NACCO Industries (NC) Investor presentation summary

Strategic positioning and growth outlook

• Diversified natural resource platform with multiple value creation vectors and minimal competition or peers.

• Positioned for long-term growth, focusing on compounding value through disciplined capital deployment.

• Expected recurring EBITDA of $50M/year from current businesses, with a target of $150M EBITDA in 5–7 years.

• Recent investment cycle reaching an inflection point, with new projects expected to add over $11M annual EBITDA starting 2026.

• Strategic platforms—contract mining, minerals & royalties, and ecological solutions—are maturing and converging as growth catalysts.

Business segments and operational strengths

• Utility coal mining provides stable, predictable cash flows via long-term, fee-based contracts, eliminating commodity price exposure.

• Contract mining has expanded significantly, with long-term contracts and relationships with top U.S. aggregates producers, including involvement in the world’s largest lithium reserve.

• Minerals & royalties platform has deployed ~$105M since 2020, with a diversified portfolio and $20M annual investment target.

• Ecological solutions segment leverages reclamation expertise, expanding mitigation projects and generating diversified revenue streams.

Financial performance and capital management

• Robust cash generation and conservative balance sheet enable strategic flexibility and consistent dividend payments since 1956.

• Total liquidity of $124.2M and total debt of $100.9M as of December 31, 2025.

• Consolidated EBITDA for 2025 was $48.9M, with segment contributions from utility coal mining, contract mining, and minerals & royalties.

• Methodical reinvestment and compounding effect have added over $165M in NPV from 2019 through 2025.