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Jun 30, 2025
Warrior Met Coal Q2 2025 Earnings Report
Warrior Met Coal reported its second quarter 2025 earnings, highlighting the first commercial sales from its Blue Creek mine ahead of schedule.
Key Takeaways
Warrior Met Coal delivered positive net income and operating cash flows in Q2 2025, despite significantly weaker steelmaking coal market conditions. The company's performance was bolstered by strong cost discipline and the early commercial sales from its Blue Creek mine, which contributed to increased sales and production volumes.
Net income for Q2 2025 was $5.6 million, a significant decrease from $70.7 million in Q2 2024, primarily due to weaker steelmaking coal market conditions.
Total revenues were $297.5 million, down from $396.5 million in the prior year, reflecting a 30.1% decrease in the average net selling price of steelmaking coal.
Sales volumes increased by 6% to 2.2 million short tons, driven by the first commercial sales of Blue Creek steelmaking coal.
Adjusted EBITDA was $53.6 million, down from $115.9 million in Q2 2024, but the company maintained positive cash margins and generated $37.5 million in operating cash flows.
Forward Guidance
Warrior Met Coal updated its full-year 2025 guidance to reflect expected market conditions and its disciplined cost management. The guidance includes approximately 1.0 million short tons of High Vol A steelmaking coal from Blue Creek continuous miner units, expected to be sold primarily in the second half of 2025.
Positive Outlook
- Anticipated longwall startup at Blue Creek ahead of schedule, early in Q1 2026.
- Blue Creek mine transitioning from capital investment to revenue generation.
- Strong market interest in Blue Creek's high-quality steelmaking coal.
- Blue Creek's inherently low-cost structure reinforces confidence in long-term value.
- Continued focus on protecting margins and preserving cash flow.
Challenges Ahead
- Significantly weaker steelmaking coal market conditions impacting results.
- Challenging market dynamics driven by excess Chinese steel exports.
- Global tariff uncertainties impacting business.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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