Core Natural Resources (CNR) Q1 2026 earnings summary

Executive summary

• Q1 2026 marked a strong operational and financial rebound, with net income of $21 million and adjusted EBITDA of $180 million, driven by improved performance at Leer South and West Elk mines and successful post-merger integration.

• Revenues reached $1.1 billion, with significant margin improvements in the metallurgical segment and efficient production across all segments.

• $47 million was returned to shareholders in Q1 2026, totaling $292.1 million since February 2025, primarily through share repurchases and dividends.

• The company completed a major merger with Arch in January 2025, consolidating operations and assets, and exceeded initial synergy targets.

• Safety-driven culture and favorable mining conditions contributed to efficient production and cost improvements.

Financial highlights

• Net income was $21 million and adjusted EBITDA reached $180 million in Q1 2026, up from a net loss of $79 million and adjusted EBITDA of $103 million in Q4 2025.

• Revenues increased to $1.08–$1.1 billion, with operating cash flow of $119 million and free cash flow of $55.5–$56 million.

• Total liquidity at quarter-end was $935 million, including $413 million in cash.

• $47 million was returned to shareholders, with $42 million in share repurchases and $5 million in dividends.

• Diluted EPS was $0.41 in Q1 2026.

Outlook and guidance

• 2026 sales volume guidance: 8.6–9.4 million tons coking, 30.0–32.0 million tons high CV thermal, 47.0–50.0 million tons PRB.

• Cash cost guidance per ton: $88–$94 for metallurgical, $38–$39.50 for high CV thermal, $13–$13.50 for PRB.

• Guidance levels for 2026 generally maintained, with high CV thermal segment 94% contracted at midpoint, metallurgical segment at 8.3 million tons contracted, and PRB at 48 million tons contracted.

• Insurance recoveries from the Leer South fire expected to yield an additional $100 million in proceeds, with approvals anticipated to begin in Q2.

• Management anticipates continued benefits from the One Big Beautiful Bill Act, including a 2.5% monetizable tax credit on U.S.-produced metallurgical coal through 2029.