Hallador Energy Company Reports Third Quarter 2025 Financial and Operating Results

Rhea-AI Summary

Hallador Energy (Nasdaq: HNRG) reported strong Q3 2025 results on November 10, 2025, driven by higher power prices and robust coal shipments. Total revenue rose 40% YoY to $146.8M, coal sales were $51.3M (+62% YoY) and electric sales were $93.2M (+29% YoY). Net income was $23.9M (EPS $0.56) and Adjusted EBITDA was $24.9M. Operating cash flow was $23.2M and Q3 capex was $19.5M (YTD $44.3M). The company filed an ERAS application to add 525 MW of gas generation at Merom targeting online in Q4 2028. Total forward contracted revenue to third parties was $921.7M through 2029.

Positive

• Total revenue +40% YoY to $146.8M
• Coal sales +62% YoY to $51.3M
• Net income $23.9M (Q3 2025)
• Adjusted EBITDA $24.9M (up ~1.6x YoY)
• Operating cash flow $23.2M in Q3
• Filed ERAS application for 525 MW targeting online Q4 2028

Negative

• Other amortization -$12.2M in Q3 reduced Adjusted EBITDA
• Q3 capex $19.5M (YTD $44.3M) represents significant near-term cash use
• ERAS expansion requires acceptance (no guarantee of approval or timing)

Insights

Energy financial analyst

Strong quarter: revenue, net income, cash flow and forward contracts materially improved; ERAS filing signals growth optionality.

Hallador delivered revenue of $146.8 million in Q3, up 40% year‑over‑year, with net income of $23.9 million and operating cash flow of $23.2 million. These are concrete cash‑and‑profit improvements that reduce near‑term execution risk, support $19.5 million of quarterly capital spend, and coexist with modest net bank debt of $44.0 million at quarter end.

The company also shows meaningful forward sales: $921.7 million of contracted revenue through 2029 and detailed yearly contracted power and coal buckets, which provide revenue visibility and liquidity planning flexibility. Key near‑term sensitivities include reliance on energy price environment and delivery timing of the $20.0 million prepaid forward sales contract scheduled for January–May 2027. Watch cash conversion and capital allocation over the next 12–18 months.

Power markets and project development expert

Operationally sound quarter and a material capacity expansion move via ERAS, which could raise asset scale if accepted.

Higher electric sales ($93.2 million) and coal sales ($51.3 million) drove results while both generating units ran efficiently after maintenance, showing operational leverage in dispatch and fuel optimization. The filing to add 525 MW via MISO ERAS targets an online date in Q4 2028, which, if accepted and executed, would increase Merom site capacity roughly 50% per management.

The ERAS application is a conditional growth step: acceptance by ERAS and successful contracting for capacity are explicit prerequisites. Monitor ERAS approval timing, any long‑term contracts supporting the build, and milestone permitting or capital commitments over the next 12–36 months as the decisive signals for value realization.

- Q3 Total Revenue up 40% YoY to $146.8 Million -
- Q3 Net Income Increases to $23.9 Million or $0.56 Earnings per Share -
- Q3 Operating Cash Flow of $23.2 Million -
- Q3 Adjusted EBITDA up 1.6x to $24.9 Million -
- Filed ERAS Application for 525MW Gas Generation Expansion -

TERRE HAUTE, Ind., Nov. 10, 2025 (GLOBE NEWSWIRE) -- Hallador Energy Company (Nasdaq: HNRG) (“Hallador” or the “Company”) today reported its financial results for the third quarter ended September 30, 2025. 

“This was an exceptional quarter for Hallador as we delivered significant gains across all key financial metrics, including material growth in revenue, net income, Adjusted EBITDA and cash flow from operations,” said Brent Bilsland, President and Chief Executive Officer. “Favorable summer weather, increased energy demand, and stronger natural gas prices provided a supportive backdrop that drove strong revenue at Hallador Power. Following the completion of our second unit’s planned maintenance early in the quarter, both generating units operated efficiently throughout the summer, while our coal operations continued to deliver solid production, increased shipments, and stable operating costs. The combination of higher dispatch levels and strong operational execution helped reduce inventories and meaningfully enhanced our financial performance.”

“We continue to see accelerating demand for accredited capacity, particularly from data center developers and load serving entities seeking dispatchable energy. The strength of this interest led us in early November to file an application seeking to expand our generation capabilities at the Merom site by 525 MWs through MISO’s Expedited Resource Addition Study (ERAS) program. ERAS aims to fast-track critical capacity additions to the grid and we are currently targeting an on-line date for the gas generation in the fourth quarter of 2028.”

Bilsland continued, “The combination of the ERAS application and the positive progress towards a long-term agreement in support of large load development is providing a definitive pathway for meaningful company growth. If we are able to execute on these growth initiatives, adding roughly 50% additional generating capacity to the Merom site should provide exceptional value to our shareholders now and in the future.”

Third Quarter 2025 Highlights 

• A favorable energy-pricing environment for Hallador Power and optimized fuel production, increased shipments and consistent operating costs at Sunrise Coal enabled the Company to generate material growth across all key financial metrics.
  
  • Total revenue increased 40% year-over-year to $146.8 million. Coal sales increased 62% year-over-year to $51.3 million and electric sales increased 29% year-over-year to $93.2 million.
  • Net income and adjusted EBITDA increased year-over-year to $23.9 million and $24.9 million, respectively. 

• The Company generated $23.2 million in operating cash flow during the third quarter, which was used to partially fund capital expenditures and debt service.
  
  • Total bank debt was $44.0 million at September 30, 2025, compared to $45.0 million at June 30, 2025, and $44.0 million at December 31, 2024.
  • Total liquidity was $46.4 million at June 30, 2025, compared to $42.0 million at June 30, 2025, and $37.8 million at December 31, 2024.
  • Capital expenditures in the third quarter were $19.5 million, bringing the year-to-date capital expenditures to $44.3 million. 
    

• Hallador continues to focus on forward sales to secure its energy position.
  • The Company signed a 5-month, $20.0 million prepaid forward sales contract during the quarter which is scheduled to be delivered between January 2027 and May 2027.
  • At quarter-end, Hallador had total forward energy, capacity and coal sales to 3rd party customers of $921.7 million through 2029. 
    

Financial Summary ($ in Millions and Unaudited)

		Q3 2025				Q3 2024
Electric Sales		$	93.2			$	72.1
Coal Sales- 3rd Party		$	51.3			$	31.7
Other Revenue		$	2.3			$	1.4
Total Sales and Operating Revenue		$	146.8			$	105.2
Net Income		$	23.9			$	1.6
Operating Cash Flow		$	23.2			$	(12.9	)
Adjusted EBITDA*		$	24.9			$	9.6

__________________________________
_{*   Non-GAAP financial measure, defined as EBITDA plus effects of certain subsidiary and equity method investment activity, less other amortization, plus certain operating activities including stock-based compensation, asset retirement obligations accretion, less gain on disposal or abandonment of assets, plus other reclassifications such as special non-recurring project expenses.}

Adjusted EBITDA should not be considered an alternative to net income, income from operations, cash flows from operating activities or any other measure of financial performance presented in accordance with GAAP. Our method of computing Adjusted EBITDA may not be the same method used to compute similar measures reported by other companies. Management believes the non-GAAP financial measure, Adjusted EBITDA, is an important measure in analyzing our liquidity.

Reconciliation of GAAP "Income (Loss) before Income Taxes" to non-GAAP "Adjusted EBITDA" (In $ Thousands and Unaudited)
		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2025				2024				2025				2024
NET INCOME (LOSS)		$	23,884			$	1,554			$	42,111			$	(10,346	)
Interest expense			4,927				2,692				12,469				10,364
Income tax expense (benefit)			—				232				—				(3,389	)
Depreciation, depletion and amortization			9,142				13,838				29,661				42,930
EBITDA			37,953				18,316				84,241				39,559
Other operating revenue			—				6				—				13
Stock-based compensation			585				1,073				2,144				3,320
Asset retirement obligations accretion			446				410				1,310				1,208
Other amortization (1)			(12,212	)			(10,192	)			(36,578	)			(36,510	)
Gain on disposal or abandonment of assets, net			(2,334	)			(290	)			(2,410	)			(536	)
Loss on extinguishment of debt			—				—				—				2,790
Equity method loss			248				234				287				740
Other reclassifications			180				—				(1,420	)			—
Adjusted EBITDA		$	24,866			$	9,557			$	47,574			$	10,584

(1)	Other amortization relates to the non-cash amortization of the Hoosier PPA entered into in connection with the acquisition of the Merom Power Plant in 2022.

Solid Forward Sales Position - Segment Basis, Before Intercompany Eliminations (unaudited):
		Q4 2025				2026				2027				2028				2029				Total
Power
Energy
Contracted MWh (in millions)			1.15				4.00				2.31				1.09				0.27				8.82
Average contracted price per MWh		$	38.07			$	43.09			$	50.78			$	52.94			$	51.33
Contracted revenue (in millions)		$	43.78			$	172.36			$	117.30			$	57.70			$	13.86			$	405.00
Capacity
Average daily contracted capacity MW			668				733				623				454				100
Average contracted capacity price per MWd		$	211			$	230			$	226			$	225			$	230
Contracted capacity revenue (in millions)		$	12.98			$	61.54			$	51.40			$	37.33			$	3.47			$	166.72
Total Energy & Capacity Revenue
Contracted Power revenue (in millions)		$	56.76			$	233.90			$	168.70			$	95.03			$	17.33			$	571.72
Coal
Priced tons - 3rd party (in millions)			0.51				2.72				2.50				0.50				—				6.23
Avg price per ton - 3rd party		$	53.08			$	55.72			$	56.74			$	59.00			$	—
Contracted coal revenue - 3rd party (in millions)		$	27.07			$	151.56			$	141.85			$	29.50			$	—			$	349.98
TOTAL CONTRACTED REVENUE (IN MILLIONS) - CONSOLIDATED		$	83.83			$	385.46			$	310.55			$	124.53			$	17.33			$	921.70
Priced tons - Intercompany (in millions)			1.33				2.30				2.30				2.30				—				8.23
Avg price per ton - Intercompany		$	51.00			$	51.00			$	51.00			$	51.00			$	—
Contracted coal revenue - Intercompany (in millions)		$	67.83			$	117.30			$	117.30			$	117.30			$	—			$	419.73
TOTAL CONTRACTED REVENUE (IN MILLIONS) - SEGMENT		$	151.66			$	502.76			$	427.85			$	241.83			$	17.33			$	1,341.43

Forward-Looking Statements

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Statements that are not strictly historical statements constitute forward-looking statements and may often, but not always, be identified by the use of such words such as "expects," "believes," "intends," "anticipates," "plans," "estimates," "guidance," "target," "potential," "possible," or "probable" or statements that certain actions, events or results "may," "will," "should," or "could" be taken, occur or be achieved. Forward-looking statements include, without limitation, those relating to our ability to participate in the ERAS program (which requires acceptance of our application by ERAS) and achieve the expected benefits thereof, our ability to secure a long-term agreement in support of large load development and our expectations with respect to potential accelerating demand for accredited capacity. Forward-looking statements are based on current expectations and assumptions and analyses made by Hallador and its management in light of experience and perception of historical trends, current conditions and expected future developments, as well as other factors appropriate under the circumstances that involve various risks and uncertainties that could cause actual results to differ materially from those reflected in the statements. These risks include, but are not limited to, those set forth in Hallador’s annual report on Form 10-K for the year ended December 31, 2024, and other Securities and Exchange Commission filings. Hallador undertakes no obligation to revise or update publicly any forward-looking statements except as required by law.

Conference Call and Webcast

Hallador management will host a conference call today, November 10, 2025 at 5:00 p.m. Eastern time to discuss its financial and operational results, followed by a question-and-answer period.

Date: Monday, November 10, 2025
Time: 5:00 p.m. Eastern time
Dial-in registration link: here
Live webcast registration link: here

The conference call will also be broadcast live and available for replay in the investor relations section of the Company’s website at www.halladorenergy.com.

About Hallador Energy Company

Hallador Energy Company (Nasdaq: HNRG) is a vertically-integrated Independent Power Producer (IPP) based in Terre Haute, Indiana. The Company has two core businesses: Hallador Power Company, LLC, which produces electricity and capacity at its one Gigawatt (GW) Merom Generating Station, and Sunrise Coal, LLC, which produces and supplies fuel to the Merom Generating Station and other companies. To learn more about Hallador, visit the Company’s website at http://www.halladorenergy.com/.

Company Contact

Todd E. Telesz
Chief Financial Officer
TTelesz@halladorenergy.com

Investor Relations Contact

Sean Mansouri, CFA
Elevate IR
(720) 330-2829
HNRG@elevate-ir.com

Hallador Energy Company Condensed Consolidated Balance Sheets (in thousands, except per share data) (unaudited)
		September 30,				December 31,
		2025				2024
ASSETS
Current assets:
Cash and cash equivalents		$	12,663			$	7,232
Restricted cash			22,819				4,921
Accounts receivable			24,763				15,438
Inventory			28,006				36,685
Parts and supplies			44,002				39,104
Prepaid expenses			4,293				1,478
Total current assets			136,546				104,858
Property, plant and equipment:
Land and mineral rights			69,961				70,307
Buildings and equipment			454,040				429,857
Mine development			99,852				92,458
Finance lease right-of-use assets			13,034				13,034
Total property, plant and equipment			636,887				605,656
Less - accumulated depreciation, depletion and amortization			(370,903	)			(347,952	)
Total property, plant and equipment, net			265,984				257,704
Equity method investments			2,713				2,607
Other assets			4,218				3,951
Total assets		$	409,461			$	369,120
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of bank debt, net		$	42,698			$	4,095
Accounts payable and accrued liabilities			44,010				44,298
Current portion of lease financing			7,395				6,912
Contract liabilities - current			113,244				97,598
Total current liabilities			207,347				152,903
Long-term liabilities:
Bank debt, net			—				37,394
Long-term lease financing			3,140				8,749
Asset retirement obligations			16,268				14,957
Contract liabilities - long-term			34,362				49,121
Other			2,156				1,711
Total long-term liabilities			55,926				111,932
Total liabilities			263,273				264,835
Commitments and contingencies (Note 16)
Stockholders' equity:
Preferred stock, $.10 par value, 10,000 shares authorized; none issued			—				—
Common stock, $.01 par value, 100,000 shares authorized; 42,978 and 42,621 issued and outstanding, as of September 30, 2025 and December 31, 2024, respectively			430				426
Additional paid-in capital			189,086				189,298
Retained deficit			(43,328	)			(85,439	)
Total stockholders’ equity			146,188				104,285
Total liabilities and stockholders’ equity		$	409,461			$	369,120

Hallador Energy Company Condensed Consolidated Statements of Operations (in thousands, except per share data) (unaudited)
		Three Months Ended September 30,								Nine Months Ended September 30,
		2025				2024				2025				2024
SALES AND OPERATING REVENUES:
Electric sales		$	93,235			$	72,116			$	239,154			$	192,996
Coal sales			51,256				31,662				119,588				114,093
Other revenues			2,355				1,377				8,780				3,685
Total sales and operating revenues			146,846				105,155				367,522				310,774
EXPENSES:
Fuel			27,119				13,755				57,392				34,684
Other operating and maintenance costs			44,415				32,741				101,759				103,704
Cost of purchased power			2,074				3,149				11,086				7,694
Utilities			4,543				3,586				13,202				12,090
Labor			27,574				26,721				81,402				88,444
Depreciation, depletion and amortization			9,142				13,838				29,661				42,930
Asset retirement obligations accretion			446				410				1,310				1,208
Exploration costs			38				62				157				179
General and administrative			4,770				6,471				19,096				20,218
Gain on disposal or abandonment of assets, net			(2,334	)			(290	)			(2,410	)			(536	)
Total operating expenses			117,787				100,443				312,655				310,615
INCOME FROM OPERATIONS			29,059				4,712				54,867				159
Interest expense (1)			(4,927	)			(2,692	)			(12,469	)			(10,364	)
Loss on extinguishment of debt			—				—				—				(2,790	)
Equity method investment (loss)			(248	)			(234	)			(287	)			(740	)
NET INCOME (LOSS) BEFORE INCOME TAXES			23,884				1,786				42,111				(13,735	)
INCOME TAX EXPENSE (BENEFIT):
Current			—				—				—				—
Deferred			—				232				—				(3,389	)
Total income tax expense (benefit)			—				232				—				(3,389	)
NET INCOME (LOSS)		$	23,884			$	1,554			$	42,111			$	(10,346	)
NET INCOME (LOSS) PER SHARE:
Basic		$	0.56			$	0.04			$	0.98			$	(0.27	)
Diluted		$	0.55			$	0.04			$	0.97			$	(0.27	)
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic			43,007				42,598				42,869				38,455
Diluted			43,434				43,018				43,287				38,455
(1) Interest Expense:
Interest on bank debt		$	1,763			$	2,073			$	4,661			$	7,657
Other interest			2,585				181				6,208				1,456
Amortization of debt issuance costs			579				438				1,600				1,251
Total interest expense		$	4,927			$	2,692			$	12,469			$	10,364

Hallador Energy Company Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited)
		Nine Months Ended September 30,
		2025				2024
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)		$	42,111			$	(10,346	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Deferred income tax (benefit)			—				(3,389	)
Equity method investment loss			287				740
Depreciation, depletion and amortization			29,661				42,930
Loss on extinguishment of debt			—				2,790
Gain on disposal or abandonment of assets, net			(2,410	)			(536	)
Amortization of debt issuance costs			1,600				1,251
Asset retirement obligations accretion			1,310				1,208
Cash paid on asset retirement obligation reclamation			(455	)			(820	)
Stock-based compensation			2,144				3,320
Amortization of contract liabilities			(82,639	)			(59,236	)
Accretion on contract liabilities			5,659				—
Other			274				1,352
Change in current assets and liabilities:
Accounts receivable			(9,325	)			8,029
Inventory			8,679				(8,002	)
Parts and supplies			(4,898	)			(786	)
Prepaid expenses			1,190				(1,098	)
Accounts payable and accrued liabilities			1,923				(7,715	)
Contract liabilities			77,867				57,293
Net cash provided by operating activities			72,978				26,985
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures			(44,277	)			(39,606	)
Proceeds from sale of equipment			2,891				3,373
Investment in equity method investments			(394	)			—
Net cash used in investing activities			(41,780	)			(36,233	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on bank debt			(63,000	)			(86,500	)
Borrowings of bank debt			63,000				65,000
Payments on lease financing			(5,187	)			(4,105	)
Proceeds from sale and leaseback arrangement			—				3,783
Issuance of related party notes payable			—				5,000
Payments on related party notes payable			—				(5,000	)
Debt issuance costs			(330	)			(654	)
ATM offering			—				34,515
Taxes paid on vesting of RSUs			(2,352	)			(273	)
Net cash (used in) provided by financing activities			(7,869	)			11,766
Increase in cash, cash equivalents, and restricted cash			23,329				2,518
Cash, cash equivalents, and restricted cash, beginning of period			12,153				7,123
Cash, cash equivalents, and restricted cash, end of period		$	35,482			$	9,641
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH:
Cash and cash equivalents		$	12,663			$	3,829
Restricted cash			22,819				5,812
		$	35,482			$	9,641
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest		$	4,718			$	8,679
SUPPLEMENTAL NON-CASH FLOW INFORMATION:
Change in capital expenditures included in accounts payable and prepaid expense		$	(5,855	)		$	(7,825	)
Stock issued on redemption of convertible notes and interest		$	—			$	22,993

FAQ

What were Hallador Energy (HNRG) Q3 2025 revenue and EPS on November 10, 2025?

Hallador reported Q3 2025 revenue $146.8M and net income $23.9M (EPS $0.56).

How much did Hallador Energy (HNRG) adjusted EBITDA improve in Q3 2025?

Adjusted EBITDA rose to $24.9M in Q3 2025, about 1.6x higher year-over-year.

What growth project did Hallador Energy (HNRG) file on November 10, 2025?

Hallador filed an ERAS application to add 525 MW of gas generation at Merom, targeting online in Q4 2028.

How strong is Hallador Energy's forward sales position through 2029?

Hallador had $921.7M of total forward energy, capacity and coal sales to third parties through 2029.

How much operating cash flow did Hallador generate in Q3 2025 and what was Q3 capex?

Hallador generated $23.2M of operating cash flow in Q3 2025 and recorded $19.5M of capex in the quarter.