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 increased 59% year-over-year and 14% sequentially, reflecting strong underlying business performance.

• A non-cash pension settlement charge and higher tax expense led to a reported net loss of $3.8 million for the quarter.

• Full-year 2025 net income was $17.6 million ($2.35/share), down from $33.7 million ($4.55/share) in 2024.

• The company is reinforcing safety protocols after a tragic incident at a Florida operation.

Financial highlights

• Q4 2025 gross profit was $12 million, up 42% year-over-year; revenues were $66.8 million, down from $70.4 million in Q4 2024.

• Operating profit reached $7.6 million, compared to $3.9 million in the prior year.

• Adjusted EBITDA was $14.3 million, up from $9 million in Q4 2024.

• Net loss for the quarter was $3.8 million ($0.52/share) due to pension and tax items, versus net income of $7.6 million ($1.02/share) last year.

• Cash from operations for the full year 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 to benefit from higher contract prices and improved efficiency, partly offset by lower earnings at unconsolidated mining operations.

• Contract mining segment anticipates significant growth in 2026 from new contracts and increased demand.

• Minerals and royalties segment expects a decrease in operating profit and 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.