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Alpha Metallurgical Resources Sets 2026 Guidance Expectations

On December 12, 2025, Alpha Metallurgical Resources, Inc. (NYSE: AMR), a prominent supplier of metallurgical products for the steel industry in the U.S., announced its operational guidance expectations for the upcoming calendar year, 2026. This announcement comes during a period where market conditions remain somewhat turbulent, prompting the company to strategize effectively for potential future growth.

CEO Insights

Andy Eidson, the CEO of Alpha, detailed the company's ambition to remain robust amid these challenging times. He stated, "While market conditions continue to appear challenging in the immediate term, we are looking ahead and finding ways to best position ourselves for strength when steel demand returns and markets improve." This forward-thinking approach demonstrates Alpha's commitment to not only meet current demands but also to be proactive in enhancing their competitive edge.

The firm’s guidance for 2026 underscores three primary areas of focus: ensuring safe production practices, maintaining operational efficiency, and implementing cost containment strategies. Additionally, the completion of the Kingston Wildcat low-volatility mine is a crucial step that promises to improve the overall quality of Alpha's product portfolio.

Sales Volume Projections

For 2026, Alpha projects its sales volumes to reach between 14.4 million and 15.4 million metallurgical tons. The company also anticipates shipping an additional 0.7 million to 1.1 million tons of incidental thermal coal. Collectively, these estimates result in an expected total shipment range of approximately 15.1 million to 16.5 million tons for the entire year.

Cost Structure

Regarding the cost of coal sales, Alpha expects these to average between $95.00 and $101.00 per ton. This cost structure incorporates the effects of the Section 45X credit, which pertains to advanced manufacturing production credits. Meanwhile, the estimated figures for selling, general and administrative (SGA) expenses are forecasted at $53 million to $59 million, excluding one-time charges and non-cash stock compensation.

Additionally, idle operations expenses are expected to be between $24 million and $32 million, with anticipated net cash interest income ranging from $2 million to $6 million. Depreciation, depletion, and amortization costs are forecasted to be between $160 million and $174 million for the year.

Capital Expenditure Plans

Capital expenditures are projected to range between $148 million and $168 million, which will cover both routine maintenance and capital developments aimed at the completion of the Kingston Wildcat mine. This investment is crucial as it reflects Alpha's long-term strategic focus on enhancing its operational capabilities and efficiency.

On the financial contributions front, Alpha anticipates contributing between $35 million and $45 million to its equity affiliates, which includes cash support for ongoing operations at Dominion Terminal Associates (DTA) and planned investments associated with facility upgrades.

The company is also preparing for a 2026 cash tax rate between 0% and 5%, underscoring its management of financial burdens while continuing to foster growth and investment.

Conclusion

Alpha Metallurgical Resources, a key player in the metallurgical coal sector, is positioning itself strategically to navigate the current market challenges while keeping an optimistic outlook for the future. As the company gears up for 2026, its focus on safety, efficiency, and strategic investments is likely to bolster its ability to meet the anticipated increase in steel demand when market conditions begin to stabilize. This proactive approach will not only sustain Alpha’s reputation in the metallurgical industry but also ensure its competitiveness amidst fluctuating economic conditions.

For more information on Alpha Metallurgical Resources, visit their official website at www.AlphaMetResources.com.