#USA #Cleveland #Coal Mining #NACCO Industries #Contract Mining

NACCO Industries Announces Second Quarter 2025 Results

CLEVELAND, Aug. 6, 2025 — NACCO Industries, a major player in the natural resources sector, has published its consolidated results for the second quarter ended June 30, 2025. The company reported revenues of $68.2 million, reflecting a remarkable increase of 30% compared to the same period in 2024. However, the rise in revenue did not fully translate into net income due to various operational challenges faced during the quarter.

Overview of Financial Performance

Revenue Growth and Challenges

NACCO's robust revenue growth occurred despite short-term operational difficulties that adversely affected overall performance. President and CEO J.C. Butler expressed confidence in the company's potential for future growth, while acknowledging the impact of these setbacks on quarterly results. The increased revenue can be attributed to heightened other income, alongside reduced tax expenses that somewhat offset the lower operating results from operational inefficiencies and additional costs incurred during mining operations.

Detailed Financial Metrics

For the second quarter of 2025, here are the key financial metrics:

• - Net Income: Decreased to $3.3 million from $6.0 million in Q2 2024.
• - Diluted Earnings Per Share (EPS): Reported at $0.44, down from $0.81 in the same quarter last year.
• - Consolidated EBITDA: Declined to $9.3 million compared to $13.5 million in the previous year.

These figures suggest that although revenue increased significantly, the operational setbacks hindered profitability, leading to a negative trend in earnings.

Segment Analysis

NACCO's report also details the performance of its key segments:
1. Utility Coal Mining: Revenues surged due to higher coal deliveries, but operational inefficiencies negatively impacted profitability. Operating profit in this segment decreased substantially from the previous year.
2. Contract Mining: This segment saw an increase in revenues primarily due to higher parts sales; however, lower mined tonnage and increased operational costs resulted in reduced operating profit and EBITDA.
3. Minerals and Royalties: Revenues rose driven by higher natural gas prices, although operating profit saw a dip compared to 2024 due to the absence of a prior-year land sale gain.

Future Outlook

Despite the challenges faced in Q2 2025, NACCO Industries remains optimistic about growth. The company is positioned to harness favorable macroeconomic trends, including increased electricity demand and strategic expansions in various segments. Management believes in the resilience of their business model, which is supported by long-term coal-mining contracts that contribute consistent cash flows even in difficult market conditions.

NACCO anticipates meaningful profit improvement in the latter half of 2025, driven by operational efficiencies and a focus on enhancing parts sales within the Contract Mining sector. Management is instituting a conservative approach toward capital investments, gearing up for continued growth and returns to shareholders after facing the impact of the previous year’s business interruption income, which will not recur in 2025.

Conclusion

The second quarter results indicate that while NACCO Industries is grappling with immediate operational challenges, their foundation for future growth remains strong. The strategic focus on expanding into new markets and improving operational efficiency positions NACCO well for sustained growth in an evolving industry landscape.

For more information, interested parties can participate in NACCO's upcoming conference call on August 7, 2025, where management will further discuss these results and the outlook for the company's operations moving forward.