1. NACCO reported substantial profits for Q4 2024, up from losses last year. 2. Operating profit increased by $71.3 million in Q4 compared to last year. 3. Coal deliveries in 2024 saw a rise, reflecting better demand. 4. Long-term growth expected due to federal policies favoring fossil fuels. 5. Significant cash flow generation anticipated starting 2025.
NACCO's rebound in profitability and coal delivery increases may attract investor interest. Historically, improved earnings have led to stock price increases.
The article presents definitive improvements in financial metrics, demonstrating NACCO's recovery trajectory and growth potential, which are likely to influence market sentiment.
Immediate trading behavior may be influenced by quarterly results. However, ongoing demand trends will define longer-term performance.
NACCO Industries® (NYSE: NC) today announced the following consolidated results for the three months and year ended December 31, 2024.
($ in millions except per share amounts)
| Metric | 12/31/24 | 12/31/23 | $ Change |
|---|---|---|---|
| Operating Profit (Loss) | $3.9 | $(67.4) | $71.3 |
| Other (income) expense, net | $1.2 | $(1.5) | $(2.7) |
| Income (loss) before taxes | $2.7 | $(65.9) | $68.6 |
| Income tax benefit | $(4.9) | $(22.0) | $(17.1) |
| Net Income (Loss) | $7.6 | $(44.0) | $51.6 |
| Diluted Earnings (Loss)/share | $1.02 | $(5.88) | $6.90 |
| Adjusted EBITDA* | $9.0 | $7.1 | $1.9 |
*Non-GAAP financial measures are defined and reconciled on pages 8 to 10.
The substantial increase in financial results was primarily due to a $65.9 million non-cash asset impairment charge in the prior year. Improvements at the Coal Mining and North American Mining segments as well as at Mitigation Resources also contributed to the increased operating profit. These improvements were partly offset by an increase in Unallocated operating expenses, principally employee-related, and an unfavorable change in other (income)/expense due to higher net interest expense and lower income from investments.
The improvement in Adjusted EBITDA, which excludes the 2023 impairment charge, was mainly attributable to improved results in all operating segments, particularly Coal Mining.
At December 31, 2024, the Company had consolidated cash of $72.8 million and total debt of $99.5 million, with availability of $99.1 million under its revolving credit facility.
NACCO's businesses provide critical inputs for electricity generation, construction and development, and the production of industrial minerals and chemicals. We are confident in our trajectory and business prospects as we enter 2025 and prepare for longer-term growth opportunities.
In conjunction with this news release, the management of NACCO Industries will host a conference call on Thursday, March 6, 2025 at 8:30 a.m. Eastern Time.
NACCO Industries, Inc.'s Annual Report on Form 10-K has been filed with the Securities and Exchange Commission. This document may be obtained by directing such requests to NACCO Industries, Inc., 22901 Millcreek Blvd., Suite 600, Cleveland, Ohio 44122, Attention: Investor Relations.
NACCO Industries® brings natural resources to life by delivering aggregates, minerals, reliable fuels and environmental solutions through its robust portfolio of NACCO Natural Resources businesses.