Warrior Met Coal Q2 revenue jumps 71% as Blue Creek mine boosts volumes
Warrior Met Coal Q2 revenue jumps 71% as Blue Creek mine boosts volumes
Overview
US steelmaking coal producer's Q2 revenue rose 71% yr/yr, beating analyst expectations
EPS for Q2 rose sharply as Blue Creek mine drove record volumes and lower costs
Company raised full-year volume guidance after strong customer demand for Blue Creek product
Outlook
Warrior raises 2026 coal sales guidance to 13.0-14.0 mln short tons
Company sees 2026 coal production at 12.5-13.5 mln short tons
Warrior expects 2026 cash cost of sales at $95-$105 per short ton
Result Drivers
BLUE CREEK MINE - Ramp-up of Blue Creek mine drove record sales and production volumes, contributing to earnings and cash flow
LOWER COST STRUCTURE - Cash cost of sales per ton fell 9% yr/yr, mainly due to Blue Creek's lower costs and benefit from Section 45X tax credit
IMPROVED PRICING - Average net selling price for steelmaking coal rose 6% yr/yr, supported by positive customer reception and regional demand
Company press release: ID:nBwNQC58a
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $509.70 mln | $488.36 mln (6 Analysts) |
Q2 EPS |
| $1.65 |
|
Q2 Net Income |
| $87.40 mln |
|
Q2 Adjusted EBITDA |
| $156.90 mln |
|
Q2 Free Cash Flow |
| $103.40 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the iron & steel peer group is "buy"
Wall Street's median 12-month price target for Warrior Met Coal Inc is $101.20, about 24.2% above its August 4 closing price of $81.50
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago
Reuters Recommended Reads
Aug 4 - Ramaco Resources Q2 revenue, EBITDA beat analyst estimates
Aug 5 - Natural Resource Partners Q2 revenue rises on higher coal volumes
Aug 4 - Steelmaker Ternium's Q2 profit rises, outlook brightens as margins surge
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
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Warrior Met Coal Inc reports results for the quarter ended June 30 - Earnings Summary
Warrior Met Coal Q2 revenue jumps 71% as Blue Creek mine boosts volumes
Brief: Warrior Met Coal Q2 Net Income USD 87.4 Million