NACCO INDUSTRIES ANNOUNCES THIRD QUARTER 2026 RESULTS

Higher operating profit was outweighed by increased income tax expense, leaving quarterly net income below the prior-year level.

Rhea-AI Summary

NACCO Industries (NYSE: NC) reported third-quarter 2026 net income of $10.9 million, down year over year as income tax expense increased. Revenue rose 5% to $80.5 million, while diluted earnings per share fell 19% to $1.44. Operating profit increased 37% to $9.3 million despite $3.4 million of solar curtailment costs. Adjusted EBITDA, a non-GAAP earnings measure, rose 63% to $20.4 million.

Contract Mining and Utility Coal Mining improved operating profit, while Minerals and Royalties revenue declined. Other income included a $4.5 million pension-related settlement gain. At September 30, debt was $124.8 million and liquidity totaled $115.2 million. NACCO expects full-year operating profit comparable to 2025, including approximately $15 million of solar-related charges recognized through September, and expects additional solar costs in the fourth quarter.

21 points · 0 major

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0 major · 17 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointRevenue rose 5% year over year to $80.494 million in third-quarter 2026.
• Moderate pointGross profit increased 18% year over year to $11.783 million, but declined 22% sequentially.
• Moderate pointOperating profit rose 37% year over year to $9.257 million.
• Moderate pointPretax income increased 110% year over year to $12.536 million.
• Moderate pointAdjusted EBITDA increased 63% year over year and 28% sequentially to $20.374 million.
• Moderate pointUtility Coal Mining operating profit increased to $6.607 million from $4.987 million year over year.
• Moderate pointContract Mining revenue excluding reimbursable costs rose 75% year over year to $22.151 million.
• Moderate pointContract Mining operating profit increased to $4.912 million from $1.929 million year over year.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Contract Mining outlook anticipates substantial operating profit and adjusted EBITDA growth for fourth-quarter and full-year 2026.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Utility Coal Mining full-year 2026 operating profit is expected to increase over 2025.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Thacker Pass mining agreement provides construction-period income and expected increased income as production ramps under a 20-year contract.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Full-year consolidated adjusted EBITDA is expected to increase substantially year over year.

9 minor points

• Minor pointPension funding liability settlement generated a $4.5 million gain in other income.
• Minor pointUtility Coal Mining revenue increased to $20.766 million from $19.654 million year over year.
• Minor pointUtility Coal Mining adjusted EBITDA increased to $8.919 million from $7.122 million year over year.
• Minor pointUtility Coal Mining deliveries increased to 6.216 million tons from 6.078 million tons year over year.
• Minor pointContract Mining adjusted EBITDA increased to $7.625 million from $4.706 million year over year.
• Minor pointUnallocated revenue increased to $5.341 million from $2.036 million year over year.
• Minor pointArizona limestone quarry operations began in early October under a contract spanning over a decade.
• Minor point. Forward-looking: it has not happened yet and may not happen.Contract Mining operating profit is expected to grow further in 2027.
• Minor point. Forward-looking: it has not happened yet and may not happen.Mitigation Resources is expected to generate a profit in fourth-quarter 2026 and in 2027.

Negative

• Moderate pointNet income fell 18% year over year to $10.908 million; diluted EPS fell 19% to $1.44.
• Moderate pointSolar curtailment costs totaled $3.4 million in third-quarter 2026. 1.3% of market cap
• Moderate point. Forward-looking: it has not happened yet and may not happen.Additional solar costs are expected in fourth-quarter 2026 and may arise in future years.
• Moderate pointOutstanding debt totaled $124.8 million at September 30, 2026.
• Moderate pointMinerals and Royalties revenue declined to $6.133 million from $9.313 million year over year.
• Moderate pointUnallocated operating loss widened to $9.937 million from $8.107 million year over year.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Utility Coal Mining fourth-quarter results are expected to decline year over year on reduced demand and higher diesel costs.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Minerals and Royalties outlook expects operating profit and adjusted EBITDA declines for fourth-quarter and full-year 2026.

9 minor points

• Minor pointIncome tax provision reached $1.628 million, versus a $7.297 million benefit in third-quarter 2025.
• Minor pointMinerals and Royalties operating profit declined to $7.675 million from $7.968 million year over year.
• Minor pointMinerals and Royalties adjusted EBITDA declined to $8.717 million from $8.903 million year over year.
• Minor pointContract Mining deliveries declined to 14.288 million tons from 14.385 million tons year over year.
• Minor pointUnallocated adjusted EBITDA loss widened to $9.676 million from $7.760 million year over year.
• Minor pointSabine reclamation income ends after its owner assumed reclamation activities effective October 1, 2026.
• Minor point. Forward-looking: it has not happened yet and may not happen.Utility Coal Mining's expected 2027 profitability improvement depends partly on more consistent operation of its customer's power plant.
• Minor point. Forward-looking: it has not happened yet and may not happen.Thacker Pass production timing depends on construction; Lithium Americas targets mechanical completion in late 2027 and commercial ramp-up through 2028.
• Minor point. Forward-looking: it has not happened yet and may not happen.Minerals and Royalties 2027 operating profit is expected to moderate from 2026 levels.

News Explained

NACCO’s investment figures are conditional ceilings; its Arizona quarry contract is already operating.

Alongside its third-quarter results, NACCO reports that it commenced operations in early October 2026 at an Arizona limestone quarry under a contract spanning over a decade, making this an active long-term service arrangement.

The company anticipates investing up to $32 million during the remainder of 2026 and up to $56 million in 2027; because it says investments will be made only if new proposals meet its criteria, these are ceilings rather than fixed spending commitments.

At Thacker Pass, Sawtooth Mining has a 20-year contract that provides income while the customer’s lithium facility is under construction; the customer targets mechanical completion in late 2027, with production ramp-up through 2028.

For its solar projects, NACCO continues to evaluate sales, contract amendments and other transactions to monetize value; it may incur further costs in future years, with their amount and timing depending on counterparty discussions and efforts to transfer ownership or otherwise monetize the projects.

Key Figures

Gross profit: $11.8 million; up 18% year over year Income before taxes: $12.5 million; improved $6.6 million year over year Operating profit: $9.3 million; up 37% year over year +5 more

Gross profit

$11.8 million; up 18% year over year

Q3 2026

Income before taxes

$12.5 million; improved $6.6 million year over year

Q3 2026

Operating profit

$9.3 million; up 37% year over year

Q3 2026

Net income

$10.9 million; down from $13.3 million

Q3 2026 versus Q3 2025

Adjusted EBITDA

$20.4 million; up 63% year over year

Q3 2026

Solar curtailment costs

$3.4 million

Q3 2026

Outstanding debt

$124.8 million

At September 30, 2026

Total liquidity

$115.2 million

At September 30, 2026

Previous Earnings Reports

1 past event · Latest: Aug 05

Same Type 1 event

1. Aug 05

   Q2 earnings report

   24h Move

   -9.2%

   Q2 included a $12.0 million solar impairment, operating loss, and net loss.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

adjusted ebitda, non-gaap, diluted eps, revolving credit facility

4 terms

adjusted ebitda financial

"Adjusted EBITDA of $20.4 million increased 63% over Q3 2025"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

non-gaap financial

"Non-GAAP financial measures are defined and reconciled on page 9."

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

diluted eps financial

"Diluted EPS | $1.44 | $1.78 | (19) %"

Diluted earnings per share (EPS) shows how much profit a company makes for each share of stock, assuming all possible shares from stock options or convertible securities are used. It provides a more conservative estimate than basic EPS, accounting for potential share increases that could dilute ownership. Investors use diluted EPS to get a clearer picture of a company's true profitability on a per-share basis.

revolving credit facility financial

"$58.7 million of availability under our revolving credit facility."

A revolving credit facility is a type of loan that a business can borrow from whenever it needs money, up to a set limit. It’s like having a credit card for companies—allowing them to borrow, pay back, and borrow again as needed, providing flexibility for managing cash flow or funding short-term expenses.

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CLEVELAND, Nov. 4, 2026 /PRNewswire/ -- 

Consolidated Q3 2026 Highlights:

• Gross profit of $11.8 million improved 18% year over year on increased revenue
• Income before taxes of $12.5 million improved $6.6 million over Q3 2025
  • Operating profit of $9.3 million, which includes solar curtailment costs of $3.4 million, rose $2.5 million, or 37%, over Q3 2025
  • Other income includes a $4.5 million excess funding liability settlement gain
• Net income of $10.9 million decreased from $13.3 million in Q3 2025 due to higher income tax expense
• Adjusted EBITDA of $20.4 million increased 63% over Q3 2025 and 28% sequentially

NACCO Industries^® (NYSE: NC) today announced consolidated results for the three and nine months ended September 30, 2026.

"NACCO's third-quarter results reflect continued progress in strengthening the performance of our businesses," said J.C. Butler, NACCO President and Chief Executive Officer. "Strong improvements in operating profitability and Adjusted EBITDA demonstrate the momentum we are building across the organization, even as we incur costs associated with the curtailment of certain solar development activities. We delivered solid results with increasing contributions from newer projects and contracts and remain focused on building on this progress to create a stronger foundation for future growth and long-term shareholder value."

	Three Months Ended
($ in thousands)	9/30/2026	9/30/2025	Year/Year % Change	6/30/2026	Sequential % Change
Revenues	$80,494	$76,614	5 %	$72,310	11 %
Gross profit	$11,783	$9,971	18 %	$15,202	(22) %
Solar curtailment costs (Q3) / Asset impairment charges (Q2)	$3,375	$—	**n/m	$11,984	**n/m
Operating profit (loss)	$9,257	$6,777	37 %	$(2,267)	**n/m
Other (income) expense, net	$(3,279)	$820	(500) %	$906	**n/m
Income before taxes	$12,536	$5,957	110 %	$(3,173)	**n/m
	Three Months Ended
($ in thousands, except per share amounts)	9/30/2026	9/30/2025	Year/Year % Change	6/30/2026	Sequential % Change
Income before taxes	$12,536	$5,957	110 %	$(3,173)	**n/m
Income tax provision (benefit)	$1,628	$(7,297)	**n/m	$(2,210)	**n/m
Net Income (loss)	$10,908	$13,254	(18) %	$(963)	**n/m
Diluted EPS	$1.44	$1.78	(19) %	$(0.13)	**n/m
Consolidated Adjusted EBITDA*	$20,374	$12,530	63 %	$15,908	28 %

^{*Non-GAAP financial measures are defined and reconciled on page 9. / ** n/m = not meaningful}

Third-quarter operating performance improved over the prior-year quarter, led by higher operating profit in the Contract Mining and Utility Coal Mining segments. The improvement in these segments more than offset lower Unallocated results, which included $3.4 million of solar curtailment-related costs. Minerals and Royalties' results were comparable year over year, with higher equity earnings largely offsetting lower royalty revenues.

Income before taxes improved year over year, driven by higher operating profit and an approximately $4 million improvement in other income (expense), primarily attributable to a $4.5 million gain associated with the settlement of an excess pension funding liability. A substantial increase in income tax expense more than offset the improvement in income before tax resulting in lower net income year over year.

Liquidity

At September 30, 2026, the Company had outstanding debt of $124.8 million. Total liquidity was $115.2 million, which consisted of $56.5 million of cash and $58.7 million of availability under our revolving credit facility. We remain focused on maintaining a strong balance sheet by enhancing liquidity and reducing debt over time, while preserving the flexibility to fund disciplined, high-return investment opportunities.

Detailed Discussion of 2026 Third Quarter Compared to 2025 Third Quarter

Utility Coal Mining Results

	2026			2025
Tons of coal delivered	(in thousands)
Unconsolidated operations		5,644			5,469
Consolidated operations		572			609
Total deliveries		6,216			6,078
	2026			2025
	(in thousands)
Revenues	$	20,766		$	19,654
Gross profit (loss)	$	(55)		$	(1,857)
Earnings of unconsolidated operations	$	14,333		$	14,311
Operating expenses(1)	$	7,671		$	7,467
Operating profit	$	6,607		$	4,987
Segment Adjusted EBITDA(2)	$	8,919		$	7,122

(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 10.

Utility Coal Mining delivered improved year-over-year operating profit and Segment Adjusted EBITDA, benefiting from improved contractual pricing and lower inventory impairment charges at Mississippi Lignite Mining Company.

Contract Mining Results

	2026		2025
	(in thousands)
Tons delivered	14,288		14,385
	2026		2025
	(in thousands)
Total revenues	$     48,254		$     45,611
Reimbursable costs	26,103		32,959
Revenues excluding reimbursable costs	$     22,151		$     12,652
Operating profit	$       4,912		$       1,929
Segment Adjusted EBITDA(1)	$       7,625		$       4,706

(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 10.

Third-quarter 2026 results improved substantially with the continued ramp up of the new dragline services contract in Palm Beach County, Florida, reflecting ongoing progress in the strategic expansion of Contract Mining's business model. Contributions from this new contract more than offset lower customer requirements at the limestone mining operations, resulting in a 75% increase in revenues excluding reimbursable costs, and substantial year-over-year and sequential improvements in operating profit and Segment Adjusted EBITDA.

Minerals and Royalties Results

	2026		2025
	(in thousands)
Revenues	$       6,133		$       9,313
Operating profit	$       7,675		$       7,968
Segment Adjusted EBITDA(1)	$       8,717		$       8,903

(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 10.

At Minerals and Royalties, a substantial increase in third-quarter earnings from an equity investment supported comparable year-over-year operating profit and Segment Adjusted EBITDA, largely offsetting lower royalty revenues. Lower natural gas production and pricing primarily drove the royalty revenue decline, while an increase in oil production and pricing partly offset the decrease.

Unallocated

	2026			2025
	(in thousands)
Revenues	$	5,341		$	2,036
Solar curtailment costs	$	3,375		$	—
Operating loss	$	(9,937)		$	(8,107)
Segment Adjusted EBITDA(1)	$	(9,676)		$	(7,760)

(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 10.

Unallocated primarily includes the financial results of Mitigation Resources of North America^® and other developing businesses that are not directly attributable to our reportable segments, as well as Bellaire Corporation, solar development and public company administrative costs.

Unallocated revenues increased over the prior-year quarter primarily as a result of higher restoration and reclamation service revenue, as well as stream and wetland credit sales at Mitigation Resources, while results were affected by $3.4 million of solar curtailment costs. Excluding these costs, the Unallocated operating loss and Segment Adjusted EBITDA improved year over year.

Outlook

NACCO Industries is a 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 purposefully 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 entrepreneurial, yet patient approach. We have methodically built distinctive 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, as evidenced by our reportable segments each contributing over $7 million of Segment Adjusted EBITDA in third-quarter 2026.

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 over time.

While these long-term agreements and investments are intended to strengthen our earnings base over time, we continually evaluate whether individual projects or initiatives remain aligned with our strategic and financial objectives. During the second quarter of 2026, changing market conditions, regulatory developments and project-specific challenges led us to reassess certain solar investments. We continue to evaluate strategic alternatives for our solar development projects, including project sales, contract amendments and other transactions intended to monetize project value. We recognized $3.4 million of curtailment costs in third-quarter 2026. We expect to incur certain additional costs in fourth-quarter 2026 and may incur further costs associated with these projects in future years; however, the amount and timing of such costs will depend on ongoing discussions with counterparties and our efforts to transfer ownership of, or otherwise monetize, the projects.

At our Utility Coal Mining segment, operated by North American Coal^®, full-year 2026 operating profit is expected to increase over 2025. At Mississippi Lignite Mining Company, full-year operating results are expected to improve primarily due to the shift in focus to reclamation activities in the first half of 2026 and lower year-over-year inventory impairment charges, while earnings at the unconsolidated mining operations are anticipated to be comparable to 2025. 

Full-year Utility Coal Mining operating profit is anticipated to improve, while fourth-quarter operating results are expected to be lower than the prior-year quarter due to reduced customer demand and higher diesel fuel costs at Mississippi Lignite Mining Company. Earnings at the unconsolidated mining operations are also expected to contribute to the decline primarily due to Sabine Mining Company's owner assuming reclamation activities effective October 1, 2026.

Looking ahead to 2027, overall customer demand for coal is expected to remain consistent with 2026, while profitability is expected to improve. This increase is driven by anticipated improvements at Mississippi Lignite Mining Company if the customer's power plant is able to operate more consistently, as well as continued stable earnings at our unconsolidated operations. Improved results at Coteau and Falkirk are expected to largely offset the absence of reclamation income at the Sabine Mining Company.

The Contract Mining segment, operated by North American Mining^®, serves as our mining growth platform. We are building a 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 new multi-year dragline services contract as part of a U.S. Army Corps of Engineers construction project in Palm Beach County, Florida. In early October, we also commenced operations at a new limestone quarry in Arizona under a contract mining agreement that spans over a decade.

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 the lithium-bearing ore requirements for our customer's Thacker Pass lithium processing facility, which is currently under construction. This project provides stable income during construction and is expected to contribute increased income and long-term cash flows as lithium production commences and ramps up to full production under a 20-year contract mining agreement. Lithium Americas is targeting mechanical completion of Thacker Pass Phase 1 in late 2027, with ramp-up to commercial production through 2028.

As a result of earnings contributions from new long-term contracts, we anticipate substantial year-over-year growth in Contract Mining operating profit and Segment Adjusted EBITDA in both the fourth-quarter and full-year 2026. We expect continued Contract Mining operating profit growth in 2027, which will include a full year of contributions from the Palm Beach County, Florida and Arizona quarry contracts.

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 the United States. The Catapult team is expanding its portfolio by leveraging a data-driven approach to capital deployment that incorporates a longer-term view of production and development. This segment also holds a meaningful equity investment in Eiger Resources, which holds working interests in oil and natural gas assets.

We expect fourth-quarter and full-year 2026 operating profit and Segment Adjusted EBITDA at Minerals and Royalties to decline from the respective prior-year periods, primarily as a result of lower anticipated royalty income, partially offset by higher expected income from Eiger Resources. In 2027, the Minerals and Royalties segment is expected to continue generating meaningful earnings and cash flow, although operating profit is expected to moderate from 2026 levels.

Mitigation Resources of North America^® provides natural resource restoration and reclamation services that include stream and wetland mitigation solutions. Mitigation Resources is leveraging its strong reputation and clear competitive strengths to expand into additional mitigation, restoration and reclamation markets. Mitigation Resources is expected to deliver increasing profitability over time from the sale of mitigation credits and as reclamation and restoration services expand. This business, while currently variable in performance due to permit and project timing, is expected to generate a profit in the 2026 fourth quarter and in 2027. We expect the business to move toward more consistent and improving results over time as its portfolio of mitigation projects matures.

Overall, full-year consolidated operating profit is expected to be comparable to the prior year, including approximately $15 million of solar-related impairment and curtailment costs recognized through third-quarter 2026. Strong underlying business performance through the first nine months of 2026 positions NACCO to deliver a substantial year-over-year increase in full-year consolidated Adjusted EBITDA, which excludes solar impairment charges recognized in second-quarter 2026 and a $7.8 million pension settlement charge, $6.0 million after tax, recorded in fourth-quarter 2025. Income before income taxes and net income are also expected to increase year over year.

In the fourth quarter, net income is expected to increase year over year, primarily due to the absence of the pension settlement charge. Fourth-quarter 2026 consolidated operating profit and Adjusted EBITDA could be lower than the prior-year quarter depending on the timing of solar project curtailment costs.

We remain confident in our ability to deliver improving results and increasing cash flow over time. We expect meaningful year-over-year improvements in operating profit, net income and Consolidated EBITDA in 2027. Earnings are expected to benefit from continued expansion in Contract Mining and Mitigation Resources, along with improved operating performance across our other businesses. Looking ahead, our recent investments are expected to support sustained earnings growth and stronger cash flow as they mature.

NACCO continues to invest in its businesses to support future growth. We anticipate investing up to $32 million during the remainder of 2026 and up to $56 million in 2027. Both periods include Minerals and Royalties' annual budget of $20 million for growth investments. In addition, the 2027 estimate includes approximately $16 million related to Sawtooth that will be recovered from the customer over a five- year period. The remaining 2027 balance primarily relates to ongoing operations and other business development opportunities. Growth investments will be made only if new project proposals meet our disciplined investment criteria. While cash generated from operations is expected to increase moderately year over year, cash flow before financing is projected to remain a use of cash in 2026, reflecting our planned investment activity. We expect the full-year 2026 use of cash before financing to improve modestly over 2025. In 2027, cash flow before financing is expected to improve as recent investments contribute to earnings.

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 creates 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 shareholders, 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.

****

Conference Call

NACCO Industries will host a conference call on Thursday, November 5, 2026, at 8:30 a.m. Eastern Time to discuss the results. The call may be accessed by dialing (888) 880-3330 (North America Toll Free) or (646) 357-8766 (International), Conference ID: 6737879, or over the Internet through the Company's website at ir.nacco.com/overview. For those not planning to ask a question of management, we recommend 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 November 12, 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 U.S. generally accepted accounting principles (GAAP). Adjusted EBITDA and Segment Adjusted EBITDA are provided solely as supplemental non-GAAP disclosures of operating results. Management believes that Adjusted EBITDA and Segment Adjusted EBITDA assist investors in understanding the results of operations of NACCO Industries. In addition, management evaluates results using these non-GAAP measures.

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 from extended power plant outages, weather conditions or other events that would change the level of customers' coal or aggregates requirements, (2) customer liquidity constraints that could increase exposure to customer credit risk, (3) 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, (4) changes to or termination of customer or other third-party contracts, or a customer or other third party default under a contract, (5) costs to pursue and develop new mining, mitigation, oil and gas and power generation development opportunities and other value-added service opportunities, (6) the ability to successfully evaluate investments and achieve intended financial results in new business and growth initiatives, (7) changes in development plans by third-party lessees of the Company's mineral interests, (8) 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, (9) any customer's early retirement or premature facility closure or extended project development delay, (10) federal and state legislative and regulatory actions affecting fossil fuels, (11) supply chain disruptions, including price increases and shortages of parts and materials, inclusive of tariff effects, (12) 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, (13) impairment charges, (14) changes in costs related to geological and geotechnical conditions, repairs and maintenance, new equipment and replacement parts, fuel or other similar items, (15) equipment problems that could affect deliveries to customers, (16) changes in the costs to reclaim mining areas, (17) 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 (18) the ability to attract, retain, and replace workforce.

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									NINE MONTHS ENDED
				SEPTEMBER 30									SEPTEMBER 30
				2026				2025					2026					2025
				(In thousands, except per share data)
Revenues				$     80,494				$      76,614					$    215,579					$    210,420
Cost of sales				68,711				66,643					174,303					183,975
Gross profit				11,783				9,971					41,276					26,445
Earnings of unconsolidated operations				20,007				16,494					50,742					45,618
Operating expenses
Selling, general and administrative expenses				19,006				19,549					57,955					57,190
Amortization of intangible assets				164				167					511					574
(Gain) loss on sale of assets				(12)				(28)					187					(109)
Solar asset impairment charges				—				—					11,984					—
Solar curtailment costs				3,375				—					3,375					—
				22,533				19,688					74,012					57,655
Operating profit				9,257				6,777					18,006					14,408
Other (income) expense
Interest expense				2,197				1,087					5,475					4,805
Interest income				(687)				(708)					(1,915)					(2,343)
Closed mine obligations				497				478					1,431					1,454
(Gain) loss on equity securities				(497)				(284)					(1,810)					237
Gain on settlements of excess funding liabilities				(4,475)				—					(4,475)					(3,590)
Other, net				(314)				247					110					767
				(3,279)				820					(1,184)					1,330
Income before income tax provision (benefit)				12,536				5,957					19,190					13,078
Income tax provision (benefit)				1,628				(7,297)					409					(8,336)
Net income				$     10,908				$      13,254					$     18,781					$      21,414
Earnings per share:
Basic earnings per share				$        1.44				$        1.78					$        2.50					$        2.89
Diluted earnings per share				$        1.44				$        1.78					$        2.49					$        2.87
Basic weighted average shares outstanding				7,549				7,454					7,520					7,415
Diluted weighted average shares outstanding				7,549				7,454					7,548					7,449

 

CONSOLIDATED ADJUSTED EBITDA RECONCILIATION (UNAUDITED)
	Quarter Ended																LTM
	9/30/2025		12/31/2025			3/31/2026				6/30/2026				9/30/2026			9/30/2026
			(in thousands)
Net income (loss)	$      13,254		$      (3,840)			$       8,836				$        (963)				$     10,908			$     14,941
Pension settlement charge	—		7,804			—				—				—			7,804
Solar asset impairment charges	—		—			—				11,984				—			11,984
Income tax provision (benefit)	(7,297)		3,906			991				(2,210)				1,628			4,315
Interest expense	1,087		949			1,658				1,620				2,197			6,424
Interest income	(708)		(709)			(595)				(633)				(687)			(2,624)
Depreciation, depletion and amortization expense	6,194		6,199			5,507				6,110				6,328			24,144
Consolidated Adjusted EBITDA*	$      12,530		$      14,309			$      16,397				$      15,908				$     20,374			$     66,988

*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, solar asset impairment charges, income taxes, net interest expense and depreciation, depletion and amortization expense. Consolidated Adjusted EBITDA is not a measure under U.S. GAAP and is not necessarily comparable to similarly titled measures of other companies.

 

NACCO INDUSTRIES, INC. AND SUBSIDIARIES FINANCIAL SEGMENT HIGHLIGHTS AND SEGMENT ADJUSTED EBITDA RECONCILIATIONS (UNAUDITED)
	Three Months Ended September 30, 2026
	Utility Coal Mining		Contract Mining		Minerals and Royalties		Unallocated Items		Eliminations		Total
	(In thousands)
Revenues	$     20,766		$     48,254		$       6,133		$      5,975		$      (634)		$     80,494
Cost of sales	20,821		42,529		1,288		4,766		(693)		68,711
Gross profit (loss)	(55)		5,725		4,845		1,209		59		11,783
Earnings (loss) of unconsolidated operations	14,333		1,424		4,256		(6)		—		20,007
Gain on sale of assets	—		—		—		(12)		—		(12)
Solar curtailment costs	—		—		—		3,375		—		3,375
Operating expenses*	7,671		2,237		1,426		7,836		—		19,170
Operating profit (loss)	$       6,607		$       4,912		$       7,675		$     (9,996)		$         59		$      9,257
Segment Adjusted EBITDA**
Operating profit (loss)	$       6,607		$       4,912		$       7,675		$     (9,996)		$         59		$      9,257
Depreciation, depletion and amortization	2,312		2,713		1,042		261		—		6,328
Segment Adjusted EBITDA**	$       8,919		$       7,625		$       8,717		$     (9,735)		$         59		$     15,585
	Three Months Ended September 30, 2025
	Utility Coal Mining		Contract Mining		Minerals and Royalties		Unallocated Items		Eliminations		Total
	(In thousands)
Revenues	$     19,654		$     45,611		$       9,313		$      2,958		$      (922)		$     76,614
Cost of sales	21,511		42,395		1,121		2,502		(886)		66,643
Gross profit (loss)	(1,857)		3,216		8,192		456		(36)		9,971
Earnings (loss) of unconsolidated operations	14,311		1,074		1,111		(2)		—		16,494
Gain on sale of assets	(17)		(2)		—		(9)		—		(28)
Operating expenses*	7,484		2,363		1,335		8,534		—		19,716
Operating profit (loss)	$      4,987		$      1,929		$       7,968		$     (8,071)		$        (36)		$      6,777
Segment Adjusted EBITDA**
Operating profit (loss)	$      4,987		$      1,929		$       7,968		$     (8,071)		$        (36)		$      6,777
Depreciation, depletion and amortization	2,135		2,777		935		347		—		6,194
Segment Adjusted EBITDA**	$      7,122		$      4,706		$       8,903		$     (7,724)		$        (36)		$     12,971

*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 solar asset impairment charges and depreciation, depletion and amortization expense. Segment Adjusted EBITDA is not a measure under U.S. GAAP and is not necessarily comparable with similarly titled measures of other companies.

 

NACCO INDUSTRIES, INC. AND SUBSIDIARIES FINANCIAL SEGMENT HIGHLIGHTS AND SEGMENT ADJUSTED EBITDA RECONCILIATIONS (UNAUDITED)
	Nine Months Ended September 30, 2026
	Utility Coal Mining		Contract Mining		Minerals and Royalties		Unallocated Items		Eliminations		Total
	(In thousands)
Revenues	$     58,934		$   117,812		$     26,296		$     15,239		$    (2,702)		$   215,579
Cost of sales	57,875		102,318		3,687		13,193		(2,770)		174,303
Gross profit	1,059		15,494		22,609		2,046		68		41,276
Earnings (loss) of unconsolidated operations	42,087		4,505		4,156		(6)		—		50,742
Loss (gain) on sale of assets	122		100		(1)		(34)		—		187
Solar asset impairment charges	—		—		—		11,984		—		11,984
Solar curtailment costs	—		—		—		3,375		—		3,375
Operating expenses*	22,713		7,234		4,607		23,912		—		58,466
Operating profit (loss)	$     20,311		$     12,665		$     22,159		$    (37,197)		$         68		$     18,006
Segment Adjusted EBITDA**
Operating profit (loss)	$     20,311		$     12,665		$     22,159		$    (37,197)		$         68		$     18,006
Depreciation, depletion and amortization	7,028		7,204		2,873		840		—		17,945
Solar asset impairment charges	—		—		—		11,984		—		11,984
Segment Adjusted EBITDA**	$     27,339		$     19,869		$     25,032		$    (24,373)		$         68		$     47,935
	Nine Months Ended September 30, 2025
	Utility Coal Mining		Contract Mining		Minerals and Royalties		Unallocated Items		Eliminations		Total
	(In thousands)
Revenues	$     67,519		$   107,860		$     27,483		$      9,581		$    (2,023)		$   210,420
Cost of sales	74,408		99,432		4,351		7,790		(2,006)		183,975
Gross profit (loss)	(6,889)		8,428		23,132		1,791		(17)		26,445
Earnings (loss) of unconsolidated operations	40,430		3,275		1,916		(3)		—		45,618
Gain on sale of assets	(103)		(2)		—		(4)		—		(109)
Operating expenses*	23,644		6,796		3,968		23,356		—		57,764
Operating profit (loss)	$     10,000		$      4,909		$     21,080		$    (21,564)		$        (17)		$     14,408
Segment Adjusted EBITDA**
Operating profit (loss)	$     10,000		$      4,909		$     21,080		$    (21,564)		$        (17)		$     14,408
Depreciation, depletion and amortization	6,285		8,396		3,688		709		—		19,078
Segment Adjusted EBITDA**	$     16,285		$     13,305		$     24,768		$    (20,855)		$        (17)		$     33,486

*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 solar asset impairment charges and depreciation, depletion and amortization expense. Segment Adjusted EBITDA is not a measure under U.S. GAAP and is not necessarily comparable with similarly titled measures of other companies.

 

 

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SOURCE NACCO Industries

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were NACCO's third-quarter 2026 earnings and revenue?

NACCO reported $10.908 million in net income, diluted earnings per share of $1.44 and revenue of $80.494 million. Compared with third-quarter 2025, net income declined 18%, diluted earnings per share declined 19% and revenue increased 5%.

How much liquidity did NACCO have at September 30, 2026?

NACCO had $115.2 million of total liquidity at September 30, 2026, consisting of $56.5 million in cash and $58.7 million available under its revolving credit facility. Outstanding debt was $124.8 million.

What options is NACCO considering for its solar development projects?

NACCO is evaluating project sales, contract amendments and other transactions intended to monetize its solar development projects. The company expects the amount and timing of further costs to depend on discussions with counterparties and efforts to transfer ownership or otherwise monetize the projects.