Warrior Met Coal Q3 revenue beats estimates on Blue Creek mine production 

Overview

• U.S. steelmaking coal producer's Q3 revenue rose yr/yr, beating analyst expectations

• Net income increased to $49.3 mln, driven by higher volumes and improved pricing

• Company declared $2.00 per-share special dividend amid strong cash generation

Outlook

• Company reaffirms full-year 2026 guidance issued last quarter

• Sees 2026 coal sales of 13.0-14.0 mln short tons and production of 12.5-13.5 mln short tons

• Expects 2026 cash cost of sales at $95-$105 per short ton

Result Drivers

• BLUE CREEK MINE - Ramp-up at Blue Creek mine drove 36% increase in production and contributed to higher sales volumes, per CEO Walt Scheller

• IMPROVED COAL PRICING - Higher average net selling price, reflecting improved steelmaking coal prices for both Premium Low-Vol and High-Vol A coals, supported revenue growth

• HIGHER FREIGHT COSTS - Revenue gains were partially offset by increased Pacific freight costs and demurrage due to Middle East conflict and port delays

Company press release:

Key Details

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 $102.20, about 26.7% above its November 3 closing price of $80.66

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads

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

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

• Nov 4 - Steelmaker Ternium bets on Mexico lifting outlook as US tariff relief remains uncertain

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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.)