HCC · Warrior Met Coal, Inc.

Warrior Met Coal delivered a transformative Q1 2026 with net income of $72.3 million, reversing a $8.2 million loss from Q1 2025, fueled by record sales volumes of 3.0 million short tons (up 38% YoY) and production of 3.5 million short tons (up 55% YoY). The Blue Creek mine's completion, with final spending of $66.1 million bringing total project costs to $1,022.9 million ahead of schedule, drove this performance through higher volumes and its inherently lower cost structure. Cash costs per ton fell 14% to $96.17, aided by the Section 45X tax credit, enabling margin expansion despite softer steelmaking coal prices. Revenues rose to $458.6 million on a 10% higher average net selling price of $149.39 per ton. CEO Walt Scheller highlighted Blue Creek's role in record sales and free cash flow potential amid challenges like China trade restrictions and Middle East tensions, with India as key demand growth. The company reaffirmed full-year 2026 guidance, signaling confidence in 12.5-13.5 million tons sales and $95-110 cash costs, supported by four planned longwall moves and cost controls. Liquidity stood strong at $363.7 million, bolstering capital allocation including a $0.08 quarterly dividend. This positions Warrior for sustained profitability with construction capex now complete.