Alpha Metallurgical posts Q3 net loss on cost pressures

Overview

• U.S. metallurgical coal supplier reported Q3 net loss, while Adjusted EBITDA beat analyst expectations

• Company cited improved shipment volumes but ongoing cost pressures impacting results

• Announced 2027 domestic sales commitments and issued operational guidance for next year

Outlook

• Alpha expects 2027 metallurgical coal shipments of 13.1 mln to 14.1 mln tons

• Company projects 2027 cost of coal sales of $104 to $110 per ton

• Alpha has committed 3.5 mln tons to domestic customers for 2027 at $135.48 per ton

Result Drivers

• COST PRESSURES - Co said ongoing cost pressures continued to influence Q3 financial results

• HIGHER COSTS PER TON - Met segment cost of coal sales rose to $106.93 per ton in Q3 from $103.07 in Q2

• EQUIPMENT DAMAGE MITIGATION - Co said it is minimizing disruption from Dominion Terminal Associates equipment damage by using other terminal capacity

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 5 "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 Alpha Metallurgical Resources, Inc. is $176.50, about 23.2% above its November 5 closing price of $143.27

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 14 three months ago

Reuters Recommended Reads

• Nov 3 - Ramaco Resources Q3 adjusted EBITDA misses estimates on higher costs; lowers FY production guidance

• Nov 4 - Warrior Met Coal Q3 revenue beats estimates on Blue Creek mine production

• Nov 4 - Peabody Energy Q3 revenue beats on stronger export coal prices

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(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.)