Alpha Metallurgical Resources, Inc.

What they do

Alpha operates high-quality, cost-competitive met coal mines in Virginia and West Virginia across the CAPP coal basin, producing met coal with thermal coal as a byproduct and also selling coal produced by others. As of June 30, 2026, operations consisted of twenty-one active mines and eight active coal preparation and load-out facilities, with approximately 3,950 employees. The company sells to customers across the globe and describes itself as a leading supplier of metallurgical coal products to the steel industry, supported by significant port capacity.

Revenue drivers

• Met segment coal revenues — The Met segment generated $491.5 million of coal revenues in Q2 2026, or $421.3 million excluding freight handling, on 3.5 million tons sold at a $118.71 per ton realization. The Met segment is the company's principal revenue line.
• Export - other pricing mechanisms — In Q2 2026 this was the largest pricing category within met coal sales: 1.5 million tons, $162.9 million of revenues, 48% of met tons sold, at a $109.08 per ton realization.
• Domestic met coal — Domestic sales were 0.9 million tons in Q2 2026, generating $124.8 million at the highest realization of the three met categories, $134.37 per ton, representing 30% of met tons sold.
• Export - Australian indexed — Australian-indexed export sales were 0.7 million tons in Q2 2026, generating $98.5 million at $143.82 per ton, or 22% of met tons sold.
• Thermal coal byproduct — Thermal coal revenues were 0.4 million tons for $35.1 million at a $79.36 per ton realization in Q2 2026; the company describes thermal coal as a byproduct of its met coal operations.

Recent performance

Alpha reported a second quarter 2026 net loss of $12.3 million, or $0.96 per diluted share, compared to a net loss of $11.0 million, or $0.86 per diluted share, in the first quarter of 2026 and a net loss of $5.0 million, or $0.38 per diluted share, in the prior-year quarter. Adjusted EBITDA was $25.6 million in Q2 2026, down from $30.0 million in Q1 2026 and $46.1 million in Q2 2025. Operating cash flow was $39.9 million in Q2 2026 versus $29.0 million in Q1 2026 and $53.2 million in Q2 2025, while capital expenditures were $45.1 million, $40.7 million, and $34.6 million, respectively. Tons of coal sold declined to 3.5 million tons in Q2 2026 from 3.6 million in Q1 2026 and 3.9 million in Q2 2025, with Met segment net realized pricing of $118.71 per ton versus $124.39 per ton in the first quarter.

Strategy

Alpha's stated priorities center on operating its CAPP met coal mines and preparation and load-out facilities cost-competitively and shipping to global steel customers. Management released adjusted guidance ranges for sales volumes and cost of coal sales, reflecting fewer tons shipped and higher costs than expected in the first half of 2026. The company is engaging with terminal leaders at Dominion Terminal Associates (DTA) to address high-wind storm damage from June 2026, including plans to mitigate reduced DTA efficiency by using throughput capacity at other East Coast terminals. Management is also working with third-party equipment providers and the insurance claims process regarding the longer-term replacement of the stacker reclaimer. The reduced sales volume guidance for the balance of the year incorporates expected reduced efficiency at DTA.

Risks

• Met coal price weakness — Alpha's revenues and profitability depend on metallurgical coal prices, which the company notes are structurally influenced by steel demand, economic conditions, tariffs and trade negotiations.
• Terminal disruption at DTA — June high-wind storm damage at Dominion Terminal Associates has reduced efficiency, prompting lower sales volume guidance for the balance of 2026 and reliance on other East Coast terminal capacity.
• Higher supply and cost pressure — Management said first-half 2026 results included higher costs than expected and raised cost of coal sales guidance, partly due to fewer shipped tons and continued higher supply costs.
• Customer and global economic exposure — Alpha's risk factors cite loss of customers, customer creditworthiness, tariffs, decreased demand for coal and global economic disruptions, with key markets including India and China.
• Regulatory and permitting costs — The company cites regulatory requirements and costs, permit approvals, climate change regulations, environmental laws, unfavorable tax actions and reclamation or mine closure costs among its risks.

Outlook

Management said soft met market conditions are persisting and released adjusted guidance ranges for sales volumes and cost of coal sales reflecting fewer tons shipped and higher costs. The reduced sales volume guidance incorporates expected reduced efficiency at DTA, which the company plans to mitigate in part by utilizing throughput capacity at other East Coast terminals. Terminal leadership is expected to gain clarity on the longer-term stacker reclaimer replacement plan as the insurance claims process advances and conversations with third-party equipment providers continue.