Warrior Met Coal Stock Earnings Reports

Warrior Met Coal reported a strong first quarter 2026 driven by the commercial ramp-up of its new Blue Creek mine, which was completed ahead of schedule and on budget (~$1.0 billion), funded from cash from operations with no funded debt. Production and sales hit record quarterly levels (production 3.5M st, sales 3.0M st), with a heavier mix of higher-volume High Vol A product sold into the Pacific Basin (61% of sales into Asia; Pacific Basin volumes up). Premium-quality coal pricing strengthened in Q1 due to supply disruptions in Australia and freight inflation tied to the Middle East conflict, supporting better-than-expected net selling prices and profitability. Adjusted EBITDA was $143M (up materially year-over-year) and net income was $72M. Cash costs per ton declined versus prior-year quarter due to Blue Creek’s low-cost profile and a $3/ton benefit from the 45X production tax credit. Operating cash flow was negative ($12M) and free cash flow was deeply negative (~$890M) in the quarter reflecting the timing of collections, a working capital build (higher AR and inventory) and the final Blue Creek capex; management expects free cash flow to turn positive in the second quarter. Liquidity remained solid (~$364M available). Management reaffirmed full-year 2026 outlook and reiterated focus on optimizing production, controlling costs, managing inventory, and returning capital to shareholders once cash generation permits (they expect to resume/augment shareholder returns later in 2026). Risks flagged include inflationary pressures on diesel and materials and uncertainty from the Middle East conflict.