realized coal revenue as revenues reported in the Condensed Consolidated Statements of Income (Loss) less transportation costs, transloading revenues and other revenues not directly attributable to coal sales. We define realized coal revenue per ton sold as realized coal revenue divided by tons sold. The following tables present reconciliations by reportable segment of realized coal revenue and realized coal revenue per ton sold to revenues, the most directly comparable GAAP financial measure (in thousands, except per ton information): The following tables present breakdowns of the realized coal revenue per ton sold for the Metallurgical segment between coking coal and thermal byproduct (in thousands, except per ton information): We evaluate our cash cost of coal sold on an aggregate basis by segment and our cash cost of coal sold per ton on a per-ton basis. Cash cost of coal sold includes items such as direct operating costs, royalties, production taxes and credits and direct administration costs, and excludes transportation costs, indirect costs, other costs not directly attributable to the production of coal and depreciation, depletion and amortization costs on production assets. We define cash cost of coal sold per ton as cash cost of coal sold divided by tons sold. The following tables present reconciliations by reportable segment of cash cost of coal sold and cash cost of coal sold per ton to cost of sales, the most directly comparable GAAP financial measure (in thousands, except per ton information): We define adjusted EBITDA as (i) net income (loss) plus income taxes, net interest expense and depreciation, depletion and amortization, as adjusted for (ii) certain non-cash items, such as loss on debt extinguishment and (iii) other adjustments, such as stock-based compensation, Merger-related expenses and fair value adjustments of commodity derivative instruments. Adjusted EBITDA may also be adjusted for items that may not reflect the trend of future results by excluding transactions that are not indicative of our operating performance or that arise outside of the ordinary course of our business. The following table presents a reconciliation by reportable segment of adjusted EBITDA to net income (loss), the most directly comparable GAAP financial measure (in thousands): Free cash flow is a non-GAAP financial measure, defined as net cash provided by operating activities plus proceeds from sales of assets and unrestricted cash proceeds from the Merger with Arch Resources, Inc., less capital expenditures and investments in mining-related activities. Management believes that this measure is meaningful to investors because management reviews cash flows generated from operations and non-core asset sales after taking into consideration capital expenditures due to the fact that these expenditures are considered necessary to maintain and expand the company's asset base and are expected to generate future cash flows from operations. It is important to note that free cash flow does not represent the residual cash flow available for discretionary expenditures, since other non-discretionary expenditures, such as mandatory debt service requirements, are not deducted from the measure. The following table presents a reconciliation of free cash flow to net cash provided by operating activities, the most directly comparable GAAP financial measure (in thousands): Cautionary Statement Regarding Forward-Looking Statements This communication contains certain "forward-looking statements" within the meaning of federal securities laws. Forward-looking statements may be identified by words such as "years ahead," "look forward" and similar expressions. Forward-looking statements are not statements of historical fact and reflect Core's current views about future events. No assurances can be given that the forward-looking statements contained in this communication will occur as projected, and actual results may differ materially from those projected. Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks and uncertainties that could cause actual results to differ materially from those projected. These risks and uncertainties include, without limitation, uncertainties regarding the ability of Core to mine, upgrade, process, and extract rare earth elements and critical minerals from its existing mines, including uncertainties regarding the financial impacts of such activities; risks related to the recently announced CEO transition; risks related to the prior occurrence of combustion-related activity at Core's Leer South mine and the risk of future occurrences; the increase in combustion-related gases at Core's Leer South mine; deterioration in economic conditions or changes in consumption patterns of our customers may decrease demand for our products, impair our ability to collect customer receivables and impair our ability to access capital; volatility and wide fluctuation in coal prices based upon a number of factors beyond our control; an extended decline in the prices we receive for our coal; significant downtime of our equipment or inability to obtain equipment, parts or raw materials; decreases in the availability of, or increases in the price of, commodities or capital equipment used in our coal mining operations; our reliance on major customers, our ability to collect payment from our customers and uncertainty in connection with our customer contracts; our inability to acquire additional coal reserves or resources that are economically recoverable; decreases in coal consumption patterns for steel production, electric power generation and industrial applications; the availability and reliability of transportation facilities and other systems that deliver our coal to market and fluctuations in transportation costs; a loss of our competitive position; inflation that could result in higher costs and decreased profitability; foreign currency fluctuations that could adversely affect the competitiveness of our coal abroad; risks related to the fact that a significant portion of our production is sold in international markets (and may grow) and our compliance with export control and anti-corruption laws; coal users switching to other fuels in order to comply with various environmental standards related to coal combustion emissions; the impact of current and future regulations to address climate change, the discharge, disposal and clean-up of hazardous substances and wastes and employee health and safety on our operating costs as well as on the market for coal; the risks inherent in coal operations, including being subject to unexpected disruptions caused by adverse geological conditions, equipment failure, delays in moving longwall equipment, railroad derailments or strikes, security breaches or terroristic acts and other hazards, delays in the completion of significant construction or repair of equipment, fires, explosions, seismic activities, accidents and weather conditions; failure to obtain or renew surety bonds, letters of credit or insurance coverages on acceptable terms; the effects of coordinating our operations with oil and natural gas drillers and distributors operating on our land; our inability to obtain financing for capital expenditures on satisfactory terms; the effects of our securities being excluded from certain investment funds as a result of environmental, social and corporate governance ("ESG") practices; the effects of global conflicts on commodity prices and supply chains; the effect of new or existing laws, regulations, tariffs, executive orders or other trade measures; our inability to find suitable joint venture partners, acquisition targets or similar investments or integrating the operations of future acquisitions or investments into our operations; obtaining, maintaining and renewing governmental permits and approvals for our coal operations; the effects of asset retirement obligations, employee-related long-term liabilities and certain other liabilities; uncertainties in estimating our economically recoverable coal reserves; defects in our chain of title for our undeveloped reserves or failure to acquire additional property to perfect our title to coal rights; the outcomes of various legal proceedings; the risk of our debt agreements, our debt and changes in interest rates affecting our operating results and cash flows; information theft, data corruption, operational disruption and/or financial loss resulting from a terrorist attack or cyber incident; the potential failure to retain and attract qualified personnel of the company; failure to maintain effective internal control over financial reporting; uncertainty with respect to the company's common stock, potential stock price volatility and future dilution; uncertainty regarding the timing and value of any dividends we may declare; uncertainty as to whether we will repurchase shares of our common stock; inability of stockholders to bring legal action against us in any forum other than the state courts of Delaware; the risk that the businesses of the company and Arch Resources, Inc. will not be integrated successfully after the closing of the Merger; the risk that the anticipated benefits of the Merger may not be realized or may take longer to realize than expected; and other unforeseen factors. All such factors are difficult to predict, are beyond Core's control, and are subject to additional risks and uncertainties, including those detailed in Core's annual report on Form 10-K for the year ended December 31, 2025, quarterly reports on Form 10-Q, and current reports on Form 8-K that are available on Core's website at www.corenaturalresources.com and on the SEC's website at http://www.sec.gov. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. Core does not undertake any obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof. View original content to download multimedia:https://www.prnewswire.com/news-releases/core-natural-resources-reports-second-quarter-2026-results-302844265.html
Related articleQuarter not tagged2026-08-06Core Natural Resources: Q2 Earnings Snapshot
Associated Press
Core Natural Resources: Q2 Earnings Snapshot
CANONSBURG, Pa. (AP) — CANONSBURG, Pa. (AP) — Core Natural Resources, Inc. (CNR) on Thursday reported earnings of $126.5 million in its second quarter. On a per-share basis, the Canonsburg, Pennsylvania-based company said it had profit of $2.51. Earnings, adjusted for non-recurring gains, were 55 cents per share. The coal company posted revenue of $1.14 billion in the period. _____ This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on CNR at https://www.zacks.com/ap/CNR
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Warrior Met Coal (HCC) Surpasses Q2 Earnings and Revenue Estimates
Warrior Met Coal (HCC) came out with quarterly earnings of $1.65 per share, beating the Zacks Consensus Estimate of $1.54 per share. This compares to earnings of $0.11 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +7.14%. A quarter ago, it was expected that this company would post earnings of $1.21 per share when it actually produced earnings of $1.37, delivering a surprise of +13.22%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Warrior Met Coal, which belongs to the Zacks Coal industry, posted revenues of $509.69 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 6.68%. This compares to year-ago revenues of $297.52 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Warrior Met Coal shares have lost about 7.6% since the beginning of the year versus the S&P 500's gain of 13%. While Warrior Met Coal has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Warrior Met Coal was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #1 (Strong Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Stron…Read full documentShow less
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Related articleQuarter not tagged2026-08-06Core Natural Resources (CNR) Q2 Earnings and Revenues Beat Estimates
Zacks
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TranscriptFY2026 Q22026-08-06FY2026 Q2 earnings call transcript
Earnings source - 106 paragraphs
FY2026 Q2 earnings call transcript
Good morning, ladies and gentlemen, and welcome to the Core Natural Resources, Inc. second quarter 2026 earnings call conference call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Thursday, August 6, 2026. I would now like to turn the conference over to Deck Slone, Senior Vice President. Please go ahead.
Good morning from Canonsburg, Pennsylvania, everyone, and thanks for joining us today. Before we begin, let me remind you that certain statements made during this call, including statements relating to our expected future business and financial performance, may be considered forward-looking statements according to the Private Securities Litigation Reform Act. Forward-looking statements, by their nature, address matters that are, to different degrees, uncertain.
These uncertainties, which are described in more detail in the annual and quarterly reports that we file with the SEC, may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required by law.
I'd also like to remind you that you can find a reconciliation of the non-GAAP financial measures that we plan to discuss this morning at the end of our press release, a copy of which we have posted in the investor section of our website at corenaturalresources.com. Also participating on this morning's call will be Jimmy Brock, our Chairman and CEO, Mitesh Thakkar, our President and CFO, and Bob Braithwaite, our Chief Commercial Officer. After some formal remarks from Jimmy and Mitesh, we will be happy to take questions. With that, I'll now turn the call over to Jimmy. Jimmy?
Thank you, Deck, and good morning, everyone. The results of the second quarter were a testament to the continued execution of our strategy, and we are pleased to report a significant step up in our financial performance. We worked diligently with our insurance partners to settle the Leer South insurance claim for the full limits loss, complementing our strong operational results.
Across the operating portfolio, we delivered a solid performance and are beginning to demonstrate what our full operating platform is capable of. With the insurance claim now behind us, we are singularly focused on the disciplined execution of our core business. We continue to prioritize safe, efficient operations, maintaining strong customer relationships, optimizing our cost structure, and allocating capital in a way that supports long-term shareholder value creation. Now let me dive into our operational results.
Coal sales within the High CV Thermal segment came in at 8.4 million tons in Q2 2026, compared to 7.7 million tons in Q1 2026. During the quarter, our High CV Thermal segment reported realized coal revenue of $58.11 per ton, compared to $58.86 per ton in the previous quarter. In Q2 2026, cash costs came in at $38.58 per ton, compared to $42.56 per ton in Q1 2026. Segment cash costs benefited from significant tailwinds as mining conditions improved, sales were favorable, and power costs begin to normalize.
Adjusted EBITDA for the segment totaled $165 million, which compares to $126 million in the first quarter of 2026. In the Metallurgical segment, coke and coal sales came in at 2.3 million tons in Q2 2026 versus 2.1 million tons in Q1 2026. During the quarter, our Metallurgical segment reported realized coke and coal revenue of $121.43 per ton. The segment as a whole, including 300,000 tons of thermal byproduct sales, achieved an average selling price of $114.13 per ton.
Cash costs for the quarter came in at $85.65 per ton, nearly a $7 per ton reduction quarter-over-quarter, reflecting ongoing improvement in execution at our flagship Longwall mines. Adjusted EBITDA for the segment was $200 million, which included insurance-related proceeds of $125 million. In the Powder River Basin segment, coal sales came in at 10.2 million tons in Q2 2026, compared to 11.9 million tons in the previous quarter. The lower volumes were a function of weak demand during the spring shoulder season, exacerbated by low natural gas prices. Importantly, however, we view the reduced quarterly volumes principally as a timing issue.
We have more than 50 million tons of PRB coal committed for delivery in 2026 and expect to either ship those tons this calendar year or conversely, to capture or even enhance the full value of those commitments via other mechanisms, such as blend and extend initiatives. In addition, we continued to build pit inventory during the quarter, which should serve to enhance operating margins in the year's back half.
For the second quarter, our PRB segment reported realized coal revenue of $14.28 per ton and cash cost of $14.85 per ton. Moving to the Core Marine Terminal. The CMT shipped 5.2 million tons during the second quarter, compared to 4.8 million tons in Q1 2026. CMT reported $18 million in Adjusted EBITDA in Q2 2026, which was increased compared to the $16 million in the previous quarter. We had another strong quarter from a shareholder return perspective as well.
As you know, our capital return framework targets the return to stockholders of around 75% of free cash flow, with a significant majority of that total directed to share repurchases. During Q2 2026, we returned $68 million to shareholders, which was a substantial increase from $47 million in Q1 of 2026. Since the program's inception in February of 2025, we have returned over 80%, or $360 million of our free cash flow to shareholders via our capital return program.
Of that total, $329 million has been used to repurchase approximately 8% of the company shares outstanding as of the program's launch. As indicated, we believe the stage is set for a further step up in capital returns in coming quarters. Before handing the call over to Mitesh, let me highlight one additional positive development, this one involving Core Innovations.
Recently, the innovations team was selected for a grant from the U.S. Department of Energy to construct a pilot scale facility for the extraction of rare earth elements and critical minerals at the Pennsylvania Mining Complex. This announcement underscores Core's ongoing progress in developing innovative technologies that unlock greater value from the coal supply chain while advancing areas of national strategic importance. It follows an announcement made earlier this year in which Northrop Grumman named Core Touchstone Advanced Composites Group, a key supplier of tooling and components for the Talon Blue collaborative combat aircraft. Let me turn the call over to Mitesh to provide the marketing and financial updates.
Thank you, Jimmy, and good morning, everyone. Let me start by providing an update on our financial performance first. This morning, we reported solid second quarter financial results. For 2Q 2026, we reported net income of $126 million or $2.51 per diluted share, an Adjusted EBITDA of $324 million compared to net income of $21 million and Adjusted EBITDA of $180 million in 1Q 2026. These results were driven by strong operational performances from our High CV Thermal and metallurgical segments, as well as the recognition of incremental insurance proceeds related to the limits loss settlement of our Leer South insurance claim.
During the quarter, Core generated $148 million in free cash flow, which included the receipt of $88 million of cash associated with the total Leer South settlement. The Leer South insurance claim was settled for $155 million in aggregate, of which $125 million was recognized in EBITDA in Q2, and approximately $30 million was recognized in previous quarters. All outstanding receivables at the end of the second quarter associated with the Leer South claim were collected by the end of July.
In addition, 2Q working capital was inflated by an increase in inventory value as well as a Section 45X tax credit accrual that should provide a tailwind in future periods. At the end of second quarter, we had total liquidity of $1 billion, including $474 million in unrestricted cash and cash equivalents and short-term investments, which reflects an increase of $81 million in liquidity compared to the first quarter of 2026.
Before transitioning to a discussion of our marketing efforts, I'd like to take a moment to extend my sincere thanks to our insurance partners and broker, as well as the Leer South and corporate teams for their dedication and collaboration in successfully closing out our Leer South insurance claim. Our insurance partners worked efficiently and diligently throughout the process, and we greatly appreciate their responsiveness, thoroughness, and commitment to finalizing this matter in a timely fashion.
Their collective efforts were instrumental in achieving a successful resolution, and we are pleased to be turning the page on last year and directing our focus towards the future. Let me update you on the coal market dynamics and the efforts of our marketing team.
On the metallurgical front, macroeconomic factors stemming in part from the ongoing hostilities in the Middle East continue to weigh on global steel production and in turn, global coking coal demand. Despite these near-term headwinds, we view the long-range outlook for metallurgical markets as promising, due in large part to continued industrialization, specifically in Southeast Asia and India.
That region continues to add new blast furnace capacity at a rapid pace and is expected to remain on that trajectory for the foreseeable future. Think about it. Almost everything necessary for industrialization requires steel, from buildings to roads, to bridges, to power stations, and to data centers. That's the principal reason why the World Steel Association is projecting a resumption in global steel growth in 2027 after several years of contraction.
In the domestic thermal market, coal demand was impacted by low natural gas prices, elevated customer stockpiles, and seasonal weakness associated with the spring's shoulder season. At the end of June, domestic coal burn was down approximately 10% year to date versus 2025. With coal-generating units returning from planned outages and recent hot weather driving power demand, conditions are setting up for a stronger back half of the year.
While low natural gas prices continue to weigh on incremental spot demand, volumes are anticipated to increase meaningfully, supported by improving customer demand and increased rail set availability. This is expected to provide a particular benefit to our PRB segment, as reducing input inventory should result in lower cash cost per ton. Longer term, utilities continue to evaluate extensions to coal plant operating lives, with several utilities also revising integrated resource plans to retain coal in the generation mix.
The latest PJM capacity auction reinforces the increasingly favorable fundamentals for U.S. power generators. Elevated clearing prices reflect robust electricity demand from data center growth and industrial reshoring, which continues to outpace additions on dispatchable generation. As reserve margins tighten, the value of existing thermal generation assets increases.
At the same time, federal funding through the Defense Production Act and other recent policy initiatives is providing support for plant upgrades. These dynamics highlight an increasingly supply-constrained power market where reliability has become a strategic priority. In the international thermal market, uncertainty surrounding conflict in the Middle East and the disruption of LNG shipments to the Strait of Hormuz continue to drive market volatility. The resulting reduction in global LNG supply has created significant dislocation in international energy market and increased price volatility across competing fuels.
Due in part to these dynamics, the International Energy Agency's latest forecast is projecting a 2% increase in coal-fired generation globally in 2026. In addition, potential disruptions to petcoke supplies from the Persian Gulf could persist for an extended period, which could benefit our high CV thermal sales into the Indian cement market. Longer term, global power demand is projected to grow substantially.
The IEA expects global electricity demand to grow 3.6% a year through 2030. This growth is expected to stress grid stability around the world. In addition, fundamentals in India remain strong, supported by cement demand growth as the country continues to invest in infrastructure, housing, and construction. Despite the current volatility, our marketing team has made meaningful progress broadening and extending our sales book since the first quarter, securing approximately 16 million tons of contracted volume through 2030 at attractive prices.
Now let me provide an update on our expectations for the remainder of 2026. On the guidance front, we are adjusting our cash cost and sales guidance levels as indicated in the earnings release. In the High CV Thermal segment, we added 2 million tons to our sold position for 2026, bringing our total contracted volume to more than 31 million tons, reflecting continued strength in the demand for our high-quality product. The High CV Thermal segment is now nearly fully contracted, with average coal revenue on the committed volumes of approximately $58 per ton.
As for the SEC cash cost, we are increasing guidance by $1 to a range of $39-$40.50 per ton due to stickier than previously expected inflationary pressures driving supplies, maintenance, and service costs. In the metallurgical segment, we added 400,000 tons to our sold position, bringing the segment to 8.7 million coking tons contracted for 2026 with approximately 6 million tons priced at an expected average coal revenue of approximately $121 per ton. As for the SEC cash cost, we are lowering our guidance by $2.50 at the midpoint to a range of $86-$91 per ton.
This decrease is a testament to our continued focus on driving best practices at our metallurgical operations as well as strong performances from our Longwall operations. For the PRB segment, our contracted position now stands at approximately 50 million tons at an average committed price of $14.27 per ton. From an SEC cash cost perspective, we are increasing guidance by $0.25 to a range of $13.25-$13.75 per ton, mainly due to persistently higher diesel prices than previously anticipated. Now let me pass it back to Jimmy for some closing remarks before we open the call for Q&A.
Thanks, Mitesh. As we transition into the second half of the year, we remain sharply focused on driving operational excellence across the entire mining platform. While we have made good progress on this front during the past two quarters, we expect to continue to build on our recent momentum. Looking ahead, we remain concentrated on three main priorities for the remainder of the year. First, establishing Core as a world's premier global coal producer while operating in tight alignment with our core values of safety and compliance, continuous improvement, and financial performance.
Second, driving strong and improving capital returns in the current soft market environment while laying the foundation for truly exceptional returns as coal markets rebound. Third, capitalizing on the compelling long-term market opportunities that lie ahead. Including resurgent U.S. power demand, tightening global energy markets, and an ongoing infrastructure build-out in the developing world.
In short, we are preparing Core to succeed on all fronts. As always, I want to thank our employees for their hard work and efforts in helping us deliver a strong quarterly performance. With that, I will hand the call back over to the operator to begin the Q&A portion of our call. Operator, can you please provide the instructions to our callers?
Thank you. Ladies and gentlemen, we'll now begin the question and answer session. Should you have a question, please press the star followed by the one on your touch tone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press the star followed by the two. If you are using a speakerphone, please lift the handset before pressing any keys. One moment please for the first question. Your first question comes from George Eadie from UBS. Please, go ahead.
Yeah. Hi, team. Good result here. Thanks for that. Mitesh, maybe just on the High CV segment, and Bob too. What price are you getting for 2027 tons placed today? Can you also remind me perhaps what % of High CV is contracted next year? I guess, as a consolidated basis, is $60 a ton about the right level to start thinking for next year there?
Yeah. George, just to make sure we're clear, the High CV segment has PAMC and also our West Elk product in there. When you look at next year, we're more than 50% contracted sitting here today. We have been successful in locking in some volumes against API2 indices when they rose, most recently into Europe for our West Elk product. We also were able to lock in some tons with PAMC as well into India, most recently even for 2027. The India tons today are in that $60 range, as you mentioned. The West Elk tons, I'd say, are more in the upper 40s to low 50 type range. But again, when you look at what the balance is, PAMC obviously at 27 million tons, West Elk at, call it 5 million-6 million tons. Your average realization's in that upper 50s to low 60 range.
Okay, cool. No, that's helpful. Then the thermal byproduct, there's a bit of variability there. $55 a ton is, what's that, 30% higher quarter-on-quarter. Can you maybe help us how to best forecast this? Is $55 the right level or is it more mid-40s like the prior periods?
Right now, again, it really depends on what the export market is. We're using a lot of that byproduct to blend in with our High CV mix. As API2 prices are higher, you're going to realize a higher net back for the byproduct as well. Again, it's not a perfect number, but I think for at least the balance of this year, I would expect it to be in that $50-$55 range.
Okay, great. No, thanks, guys. Just last one for [Saket. DTA, what are the impacts to you guys there, and what's the latest you're hearing?
George, this is Mitesh here. On the DTA front, I think we are 35% owner in DTA, the impact to us is relatively small. If you think about it, our marketing team has done a pretty good job. If you look at our guidance ranges, we were able to move things around, to manage the impact on us. There's still impact associated on the cost front, with respect to the damages to the equipment and stuff. The good news is DTA does have insurance, which they are going to pursue. Generally speaking, we are managing the impact from DTA.
Okay. Thanks, gents. All the best. Yeah.
Thank you.
Thank you.
Thank you for that. Next question comes from Nick Giles from B. Riley Securities. Please go ahead.
Yeah, thanks, operator. Good morning, guys.
Morning.
Just wanted to really ask about kind of, obviously nice job on costs here in Q2. Just wanted to ask, first on the met side, how to think about the cadence of costs for the back half of the year. Q2 was below the low end of the range, should we expect costs to kind of stay towards that low end? Similarly on the volume side, what would take us towards the low or the high end? Thanks.
Nick, I think as you look at the cost structure, of course, we've worked really hard on costs, putting in different schedules and doing different things. I think we're seeing the benefit of that. It's definitely sustainable of where we are, and we're certainly looking for ways to improve that. When you look at the nearly $7 improvement that we had on cost, that's a lot of those things that put in play. We had some production improvements there.
As we move forward, looking into other things that we can do, get by the Longwall move. We got Leer over into the north now, where we wanted them. I expect to sustain where we are and maybe even improve on that going forward. There could be volatility quarter to quarter, but in general, I think we're at a pretty good place as where we are today on the met side.
Great. No, thanks for that, Jimmy. Maybe just switching gears to capital returns. You obviously had some nice cash inflows, thanks to the insurance reimbursements. There was a working capital build. Just how should we think about the cadence of share repurchases throughout Q3 and Q4? Thanks.
Well, I think as you look at that, obviously we got a lot of the insurance money in late in Q2. Going forward in Q3 and Q4, I think you can expect us to have heavier share buyback percentages as we use that cash going forward. We'll stick to our plan of the generating 75% of our free cash flow back to shareholders. You certainly can expect a higher number when you look in Q3 and Q4, just by the cash buildup we have on the balance sheet. We're certainly going to return a portion of that back to the shareholders.
Yeah. Just to add to that, on the insurance front, there's about $38 million that we are collecting in Q3 here. As of now, most of that is collected, that should help. Plus, there's also a little bit of an excess inventory at the mines, which roughly, let's call it about $40 million. Also just to remind everyone, we also have 45X credit that is building as working capital. We'll get that next year. Year to date, we have about $25 million in 45X credit that is also inflating that working capital. When you add all those pieces together, you're close to $75 million-$100 million of swing that could happen on the working capital. The 45X credit will be next year, vast majority of that we expect to flow this year.
Great. Okay. Well, I'll jump back in the queue, nice work, guys.
Thank you.
Thank you.
Thank you. Your next question comes from Nathan Martin from The Benchmark Company. Please go ahead.
Thanks, operator. Good morning, everyone.
Good morning.
Mitesh, just kind of sticking with the balance sheet for a second. You mentioned liquidity over $1 billion, cash close to half a billion. What's kind of a comfortable target for those metrics? I'm assuming you guys are okay with that coming down a little bit, just as we think about what else might be available for shareholder returns.
Yeah. Nate, if you just think about what we have said in the past, that we try to maintain a net debt neutral balance sheet. If you look at, for example, last quarter, we were a little bit under. I don't mind going a little bit on the leverage side. Just quarter-over-quarter, there was almost like a $70 million swing in our net cash position. That's kind of a rough guide. Now, if our share price provide us an opportunity to be more aggressive, we have the balance sheet and liquidity to support that as well.
Got it. Appreciate that. Maybe a question for Bob. Bob, we look at the revised 31.5 million ton-33 million ton guidance for the High CV Thermal segment. What's the split there between PAMC and West Elk? Can we get an updated breakdown of the 30.9 million committed and priced tons?
Yeah. When you look at the full year, you're looking at roughly 26 million tons of Bailey balance then would be West Elk to get to the higher end of the guidance. Obviously, we'll try to run Bailey harder to get to that 27 million ton level like we did in 2025, assuming the market's there. I feel pretty comfortable right now. We're starting to see some strong demand out of India as monsoon nears its end. Inventories among the stock and sale trades certainly remain at low levels, and we're receiving inquiries on a daily basis. Certainly puts us in a good position to try to maximize the total volume out of the PAMC complex.
Sitting here today with what we have contracted of the 30.9 million tons, 15 on the back half of that would be PAMC, and 3.3 of that would be West Elk. We have about 2.4 million tons still linked to API2 for the back half of the year, Nate. We're modeling in $110 price of API2 to get to that $58 number that we provide in our guidance. The sensitivity there is about $0.08 a ton. When you look at July API2 price was $120, we certainly have a tailwind working for us that direction. If it continues to stay strong, that certainly will help.
Okay. Great, Bob. Just while I have you, shifting over to the met side, consistently weak, right, high vol markets there. How are they impacting realizations? What efforts have you been successful using to help lessen that impact? What do you think improves that market?
Yeah. We certainly seen PLV come off from its highs in the last month. However, we believe a lot of that is seasonal. Again, India in its monsoon season. We expect that, the forward curve even shows today that prices are expected to improve as we move throughout the back half of the year. You talk about the pricing and the spreads between PLV and HVA. Looking at the first half, I'd say almost all producers were virtually running their mines at full capacity. Given the market conditions, we do believe higher cost production will begin to exit the market, which will tighten high vol supply and provide some support for higher prices going forward. Additionally, we believe the seaborne met market, specifically into our core markets, which would be Brazil and Europe, are poised for recovery.
You probably saw just last week, ArcelorMittal did announce that they're restarting three blast furnaces on the expectation that European steel imports will drop about 45%. Again, that's giving us some confidence. We certainly have seen an increase in High Vol A in the markets, but we've been successful with our premium product to get that place not only in the Atlantic markets but also in Pacific markets against PLV. When you look at the back half of this year, we have about 4.3 million tons contracted for the back half, of which 2.7 is indexed, of which 30% of that is linked to PLV. Again, I think that you'll continue to see good pricing out of us for the back half of the year.
Yeah, Nate, it's Deck, and I'll just add, as you noted, look, we've had some High-Vol A production come back into the market or, in the case of one mine, come into the market about five million tons in the first half. Actually, for all the other mines in the U.S. system, we saw a decline of about three million tons. There is a counterbalance there. We are seeing supply come off. This is a challenging market for a lot of folks. I think we've seen some guidance come down suggesting, again, that this is pretty tough sledding out there. Would also add that while we talked a lot about new blast furnace capacity in Southeast Asia, those numbers just keep getting bigger. If you look today, right now, in terms of new blast furnace capacity expected to be added by around 2030, it's 185 million tons.
It's a huge number, and even if you haircut that's going to be a big drumbeat and a big sort of pull on high-quality U.S. coal. As Bob said, the Leer brand, while that's HVA, it's getting really good traction in Asia. I think we've had no problem at all placing those tons. Obviously, we wish the volume, we wish the pricing were a little higher. We have seen some contraction in that spread between PLV and HVA, so I think you're seeing a little bit of the evidence that the HVA is making it into that market.
There certainly are positives out there. I guess one final thing I'll say, we've had two years of contraction on the steel front, hot metal production front. That can't last, won't last. WSA is now projecting growth for the second half of the year and into next year. Certainly some positive indications that things could change.
Very helpful, guys. Appreciate the time. I'll pass it on.
Thank you for that. As a reminder, if you wish to ask a question, please press star one. Your next question comes from Matthew Key from Texas Capital. Please go ahead.
Good morning, everyone. Good job on the quarter. Most of my questions have been asked. I wanted to ask about the outlook in the metallurgical segment next year, if I may. Just given that Leer South is running well, what could be the incremental production potential in the metallurgical segment in 2027 relative to 2026?
Well, on the production side of it, Matt, we're still working with some of the schedules we have. We want to get to where we're running very consistent there. We haven't really got to a number where we can give incremental tons. As I said before, I think coming out of our Leer complex, we should expect somewhere between 8.5 million and 9 million tons.
Got it. No, that's helpful. Just one more quick one. You mentioned in a prior answer that you added a few API2-linked tonnage for 2027. Just as I look out to 2027 in that segment, is it possible that you would be able to achieve a greater exposure to that benchmark relative to 2026? Is that something that you're aiming to do as you build out that book for next year?
We had this year, I think, nearly four and a half million tons linked to API2. Some of the API2 deals we've done were actually fixed price, not necessarily index linked, but we secured those at the time that the API2 price was on a rise. I think to answer your question, I would expect a very similar portfolio year-over-year when it comes to what we have index linked versus fixed.
Got it. All right. Appreciate the time and best of luck moving forward.
Thanks.
Thanks.
Thank you. Your next question comes from Chris LaFemina from Jefferies. Go ahead.
Hey, thanks, guys. Thanks for taking my question. Basically, maybe it is a question for Jimmy. If we look at the potential performance for you guys, I think Adjusted EBITDA, excluding the insurance proceeds, increased by 15% from the first quarter to the second quarter. The improvement was really cost-driven. If we had gone back three months ago and knowing what we know about the second quarter to believe that costs would have come down would have been something I think they would have been very skeptical about.
You delivered, I think, pretty exceptional cost performance in the second quarter despite all the inflationary pressures in the market. I just understand part of that is a function of Leer South operating better in the quarter, but it seems like something more fundamentally is changing here within Core. I am wondering what is going on operationally that you can deliver such substantial cost reductions despite this inflationary backdrop? Again, it is something that we had not expected, and I think it is a pretty big surprise to the market as well. Just trying to understand what has changed at Core to deliver this sort of result. Thank you.
Thanks for the question, Chris. I think when you look at where we are, we mentioned early on that we wanted to put these two companies together and bring all the best practices together. I think when it comes to our longwalls, we are getting there. We are not 100% there yet. Some of the schedule changes that we made, of course, were a reduction in force at Leer South, changed the schedules there with the same expectations for production.
When you look at Leer has moved over into the better seams there in the north. We will always have some geological problems and things there, but the expectations are to continue to work with all of the enhancement that we have done to improve the cost, because at the end of the day, that is what we control. We are trying to work as hard as we can to get a consistent cost basis there. Obviously, mining is mining. We will have geological events here and there. When you look at it over an annualized run, we think we are at a good cost number now and with some opportunities to even improve upon that.
When you look over on the High CV Thermal side, we had a first quarter that was higher than what we expected. There were some reasons for that, but we got it back in line here in the second quarter, and we will continue to drive on those cost initiatives to do that. Pennsylvania Mining Complex on the High CV Thermal with West Elk coming on and running at really good numbers now. That helps that a lot, blends down. We're not satisfied where we are on the cost side, but I think what we're doing is sustainable, and I think there is room for improvement going forward.
That's great to hear. Thank you.
Thank you.
Thank you for that. Our next question comes again from Nick Giles from B. Riley Securities. Please go ahead.
A follow-up. I just wanted to clarify from earlier, just on DTA, did you quantify the kind of impact that the outage is having to realizations today? What's kind of your sense in terms of timing when DTA could be kind of back up and running at full steam? Are those decisions kind of forthcoming?
Nick, I think it's too early to assess and provide you the numbers, so to speak, on what the damage is and stuff like that. We are going through that process right now. As I said, from a core perspective, our marketing team did a good job, and it kind of reflects in the guidance that we provided from an impact perspective that it is very manageable. I think the realization numbers that you see take into account the changes that we have to make and extra cost we have to incur to read out vessels and stuff like that. I think it's quite manageable.
We'll provide you better numbers when we have it. Right now it's too early to say. There are some capacity constraints. The terminal is still working, and we are moving things through, but there are some capacity constraints at this point right now.
Nick, it's really, we don't have all the numbers yet. They're continuing to work on that to see what parts, if any, we can savage and we can put back in. I will say the team down at DTA has done a really good job of finding ways to move some of the stranded coal that's there. We don't know the actual full impact yet because we don't really know exactly how many of the parts we can use over or what we're going to have to engineer and do as we move forward.
As Mitesh said, just stay tuned. We'll have a better handle on that. We're not the majority owner there. We own 35% of that, so it'll be driven by our partners there. We still don't have an exact answer or timing for it. Just stay tuned on that. Once we give it, we'll certainly give an update on that.
Understood. That's helpful. Sorry, just to clarify again, the impact is really going to be seen in realizations. It's not like there's extra costs embedded in your cash cost guide. Is that right?
When we report our realized number, they are net back at the mine, so we take that impact out of the reported numbers.
Okay, great. One more follow-up if I could. It hasn't gotten maybe a ton of attention on this call. Just on the Core Innovations group opportunity, Mitesh, I was wondering if you could just speak to what kind of revenues does this segment generate today, and then what's ultimately the long-term opportunity here? Thanks.
Yeah. If you think about Core Innovations, that platform focuses on four key verticals. We have talked about rare earth and critical minerals aspect of it, which Jimmy mentioned in his prepared remarks, that we were selected for a grant from the USDOE to construct a pilot-scale facility for the extraction of rare earth elements and critical minerals. That's ongoing. The other verticals are aerospace and defense. We have been doing some bolt-on acquisitions on that front that provide composite tools and carbon fiber composite parts to aerospace and defense companies.
That business does about $20 million in revenue, so it's a real business. We have a factory that produces tooling equipment parts, and it's participating in some of the very high-profile projects of some of the larger defense companies. We also have the building products vertical, which deals with coal plastic composite products like decking boards and stuff. That's more in a nascent stage where we are going through testing and we are going through pilot facilities and stuff like that. That uses coal as a filler stock in the CPC. The last vertical is battery technology and carbon management.
We have a joint venture with a company called CBAT, and that is focused on developing a material called Obsidia, which we think could be a good replacement for battery graphite. As you know, 90% of that is sourced from China, and we are trying to develop a domestic feedstock for it. Some of these are very early stages, so there are no revenue tied to it, but the aerospace and defense is more tangible, and there is revenue and EBITDA tied to it. Although EBITDA is still pretty small when you look at Core as a platform. A lot of growth potential. These are markets with multibillion-dollar total addressable markets.
Mitesh, I really appreciate that breakdown. I guess just from a capital allocation perspective, is this an area where you might be willing to make more smaller bolt-on acquisitions, or is this government funding led and seeing where it goes?
No, we have been making some bolt-on acquisitions, as I mentioned. I think we did one small one, single-digit million-dollar type of an acquisition in January of this year. It's an ongoing process for us. I don't want to get too much ahead of ourselves. I'm not willing to say that this is going to be a significant drain on our capital anytime soon, right? These are things that we feel like they are good opportunities, and we are in the process of proving it out and we are making some good progress. Really excited about the Innovations Team. I think they have done some really good work over the last few years here.
Awesome. Well, thanks again, guys. Best of luck.
Yep. Thank you.
Thanks.
Thank you. There are no further questions at this time. Please proceed for the closing remark.
Thanks everyone for joining us on the call today. Hopefully, we provided what you needed there, and we look forward to speaking again and to our next earnings call. Thanks everybody.
Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.
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SunCoke Energy (SXC) came out with quarterly earnings of $0.15 per share, beating the Zacks Consensus Estimate of $0.08 per share. This compares to earnings of $0.02 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +87.50%. A quarter ago, it was expected that this metallurgical coke producer would post earnings of $0.08 per share when it actually produced a loss of $0.05, delivering a surprise of -162.5%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. SunCoke, which belongs to the Zacks Coal industry, posted revenues of $475.3 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 9.77%. This compares to year-ago revenues of $434.1 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. SunCoke shares have added about 30% since the beginning of the year versus the S&P 500's gain of 6.9%. While SunCoke has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for SunCoke was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It…Read full documentShow less
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PR Newswire
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