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
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Net Loss | $9.30 mln | ||
Q3 Adjusted EBITDA | Beat | $29.40 mln | $24.97 mln (5 Analysts) |
Q3 Capex | -$33.80 mln | ||
Q3 Operating Cash Flow | $46.90 mln |
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
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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.)