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

By Reuters News


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

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$507.92 mln

$499.71 mln (6 Analysts)

Q3 Net Income

$49.30 mln

Q3 Adjusted EBITDA

$124.02 mln

Q3 Free Cash Flow

$138.90 mln


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


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.)

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