Alpha Metallurgical Resources Q2 Earnings Call Highlights

Alpha Metallurgical Resources lowered its 2026 shipment outlook to 14.2–15.4 million tons after weak first-half volumes and reduced capacity at the Dominion Terminal Associates export facility. Second-quarter adjusted EBITDA fell to $25.6 million from $30 million in the prior quarter, while metallurgical coal volumes and realizations also declined amid sluggish global steel demand. The company raised its full-year cost-of-coal-sales guidance to $103–$107 per ton, citing higher diesel and mining-material costs; a storm-damaged stacker-reclaimer at DTA is expected to constrain operations through the rest of 2026.

Alpha Metallurgical Resources NYSE: AMR reported second-quarter adjusted EBITDA of $25.6 million as metallurgical coal shipment volumes and realizations declined from the prior quarter, while the company lowered its full-year shipment outlook and raised its expected cost of coal sales. Chief Executive Officer Andy Eidson said the company shipped 3.5 million tons during the second quarter and ended the first half of 2026 with lower volumes and higher costs than it had anticipated. Alpha now expects annual shipments of 14.2 million to 15.4 million tons, reducing the midpoint of its prior outlook by 1 million tons.

The revised guidance reflects weak metallurgical coal markets, lighter shipment performance during the first half and reduced operating efficiency at the Dominion Terminal Associates, or DTA, export terminal, Eidson said.

One of DTA's two stacker-reclaimer machines sustained significant damage during a June 14 storm, when winds exceeded 80 miles per hour. The terminal has continued moving coal through alternative workflows, but Eidson said its capacity has been reduced and a timeline for returning to full operations has not yet been established.

“The plans for returning the terminal to full operational capacity hinge on many processes that are still underway,” Eidson said. Those processes include work with third-party equipment providers, structural engineers and the terminal's insurance carrier. DTA has filed an insurance claim related to the damage. Alpha's updated guidance assumes the terminal will remain at its currently reduced operating capacity through the remainder of 2026, according to Eidson. The company also expects to use available throughput at other East Coast terminals to mitigate delays.

During the question-and-answer session, Eidson said Alpha could not yet quantify the eventual utilization level of DTA with one stacker reclaimer or offer a longer-term outlook for 2027. He said repairs and logistics, including moving the damaged equipment for disassembly, remain under development.

Alpha raised its full-year cost-of-coal-sales guidance to a range of $103 to $107 per ton. Eidson said the midpoint represents a $7-per-ton increase from the company's early estimates, driven primarily by higher costs for diesel, supplies and other mining materials. He cited price volatility associated with the war in Iran as a contributor to increased diesel spending.

For the second quarter, however, metallurgical segment cost of coal sales fell to $103.07 per ton from $107.98 per ton in the first quarter, Chief Financial Officer Todd Munsey said. The company expects elevated costs to be spread across fewer annual tons under the revised guidance.

Eidson said management continues to evaluate its portfolio for operational changes, including schedule adjustments and potential production changes. The company is weighing margins rather than production costs alone when considering...