NACCO Industries (NC) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue reached $76.6 million, up 24% year-over-year and 12% sequentially; nine-month revenue was $210.4 million, up 26% year-over-year.

• Net income for Q3 2025 was $13.3 million ($1.78/share), down 15% from Q3 2024 but up 307% sequentially, aided by favorable tax effects; nine-month net income was $21.4 million, down from $26.2 million in 2024.

• Operating profit for Q3 2025 was $6.8 million, rebounding from Q2's break-even but down from $19.7 million in Q3 2024 due to a prior-year $13.6 million insurance recovery; nine-month operating profit was $14.4 million, down from $31.8 million.

• EBITDA for Q3 2025 was $12.5 million, up from $9.3 million in Q2, but down from $25.7 million in Q3 2024.

• All three operating segments showed sequential improvement, with underlying operational performance stronger year-over-year when excluding the 2024 insurance recovery.

Financial highlights

• Gross profit for Q3 2025 was $10.0 million, up 38% year-over-year; nine-month gross profit was $26.4 million, up from $21.3 million.

• Diluted EPS for Q3 2025 was $1.78, down 17% year-over-year but up 305% sequentially.

• Total debt at September 30, 2025, was $80.2 million, down from $95.5 million at June 30 and $99.5 million at December 31, 2024; debt to total capitalization was 16%.

• Total liquidity was $152 million, including $52.7 million in cash and $99.3 million available under the revolving credit facility.

• $1.9 million in dividends paid in Q3 2025; $7.8 million remains under the $20 million share repurchase program expiring end of 2025.

Outlook and guidance

• Q4 2025 operating profit expected to be comparable to Q4 2024; full-year 2025 operating profit will be lower than 2024 due to Q2 break-even and a significant non-cash pension settlement charge.

• Meaningful improvements in operating profit and net income are expected in 2026.

• Capital expenditures projected at $44 million for the remainder of 2025 and up to $70 million in 2026, focused on business development.

• Cash flows expected to improve as returns from investments materialize; 2026 cash flows to be comparable to 2025.

• Utility Coal Mining expects improved Q4 2025 results at Mississippi Lignite Mining, but full-year results will decline due to lower contract sales price.