Alpha Announces Third Quarter 2025 Financial Results

Reports third quarter net loss of $5.5 million Records Adjusted EBITDA of $41.7 million for the quarter Posts total liquidity of $568.5 million as of September 30 Achieves back-to-back record quarterly cost of coal sales performance since 2021 Reduces 2025 guidance range for capital contributions to equity affiliates , /PRNewswire/ -- Alpha Metallurgical Resources, Inc. (NYSE: AMR), a leading U.S. supplier of metallurgical products for the steel industry, today reported financial results for the third quarter ending September 30, 2025. (millions, except per share) Three months ended Sep. 30, 2025 June 30, 2025 Sep. 30, 2024 Net (loss) income ($5.5) ($5.0) $3.8 Net (loss) income per diluted share ($0.42) ($0.38) $0.29 Adjusted EBITDA(1) $41.7 $46.1 $49.0 Operating cash flow $50.6 $53.2 $189.5 Capital expenditures ($25.1) ($34.6) ($31.5) Tons of coal sold 3.9 3.9 4.1 __________________________________ 1. These are non-GAAP financial measures. A reconciliation of Net Income to Adjusted EBITDA is included in tables accompanying the financial schedules. "In back-to-back quarters, the highlight of our quarterly results is our cost performance," said Andy Eidson, Alpha's chief executive officer. "Reducing costs by almost three dollars as compared to last quarter's excellent results is an achievement to be proud of. I appreciate the team's hard work in achieving this milestone, especially given the difficult market backdrop we continue to experience." Eidson continued: "Looking ahead, we remain focused on domestic negotiations for 2026 tons and building out our budget for the coming year. Once we gain clarity on these important details, we will provide more information about our expectations and guidance for 2026." Financial Performance Alpha reported a net loss of $5.5 million, or $0.42 per diluted share, for the third quarter 2025, as compared to net loss of $5.0 million, or $0.38 per diluted share, in the second quarter. Total Adjusted EBITDA was $41.7 million for the third quarter, compared to $46.1 million in the second quarter. Coal Revenues (millions) Three months ended Sep. 30, 2025 June 30, 2025 Met Segment $525.2 $548.7 Met Segment (excl. freight & handling) (1) $442.8 $464.1 Tons Sold (millions) Three months ended Sep. 30, 2025 June 30, 2025 Met Segment 3.9 3.9 __________________________________ 1. Represents Non-GAAP coal revenues which is defined and reconciled under "Non-GAAP Financial Measures" and "Results of Operations." Coal Sales Realization (1) (per ton) Three months ended Sep. 30, 2025 June 30, 2025 Met Segment $114.94 $119.43 __________________________________ 1. Represents Non-GAAP coal sales realization which is defined and reconciled under "Non-GAAP Financial Measures" and "Results of Operations." Third quarter net realized pricing for the Met segment was $114.94 per ton. The table below provides a breakdown of our Met segment coal sold in the third quarter by pricing mechanism. (in millions, except per ton data) Met Segment Sales Three months ended Sep. 30, 2025 Tons Sold Coal Revenues Realization/ton(1) % of Met Tons Sold Export - Other Pricing Mechanisms 1.4 $153.3 $107.25 40 % Domestic 0.9 $130.1 $151.63 24 % Export - Australian Indexed 1.3 $136.0 $106.39 36 % Total Met Coal Revenues 3.6 $419.3 $117.62 100 % Thermal Coal Revenues 0.3 $23.4 $81.64 Total Met Segment Coal Revenues (excl. freight & handling)(1) 3.9 $442.8 $114.94 __________________________________ 1. Represents Non-GAAP coal sales realization which is defined and reconciled under "Non-GAAP Financial Measures" and "Results of Operations." Cost of Coal Sales (in millions, except per ton data) Three months ended Sep. 30, 2025 June 30, 2025 Met Segment $461.6 $480.0 Met Segment (excl. freight & handling/idle) (1) $374.7 $388.8 (per ton) Met Segment (1) $97.27 $100.06 __________________________________ 1. Represents Non-GAAP cost of coal sales and Non-GAAP cost of coal sales per ton which is defined and reconciled under "Non-GAAP Financial Measures" and "Results of Operations." Alpha's Met segment cost of coal sales decreased to an average of $97.27 per ton in the third quarter, compared to $100.06 per ton in the second quarter. Liquidity and Capital Resources Cash provided by operating activities in the third quarter decreased to $50.6 million as compared to $53.2 million in the second quarter. Capital expenditures for the third quarter were $25.1 million compared to $34.6 million for the second quarter. As of September 30, 2025, the company had total liquidity of $568.5 million, including cash and cash equivalents of $408.5 million, short-term investments of $49.4 million, and $185.5 million of unused availability under the asset-based revolving credit facility (ABL), partially offset by a minimum required liquidity of $75.0 million as required by the ABL. As of September 30, 2025, the company had no borrowings and $39.5 million in letters of credit outstanding under the ABL. Total long-term debt, including the current portion of long-term debt as of September 30, 2025, was $5.0 million. Share Repurchase Program As previously announced, Alpha's board of directors authorized a share repurchase program allowing for the expenditure of up to $1.5 billion for the repurchase of the company's common stock. As of October 31, 2025, the company had acquired approximately 6.8 million shares of common stock at a cost of approximately $1.1 billion since the start of the program. The number of common stock shares outstanding as of October 31, 2025 was 12,858,024, not including the potential effect of unvested equity awards. The timing and amount of share repurchases will be based on various factors, including but not limited to market conditions, the trading price of the stock, applicable legal requirements, compliance with the provisions of the company's debt agreements, and other factors. 2025 Guidance Adjustments and Performance Update Alpha is lowering its 2025 guidance range for capital contributions to equity affiliates to between $35 million and $41 million, down from the prior range of $44 million to $54 million. As of October 29, 2025, Alpha has committed and priced approximately 85% of its metallurgical coal for 2025 at an average price of $122.57 per ton and 100% of its thermal coal for the year at an average price of $80.27 per ton. 2025 Guidance in millions of tons Low High Metallurgical 13.8 14.8 Thermal 0.8 1.2 Met Segment - Total Shipments 14.6 16.0 Committed/Priced1,2,3 Committed Average Price Metallurgical - Domestic $152.25 Metallurgical - Export $110.84 Metallurgical Total 85 % $122.57 Thermal 100 % $80.27 Met Segment 87 % $118.97 Committed/Unpriced1,3 Committed Metallurgical Total 13 % Thermal — % Met Segment 12 % Costs per ton 4 Low High Met Segment $101.00 $107.00 In millions (except taxes) Low High SG&A5 $48 $54 Idle Operations Expense $21 $29 Net Cash Interest Income $6 $12 DD&A $165 $185 Capital Expenditures $130 $150 Capital Contributions to Equity Affiliates6 $35 $41 Cash Tax Rate 0 % 5 % Notes: 1. Based on committed and priced coal shipments as of October 29, 2025. Committed percentage based on the midpoint of shipment guidance range. 2. Actual average per-ton realizations on committed and priced tons recognized in future periods may vary based on actual freight expense in future periods relative to assumed freight expense embedded in projected average per-ton realizations. 3. Includes estimates of future coal shipments based upon contract terms and anticipated delivery schedules. Actual coal shipments may vary from these estimates. 4. Note: The Company is unable to present a quantitative reconciliation of its forward-looking non-GAAP cost of coal sales per ton sold financial measures to the most directly comparable GAAP measures without unreasonable efforts due to the inherent difficulty in forecasting and quantifying with reasonable accuracy significant items required for the reconciliation. The most directly comparable GAAP measure, GAAP cost of sales, is not accessible without unreasonable efforts on a forward-looking basis. The reconciling items include freight and handling costs, which are a component of GAAP cost of sales. Management is unable to predict without unreasonable efforts freight and handling costs due to uncertainty as to the end market and FOB point for uncommitted sales volumes and the final shipping point for export shipments. These amounts have varied historically and may continue to vary significantly from quarter to quarter and material changes to these items could have a significant effect on our future GAAP results. 5. Excludes expenses related to non-cash stock compensation and non-recurring expenses. 6. Includes contributions to fund normal operations at our DTA export facility and expected capital investments related to the facility upgrades. Conference Call The company plans to hold a conference call regarding its third quarter results on November 6, 2025, at 10:00 a.m. Eastern time. The conference call will be available live on the investor section of the company's website at https://alphametresources.com/investors. Analysts who would like to participate in the conference call should dial 877-407-0832 (domestic toll-free) or 201-689-8433 (international) approximately 15 minutes prior to start time. About Alpha Metallurgical Resources Alpha Metallurgical Resources (NYSE: AMR) is a Tennessee-based mining company with operations across Virginia and West Virginia. With customers across the globe, high-quality reserves and significant port capacity, Alpha reliably supplies metallurgical products to the steel industry. For more information, visit www.AlphaMetResources.com. Forward-Looking Statements This news release includes forward-looking statements. These forward-looking statements are based on Alpha's expectations and beliefs concerning future events and involve risks and uncertainties that may cause actual results to differ materially from current expectations. These factors are difficult to predict accurately and may be beyond Alpha's control. Forward-looking statements in this news release or elsewhere speak only as of the date made. New uncertainties and risks arise from time to time, and it is impossible for Alpha to predict these events or how they may affect Alpha. Except as required by law, Alpha has no duty to, and does not intend to, update or revise the forward-looking statements in this news release or elsewhere after the date this release is issued. In light of these risks and uncertainties, investors should keep in mind that results, events or developments discussed in any forward-looking statement made in this news release may not occur. See Alpha's filings with the U.S. Securities and Exchange Commission for more information. FINANCIAL TABLES FOLLOW Non-GAAP Financial Measures The discussion below contains "non-GAAP financial measures." These are financial measures that either exclude or include amounts that are not excluded or included in the most directly comparable measures calculated and presented in accordance with generally accepted accounting principles in the United States ("U.S. GAAP" or "GAAP"). Specifically, we make use of the non-GAAP financial measures "Adjusted EBITDA," "non-GAAP coal revenues," "non-GAAP cost of coal sales," and "non-GAAP coal margin." In addition to net income, we use Adjusted EBITDA to measure the operating performance of our reportable segment. Adjusted EBITDA does not purport to be an alternative to net income as a measure of operating performance or any other measure of operating results, financial performance, or liquidity presented in accordance with GAAP. Moreover, this measure is not calculated identically by all companies and therefore may not be comparable to similarly titled measures used by other companies. Adjusted EBITDA is presented because management believes it is a useful indicator of the financial performance of our coal operations. We use non-GAAP coal revenues to present coal revenues generated, excluding freight and handling fulfillment revenues. Non-GAAP coal sales realization per ton for our operations is calculated as non-GAAP coal revenues divided by tons sold. We use non-GAAP cost of coal sales to adjust cost of coal sales to remove freight and handling costs, depreciation, depletion and amortization - production (excluding the depreciation, depletion and amortization related to selling, general and administrative functions), accretion on asset retirement obligations, amortization of acquired intangibles, net, and idled and closed mine costs. Non-GAAP cost of coal sales per ton for our operations is calculated as non-GAAP cost of coal sales divided by tons sold. Non-GAAP coal margin per ton for our coal operations is calculated as non-GAAP coal sales realization per ton for our coal operations less non-GAAP cost of coal sales per ton for our coal operations. The presentation of these measures should not be considered in isolation, or as a substitute for analysis of our results as reported under GAAP. Management uses non-GAAP financial measures to supplement GAAP results to provide a more complete understanding of the factors and trends affecting the business than GAAP results alone. The definition of these non-GAAP measures may be changed periodically by management to adjust for significant items important to an understanding of operating trends and to adjust for items that may not reflect the trend of future results by excluding transactions that are not indicative of our core operating performance. Furthermore, analogous measures are used by industry analysts to evaluate the Company's operating performance. Because not all companies use identical calculations, the presentations of these measures may not be comparable to other similarly titled measures of other companies and can differ significantly from company to company depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which companies operate, capital investments and other factors. Included below are reconciliations of non-GAAP financial measures to GAAP financial measures. ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Amounts in thousands, except share and per share data) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Revenues: Coal revenues $ 525,203 $ 669,783 $ 1,603,545 $ 2,331,196 Other revenues 1,575 2,114 5,464 8,742 Total revenues 526,778 671,897 1,609,009 2,339,938 Costs and expenses: Cost of coal sales (exclusive of items shown separately below) 461,635 598,725 1,446,172 1,910,847 Depreciation, depletion and amortization 43,899 42,414 132,631 126,495 Accretion on asset retirement obligations 5,503 6,326 16,625 18,726 Amortization of acquired intangibles, net 1,357 1,675 4,071 5,025 Selling, general and administrative expenses (exclusive of depreciation, depletion and amortization shown separately above) 15,697 15,987 46,337 57,169 Other operating loss 1,209 1,461 3,215 3,813 Total costs and expenses 529,300 666,588 1,649,051 2,122,075 Income (loss) from operations (2,522) 5,309 (40,042) 217,863 Other (expense) income: Interest expense (765) (1,041) (2,289) (3,228) Interest income 3,948 5,145 12,193 13,256 Equity loss in affiliates (6,240) (7,011) (19,936) (14,568) Miscellaneous expense, net (3,266) (2,685) (10,357) (8,259) Total other expense, net (6,323) (5,592) (20,389) (12,799) (Loss) income before income taxes (8,845) (283) (60,431) 205,064 Income tax benefit (expense) 3,330 4,087 16,015 (15,356) Net (loss) income $ (5,515) $ 3,804 $ (44,416) $ 189,708 Basic (loss) income per common share $ (0.42) $ 0.29 $ (3.41) $ 14.58 Diluted (loss) income per common share $ (0.42) $ 0.29 $ (3.41) $ 14.43 Weighted average shares – basic 13,015,413 13,017,820 13,040,138 13,011,234 Weighted average shares – diluted 13,015,413 13,092,019 13,040,138 13,146,566 ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Amounts in thousands, except share and per share data) September 30, 2025 December 31, 2024 Assets Current assets: Cash and cash equivalents $ 408,519 $ 481,578 Short-term investments 49,405 — Trade accounts receivable, net of allowance for credit losses of $2,542 and $2,396 as of September 30, 2025 and December 31, 2024, respectively 289,182 362,141 Inventories, net 210,030 169,269 Prepaid expenses and other current assets 32,808 23,681 Total current assets 989,944 1,036,669 Property, plant, and equipment, net of accumulated depreciation and amortization of $759,337 and $667,260 as of September 30, 2025 and December 31, 2024, respectively 614,196 634,871 Owned and leased mineral rights, net of accumulated depletion and amortization of $146,498 and $124,965 as of September 30, 2025 and December 31, 2024, respectively 421,583 443,467 Other acquired intangibles, net of accumulated amortization of $45,515 and $41,444 as of September 30, 2025 and December 31, 2024, respectively 35,808 39,879 Long-term restricted cash 125,796 122,583 Long-term restricted investments 34,201 43,131 Deferred income taxes 6,981 6,516 Other non-current assets 116,790 111,592 Total assets $ 2,345,299 $ 2,438,708 Liabilities and Stockholders' Equity Current liabilities: Current portion of long-term debt $ 2,119 $ 2,916 Trade accounts payable 83,355 96,633 Accrued expenses and other current liabilities 165,061 151,560 Total current liabilities 250,535 251,109 Long-term debt 2,854 2,868 Workers' compensation and black lung obligations 178,233 182,961 Pension obligations 87,995 100,597 Asset retirement obligations 187,216 189,805 Deferred income taxes 25,510 40,486 Other non-current liabilities 20,832 21,385 Total liabilities 753,175 789,211 Commitments and Contingencies Stockholders' Equity Preferred stock - par value $0.01, 5,000,000 shares authorized, none issued — — Common stock - par value $0.01, 50,000,000 shares authorized, 22,437,379 issued and 12,919,308 outstanding at September 30, 2025 and 22,383,325 issued and 13,016,390 outstanding at December 31, 2024 224 224 Additional paid-in capital 848,838 839,804 Accumulated other comprehensive loss (48,083) (50,082) Treasury stock, at cost: 9,518,071 shares at September 30, 2025 and 9,366,935 shares at December 31, 2024 (1,320,825) (1,296,916) Retained earnings 2,111,970 2,156,467 Total stockholders' equity 1,592,124 1,649,497 Total liabilities and stockholders' equity $ 2,345,299 $ 2,438,708 ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Amounts in thousands) Nine Months Ended September 30, 2025 2024 Operating activities: Net (loss) income $ (44,416) $ 189,708 Adjustments to reconcile net (loss) income to net cash provided by operating activities: Depreciation, depletion and amortization 132,631 126,495 Amortization of acquired intangibles, net 4,071 5,025 Amortization of debt issuance costs and accretion of debt discount 889 839 Loss on disposal of assets 860 31 Accretion on asset retirement obligations 16,625 18,726 Employee benefit plans, net 19,369 15,123 Deferred income taxes (15,997) 3,254 Stock-based compensation 10,405 9,317 Equity loss in affiliates 19,936 14,568 Other, net (2,054) (97) Changes in operating assets and liabilities (16,359) 140,672 Net cash provided by operating activities 125,960 523,661 Investing activities: Capital expenditures (98,196) (156,167) Proceeds from disposal of assets 101 763 Purchases of investment securities (87,973) (37,015) Sales and maturities of investment securities 48,739 36,529 Capital contributions to equity affiliates (28,405) (22,865) Other, net 42 24 Net cash used in investing activities (165,692) (178,731) Financing activities: Principal repayments of long-term debt (1,362) (1,748) Debt issuance costs (2,159) — Dividend equivalents paid (415) (3,077) Common stock repurchases and related expenses (25,153) (117,648) Other, net (1,025) (945) Net cash used in financing activities (30,114) (123,418) Net (decrease) increase in cash and cash equivalents and restricted cash (69,846) 221,512 Cash and cash equivalents and restricted cash at beginning of period 604,161 384,125 Cash and cash equivalents and restricted cash at end of period $ 534,315 $ 605,637 Supplemental disclosure of noncash investing and financing activities: Accrued capital expenditures $ 11,559 $ 6,845 Accrued stock repurchase excise tax $ 127 $ 4,652 The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Condensed Consolidated Statements of Cash Flows. As of September 30, 2025 2024 Cash and cash equivalents $ 408,519 $ 484,560 Long-term restricted cash 125,796 121,077 Total cash and cash equivalents and restricted cash shown in the Condensed Consolidated Statements of Cash Flows $ 534,315 $ 605,637 ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES ADJUSTED EBITDA RECONCILIATION (Amounts in thousands) Three Months Ended Nine Months Ended September 30 September 30, 2025 June 30, 2025 September 30, 2024 2025 2024 Net (loss) income $ (5,515) $ (4,954) $ 3,804 $ (44,416) $ 189,708 Interest expense 765 761 1,041 2,289 3,228 Interest income (3,948) (4,199) (5,145) (12,193) (13,256) Income tax (benefit) expense (3,330) (1,248) (4,087) (16,015) 15,356 Depreciation, depletion and amortization 43,899 44,822 42,414 132,631 126,495 Non-cash stock compensation expense 2,950 4,018 3,013 10,405 9,317 Accretion on asset retirement obligations 5,503 5,508 6,326 16,625 18,726 Amortization of acquired intangibles, net 1,357 1,357 1,675 4,071 5,025 Adjusted EBITDA $ 41,681 $ 46,065 $ 49,041 $ 93,397 $ 354,599 ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES RESULTS OF OPERATIONS Three Months Ended (In thousands, except for per ton data) September 30, 2025 June 30, 2025 September 30, 2024 Coal revenues $ 525,203 $ 548,675 $ 669,783 Less: Freight and handling fulfillment revenues (82,448) (84,589) (119,093) Non-GAAP Coal revenues $ 442,755 $ 464,086 $ 550,690 Non-GAAP Coal sales realization per ton $ 114.94 $ 119.43 $ 132.76 Cost of coal sales (exclusive of items shown separately below) $ 461,635 $ 479,953 $ 598,725 Depreciation, depletion and amortization - production (1) 43,582 44,504 42,108 Accretion on asset retirement obligations 5,503 5,508 6,326 Amortization of acquired intangibles, net 1,357 1,357 1,675 Total Cost of coal sales 512,077 531,322 648,834 Less: Freight and handling costs (82,448) (84,589) (119,093) Less: Depreciation, depletion and amortization - production (1) (43,582) (44,504) (42,108) Less: Accretion on asset retirement obligations (5,503) (5,508) (6,326) Less: Amortization of acquired intangibles, net (1,357) (1,357) (1,675) Less: Idled and closed mine costs (4,517) (6,520) (5,625) Non-GAAP Cost of coal sales $ 374,670 $ 388,844 $ 474,007 Non-GAAP Cost of coal sales per ton $ 97.27 $ 100.06 $ 114.27 GAAP Coal margin $ 13,126 $ 17,353 $ 20,949 GAAP Coal margin per ton $ 3.41 $ 4.47 $ 5.05 Non-GAAP Coal margin $ 68,085 $ 75,242 $ 76,683 Non-GAAP Coal margin per ton $ 17.68 $ 19.36 $ 18.49 Tons sold 3,852 3,886 4,148 (1) Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions. Nine Months Ended (In thousands, except for per ton data) September 30, 2025 September 30, 2024 Coal revenues $ 1,603,545 $ 2,331,196 Less: Freight and handling fulfillment revenues (250,961) (407,219) Non-GAAP Coal revenues $ 1,352,584 $ 1,923,977 Non-GAAP Coal sales realization per ton $ 117.66 $ 147.26 Cost of coal sales (exclusive of items shown separately below) $ 1,446,172 $ 1,910,847 Depreciation, depletion and amortization - production (1) 131,678 125,580 Accretion on asset retirement obligations 16,625 18,726 Amortization of acquired intangibles, net 4,071 5,025 Total Cost of coal sales 1,598,546 2,060,178 Less: Freight and handling costs (250,961) (407,219) Less: Depreciation, depletion and amortization - production (1) (131,678) (125,580) Less: Accretion on asset retirement obligations (16,625) (18,726) Less: Amortization of acquired intangibles, net (4,071) (5,025) Less: Idled and closed mine costs (17,028) (27,218) Non-GAAP Cost of coal sales $ 1,178,183 $ 1,476,410 Non-GAAP Cost of coal sales per ton $ 102.49 $ 113.00 GAAP Coal margin $ 4,999 $ 271,018 GAAP Coal margin per ton $ 0.43 $ 20.74 Non-GAAP Coal margin $ 174,401 $ 447,567 Non-GAAP Coal margin per ton $ 15.17 $ 34.26 Tons sold 11,496 13,065 (1) Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions. Three Months Ended September 30, 2025 (In thousands, except for per ton data) Tons Sold Coal Revenues Non-GAAP Coal sales realization per ton % of Met Tons Sold Export - other pricing mechanisms 1,429 $ 153,260 $ 107.25 40 % Domestic 858 130,098 $ 151.63 24 % Export - Australian indexed 1,278 135,967 $ 106.39 36 % Total Met segment - met coal 3,565 419,325 $ 117.62 100 % Met segment - thermal coal 287 23,430 $ 81.64 Non-GAAP Coal revenues 3,852 442,755 $ 114.94 Add: Freight and handling fulfillment revenues — 82,448 Coal revenues 3,852 $ 525,203 INVESTOR & MEDIA CONTACT: EMILY O'QUINN [email protected] [email protected] (423) 573-0369 SOURCE ALPHA METALLURGICAL RESOURCES, INC.

Alpha Announces Third Quarter 2025 Financial Results

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