NACCO Industries (NC) Q4 2025 earnings summary

Executive summary

• Fourth quarter operating profit rose 95% year-over-year and nearly 12% sequentially, with all segments showing improved results, especially utility coal mining.

• Adjusted EBITDA for Q4 was $14.3 million, up 59% year-over-year and 14% sequentially, reflecting strong underlying business performance.

• Q4 net loss was $3.8 million, compared to net income of $7.6 million in Q4 2024, due to a $6 million after-tax, non-cash pension settlement charge and higher tax expense.

• The company successfully terminated its pension plan, settling all future obligations.

• Safety remains a top priority following a tragic incident at a Florida operation, prompting reinforced safety measures.

Financial highlights

• Q4 2025 gross profit was $12 million, up 42% year-over-year.

• Q4 2025 revenues were $66.8 million, a 5% increase from the prior year.

• Q4 2025 operating profit was $7.6 million, up from $3.9 million in Q4 2024.

• Adjusted EBITDA for Q4 2025 was $14.3 million, compared to $9 million last year.

• Full-year 2025 cash from operations was $50.9 million, up from $22.3 million in 2024.

Outlook and guidance

• 2026 is expected to see meaningful year-over-year improvements in consolidated operating profit, net income, and EBITDA.

• Utility coal mining segment operating profit is projected to increase in 2026, driven by higher per ton sales price at Mississippi Lignite, partly offset by lower earnings at unconsolidated mining operations.

• Contract mining segment anticipates significant year-over-year increases in operating profit and Segment Adjusted EBITDA, driven by new contracts and higher demand.

• Minerals and royalties segment expects a year-over-year decrease in operating profit and Adjusted EBITDA in 2026, especially in the second half, due to commodity price and production assumptions.

• Capital expenditures for 2026 are anticipated to be up to $89 million, focused on business development opportunities.