Warrior Met Coal (HCC) Q2 2026 earnings summary

Executive summary

• Achieved record quarterly sales volumes of 3.7 million short tons in Q2 2026, up 65% year-over-year, driven by Blue Creek mine ramp-up and strong customer demand.

• Net income reached $87.4 million ($1.65 per diluted share), up from $5.6 million ($0.11 per share) year-over-year; Adjusted EBITDA surged 193% to $156.9 million.

• Free cash flow for Q2 2026 was $103.4 million, reflecting improved operating performance and lower capital spending post-Blue Creek construction.

• Completed Blue Creek project ahead of schedule and within budget, with total spend of $1,028.1 million.

• Raised full-year volume guidance due to strong customer adoption of Blue Creek product.

Financial highlights

• Total revenues increased 71% year-over-year to $509.7 million, with a 6% rise in average net selling price to $137.82 per short ton.

• Cash cost of sales per short ton decreased 9% to $92.53 in Q2 2026, benefiting from Blue Creek's lower cost structure and the Section 45X tax credit.

• Adjusted EBITDA margin improved to 31% (from 18%); per ton margin rose to $43 (from $24).

• Cash and total liquidity at quarter-end were $302 million and $453 million, respectively.

• Operating income reached $94.5 million, up from $7.7 million year-over-year.

Outlook and guidance

• Full-year 2026 sales and production volume guidance raised to 13.0–14.0 million short tons and 12.5–13.5 million short tons, respectively.

• Blue Creek sales volume now expected at 5 million tons (90% contracted).

• Full-year cash cost of sales (FOB port) expected at $95–$105 per short ton; sustaining capex $105–$115 million; Blue Creek capex $50–$75 million.

• Inflationary pressures on materials and supplies could increase costs by a few dollars per ton in the second half.

• Guidance subject to risks including global trade, tariffs, steel and coal market conditions, labor contracts, and inflation.