#United States #financial results #Metallurgical Coal #Alpha Metallurgical #Bristol

Alpha Metallurgical Resources Reports Q4 2024 Financial Results

On February 28, 2025, Alpha Metallurgical Resources, Inc. (NYSE: AMR) announced its financial results for the fourth quarter and full year ending December 31, 2024. The leading U.S. supplier of metallurgical products for the steel industry reported a net loss of $2.1 million, translating to $0.16 per diluted share. This marks a significant decline from a net income of $3.8 million, or $0.29 per diluted share, reported in the previous quarter.

Financial Overview

For the fourth quarter, Alpha's Adjusted EBITDA stood at $53.2 million, an increase compared to $49.0 million in the previous quarter. The decline in overall earnings reflects weakened demand in the metallurgical coal market, which led to subdued pricing.

During the quarter, the company sold 4.1 million tons of coal, maintaining consistent sales volume from the previous quarter's level. The revenues generated from the metallurgical segment amounted to $615.4 million, down from $669.8 million quarter-over-quarter. Notably, the net realized pricing for the metallurgical segment was reported at $127.84 per ton, slightly lower than the $132.76 from the prior period.

Challenges in the Market

Alpha's Chief Executive Officer, Andy Eidson, acknowledged the impact of a weak metallurgical coal market on their financial results. With demand continuing to decline, the company has adjusted its 2025 guidance for shipment volumes down to a range of 14.5 to 15.5 million tons, compared to the earlier forecast of 15.0 to 16.0 million tons. Moreover, the cost of coal sales guidance has also been adjusted, now ranging between $103.00 and $110.00 per ton.

The adjustments reflect not only the reduced expectations for purchased coal volumes but also the severe weather conditions affecting operations earlier in the year. Eidson emphasized efforts to align the company's operations with challenging market realities while focusing on the safety of its mines and protecting its financial position.

Financial Metrics Breakdown

In terms of liquidity, Alpha reported total liquidity of $519.4 million as of December 31, 2024, including $481.6 million in cash and cash equivalents. The company also reduced its outstanding letters of credit by $15 million during the quarter, demonstrating a proactive approach to managing financial resources.

Yearly Performance

For the entire year 2024, Alpha reported revenues of approximately $2.95 billion, a notable decrease from $3.46 billion in 2023. This reflects the ongoing challenges faced within the metallurgical coal market, exacerbated by global economic shifts and operational costs.

Future Outlook

Alpha has authorized a share repurchase program, allowing up to $1.5 billion for buying back common stock, which signals confidence in the company's long-term prospects despite current setbacks. As part of strategic efforts to enhance shareholder value, around 6.6 million shares have already been repurchased, costing approximately $1.1 billion.

Looking ahead, analysts will be closely watching Alpha's adaptation strategies within the fluctuating coal market and how they will influence its financial stability and operational efficiency. The annual meeting of stockholders has been scheduled for May 7, 2025, where further insights into the company's approach to overcoming market challenges may be discussed.

In conclusion, Alpha Metallurgical Resources faces a transitional phase as it navigates a tough market environment, focusing on operational safety and strategic financial management while adapting its 2025 forecasts accordingly.