NC · NACCO Industries, Inc.

NACCO Industries delivered a strong start to 2026, reporting significant year-over-year growth in profitability despite a 4% decline in consolidated revenues. Operating profit rose 43% to $11.0 million, driven by meaningful improvements in the Utility Coal and Contract Mining segments. The Utility Coal Mining segment benefited from stronger operating performance at Mississippi Lignite Mining Company, including the strategic redeployment of crews for reclamation activities during a power plant outage, and favorable contractual pricing. This compared favorably to the prior year period which was impacted by a $3.0 million inventory impairment charge. The Contract Mining segment saw operating profit double to $4.0 million, fueled by the commencement of a multi-year dragline services contract for a U.S. Army Corps of Engineers project in Florida and increased activity at limestone mining operations. A change in depreciation estimates contributed $0.9 million to the segment's improved results. The Minerals and Royalties segment remained stable, with higher earnings from an equity investment offsetting lower natural gas revenues. Unallocated expenses increased, driven by reduced profitability at Mitigation Resources and a modest asset impairment charge. Looking ahead, management expects the momentum from the second half of 2025 and first quarter of 2026 to continue, resulting in meaningful year-over-year improvements in consolidated operating profit, net income, and Adjusted EBITDA for the full year 2026. The company anticipates additional capital expenditures of up to $57 million over the remainder of 2026, primarily for business development opportunities.