Ramaco Resources Q3 adjusted EBITDA misses estimates on higher costs; lowers FY production guidance

Overview

• US metallurgical coal miner's Q3 revenue rose 24% yr/yr, beating analyst expectations

• Adjusted EBITDA for Q3 missed consensus on higher costs and lower production

• Company posted net loss as costs rose and higher-cost output was idled

Outlook

• Company lowers 2026 production guidance to 3.5–3.6 mln tons from 3.6–3.9 mln tons

• Company raises 2026 cash cost guidance to $101–$103/ton from $96–$99/ton due to inflation

• Company increases 2026 capital expenditure guidance to $97–$102 mln from $92–$97 mln

Result Drivers

• HIGHER COSTS - Co said cash mine costs rose 7% yr/yr, mainly due to higher diesel prices

• INVENTORY SALES - Increased coal sales were driven by reduction of previously stockpiled inventory

• PRODUCTION CUTS - Production fell 10% yr/yr due to idling of higher-cost output amid weak market conditions

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 Ramaco Resources, Inc. is $18.00, about 173.1% above its November 2 closing price of $6.59

Reuters Recommended Reads

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)