HCC

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 4:30 p.m. ET Chief Accounting Officer and Controller - Brian M. Chopin Chief Executive Officer - Walter Scheller Chief Financial Officer - Dale Boyles Operator: Good afternoon. My name is Drew, and I will be your conference operator today. At this time, I would like to welcome everyone to the Warrior's Second Quarter 2026 Financial Results Conference Call. [Operator Instructions] This call is being recorded and will be available for replay on the company's website. I would now like to turn the call over to Brian Chopin, Chief Accounting Officer and Controller. Brian M. Chopin: Good afternoon, and welcome, everyone, to Warrior's Second Quarter 2026 Earnings Conference Call. 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 company's annual and quarterly reports filed with the SEC, may cause our actual future results to be materially different from those expected 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. For more information regarding forward-looking statements, please refer to the company's press releases and SEC filings. We'll also be discussing certain non-GAAP financial measures, which are defined and reconciled to comparable GAAP financial measures in our second quarter press release furnished to the SEC on Form 8-K, which is also posted on our website. Additionally, we will be filing our Form 10-Q for the quarter ended June 30, 2026, with the SEC this afternoon. You can find additional information regarding the company on our website at www.warriormetcoal.com, which also includes a second quarter supplemental slide deck that was posted this afternoon. Today on the call with me are Mr. Walt Scheller, Chief Executive Officer; and Mr. Dale Boyles, Chief Financial Officer. After our formal remarks, we'll be happy to answer any questions. With that, I will now turn the call over to Walt. Walter Scheller: Thanks, Brian. Hello, everyone, and thank you for taking the time to join us today to discuss our second quarter 2026 results. I'll start by providing an overview of the quarter before Dale reviews our results in additional detail. The second quarter marked a key inflection point as we clearly realized the incremental earnings and cash flow contributions of Blue Creek. We believe there's even more value to be realized as we work towards Blue Creek's full potential. This inflection point was characterized by significant margin expansion and generation of more than $103 million of free cash flow, which came as a result of record sales volumes, improved pricing, and a lower cost profile. These results brought free cash flow to a positive $11 million at the midpoint of the year. Now with Blue Creek operational and our development spending complete, we've entered into the next phase of Warrior's growth, which is focused on free cash flow generation, balance sheet strength, and stockholder returns over the long term. Looking at our markets more broadly, the second quarter 2026 was characterized by the pockets of normalization of supply conditions following the weather-related disruptions observed earlier in the year. Despite these fluctuations, steel fundamentals remained relatively unchanged. The tragic mining incident in China in late May briefly tightened sentiment around domestic coking coal availability and resulted in additional safety inspections and higher domestic coking coal and coke prices. The impact of this sentiment shift was material and was clearly observed with the reopening of the arbitrage between the China CFR and Australian FOB indices, which have remained predominantly closed for over a year. Demand from India continued to be resilient, but weak steel margins, subdued Chinese buying activity, and the continued pressure from Chinese steel exports prevented the broader market from developing stronger momentum. In Europe, we continue to see the expected benefits of protectionist measures materializing, but the recovery remains uneven and is not strong enough to offset weakness in other regions. Freight rates and their corresponding demurrage rates remained materially above their recent averages and as a result, had a negative impact on our average net selling price. The World Steel Association reported recently that global pig iron production declined during the first 6 months of 2026 by 1.9% as compared to the same period last year. India continued to show growth with a 2.7% increase year-over-year, while China remained the primary source of weakness as the country continues to grapple with soft internal demand and weak steel margins. This regional split remains consistent with the broader market narrative, with resilient demand in India and parts of Asia, offset by continued softness in China and an uneven recovery across developed markets. Our primary index, the PLV FOB Australia remained well above the levels observed during most of 2025 and was relatively stable for the second quarter of 2026 as compared to the first quarter. The index price averaged $216 per ton and was 29% or $49 per ton higher than the second quarter 2025. For the main second-tier indices, the Australian LVHCC index and the CFR India LVHCC index prices increased in the second quarter of this year compared to the second quarter of last year to an average of $170 and $191 per short ton, respectively. The Australian LVHCC index price was $40 per ton or 30% higher than the second quarter of last year. And the CFR India LVHCC index price was $46 per ton or 32% higher than the second quarter of 2025. As a result, the relativity of the Australian LVHCC index price to the Australian PLV index price increased from 78% for the second quarter 2025 to 79% for the second quarter 2026. In contrast to the Australian LVHCC and CFR India index prices, the average U.S. East Coast HVA index price decreased $11 per ton or 7% in the second quarter this year from the second quarter of last year and averaged $143 per short ton. As a result, the relativity decreased from 92% for the second quarter 2025 to 66% for the second quarter 2026. We continue to see a meaningful discount to the PLV price each of the last 5 consecutive quarters in the Atlantic Basin to the point where it has temporarily become more profitable to sell into the Pacific Basin despite the higher freight rates, although, we don't expect this to continue once the U.S. East Coast HVA relativities return to normal levels. We achieved gross price realization of 66% for the second quarter this year compared to 80% in the second quarter of 2025. Our lower gross price realizations were driven by a combination of factors. First, our average main pricing indices for the PLV and LVHCC in the Pacific Basin have increased year-over-year for the second quarter, while the East Coast High-Vol A index decreased in the Atlantic Basin. Second, freight rates to Asia, primarily India, were about $13 per ton or 37% higher in the second quarter of 2026 than last year's second quarter and reduced our gross price realization. Third, gross price realizations were lower due to a 21% higher mix of High-Vol A products sold in the second quarter of this year. As production from Blue Creek continues to increase, we expect our sales volume mix to become more weighted toward High-Vol A products in the Pacific Basin destinations over time. This shift, along with the abnormally depressed second-tier relativities is expected to naturally lower our gross price realizations. Despite this, we expect the increased weighing toward High-Vol A products to drive margin expansion through the impact of the low-cost profile of Blue Creek on lowering our cash cost of sales. Turning back to our financial results. For the fourth consecutive quarter, Warrior achieved record high quarterly sales volume in the second quarter of 3.7 million short tons compared to 2.2 million in the same quarter of 2025. This represents a 65% increase primarily due to the additional sales volume from the Blue Creek mine. Our second quarter sales volume mix was 66% of High-Vol A and 34% of premium low vol. Our sales by geography for the second quarter break down as follows: 50% into Asia, 35% in Europe and 14% in South America. Our spot volume was 13% for the second quarter of 2026. Sales volumes into the Pacific Basin were 50% this quarter compared to 52% in the second quarter of 2025. Production volume in the second quarter of 2026 was 3.3 million short tons compared to 2.3 million in the same quarter of last year, representing a 45% increase. This increase reflects the significant contribution of Blue Creek. Our coal inventory levels decreased to 1.4 million short tons at the end of June this year compared to 1.9 million tons at the end of March 2026. We expect to continue driving our excess inventory downwards over the remainder of the year to maximize sales volume, profitability and free cash flow. I'll now ask Dale to address our second quarter results in greater detail. Dale Boyles: Thanks, Walt. We were pleased with our financial results for the second quarter of 2026, especially with our free cash flow generation. As Walt mentioned, the second quarter marked a key inflection point for our business. With the Blue Creek construction CapEx behind us and by using working capital to drive the higher sales and production volumes out of Blue Creek, we were able to generate significant free cash flow. Warrior recorded net income of $87 million or $1.65 per diluted share in the second quarter of this year compared to net income of $6 million or $0.11 per diluted share in the same quarter of 2025. We reported adjusted EBITDA of $157 million compared to $54 million in the same quarter of 2025, an increase of 193%. Our adjusted EBITDA margin improved to 31% in the second quarter of 2026 compared to 18% in the same quarter of last year. On a per ton basis, our adjusted EBITDA margin improved by 78% to $43 per short ton for the second quarter of 2026 compared to $24 in the last year's second quarter. The primary drivers of these improvements were a 65% increase in sales volumes, a 6% increase in average net selling prices, and a 9% reduction in cash cost, reflecting the increasing contribution from our new Blue Creek mine. Total revenues were $510 million compared to $298 million in the same quarter of last year. The total increase of $212 million was primarily due to the impact of higher sales volumes of $186 million and the impact of an increase in average gross selling prices of $73 million. This was partially offset by the impact of a 21% higher mix of High-Vol A tons sold, which had an impact on revenues of $40 million. In addition, the demurrage and other charges were $9 million higher compared to last year's second quarter. This resulted in an average net selling price of $138 per short ton in the second quarter of 2026 compared to $130 in the second quarter of last year. Cash cost of sales were $338 million or 67% of mining revenues in the second quarter of this year compared to $225 million or 78% of mining revenues in the second quarter of last year. Of the $113 million net increase in cash cost of sales, there was a $145 million increase in costs, which were attributed to the 65% increase in sales volumes and slightly higher variable transportation and royalty costs on higher average steelmaking coal price indices. These higher costs were offset partially by $32 million of lower costs that were driven by the leverage of low-cost Blue Creek tons sold and the benefit from the 45X production credit. We have seen smaller amounts of inflation on various materials and supplies as we have previously discussed. However, it has not been aggregated to a material amount at this point in the year. Cash cost of sales per short ton, FOB port, was approximately $93 compared to $101 in the same quarter last year. The 9% decrease was primarily related to the factors that I just mentioned on a dollar basis. Cash margins per short ton increased 57% to $45 in the second quarter from $29 in the same quarter of last year. While we have a higher mix of High-Vol A product at lower U.S. East Coast index prices than in previous periods, Blue Creek has created margin expansion with its inherently lower cost structure. Our second quarter 2026 SG&A expenses were $10 million and were $2 million lower than the same quarter of 2025. This decrease was due to funds received from the old Walter Energy bankruptcy proceedings of $2 million during this year's second quarter. Depreciation and depletion expenses were $58 million in the second quarter, which was 35% higher than the second quarter of 2025, primarily due to the additional assets placed into service at Blue Creek and the higher sales volume in the second quarter of 2026. We recorded income tax expense of approximately $4 million on pretax income of $91 million in the second quarter of 2026. Our effective income tax rate varied from the statutory federal income tax rate of 21%, primarily due to tax benefits recognized for depletion expense and a foreign-derived intangible income deduction, resulting in an effective income tax rate of 4%. Now let's turn to cash flows. Cash flows from operating activities were $132 million in the second quarter of 2026 and were $95 million higher than the previous year's second quarter, driven by the growth in revenue. Working capital increased by $14 million, primarily due to higher supplies inventory, higher prepaid expenses, lower accrued expenses, partially offset by favorable collections of accounts receivable. Free cash flow was $103 million due to $132 million of cash provided by operations, combined with cash used for capital expenditures of $29 million. This second quarter result brought free cash flow to a positive $11 million for the first half of 2026, which was slightly better than we expected. The inflection point in our free cash flow generation marks a significant turning point from strategic investment to future stockholder returns. We were pleased that we increased our cash and total liquidity while delivering higher profitability. Our total available liquidity at the end of the second quarter was $453 million and consisted of cash and cash equivalents of $302 million, short-term investments of $10 million and $141 million available under our ABL facility. Given the significant increase in adjusted EBITDA from the first quarter of 2026, I want to highlight the primary drivers of this change. First, our sales volumes were 22% higher in the second quarter, positively impacted by an increase in tons sold from Blue Creek. Second, the increase of Blue Creek tons sold had a positive impact on cash cost per ton, which were $3 lower in the second quarter, primarily attributed to Blue Creek's inherently low cost structure. Third, our average net selling price decreased in the second quarter by about $12 per ton or 8%. This was primarily due to a 5% higher mix of High-Vol A volumes sold, 11% more volumes sold into the Atlantic Basin on lower U.S. East Coast High-Vol A prices, higher freight rates into the Pacific Basin due to the Iran conflict, and higher demurrage rates. And finally, cash usage from working capital requirements decreased from $146 million in the first quarter to a usage of $14 million in the second quarter. This resulted in operating cash flows of $132 million, which was $144 million higher than the first quarter of 2026. We were pleased to see the positive factors significantly outweigh the negative factors. Finally, let me turn to our current outlook and guidance for the full year 2026 as detailed in our earnings release. We have been pleased with the continued positive reception of the Blue Creek trial volumes and the adoption by our customers, which has surpassed our high expectations. As a result, the company is raising its sales and production volume guidance by 0.5 million tons. This will increase Blue Creek sales volume to 5 million short tons for the full year, of which 90% is already under contract. As we noted in our first quarter earnings call, we continue to see inflationary cost pressures on a wide variety of materials and supplies, such as steel roof supports, steer bits and diesel fuel. Individually, each of these items is not material to our cost structure. However, the aggregation of broader inflation could become larger. While we have not been materially impacted by inflation so far this year, we believe the remainder of the year could see an increase of a few dollars per ton. I'll now turn it back to Walt for his final comments. Walter Scheller: Thanks, Dale. Warrior continued its strong performance in the second quarter. Our financial and operational results were better than expected, impacted in part by premium quality steelmaking coal prices being higher for a longer period of time. This strong first half 2026 supports our revised full year outlook and guidance. Looking forward, we expect the market to remain sensitive to short-term supply disruptions, regional trade flows and steel market conditions. While the premium segment remains relatively tighter than the broader steelmaking coal market, we do not believe that current steel fundamentals are strong enough to support a sustained return to the price momentum observed earlier in the year. We also expect to see improvements in the supply of Australian premium coals. We'll continue to monitor developments in China very closely as any further actions from the government can easily sway the markets in either direction. From a pricing perspective, we expect the PLV to remain above the depressed levels observed through most of 2025, but below the supply-driven highs experienced during the first half of 2026. The most likely outcome in our view is a lower range-bound market with periods of volatility driven by weather, logistics, geopolitical developments and regional buying patterns. We also continue to expect that second-tier indices will remain at depressed levels relative to the PLV as observed for the past several quarters. This expectation could put pressure on our net selling prices, profitability and free cash flow generation in the second half of the year as compared to the first half. We've been pleased with the reception of the product coming out of our new mine as demonstrated by the successful trials and adoption by our customers. As a result, we've been able to gain market share, mostly with strategic customers that recognize our differentiated value proposition. This positive reception from our customers led to the increase in our full year guidance volumes, as Dale described earlier. We believe similar opportunities will continue to present themselves, especially as we approach the contract season later this year. Most importantly, Warrior has the tools to continue to drive value creation for our stockholders by continuing to execute our strategy to optimize production, control our costs, and generate free cash flow. With our high-quality assets and low first quartile cost structure, we're as well positioned as we've ever been to thrive in a wide range of steelmaking coal environments. With that, we'd like to open the call for questions. Operator? Operator: [Operator Instructions] The first question comes from Nick Giles with B. Riley Securities. Nick Giles: Guys, congrats on another strong quarter. Maybe just a first clarification. Can you provide a breakdown of shipments across each individual mine, specifically Blue Creek? Walter Scheller: No, we don't get into that much detail. We just haven't done that. Nick Giles: Okay. Understood. Maybe just on realizations. They continue to be under pressure. You mentioned the volatility around freight rates. Should we kind of expect more of the same from a relativity perspective in 3Q? And then kind of how much volume could you look to maybe shift to the Atlantic Basin where freight rates may be less volatile? Walter Scheller: I think you're going to see kind of a continuation of where we've been year-to-date. I don't expect a great deal of fluctuation there. I do think with the low-vol price coming down, it wouldn't surprise me to see the relativities close back up and see us sitting at where the High-Vol A price kind of stays a little more steady than the low-vol price as it comes down. That's just speculation on my part. Dale Boyles: Yes. And as far as shifting shipments to one basin to the other, that really depends on customer demand and when they want their shipments because, as we said, 90% of our volume this year is under contract. And when they -- when they want it, it's when they want it, we can't really dictate that. Nick Giles: No, understood. No, that's helpful. Maybe just, Dale, one for you on shareholder returns. I mean, free cash flow in the quarter was very strong. Are you getting to a point where you're ready to kind of increase shareholder returns? Or would you prefer to build kind of a higher cash balance in the second half year? Dale Boyles: Yes, I think so. Even with prices declining as they have in the recent weeks, I do think we're going to start to really see strong cash flow generation, which means or should mean higher returns to shareholders. We're going to have to generate that cash first and see where we go from there. Operator: The next question comes from George Eadie with UBS. George Eadie: Congrats on this stuff this quarter. Dale, can we just quantify that a bit more? Like, what is the ideal sort of steady-state cash level? Is it -- $400 million, is that a good estimate? And then secondly, can you also remind me the state of potential buybacks and NOLs as well, please? Dale Boyles: Yes. Cash, we like to see in a range of $350 million to $400 million. So a total of -- total liquidity of around $500 million in total. The status of the NOLs -- well, we utilized all the NOLs on the federal side back in 2023, I believe it is. And all we have now is state NOLs, and we still have $900 million of those approximately. But those are -- we don't pay any Alabama tax, so I'm not sure we'll be able to use a lot of those NOLs in the future. As far as buybacks, that's one of the options that we have, one of the levers we have in providing returns to shareholders. And as we get to that point, when we're looking at future returns, we'll give that a consideration. George Eadie: Okay. And just on sort of Walt's comments earlier about the pricing dynamic, like what are the things you're watching specifically in the market to see High-Vol A prices return to a higher level relative to the Queensland benchmark price structurally on a sort of medium-term view? Walter Scheller: I just think that High-Vol A prices are where they are in the Atlantic Basin because of the volume of High-Vol A available. And I think they're disconnected from the low-vol price. And as the low-vol price begins to retreat, I'm not sure -- again, it's just speculation on my part, I'm not sure that the High-Vol A price in the Atlantic Basin will retreat in equal amounts. So that's what would close the relativities up potentially. George Eadie: Okay. So we need to see supply coming out of high vol essentially is the answer you think, Walt? Walter Scheller: I think that's the final answer, yes. Operator: The next question comes from Katja Jancic with BMO Capital Markets. Katja Jancic: Maybe on the cost side. So the performance year-to-date has been very good. And when we look at your cost target, it does imply a more material increase in cost in the second half. And I know, Dale, you mentioned that there are inflationary pressures, but at the same time, those have not been material. So can you maybe talk about what met coal prices do you assume in the second half specifically that would contribute to maybe higher costs? Or how should we think what the main moving pieces on the cost side are? Dale Boyles: Well, you talked about some inflation, but we're pretty near the bottom end of our range already. So we're 93% year-to-date versus 95% on the bottom. So I don't see that as different. So -- and the higher number is just based on some higher estimates on pricing, over 200 for a PLV. So we baked in some inflation into that number and just provides some cushion for anything that might happen in the second half of the year. Katja Jancic: Maybe looking beyond this year on the CapEx side, can you just remind us what the maintenance CapEx, or how should we think about CapEx over the next few years? Dale Boyles: Well, for this year, it was -- $105 million to $115 million is our guide for this year for the existing mines. And that excluded Blue Creek. So you probably need to add another $25 million to $30 million for that. So you're looking at $130 million to $150-ish on a recurring basis, probably broad range. Operator: The next question comes from Nathan Martin with The Benchmark Company. Nathan Martin: Just sticking with the cost per ton for a moment. Some of your peers have talked about elevated diesel prices. Do you guys expect those to impact your operations at all in the back half of the year? Dale Boyles: They are lingering but not a significant amount. We don't use a lot of diesel. So we don't truck a lot of coal. And what we do truck, we could also ship by rail. So we have optionality there. But we just don't typically use a significant amount of diesel. But as I said in my prepared remarks, look, when you add them all up, you can see a few dollars a ton when it all adds up between steel prices and other chemicals, all kinds of things. Nathan Martin: Dale, I appreciate that. Secondly, can we get a few details around the reported electrical outage at the Port of Mobile? Any lingering effects there for you guys? Walter Scheller: No, no lingering effects. We saw it for a few days. I mean it's really that time of the year where between storms and other things, we expect some outages down there, and we just managed to have one down there from an electrical standpoint for a few days. But no, we don't expect any lingering effects. Nathan Martin: All right. Good to hear, Walt. And then maybe finally, related to longwall moves, it all look like one might have shifted from the second quarter into the third quarter. Could we get some details around which mines the remaining longwall moves are occurring at in the various quarters? Dale Boyles: I think when we look at our longwall moves, given the number of sets of shields we have, we have done a -- we've worked very hard to make sure we continue to have 0-day longwall moves. So I think impact from longwall moves will be minimal, if any, throughout the rest of the year. Operator: The next question comes from Alex Hacking with Citi. Alexander Hacking: I just had one question on the realized price. I guess I didn't quite follow the prepared remarks. The price was down $12 quarter-on-quarter. Indexes were flattish. I mean I think, obviously, freight to the Pacific Basin was quite a bit higher, but you're also -- your mix was tilted more towards the Atlantic Basin. So that seems neutral-ish. So I guess what am I missing as to understand the quarterly decline in the realized price? Dale Boyles: Yes. Well, first, we did have higher volumes, okay? So -- but let me see, looking at the change here. The biggest one was 10% more volume went into Europe versus the first quarter. And as we said in our prepared remarks, those prices were lower U.S. East Coast prices because they were down when you look at the quarter. So we had less going into Asia of about 10%, but Asia is still -- those freight rates were much, much higher. They averaged about almost $10 a ton higher in the first -- in the second quarter versus the first quarter. Operator: [Operator Instructions] The next question omes from Chris LaFemina with Jefferies. p id="137301578" name="Christopher LaFemina" type="A" /> So I want to ask on the cost performance in the quarter and then on the cost guidance. So first, in the cost for the quarter, how much of the reduction from the year ago period was due to 45X tax credits? Have you disclosed what the tax credit was in the second quarter? I apologize if I missed that. Dale Boyles: Yes. It was about $3 a ton, Chris, somewhere around Chris -- Christopher LaFemina: The delta from last year to this year was $3 a ton? Dale Boyles: Yes, $3 a ton. That's correct. Christopher LaFemina: And then secondly, on the lower cost -- high end of the cost guidance for the year, I assume that's because the higher sales volume is incremental tons that come from Blue Creek, which is lower cost. Is that why the high end of the cost guidance range has been lowered? Dale Boyles: Yes, that's right. Christopher LaFemina: So you said of the 13 million to 14 million tons of expected sales this year, 5 million would be from Blue Creek and it would have been $4.5 million before. Is that correct? Dale Boyles: That's correct. And 90% of that is contracted. Operator: And we have a follow-up from Nick Giles with B. Riley Securities. Nick Giles: Just given the success you've had in contracting Blue Creek tons thus far at the expense of stating the obvious that the market remains weak, what would prevent you from moving up to the targeted 6 million ton run rate sooner than expected? Or is that still the right kind of target run rate to have in mind as we think about 2027 and beyond? Walter Scheller: I still think we're going to try to maximize the production out of that mine, and it's just a matter of getting the people in line and getting the -- everything worked where we want it, and then we will absolutely maximize the production coming out of that mine. Nick Giles: Got it. And maybe, Walt, just on that point, can you just kind of give us an update on where things stand from a hiring perspective? Walter Scheller: We're -- right now, we're staffed to run 4 continuous minor units in longwall, which is where we wanted to be. We are -- we have some openings. We're still trying to fill jobs, but we're feeling pretty good about where we're staffed right now. Operator: Thank you. At this time, there are no further questions. I will now turn the call back over to Mr. Scheller for any comments. Walter Scheller: That concludes our call this afternoon. Thank you again for joining us today, and we appreciate your interest in Warrior. Operator: Thank you. Again, that concludes today's conference. Thank you for all -- thank you all for participating. You may now disconnect. Before you buy stock in Warrior Met Coal, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Warrior Met Coal wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $403,337!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,946!* Now, it’s worth noting Stock Advisor’s total average return is 958% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 12, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Warrior Met Coal (HCC) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. Warrior Met Coal stock has delivered a very large 5 year return, yet the latest valuation work suggests the shares may still trade below an estimate of intrinsic value based on a Discounted Cash Flow (DCF) model and earnings multiples. Warrior Met Coal has returned about 4.7x over 5 years, which puts the recent share price run in sharp focus for anyone asking how much upside might still be left. Future cash generation from its coal operations can support the current valuation if margins and volumes hold up. Exposure to commodity price swings remains a key risk that can quickly change the cash flow outlook. The company scores 3 of 6 on Simply Wall St's valuation checks, which presents a mixed picture rather than a clear bargain or clear overvaluation for Warrior Met Coal. The score of 3 sits in the middle of the range. The issue now is whether Warrior Met Coal's recent share price strength already reflects this intrinsic value estimate or still leaves a margin between price and value. Find out why Warrior Met Coal's 51.9% return over the last year is lagging behind its peers. The Discounted Cash Flow model estimates what Warrior Met Coal could be worth today based on projected future cash flows. For Warrior Met Coal, the latest twelve month free cash flow is reported as a loss of about $136.3 million, and the model assumes cash flows recover and grow over time as its operations continue to generate cash in future years. Using those recovering cash flow projections, the 2 Stage Free Cash Flow to Equity model points to an estimated intrinsic value of about $165.65 per share. Compared with the current share price, this implies the stock trades at roughly a 44.5% discount to that intrinsic value estimate. On this basis, the market price sits well below what this discounted cash flow framework suggests. On these cash flow assumptions, Warrior Met Coal appears undervalued relative to the Discounted Cash Flow estimate of intrinsic value. Our Discounted Cash Flow (DCF) analysis suggests Warrior Met Coal is undervalued by 44.5%. Track this in your watchlist or portfolio, or discover 51 more high quality undervalued stocks. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Warrior Met Coal. The P/E ratio is a common way to gauge how much you are paying for each dollar of Warrior Met Coal earnings. For a business that is already profitable, this can be a straightforward cross-check against peers. Warrior Met Coal currently trades on a P/E of about 22.1x. That sits above the Metals and Mining industry average of roughly 18.0x and the peer group average of about 19.1x. However, the tailored fair P/E ratio for the company is estimated at 26.4x, which reflects its specific mix of earnings profile, size and risk factors rather than just broad sector norms. Set against this fair ratio, the current 22.1x multiple is lower, which indicates that Warrior Met Coal stock is pricing in a discount relative to what this framework suggests might be appropriate. The gap between the current and fair multiple is meaningful rather than marginal. On this P/E comparison, Warrior Met Coal appears undervalued relative to the fair multiple implied by its fundamentals and risk profile. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for Warrior Met Coal aim to connect the valuation puzzle above with clear scenarios that spell out what would need to happen to Warrior Met Coal's growth, margins and earnings for the stock to be worth materially more or less than today's price. Each one ties a fair value estimate to a specific story about the company's potential catalysts and risks, allowing you to track over time which version of events appears to be unfolding on the Community page. Community views on Warrior Met Coal sit on very different sides of the spectrum, and the gap between the two narratives is wide. Bull case: 12% undervalued Read the full Bull Case to see why Warrior Met Coal could be undervalued Bear case: roughly fairly valued Read the full Bear Case to see why Warrior Met Coal could be overvalued Do you think there's more to the story for Warrior Met Coal? Head over to our Community to see what others are saying! For Warrior Met Coal, both the Discounted Cash Flow (DCF) intrinsic value estimate and the P/E based fair multiple point to an undervalued stock, even after a very large move in recent years. The broader valuation checks are mixed rather than emphatically positive, so the apparent discount comes with caveats rather than a clear-cut signal. Everything now hinges on whether cash flows and earnings can support those intrinsic value and multiple assumptions in the face of coal price swings and demand uncertainty. The real question for investors is whether the current discount reflects opportunity, or whether the market is correctly pricing in those long term risks. 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 HCC. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in Warrior Met Coal? Here are five stocks we like better. Blue Creek drove a major earnings improvement: Second-quarter net income rose to $87 million from $6 million a year earlier, while adjusted EBITDA increased 193% to $157 million. Record sales volumes, higher realized prices and lower costs helped generate $103 million in quarterly free cash flow. Warrior raised its 2026 outlook: The company increased full-year sales and production guidance by 500,000 short tons, targeting total sales of 13 million to 14 million tons. Blue Creek is expected to provide 5 million tons of sales, with 90% already contracted. Management remains focused on cash and shareholder returns despite a cautious market: Warrior ended the quarter with $453 million of liquidity and may consider share repurchases as cash accumulates. However, executives expect metallurgical coal prices to remain below early-2026 highs amid weaker steel demand, freight pressures and market volatility. Warrior Met Coal (NYSE:HCC) reported sharply higher second-quarter earnings and cash generation as its Blue Creek mine contributed additional sales volumes and lower-cost production, while management raised its full-year sales and production outlook. Chief Executive Officer Walt Scheller described the quarter as a “key inflection point,” citing record sales volumes, improved pricing and a lower cost profile. The company generated more than $103 million of free cash flow during the quarter, bringing first-half free cash flow to a positive $11 million. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling “With Blue Creek operational and our development spending complete, we've entered into the next phase of Warrior's growth,” Scheller said, adding that the company’s focus is now on free cash flow generation, balance sheet strength and long-term stockholder returns. Warrior reported second-quarter net income of $87 million, or $1.65 per diluted share, compared with net income of $6 million, or $0.11 per diluted share, a year earlier. Adjusted EBITDA rose 193% to $157 million, while revenue increased to $510 million from $298 million in the prior-year quarter. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Adjusted EBITDA margin improved to 31% from 18% a year earlier. On a per-ton basis, adjusted EBITDA was $43 per short ton, compared with $24 per short ton in the second quarter of 2025. Chief Financial Officer Dale Boyles said the financial improvement reflected a 65% increase in sales volumes, a 6% increase in average net selling prices and a 9% reduction in cash costs. The company recorded an average net selling price of $138 per short ton, up from $130 per short ton a year ago. → No Hangover: Revisiting Microsoft One Week After Earnings Second-quarter sales reached a fourth consecutive quarterly record of 3.7 million short tons, compared with 2.2 million short tons in the year-earlier period. Production rose 45% to 3.3 million short tons. Management attributed the increases primarily to Blue Creek. The company’s sales mix during the quarter was 66% High-Vol A coal and 34% premium low-volatility coal. By geography, 50% of sales went to Asia, 35% to Europe and 14% to South America. Spot volumes represented 13% of total quarterly sales. Coal inventories declined to 1.4 million short tons at the end of June from 1.9 million short tons at the end of March. Scheller said the company expects to further reduce excess inventory through the rest of 2026 to support sales volumes, profitability and free cash flow. Cash cost of sales was $338 million, or 67% of mining revenue, compared with $225 million, or 78% of mining revenue, in the year-earlier quarter. Cash cost of sales per short ton FOB port declined to approximately $93 from $101. Boyles said the higher sales volume and transportation and royalty costs increased total costs, but those factors were partly offset by the lower-cost Blue Creek tons and the benefit of the 45X production credit. In response to an analyst question, Boyles said the 45X credit accounted for about $3 per ton of the year-over-year cost reduction. Operating cash flow totaled $132 million, while capital expenditures were $29 million, producing $103 million of free cash flow in the quarter. Warrior ended the period with total available liquidity of $453 million, including $302 million in cash and cash equivalents, $10 million in short-term investments and $141 million available under its asset-based lending facility. During the question-and-answer session, Boyles said the company would like to maintain cash in a range of $350 million to $400 million and total liquidity of about $500 million. He said stronger cash generation should support higher shareholder returns, though the company must first generate the cash and assess conditions. Potential share repurchases are among the options available, he said. Warrior raised its full-year sales and production volume guidance by 0.5 million short tons, reflecting customer adoption of Blue Creek trial volumes. Blue Creek is now expected to contribute 5 million short tons of sales in 2026, with 90% of that volume already under contract. In an exchange with analysts, Boyles confirmed that the company expects total 2026 sales of 13 million to 14 million short tons. The lower end of the company’s cost guidance range reflects the increased volume of lower-cost Blue Creek production, he said. Management said it remains alert to potential inflation in materials and supplies, including steel roof supports, shear bits and diesel fuel. Boyles said such items had not been material in aggregate through the first half, though combined cost pressures could add a few dollars per ton during the remainder of the year. For future spending, Boyles said recurring capital expenditures could be about $130 million to $150 million, including $105 million to $115 million for the existing mines and an additional $25 million to $30 million for Blue Creek. Scheller said global steelmaking coal markets remain influenced by supply disruptions, regional trade flows and steel-sector conditions. The World Steel Association reported global pig iron production fell 1.9% in the first half of 2026 from a year earlier, according to Scheller, with India posting 2.7% growth while China remained a source of weakness amid soft domestic demand and weak steel margins. The company said the PLV FOB Australia benchmark averaged $216 per ton in the second quarter, up $49 per ton, or nearly 29%, from the prior-year period. However, the U.S. East Coast High-Vol A index averaged $143 per short ton, down $11 per ton year over year. Warrior achieved gross price realization of 66%, compared with 80% a year earlier. Management attributed the decline to higher freight rates to Asia, a larger mix of High-Vol A products and weaker U.S. East Coast High-Vol A pricing relative to the PLV benchmark. Scheller said the company expects premium coal prices to remain above the depressed levels seen through much of 2025 but below the supply-driven highs reached during the first half of 2026. He said Warrior expects a lower, range-bound market with volatility tied to weather, logistics, geopolitical developments and regional buying patterns. Warrior Met Coal (NYSE: HCC) is a leading producer of premium metallurgical coal, operating deep underground mining complexes in Central Alabama's Blue Creek and Brookwood mining districts. The company focuses exclusively on the extraction and sale of high-grade hard coking coal, a critical raw material used in steel production. Its mining operations harness longwall mining technology and rigorous safety protocols to deliver consistent coal quality to customers worldwide. Warrior Met Coal's product portfolio centers on premium hard coking coal, semisoft coking coal, and pulverized coal injection (PCI) products. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Warrior Met Coal Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

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 (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.54 on $522.41 million in revenues for the coming quarter and $5.83 on $2 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Coal is currently in the top 14% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Core Natural Resources (CNR), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This coal company is expected to post quarterly earnings of $0.37 per share in its upcoming report, which represents a year-over-year change of +152.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Core Natural Resources' revenues are expected to be $1.09 billion, down 1.2% from the year-ago quarter. 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 Warrior Met Coal (HCC) : Free Stock Analysis Report Core Natural Resources, Inc. (CNR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved a key strategic inflection point as Blue Creek development spending concluded, shifting the corporate focus toward free cash flow generation and stockholder returns. Realized record quarterly sales volumes of 3.7 million short tons, a 65% year-over-year increase driven primarily by the successful ramp-up of Blue Creek production. Experienced significant margin expansion driven by improved year-over-year pricing, attributed to Blue Creek's low-cost profile and the leverage of higher production volumes. Observed a persistent and abnormal discount in Atlantic Basin High-Vol A pricing relative to Australian benchmarks, leading to temporary profitability advantages in the Pacific Basin despite higher freight costs. Noted resilient demand from India and a brief sentiment shift in China following a domestic mining incident, though broader market momentum remains subdued by weak global steel margins. Managed a strategic reduction in coal inventory levels, decreasing from 1.9 million tons in March to 1.4 million tons in June to maximize liquidity and sales efficiency. Raised full-year sales and production guidance by 0.5 million tons, reflecting stronger-than-expected customer adoption of Blue Creek trial volumes. Anticipates a lower range-bound pricing environment for Premium Low Vol (PLV) coal, with volatility expected from weather, logistics, and geopolitical developments. Expects continued pressure on net selling prices in the second half of 2026 as second-tier indices remain depressed relative to the PLV benchmark. Projects a sales mix shift toward a higher weighting of High-Vol A products as Blue Creek production continues to scale toward its full potential. Assumes a potential increase in cash costs of a few dollars per ton in the latter half of the year due to the aggregation of inflationary pressures on materials like steel roof supports and diesel. Benefited from a $3 per ton reduction in cash costs attributed to the 45X production credit. Maintained a strong liquidity position of $453 million, with management targeting a steady-state cash balance between $350 million and $400 million. Reported a low effective tax rate of 4% for the quarter, primarily due to depletion expense benefits and foreign-derived intangible income deductions. Confirmed that 90% of the projected 5 million tons of Blue Creek sales for the full year are already under contract. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management indicated they are approaching a point where increased shareholder returns are likely, provided strong cash flow generation continues as expected. The company prefers to maintain total liquidity around $500 million, including a cash balance of $350 million to $400 million, before aggressively deploying capital for returns. Management believes the current disconnect between High-Vol A and Low-Vol prices is driven by high supply volumes in the Atlantic Basin. They speculate that relativities may close as Low-Vol prices retreat, while High-Vol A prices potentially remain more steady, though a structural shift likely requires supply to exit the market. The mine is currently staffed to operate four continuous miner units and the longwall, which aligns with management's immediate operational goals. While the company is still filling some positions, they intend to maximize production as quickly as personnel and operational workflows allow. Management confirmed a brief electrical outage at the port lasted only a few days and resulted in no lingering effects on shipping operations. Such disruptions are viewed as typical for the season and are managed within standard operational contingencies.

This article first appeared on GuruFocus. Revenue: Total revenues were $510 million, up from $298 million in the same quarter last year. Net Income: Net income was $87 million, or $1.65 per diluted share, compared to $6 million, or $0.11 per diluted share, in Q2 2025. Adjusted EBITDA: Adjusted EBITDA was $157 million, a 193% increase from $54 million in the prior-year quarter. Adjusted EBITDA Margin: Improved to 31% in Q2 2026, up from 18% in Q2 2025. Cash Cost of Sales: $338 million, or 67% of mining revenues, compared to $225 million, or 78%, in Q2 2025. Cash Cost per Ton: Approximately $93 per short ton FOB Port, a 9% decrease from $101 in the prior-year quarter. Average Net Selling Price: $138 per short ton, up 6% from $130 in Q2 2025. Cash Margin per Ton: Increased 57% to $45 per short ton, from $29 in Q2 2025. Sales Volume: Record quarterly sales volume of 3.7 million short tons, a 65% increase from 2.2 million in Q2 2025. Production Volume: 3.3 million short tons, a 45% increase from 2.3 million in the prior-year quarter. Free Cash Flow: $103 million in Q2 2026, bringing first-half free cash flow to a positive $11 million. Operating Cash Flow: $132 million, up $95 million from the prior-year quarter. Capital Expenditures: $29 million in Q2 2026. SG&A Expenses: $10 million, $2 million lower than Q2 2025. Depreciation and Depletion: $58 million, 35% higher than Q2 2025. Income Tax Expense: Approximately $4 million on pre-tax income of $91 million, with an effective tax rate of 4%. Liquidity: Total available liquidity of $453 million, including $302 million in cash and cash equivalents. Warning! GuruFocus has detected 4 Warning Signs with HCC. Is HCC fairly valued? Test your thesis with our free DCF calculator. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Record quarterly sales volume of 3.7 million short tons, a 65% increase year-over-year, driven by Blue Creek's contribution. Significant margin expansion with adjusted EBITDA up 193% to $157 million and adjusted EBITDA margin improving to 31%. Strong free cash flow generation of $103 million in Q2, bringing first-half free cash flow to positive $11 million, marking a key inflection point. Cash cost per ton decreased 9% to $93, benefiting from Blue Creek's low-cost structure and the 45X production tax credit. Raised full-year sales and production guidance by 0.5 million tons, with Blue Creek sales volume now expected at 5 million tons, 90% already contracted. Gross price realization fell to 66% from 80% year-over-year due to higher freight rates, a 21% higher mix of High Vol-A product, and depressed Atlantic Basin prices. Average net selling price declined $12 per ton sequentially in Q2, pressured by higher freight rates, demurrage charges, and a shift in sales mix toward lower-priced Atlantic Basin volumes. Second-tier index relativities remain depressed, with US East Coast HVA prices down 7% year-over-year, and management expects continued pressure on net selling prices in H2. Global steel fundamentals remain weak, with Chinese buying subdued and steel exports pressuring the market, limiting sustained price momentum. Inflationary cost pressures on materials and supplies (e.g., steel roof supports, diesel) could add a few dollars per ton in the second half, potentially impacting cost guidance. Q: Given the strong free cash flow generation in the quarter, are you ready to increase shareholder returns, or would you prefer to build a higher cash balance in the second half of the year?A: Dale Boyles (CFO) stated that even with recent price declines, the company expects to see strong cash flow generation, which should lead to higher returns to shareholders. The strategy is to generate the cash first and then determine the best path for capital allocation. Q: Can you quantify the ideal steady-state cash level and remind us of the status of potential buybacks and NOLs?A: Dale Boyles (CFO) stated the company likes to maintain a cash balance in the range of $350 million to $400 million, with total liquidity around $500 million. He noted that all federal NOLs were utilized in 2023, leaving approximately $900 million in state NOLs, which may not be fully usable as the company does not pay Alabama state tax. He confirmed that buybacks remain one of the levers under consideration for future shareholder returns. Q: What are the main moving pieces on the cost side for the second half of the year, given the implied increase in your cost guidance?A: Dale Boyles (CFO) explained that the company is already near the bottom end of its cost range at $93 per ton year-to-date versus the $95 guidance floor. The higher end of the guidance range incorporates assumptions for higher met coal prices (over $200 per ton for PLV) and bakes in some cushion for potential inflationary pressures on materials and supplies in the second half. Q: How should we think about maintenance capital expenditures over the next few years?A: Dale Boyles (CFO) guided that recurring capital expenditures for the existing mines are in the range of $105 million to $115 million for 2026. Adding approximately $25 million to $30 million for Blue Creek brings the total recurring capex to a broad range of $130 million to $150 million annually. Q: What would prevent you from moving up to the targeted 6 million ton run rate at Blue Creek sooner than expected, and is that still the right target for 2027 and beyond?A: Walter Scheller (CEO) stated that the company is still aiming to maximize production from the mine. The primary constraint is getting the workforce fully staffed and operations optimized. He noted that the company is currently staffed to run four continuous miner units and one longwall, which is the intended configuration, and they are feeling good about the current staffing levels. Q: Can you provide a breakdown of shipments across each individual mine, specifically Blue Creek?A: Walter Scheller (CEO) declined to provide a mine-by-mine breakdown, stating that the company does not disclose that level of detail. Q: Should we expect more of the same from a relativity perspective in the third quarter, and how much volume could you shift to the Atlantic Basin where freight rates may be less volatile?A: Walter Scheller (CEO) expects a continuation of current trends, noting that as low-vol prices decline, relativities could close back up. Dale Boyles (CFO) added that shifting shipments between basins is largely dictated by customer demand, as 90% of the volume is under contract, and the company cannot dictate when customers want their shipments. Q: How much of the cost reduction from the year-ago period was due to the 45X tax credits, and was the lower high end of the cost guidance due to higher Blue Creek volumes?A: Dale Boyles (CFO) confirmed the 45X tax credit contributed approximately $3 per ton to the cost improvement. He also confirmed that the lower high end of the cost guidance range is due to the incremental sales volumes coming from Blue Creek, which has a lower cost structure. He reiterated that Blue Creek sales are now guided to 5 million tons for the full year, with 90% already contracted. Q: Are there any lingering effects from the electrical outage at the Port of Mobile?A: Walter Scheller (CEO) stated there are no lingering effects from the outage, which lasted a few days. He noted that such outages are expected during that time of year due to storms and other factors, but the company does not anticipate any ongoing impact. Q: Can you provide details on the remaining longwall moves for the year?A: Walter Scheller (CEO) indicated that due to the number of shield sets the company has, they have worked hard to ensure zero-day longwall moves. He expects the impact from longwall moves to be minimal, if any, throughout the rest of the year. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Generates significant free cash flow as Blue Creek helps drive record volumes, lower costs and margin expansion Sales and production volumes grow by 65% and 45% year-over-year, respectively Raises full year volume guidance, reflecting continued positive customer reception of Blue Creek product BROOKWOOD, Ala., August 05, 2026--(BUSINESS WIRE)--Warrior Met Coal, Inc. (NYSE: HCC) ("Warrior" or the "Company") today announced results for the second quarter of 2026. Warrior is the leading dedicated U.S.-based producer and exporter of high-quality steelmaking coal for the global steel industry. Warrior reported net income for the second quarter of 2026 of $87.4 million, or $1.65 per diluted share, an increase from net income of $5.6 million, or $0.11 per diluted share, in the second quarter of 2025. Adjusted EBITDA in the second quarter of 2026 was $156.9 million, a 193% increase from $53.6 million in the second quarter of 2025, reflecting the continued ramp-up in the profitability contribution from the Blue Creek mine and improved steelmaking coal prices. Second Quarter Highlights Achieved record quarterly sales volumes for the fourth consecutive quarter of 3.7 million short tons of steelmaking coal; and Cost of sales increased to $340.0 million, or 68% of sales, driven primarily by a 65% increase in sales tons. Despite the higher overall cost of sales, cash cost of sales (free-on-board port) per short ton decreased by 9% to $92.53 from the prior year comparable period, driven primarily by the inherently lower cost structure of Blue Creek and a benefit from the Section 45X Advanced Manufacturing Production Tax Credit (the "45X Credit"). "We delivered record sales volumes, improved pricing and a lower-cost profile in the second quarter, driving significant margin expansion and generating more than $103 million of free cash flow," commented Walt Scheller, CEO of Warrior. "Blue Creek continues to be an important contributor to our performance, adding incremental earnings and cash flow as customers respond positively to our offering." "Recent market conditions have also highlighted the value of Warrior's premium product portfolio and low-cost operating position, which drive strong results across pricing cycles. While steelmaking coal markets continue to experience regional demand and supply fluctuations, Chinese import demand has provided support to seaborne pricing and long-term steel production growth in India remains a positive demand catalyst. In summary, with Blue Creek operational and our development spending complete, this second quarter marked the start of the next phase of Warrior's growth, which is focused on free cash flow generation, balance sheet strength and long-term stockholder returns," Mr. Scheller concluded. Operating Results Sales volumes in the second quarter of 2026 were a record 3.7 million short tons compared to 2.2 million short tons in the second quarter of 2025, representing a 65% increase, driven primarily by sales of Blue Creek steelmaking coal. The Company produced 3.3 million short tons of steelmaking coal in the second quarter of 2026, compared to 2.3 million short tons in the second quarter of 2025, representing a 45% increase. Inventory levels decreased to 1.4 million short tons as of June 30, 2026, compared to 1.9 million short tons as of March 31, 2026. Additional Financial Results Total revenues were $509.7 million for the second quarter of 2026, which compares to total revenues of $297.5 million for the second quarter of 2025, reflecting the 65% increase in sales volumes combined with a 6% increase in the average net selling price. The average net selling price of the Company's steelmaking coal increased from $130.01 per short ton in the second quarter of 2025 to $137.82 per short ton in the second quarter of 2026. The average gross selling price realization was approximately 66% of the Platts Premium Low Vol ("PLV") FOB Australian index price for the second quarter of 2026 compared to 80% for the second quarter of 2025. This result was primarily driven by a 21% higher sales mix of high-vol A steelmaking coal predominantly sold into the Pacific Basin at elevated freight rates and persistently low second tier price relativities compared to the PLV. Despite lower index realization, improved pricing, record volumes and lower operating costs drove significant growth in earnings and cash flow. Cost of sales for the second quarter of 2026 was $340.0 million compared to $226.4 million for the second quarter of 2025. Cash cost of sales (free-on-board port) for the second quarter of 2026 were $338.1 million, or 67.1% of mining revenues, compared to $224.5 million, or 77.8% of mining revenues in the same period of 2025. Cash cost of sales (free-on-board port) per short ton decreased to $92.53 in the second quarter of 2026 from $101.17 in the second quarter of 2025. This was driven primarily by the sales mix of Blue Creek coal and its inherent lower cost structure and a benefit from the 45X Credit offset partially by higher steelmaking coal prices and their effect on Warrior's variable cost structure, primarily for wages, transportation and royalties. Depreciation and depletion expenses for the second quarter of 2026 were $58.3 million, or 11.4% of total revenues and were higher than the same period last year of $43.3 million, or 14.5% of total revenues. This was primarily due to depreciation expense recognized on additional assets placed into service at Blue Creek and higher sales volumes. Selling, general and administrative expenses for the second quarter of 2026 were $9.8 million, or 1.9% of total revenues, and were lower than the same period last year of $11.9 million due to the current period including a gain of $2.4 million related to recoveries received in connection with the Walter Energy bankruptcy proceedings. Net interest expense for the second quarter of 2026 was $3.4 million, which compares to $2.2 million of net interest income in the prior year. Income tax expense was $3.7 million in the second quarter of 2026 on pre-tax income of $91.1 million compared to income tax expense of $4.3 million in the second quarter of 2025 on a pre-tax income of $9.9 million. Cash Flow and Liquidity Cash provided by operating activities was $132.3 million in the second quarter of 2026, compared to $37.5 million in the second quarter of 2025, driven primarily by higher earnings and improved operating performance. Net working capital, excluding cash, for the second quarter of 2026 increased by $13.7 million from the first quarter of 2026, primarily reflecting higher inventories, prepaid expenses and lower accrued expenses. Cash used in investing activities for capital expenditures and mine development for the second quarter of 2026 was $18.3 million compared to $94.3 million in the second quarter of 2025. Free cash flow was $103.4 million in the second quarter of 2026 compared to negative free cash flows of $56.7 million in the second quarter of 2025, reflecting improved operating cash flow and lower capital spending following completion of the Blue Creek construction phase. Cash flows used in financing activities for the second quarter of 2026 was $14.2 million, primarily due to principal repayments of financing lease obligations of $9.9 million and payment of a regular quarterly dividend of $4.2 million. The Company’s total liquidity as of June 30, 2026 was $452.9 million, consisting of cash and cash equivalents of $302.3 million, short-term investments of $10.1 million, which is net of $10.1 million posted as collateral and available liquidity under its ABL Facility of $140.5 million, net of outstanding letters of credit of $2.5 million. Capital Allocation On July 28, 2026, the Board declared a regular quarterly cash dividend of $0.08 per share, which the Company plans to distribute on August 17, 2026, to stockholders of record as of the close of business on August 10, 2026. Company Outlook The Company raised its volume guidance by 0.5 million short tons for the full year 2026 after continued positive reception of Blue Creek volume trials and adoption by customers. This guidance is subject to many risks that may impact performance, such as global trade and tariff uncertainties, market conditions in the steel and steelmaking coal industries and overall global economic and competitive conditions, all as more fully described under Forward-Looking Statements. Key factors that may affect the full year 2026 outlook include: One longwall move in Q2, and three planned longwall moves before year-end (two in Q3, one in Q4); HCC index pricing, geography of sales and freight rates; global trade and tariff policies; exclusion of other non-recurring costs; new labor contract; and inflationary pressures. The Company does not provide reconciliations of its outlook for cash cost of sales (free-on-board port) to cost of sales in reliance on the unreasonable efforts exception provided for under Item 10(e)(1)(i)(B) of Regulation S-K. The Company is unable, without unreasonable efforts, to forecast certain items required to develop the meaningful comparable Generally Accepted Accounting Principles ("GAAP") cost of sales. These items typically include non-cash asset retirement obligation accretion expenses and other non-recurring indirect mining expenses that are difficult to predict in advance in order to include in a GAAP estimate. The unavailable information could have a significant impact on the Company's reported financial results. Use of Non-GAAP Financial Measures This release contains the use of certain non-GAAP financial measures. These non-GAAP financial measures are provided as supplemental information for financial measures prepared in accordance with GAAP. Management believes that these non-GAAP financial measures provide additional insights into the performance of the Company, and they reflect how management analyzes Company performance and compares that performance against other companies. These non-GAAP financial measures may not be comparable to other similarly titled measures used by other entities. The definition of these non-GAAP financial measures and a reconciliation of non-GAAP to GAAP financial measures is provided in the financial tables section of this release. Conference Call The Company will hold a conference call to discuss its second quarter 2026 results today, August 5, 2026, at 4:30 p.m. ET. To listen to the event, live or access an archived recording, please visit http://investors.warriormetcoal.com. Analysts and investors who would like to participate in the conference call should dial 1-844-340-9047 (domestic) or 1-412-858-5206 (international) 10 minutes prior to the start time and reference the Warrior Met Coal conference call. Telephone playback will also be available from 6:30 p.m. ET on August 5, 2026, until 6:30 p.m. ET on August 12, 2026. The replay will be available by calling: 1-855-669-9658 (domestic) or 1-412-317-0088 (international) and entering passcode 2020393. About Warrior Warrior is a U.S.-based, environmentally and socially minded supplier to the global steel industry. It is dedicated entirely to mining non-thermal metallurgical (met) steelmaking coal used as a critical component of steel production by metal manufacturers in Europe, South America and Asia. Warrior is a large-scale, low-cost producer and exporter of premium quality met coal, also known as hard-coking coal (HCC), operating highly efficient longwall operations in its underground mines based in Alabama. The HCC that Warrior produces from the Blue Creek coal seam contains very low sulfur and has strong coking properties. The premium nature of Warrior’s HCC makes it ideally suited as a base feed coal for steel makers. For more information, please visit www.warriormetcoal.com. Forward-Looking Statements This press release contains, and the Company’s officers and representatives may from time to time make forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements, including statements regarding 2026 guidance, sales and production growth, demand, pricing trends, management of liquidity, cash flows, expenses and expected capital expenditures, the Company's future ability to create value for stockholders, as well as statements regarding production, inflationary pressures, future production and profitability from Blue Creek, and the impact of Blue Creek on our results. The words "believe," "expect," "anticipate," "plan," "intend," "estimate," "project," "target," "foresee," "should," "would," "could," "potential," "outlook," "guidance" or other similar expressions are intended to identify forward-looking statements. However, the absence of these words does not mean that the statements are not forward-looking. These forward-looking statements represent management’s good faith expectations, projections, guidance, or beliefs concerning future events, and it is possible that the results described in this press release will not be achieved. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of the Company’s control, that could cause actual results to differ materially from the results discussed in the forward-looking statements, including, without limitation, fluctuations or changes in the pricing or demand for the Company’s coal (or met coal generally) by the global steel industry, including the risk of a decline in the index price for premium low-vol steelmaking coal; the impacts of U.S. and international trade policies and tariffs; the impact of global pandemics, including the impact of any such pandemic on its business and that of its customers, including the risk of a decline in demand for the Company's met coal due to the impact of any such pandemic on steel manufacturers; the impact of inflation on the Company, the impact of geopolitical events, including the effects of the Russia-Ukraine war, the ongoing conflicts in the Middle East and actions between the United States and Venezuela; the inability of the Company to effectively operate its mines and the resulting decrease in production; the inability of the Company to transport its products to customers due to rail performance issues or the impact of weather and mechanical failures at the McDuffie Terminal at the Port of Mobile; federal and state tax legislation; changes in interpretation or assumptions and/or updated regulatory guidance regarding the Tax Cuts and Jobs Act of 2017 and the One Big Beautiful Bill Act of 2025; legislation and regulations relating to the Clean Air Act and other environmental initiatives; regulatory requirements associated with federal, state and local regulatory agencies, and such agencies’ authority to order temporary or permanent closure of the Company’s mines; operational, logistical, geological, permit, license, labor and weather-related factors, including equipment, permitting, site access, operational risks and new technologies related to mining and labor strikes or slowdowns; the Company’s obligations surrounding reclamation and mine closure; inaccuracies in the Company’s estimates of its met coal reserves; any projections or estimates regarding Blue Creek, including the expected returns from this project, if any, and the ability of Blue Creek to enhance the Company's portfolio of assets; the Company's expectations regarding its future tax rate as well as its ability to effectively utilize its net operating losses to reduce or eliminate its cash taxes; the performance of the Blue Creek longwall; the Company’s ability to develop or acquire met coal reserves in an economically feasible manner; including the expansion of the Company's met coal reserves through federal lease acquisition; significant cost increases and fluctuations, and delay in the delivery of raw materials, mining equipment and purchased components; competition and foreign currency fluctuations; fluctuations in the amount of cash the Company generates from operations, including cash necessary to pay any special or quarterly dividend; the Company’s ability to comply with covenants in its ABL Facility or indenture relating to its senior secured notes; integration of businesses that the Company may acquire in the future; adequate liquidity and the cost, availability and access to capital and financial markets; failure to obtain or renew surety bonds on acceptable terms, which could affect the Company’s ability to secure reclamation and coal lease obligations; costs associated with litigation, including claims not yet asserted; and other factors described in the Company’s Form 10-K for the year ended December 31, 2025 and other reports filed from time to time with the Securities and Exchange Commission (the "SEC"), which could cause the Company’s actual results to differ materially from those contained in any forward-looking statement. The Company’s filings with the SEC are available on its website at www.warriormetcoal.com and on the SEC's website at www.sec.gov. Any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, the Company does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for the Company to predict all such factors. View source version on businesswire.com: https://www.businesswire.com/news/home/20260805218415/en/ Contacts For Investors:Dale W. Boyles, [email protected] For Media:D'Andre Wright, [email protected]

Wall Street expects a year-over-year increase in earnings on higher revenues when Warrior Met Coal (HCC) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on August 5, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This company is expected to post quarterly earnings of $1.54 per share in its upcoming report, which represents a year-over-year change of +1300%. Revenues are expected to be $477.79 million, up 60.6% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 14.72% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Warrior Met Coal, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +14.01%. On the other hand, the stock currently carries a Zacks Rank of #1. So, this combination indicates that Warrior Met Coal will most likely beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Warrior Met Coal 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 beaten consensus EPS estimates three times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Warrior Met Coal appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. 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 Warrior Met Coal (HCC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Blue Creek buildout completed — Warrior finished the Blue Creek project ahead of schedule and on budget (total project capex a little over $1 billion) funded from operations without incurring funded debt, helping drive record Q1 sales of 3.0 million short tons and production of 3.5 million short tons. Sharp financial rebound — Q1 net income was $72 million (≈$1.37 per diluted share) and adjusted EBITDA rose to $143 million (up 54% q/q) on $459 million of revenue and a 31% adjusted EBITDA margin, though operating cash flow was negative $12 million and free cash flow negative $92 million due to working capital timing expected to reverse in Q2. Market and logistics pressures — Premium-quality coking coal markedly outperformed while High‑Vol A lagged, Warrior’s sales mix shifted toward High‑Vol A and the Pacific Basin (61% each), and elevated freight costs tied to the new Middle East conflict and higher fuel pushed gross price realizations down to 72% in Q1. Interested in Warrior Met Coal? Here are five stocks we like better. Warrior Met Coal (NYSE:HCC) posted a strong start to fiscal 2026 as the company completed construction at its Blue Creek mine, drove record quarterly volumes, and delivered sharply higher profitability versus the prior year. Management said the quarter also reflected a notable divergence in steelmaking coal pricing, with premium-quality benchmarks outperforming while High-Vol A pricing lagged expectations. Chief Executive Officer Walt Scheller said the first quarter marked a “defining milestone” with Warrior completing “the final construction and project spending” for the Blue Creek mine “ahead of schedule and fully in line with our capital expenditure guidance.” Scheller said total project capital expenditures were “a little over $1 billion,” adding that the project was “on budget and fully paid out of cash from operations without incurring any funded debt.” → Corning Beats Q1 Estimates but Drops 9% on Guidance Miss With Blue Creek contributing, Warrior reported record quarterly sales and production. Scheller said sales volumes totaled 3.0 million short tons in the quarter, up from 2.2 million short tons in the year-ago quarter, while production reached 3.5 million short tons, up from 2.3 million short tons a year earlier. Warrior’s inventory rose alongside higher production. Scheller said coal inventories increased to 1.9 million short tons at the end of March, up from 1.6 million short tons at the end of December 2025, and that the company plans to manage the excess inventory “over the remainder of the year to maximize sales volume, profitability, and free cash flow.” → Meta Posted Its Best Sales Growth Since 2021—So Why Did Shares Fall? Scheller said steelmaking coal market conditions stayed “notably strong in the premium quality segment” and “well above” the company’s original expectations, while the High-Vol A segment “underperformed expectations.” He attributed premium strength in part to “tightness in the segment resulting from supply constraints” caused by “weather disruptions and mine production-related challenges in Australia,” which lifted premium pricing early in the quarter and increased demand for Warrior’s Mine 7 premium-quality product. As Australia’s supply chains began recovering, Scheller said a new Middle East conflict introduced “additional cost pressures, specifically in freight markets,” while also increasing uncertainty around global energy availability. He added that steelmaking coal prices have remained firm as higher oil and diesel prices have “asserted a firmer floor despite soft seaborne demand, especially in the spot market.” → Is Oracle Undervalued as Cloud Growth Accelerates? In demand commentary, Scheller pointed to India as a key market supported by “firm domestic steel prices, improving margins, and growing steel production,” noting global pig iron production decreased 2.1% in the first two months of 2026 year-over-year, while India rose 3.1% and China declined 2.7%. Scheller outlined benchmark movements and the pricing spread between premium and second-tier products: PLV FOB Australia rose quickly, reaching $229 per short ton in early February and averaging $213 per short ton for the quarter, up 17% versus Q4 2025. Australian LVHCC averaged $173 per short ton, up 12% versus Q4 2025. U.S. East Coast HVA averaged $144 per short ton, up 6% versus Q4 2025. Scheller said Warrior’s gross price realization was 72% in Q1 versus 75% in Q4 2025, driven by “widened” index spreads, a higher High-Vol A sales mix, and more Pacific Basin business on a CFR basis with elevated freight rates. Warrior’s sales mix was 61% High-Vol A in the quarter, which Scheller said was a 10% increase from Q4 2025. He added that as Blue Creek ramps, the mix is expected to become “more weighted toward High-Vol A products in the Pacific Basin destinations over time.” By geography, Warrior’s sales were 61% into Asia, 25% into Europe, and 14% into South America. Pacific Basin volumes were 61% of total sales volume in Q1, which management said was 4% higher than Q4 2025 and 18% higher than Q1 2025. Spot volumes were 6%. On freight, CFO Dale Boyles said all Pacific Basin shipments were on a CFR basis. Responding to a question on current freight costs, Boyles said rates were “much higher,” adding he saw some rates “in around mid $50” recently and that Q2 was “only averaging somewhere in the upper $40s,” calling the move “pretty significant.” Boyles reported adjusted EBITDA of $143 million in Q1 2026, up 54% from Q4 2025. He said the increase reflected higher sales volumes and a 15% increase in average net selling price, partially offset by higher cash costs per ton and weaker operating cash flow tied to working capital. Compared with the year-ago quarter, Warrior recorded net income of $72 million, or $1.37 per diluted share, versus a net loss of $8 million, or $0.16 per diluted share, in Q1 2025. Adjusted EBITDA rose to $143 million from $39 million, and the adjusted EBITDA margin improved to 31% from 13%. Total revenues were $459 million in Q1 2026 versus $300 million in Q1 2025. Boyles said the increase primarily reflected higher sales volumes and higher average gross selling prices, partially offset by the impact of a higher mix of High-Vol A tons sold. Average net selling price increased to $149 per short ton from $136 a year earlier. Costs improved on a per-ton basis. Boyles said cash cost of sales per short ton FOB port was about $96 in Q1 2026 compared with $112 a year ago. He also highlighted the benefit of a new “45X production tax credit,” noting $8 million of benefit in the quarter. In the Q&A, Boyles quantified the credit at “about $8.4 million or $3 a ton for the quarter.” SG&A expenses were $28 million, up $10 million year-over-year, which Boyles attributed primarily to higher employee-related expenses, including stock compensation. Depreciation and depletion were $52 million, up 15% year-over-year due to additional Blue Creek assets placed in service and higher sales volume. Warrior recorded income tax expense of about $6 million on pre-tax income of $79 million, with an effective tax rate of 11% due to depletion-related benefits and a foreign-derived intangible income deduction. Operating cash flow was negative $12 million in Q1 2026, which Boyles said was driven by a $146 million working capital increase—primarily $115 million of higher accounts receivable—stemming from higher volumes, higher prices, and the timing of shipments. Boyles said 43% of sales volume was weighted to March, pushing collections into Q2. Free cash flow was negative $92 million, reflecting the operating cash use and $80 million of capital expenditures, including the final $66 million invested to complete the Blue Creek development project. Boyles said the negative free cash flow was “expected and previously communicated,” adding it was “slightly more negative than anticipated” due to timing and is expected to turn positive in Q2. On liquidity, Boyles said Warrior ended the quarter with total available liquidity of $364 million, comprised of $203 million in cash and cash equivalents, $20 million in short-term investments, and $141 million available under its ABL facility. Management reaffirmed its full-year 2026 outlook and guidance “as previously communicated in February.” Boyles cautioned the company is beginning to see inflationary pressures in materials and supplies—such as steel roof supports and shear bits—as well as diesel fuel, along with tariffs and higher shipping costs on raw materials. While not materially impacted yet, Boyles said costs “could see an increase of a few dollars per ton” later in the year, though the full-year impact is “extremely difficult to predict.” Scheller said Q1 results were “better than expected” due to stronger premium pricing for longer and volumes slightly ahead of internal plans. He added that Warrior expects steelmaking coal prices to remain above 2025 average levels “absent material changes in supply and demand,” while noting the impact and duration of the Middle East conflict are not currently quantifiable for the full year. On shareholder returns after the completion of Blue Creek, Boyles said the company expects to consider returning more capital “once we start to generate some cash,” and described a philosophy of “a rising fixed quarterly dividend supplemented by special dividends and some selected stock buybacks,” while noting the timing depends on cash generation. On inventories, management said it expects a gradual decline over the next few quarters rather than a sharp drawdown in any single quarter, and that the company is not currently constrained by storage limits, particularly at Blue Creek where “multiple places” exist to store significant inventory. Warrior Met Coal (NYSE: HCC) is a leading producer of premium metallurgical coal, operating deep underground mining complexes in Central Alabama's Blue Creek and Brookwood mining districts. The company focuses exclusively on the extraction and sale of high-grade hard coking coal, a critical raw material used in steel production. Its mining operations harness longwall mining technology and rigorous safety protocols to deliver consistent coal quality to customers worldwide. Warrior Met Coal's product portfolio centers on premium hard coking coal, semisoft coking coal, and pulverized coal injection (PCI) products. The article "Warrior Met Coal Q1 Earnings Call Highlights" was originally published by MarketBeat.