NACCO INDUSTRIES ANNOUNCES FIRST QUARTER 2026 RESULTS
Rhea-AI Summary
NACCO Industries (NYSE: NC) reported Q1 2026 consolidated results with gross profit $14.3M (+48% YoY), operating profit $11.0M (+43% YoY), net income $8.8M (+80% YoY) and diluted EPS $1.17 versus $0.66 a year earlier. Consolidated revenues were $62.8M, down 4% YoY. Adjusted EBITDA was $16.4M (+28% YoY). Liquidity totaled $102.7M and outstanding debt was $126.4M. Management cited strength in Utility Coal and Contract Mining and noted capital spending of $33M in Q1 and up to $57M planned for 2026.
Positive
- Gross profit +48% YoY ($14.3M)
- Net income +80% YoY ($8.8M)
- Diluted EPS $1.17 versus $0.66 prior year
- Adjusted EBITDA +28% YoY ($16.4M)
- Liquidity $102.7M (cash $53.2M + $49.5M revolver availability)
- New multi-year dragline contract commenced, boosting Contract Mining
Negative
- Revenues down 4% YoY ($62.8M)
- Utility Coal revenues -13% YoY due to lower tons delivered
- Unallocated operating loss increased to $(8,132) thousand
- Q1 capital expenditures $33M and up to $57M planned, increasing cash use
- Minerals and Royalties revenue decline and expected YoY operating profit decrease
News Market Reaction – NC
In the May 6 session, NC gained 3.32%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Mar 04 | Q4/FY 2025 earnings | Positive | -12.9% | Strong Q4 and FY 2025 profit metrics but net loss from pension settlement. |
| Nov 05 | Q3 2025 earnings | Positive | +0.9% | Revenue and gross profit growth, solid liquidity despite expected pension impact. |
| Aug 06 | Q2 2025 earnings | Negative | -3.7% | Revenue up but net income and EPS down on operational challenges. |
| Apr 30 | Q1 2025 earnings | Positive | -4.1% | Broad-based profit improvement and higher EBITDA across coal and mining. |
| Mar 05 | Q4/FY 2024 earnings | Positive | +4.1% | Strong 2024 turnaround with higher Adjusted EBITDA and improved coal performance. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Recent earnings releases have produced mixed reactions, with an average move of -3.14% and several instances where strong results were followed by negative price responses.
Across the last five earnings events from Mar 2024 through Mar 2026, NACCO has generally reported improving profitability and strong liquidity, including higher gross profit, operating profit and Adjusted EBITDA in both 2024 and 2025. However, shares often reacted modestly or negatively, even to solid results, such as the -12.94% move after Q4 2025. The current Q1 2026 report continues the theme of margin and earnings improvement against a cautious market response pattern.
Key Terms
adjusted ebitda financial
segment adjusted ebitda financial
non-gaap financial
revolving credit facility financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Consolidated Q1 2026 Highlights:
- Gross profit of
$14.3 million 48% over Q1 2025 on4% revenue decrease - Operating profit of
$11.0 million 43% over Q1 2025 and45% sequentially - Net income of
$8.8 million 80% over Q1 2025 - Diluted EPS of
$1.17 $0.66 - Adjusted EBITDA of
$16.4 million 28% over Q1 2025 and15% sequentially
NACCO Industries® (NYSE: NC) today announced consolidated results for the three months ended March 31, 2026. First-quarter 2026 results demonstrated strong earnings growth momentum both year-over-year and sequentially. Meaningful operating profit growth in the Utility Coal and Contract Mining segments drove the year-over-year improvement, while sequential growth was led by Contract Mining primarily as a result of the commencement of a new
"We delivered a strong start to 2026, reporting significant growth in profitability," said J.C. Butler, NACCO President and Chief Executive Officer." These results reflect continued execution of our business model and the strength of our operations, particularly in the Utility Coal and Contract Mining segments. As we move forward, we plan to build on this momentum through investments in our growth platforms which are expected to deliver improvements in profitability and cash generation. We are encouraged by our performance and remain confident in our ability to generate long-term value for shareholders."
Three Months Ended | |||||
($ in thousands, except per share amounts) | 3/31/2026 | 3/31/2025 | Year/Year | 12/31/2025 | Sequential |
Revenues | (4) % | (6) % | |||
Gross profit | 48 % | 19 % | |||
Operating profit | 43 % | 45 % | |||
Net Income (Loss) | 80 % | **n/m | |||
Diluted EPS | 77 % | **n/m | |||
Consolidated Adjusted EBITDA* | 28 % | 15 % | |||
*Non-GAAP financial measures are defined and reconciled on page 7. / ** n/m = not meaningful | |||||
Liquidity
At March 31, 2026, the Company had outstanding debt of
Detailed Discussion of 2026 First Quarter Compared to 2025 First Quarter
Utility Coal Mining Results
2026 | 2025 | ||
Tons of coal delivered | (in thousands) | ||
Unconsolidated operations | 5,514 | 5,616 | |
Consolidated operations | 491 | 591 | |
Total deliveries | 6,005 | 6,207 | |
2026 | 2025 | ||
(in thousands) | |||
Revenues | $ 16,691 | $ 19,239 | |
Gross profit (loss) | $ 741 | $ (3,331) | |
Earnings of unconsolidated operations | $ 14,108 | $ 14,463 | |
Operating expenses(1) | $ 7,425 | $ 7,341 | |
Operating profit | $ 7,424 | $ 3,791 | |
Segment Adjusted EBITDA(2) | $ 9,736 | $ 5,809 | |
(1) Operating expenses consist of Selling, general and administrative expenses, Amortization of intangible assets and (Gain) loss on sale of assets. |
(2) Segment Adjusted EBITDA is a non-GAAP measure and should not be considered in isolation or as a substitute for GAAP. See non-GAAP explanation and the related reconciliations to GAAP on page 8. |
Utility Coal Mining revenues decreased
The year‑over‑year operating profit and Segment Adjusted EBITDA improvements primarily reflect stronger operating performance at Mississippi Lignite Mining Company. Results benefited in part from redeploying crews to execute planned reclamation activities during the power plant outage. These factors drove a meaningful improvement in gross profit compared with the prior year, when results were affected by a
Contract Mining Results
2026 | 2025 | ||
(in thousands) | |||
Tons delivered | 14,960 | 12,853 | |
2026 | 2025 | ||
(in thousands) | |||
Total revenues | $ 32,639 | $ 31,526 | |
Reimbursable costs | 16,865 | 19,547 | |
Revenues excluding reimbursable costs | $ 15,774 | $ 11,979 | |
Operating profit | $ 3,988 | $ 1,970 | |
Segment Adjusted EBITDA(1) | $ 5,986 | $ 4,672 | |
(1) Segment Adjusted EBITDA is a non-GAAP measure and should not be considered in isolation or as a substitute for GAAP. See non-GAAP explanation and the related reconciliations to GAAP on page 8. |
Current quarter results benefited from the commencement of a multi-year dragline services contract, reflecting continued progress in the strategic expansion of Contract Mining's business model. This contract combined with increased customer requirements and deliveries at the limestone mining operations led to a
Minerals and Royalties Results
2026 | 2025 | ||
(in thousands) | |||
Revenues | $ 9,546 | $ 10,902 | |
Operating profit | $ 7,736 | $ 7,907 | |
Segment Adjusted EBITDA(1) | $ 8,623 | $ 9,815 | |
(1) Segment Adjusted EBITDA is a non-GAAP measure and should not be considered in isolation or as a substitute for GAAP. See non-GAAP explanation and the related reconciliations to GAAP on page 8. |
At Minerals and Royalties, higher 2026 earnings from an equity investment mostly offset the effect of a decrease in natural gas revenues, resulting in comparable year-over-year operating profit.
Unallocated
2026 | 2025 | ||
(in thousands) | |||
Operating loss | $ (8,132) | $ (5,986) | |
Segment Adjusted EBITDA(1) | $ (7,822) | $ (5,821) | |
(1) Segment Adjusted EBITDA is a non-GAAP measure and should not be considered in isolation or as a substitute for GAAP. See non-GAAP explanation and the related reconciliations to GAAP on page 8. |
Unallocated primarily includes public company administrative costs and the financial results of Bellaire Corporation, as well as Mitigation Resources of
Outlook
NACCO Industries is a growing diversified natural resources company with a unique business model strategically positioned to deliver stable and growing financial returns over the long term. Our business model is purposely built for durability and resilience with an expanding portfolio of long-term contracts, relationships and investments that leverage our proven operational expertise, disciplined capital allocation and an entrepreneurial yet patient approach. We have methodically built unique capabilities and clear competitive advantages that allow us to pursue a wide range of growth opportunities, often completely integrated into customers' operations in partnership-based relationships. We have multiple vectors for value creation, and we are steadfastly committed to delivering compounding returns and expanding investor value over the long term.
Our foundation rests on a stable base of long-term coal-mining contracts and legacy mineral and royalty assets, which generate dependable recurring cash flows. As new long-term contracts and investments are added across the Company, these new multi-year agreements create a "layering effect" as their contributions compound. The momentum our operations experienced in the second half of 2025 and the first quarter of 2026 is expected to continue throughout the remainder of 2026, resulting in meaningful year‑over‑year improvements in consolidated operating profit, net income and Adjusted EBITDA. Excluding the effect of a
At our Utility Coal Mining segment, operated by North American Coal®, we expect a meaningful increase in operating profit compared with 2025, primarily in the first half of 2026. We anticipate improved results at Mississippi Lignite Mining Company if the customer's power plant is able to operate as planned. An expected increase in the contractually determined per ton sales price and a lower cost per ton delivered are also anticipated to contribute to this improvement. We expect these operating profit improvements to be partly offset by lower earnings at the unconsolidated mining operations due to reduced income associated with the wind down of reclamation services at the Sabine Mining Company.
The Contract Mining segment, operated by North American Mining®, serves as our mining growth platform. We are building a growing portfolio of long-term contracts through geographic and mineral expansion that are expected to strengthen the foundation for sustained profitability in this segment. In early 2026, we commenced activities under a multi-year dragline services contract as part of a
Sawtooth Mining, a North American Mining subsidiary, provides exclusive comprehensive mining services at Thacker Pass, which is owned by a joint venture led by Lithium Americas Corp. Sawtooth will supply all of the lithium-bearing ore requirements for our customer's Thacker Pass lithium processing facility, which is currently under construction. This project is providing stable income during construction and is expected to contribute increased income and long-term cash flows once lithium production commences, which is targeted for late 2027.
As a result of earnings contributions from new contracts and continued momentum from 2025 activities, we anticipate a substantial year-over-year increase in operating profit and Segment Adjusted EBITDA in the Contract Mining segment.
The Minerals and Royalties segment, managed by Catapult Mineral Partners®, has constructed a high-quality, diversified portfolio of oil and gas mineral and royalty interests in
Mitigation Resources of
We continue to invest in our businesses to support future growth. Capital expenditures totaled
Our businesses provide essential inputs for electricity generation, construction and development, and industrial production. As demand for reliable uninterrupted energy continues to grow, natural resources fundamentals remain strong, reinforcing the importance of dependable baseload generation. Recent policy developments, including the re-establishment of the National Coal Council, highlight coal's ongoing strategic role in supporting grid reliability, economic competitiveness and national security. This development, along with a favorable regulatory environment, reinforces our confidence in our near-term outlook and long-term growth trajectory.
Our conservative approach to maintaining a strong capital structure and operating discipline minimizes risk, while the compounding effect of a growing portfolio of long-term contracts and strategic growth investments create a robust foundation for cash flow growth. With a perspective that spans decades, we are methodically building a strong, stable business that is expected to deliver annuity-like returns. This long-term view allows us to leverage our core skills for strategic, measured expansion and pursue opportunities with longer-term horizons and higher returns. We pursue opportunities that other companies with shorter time horizons might overlook. Our commitment is to generate increasing cash flows and return value to stockholders, whether through reinvestment for growth or direct returns such as share repurchases and payment of dividends. We remain confident in our ability to drive growth, expand our capabilities and reward shareholders over the long run.
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Conference Call
In conjunction with this news release, the management of NACCO Industries will host a conference call on Wednesday, May 6, 2026 at 8:30 a.m. Eastern Time. The call may be accessed by dialing (888) 880-3330 (North America Toll Free) or (646) 357-8766 (International), Conference ID:1610203, or over the Internet through NACCO Industries' website at ir.nacco.com/overview. For those not planning to ask a question of management, the Company recommends listening to the call via the online webcast. Please allow 15 minutes to register, download and install any necessary audio software required to listen to the webcast. A replay of the call will be available shortly after the call ends through May 13, 2026. An archive of the webcast will also be available on the Company's website approximately two hours after the live call ends.
Non-GAAP and Other Measures
This release contains non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. Included in this release are reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with
Forward-looking Statements Disclaimer
The statements contained in this news release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are made subject to certain risks and uncertainties, which could cause actual results to differ materially from those presented. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof. Among the factors that could cause plans, actions and results to differ materially from current expectations are, without limitation: (1) a significant reduction in demand by the Company's customers, (2) changes in the prices of hydrocarbons, particularly diesel fuel, natural gas, natural gas liquids and oil as a result of factors such as OPEC and/or government actions, geopolitical developments, economic conditions and regulatory changes, as well as supply and demand dynamics, (3) weather conditions, extended power plant outages, liquidity events or other events that would change the level of customers' coal or aggregates requirements, (4) changes to or termination of customer or other third-party contracts, or a customer or other third party default under a contract, (5) changes in development plans by third-party lessees of the Company's mineral interests, (6) failure or delays by the Company's lessees in achieving expected production of natural gas and other hydrocarbons; the availability and cost of transportation and processing services in the areas where the Company's oil and gas reserves are located; and the ability of lessees to obtain capital or financing needed for well-development operations and leasing and development of oil and gas reserves on federal lands, (7) any customer's premature facility closure or extended project development delay, (8) federal and state legislative and regulatory actions affecting fossil fuels, (9) supply chain disruptions, including price increases and shortages of parts and materials, inclusive of tariff effects, (10) failure to obtain adequate insurance coverages at reasonable rates, (11) changes in tax laws or regulatory requirements, including the elimination of, or reduction in, the percentage depletion tax deduction, changes in mining or power plant emission regulations and health, safety or environmental legislation, (12) impairment charges, (13) changes in costs related to geological and geotechnical conditions, repairs and maintenance, new equipment and replacement parts, fuel or other similar items, (14) equipment problems that could affect deliveries to customers, (15) changes in the costs to reclaim mining areas, (16) costs to pursue and develop new mining, mitigation, oil and gas and power generation development opportunities and other value-added service opportunities, (17) the ability to successfully evaluate investments and achieve intended financial results in new business and growth initiatives, (18) disruptions from natural or human causes, including severe weather, accidents, fires, earthquakes and terrorist acts, any of which could result in suspension of operations or harm to people or the environment, and (19) the ability to attract, retain, and replace workforce and administrative employees.
About NACCO Industries
NACCO Industries® brings natural resources to life by delivering aggregates, minerals, reliable fuels and environmental solutions through its robust portfolio of NACCO Natural Resources® businesses. Learn more about our companies at nacco.com, or get investor information at ir.nacco.com.
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NACCO INDUSTRIES, INC. AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
| |||
THREE MONTHS ENDED | |||
MARCH 31 | |||
2026 | 2025 | ||
(In thousands, except per share data) | |||
Revenues | $ 62,775 | $ 65,571 | |
Cost of sales | 48,484 | 55,917 | |
Gross profit | 14,291 | 9,654 | |
Earnings of unconsolidated operations | 16,571 | 15,986 | |
Operating expenses | |||
Selling, general and administrative expenses | 19,701 | 17,868 | |
Amortization of intangible assets | 151 | 162 | |
Gain on sale of assets | (6) | (72) | |
19,846 | 17,958 | ||
Operating profit | 11,016 | 7,682 | |
Other expense (income) | |||
Interest expense | 1,658 | 1,774 | |
Interest income | (595) | (865) | |
Closed mine obligations | 489 | 473 | |
(Gain) loss on equity securities | (455) | 870 | |
Other, net | 92 | 303 | |
1,189 | 2,555 | ||
Income before income tax provision | 9,827 | 5,127 | |
Income tax provision | 991 | 227 | |
Net income | $ 8,836 | $ 4,900 | |
Earnings per share: | |||
Basic earnings per share | $ 1.18 | $ 0.67 | |
Diluted earnings per share | $ 1.17 | $ 0.66 | |
Basic weighted average shares outstanding | 7,482 | 7,363 | |
Diluted weighted average shares outstanding | 7,552 | 7,447 | |
CONSOLIDATED ADJUSTED EBITDA RECONCILIATION (UNAUDITED) | |||||||||||
Quarter Ended | LTM | ||||||||||
3/31/2025 | 6/30/2025 | 9/30/2025 | 12/31/2025 | 3/31/2026 | 3/31/2026 | ||||||
(in thousands) | |||||||||||
Net income (loss) | $ 4,900 | $ 3,260 | $ 13,254 | $ (3,840) | $ 8,836 | $ 21,510 | |||||
Pension settlement charge | — | — | — | 7,804 | — | 7,804 | |||||
Income tax provision (benefit) | 227 | (1,266) | (7,297) | 3,906 | 991 | (3,666) | |||||
Interest expense | 1,774 | 1,944 | 1,087 | 949 | 1,658 | 5,638 | |||||
Interest income | (865) | (770) | (708) | (709) | (595) | (2,782) | |||||
Depreciation, depletion and amortization expense | 6,793 | 6,091 | 6,194 | 6,199 | 5,507 | 23,991 | |||||
Consolidated Adjusted EBITDA* | $ 12,829 | $ 9,259 | $ 12,530 | $ 14,309 | $ 16,397 | $ 52,495 | |||||
*Consolidated Adjusted EBITDA is a non-GAAP measure and should not be considered in isolation or as a substitute for GAAP measures. NACCO defines Consolidated Adjusted EBITDA as net income (loss) before pension settlement charge, income taxes, net interest expense and depreciation, depletion and amortization expense. Consolidated Adjusted EBITDA is not a measure under |
NACCO INDUSTRIES, INC. AND SUBSIDIARIES FINANCIAL SEGMENT HIGHLIGHTS AND SEGMENT ADJUSTED EBITDA RECONCILIATIONS (UNAUDITED)
| |||||||||||
Three Months Ended March 31, 2026 | |||||||||||
Utility Coal | Contract | Minerals and | Unallocated | Eliminations | Total | ||||||
(In thousands) | |||||||||||
Revenues | $ 16,691 | $ 32,639 | $ 9,546 | $ 4,831 | $ (932) | $ 62,775 | |||||
Cost of sales | 15,950 | 27,744 | 1,121 | 4,612 | (943) | 48,484 | |||||
Gross profit | 741 | 4,895 | 8,425 | 219 | 11 | 14,291 | |||||
Earnings of unconsolidated operations | 14,108 | 1,502 | 961 | — | — | 16,571 | |||||
Gain on sale of assets | — | (5) | (1) | — | — | (6) | |||||
Operating expenses* | 7,425 | 2,414 | 1,651 | 8,362 | — | 19,852 | |||||
Operating profit (loss) | $ 7,424 | $ 3,988 | $ 7,736 | $ (8,143) | $ 11 | $ 11,016 | |||||
Segment Adjusted EBITDA** | |||||||||||
Operating profit (loss) | $ 7,424 | $ 3,988 | $ 7,736 | $ (8,143) | $ 11 | $ 11,016 | |||||
Depreciation, depletion and amortization | 2,312 | 1,998 | 887 | 310 | — | 5,507 | |||||
Segment Adjusted EBITDA** | $ 9,736 | $ 5,986 | $ 8,623 | $ (7,833) | $ 11 | $ 16,523 | |||||
Three Months Ended March 31, 2025 | |||||||||||
Utility Coal | Contract | Minerals and | Unallocated | Eliminations | Total | ||||||
(In thousands) | |||||||||||
Revenues | $ 19,239 | $ 31,526 | $ 10,902 | $ 4,400 | $ (496) | $ 65,571 | |||||
Cost of sales | 22,570 | 28,378 | 2,244 | 3,237 | (512) | 55,917 | |||||
Gross profit (loss) | (3,331) | 3,148 | 8,658 | 1,163 | 16 | 9,654 | |||||
Earnings of unconsolidated operations | 14,463 | 969 | 554 | — | — | 15,986 | |||||
Gain on sale of assets | (72) | — | — | — | — | (72) | |||||
Operating expenses* | 7,413 | 2,147 | 1,305 | 7,165 | — | 18,030 | |||||
Operating profit (loss) | $ 3,791 | $ 1,970 | $ 7,907 | $ (6,002) | $ 16 | $ 7,682 | |||||
Segment Adjusted EBITDA** | |||||||||||
Operating profit (loss) | $ 3,791 | $ 1,970 | $ 7,907 | $ (6,002) | $ 16 | $ 7,682 | |||||
Depreciation, depletion and amortization | 2,018 | 2,702 | 1,908 | 165 | — | 6,793 | |||||
Segment Adjusted EBITDA** | $ 5,809 | $ 4,672 | $ 9,815 | $ (5,837) | $ 16 | $ 14,475 | |||||
*Operating expenses consist of Selling, general and administrative expenses and Amortization of intangible assets. |
**Segment Adjusted EBITDA is a non-GAAP measure and should not be considered in isolation or as a substitute for GAAP measures. NACCO defines Segment Adjusted EBITDA as operating profit (loss) before depreciation, depletion and amortization expense. Segment Adjusted EBITDA is not a measure under |
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SOURCE NACCO Industries