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Solar impairment drives Q2 2026 loss at NACCO Industries (NYSE: NC)

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

NACCO Industries reported Q2 2026 revenue of $72.3 million, up 6% year over year. Gross profit rose to $15.2 million, a 123% increase, and Consolidated Adjusted EBITDA reached $15.9 million, 72% above Q2 2025, though slightly below Q1 2026.

Results were weighed down by $12.0 million of solar asset impairment charges, leading to an operating loss of $2.3 million and a net loss of $1.0 million, or $0.13 per share, versus prior-year net income of $3.3 million, or $0.44 per share. Contract Mining and Minerals & Royalties delivered strong profit growth, while Unallocated results reflected the solar charges. Debt was $120.1 million and total liquidity $114.6 million at June 30, 2026. Management expects full-year 2026 Consolidated Adjusted EBITDA to improve versus 2025, but operating profit and net income to be significantly lower, with performance moderating in the second half and improving again in 2027.

Positive

  • Adjusted EBITDA surged 72% year over year to $15.9 million in Q2 2026, reflecting stronger underlying operating performance across segments despite solar-related impairment charges.
  • Contract Mining posted substantial growth, with Q2 2026 revenues excluding reimbursables up 34% and operating profit rising to $3.8 million, supported by a new dragline services contract and higher limestone demand.

Negative

  • Net income swung to a loss, from Q2 2025 net income of $3.3 million to a Q2 2026 net loss of $1.0 million, or $(0.13) per diluted share, driven largely by $12.0 million of solar asset impairments.
  • Full-year 2026 earnings are expected to decline, with operating profit and net income projected to be significantly lower than 2025 due to realized and anticipated solar project curtailment costs and inventory write-downs.

Filing Explained

Solar investments are under reassessment; potential sales or contract changes could lead to additional curtailment costs, but no outcome is reported.

This August 5, 2026 Form 8-K is a completed earnings disclosure: under Item 2.02, the company furnished its unaudited second-quarter results, while the release says solar-project actions could create further curtailment costs.

Here, Item 2.02 furnishes historical operating information; the filing states that this information is not deemed filed for Section 18 purposes.

In early July, the company began pursuing potential asset sales, contract amendments and other strategic actions to monetize certain solar investments and reduce its exposure; the release does not report that any of these actions has been completed.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Q2 2026 Revenue $72,310 thousand Three months ended June 30, 2026; up 6% from $68,235 thousand in Q2 2025
Q2 2026 Gross Profit $15,202 thousand Three months ended June 30, 2026; 123% above $6,820 thousand in Q2 2025
Q2 2026 Net Income (Loss) $(963) thousand Three months ended June 30, 2026; versus $3,260 thousand net income in Q2 2025
Q2 2026 Diluted EPS $(0.13) Three months ended June 30, 2026; compared with $0.44 in Q2 2025
Q2 2026 Consolidated Adjusted EBITDA $15,908 thousand Three months ended June 30, 2026; 72% higher than $9,259 thousand in Q2 2025
Solar Asset Impairment Charges $11,984 thousand Asset impairment charges related to certain solar development projects in Q2 2026
Debt Outstanding $120.1 million Debt balance at June 30, 2026
Total Liquidity $114.6 million As of June 30, 2026, including $45.5 million of cash and $69.1 million revolver availability
Adjusted EBITDA financial
"Adjusted EBITDA of $15.9 million up 72% over Q2 2025; down 3% sequentially"
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.
Segment Adjusted EBITDA financial
"Segment Adjusted EBITDA is a non-GAAP measure and should not be considered in isolation"
Segment adjusted EBITDA is a measure of how much profit a specific part of a company generates from its everyday operations, before counting interest, taxes, depreciation, amortization and one‑off items. Investors use it like checking the fuel efficiency of one car in a fleet: it helps compare which business lines truly earn money, evaluate trend performance, and decide where to invest or cut costs without distortions from financing or accounting choices.
asset impairment charges financial
"Operating loss of $2.3 million includes $12.0 million of solar asset impairment charges"
Asset impairment charges happen when a company realizes that the value of something it owns, like equipment or property, has dropped significantly and is now worth less than its current book value. This is important because it shows the company needs to write down the asset's value on its financial records, which can affect its profits and overall financial health.
mitigation credits financial
"Mitigation Resources is expected to deliver increasing profitability over time from the sale of mitigation credits"
Mitigation credits are tradable permits that represent a verified reduction, replacement or protection of environmental harm—such as restoring wetlands, preserving habitat, or cutting greenhouse gas emissions—that a company can buy or sell to meet legal or voluntary environmental obligations. For investors they matter because these credits are both a regulatory cost and a potential asset: they can reduce a company’s compliance liabilities, create a new revenue stream, and affect project economics much like buying insurance or holding a scarce coupon that proves you met a required standard.
closed mine obligations financial
"Closed mine obligations | 445 | | | 503 | | | 934 | | | 976"
Revenue $72,310 thousand up 6% from $68,235 thousand in Q2 2025
Gross Profit $15,202 thousand up 123% from $6,820 thousand in Q2 2025
Net Income (Loss) $(963) thousand down from $3,260 thousand net income in Q2 2025
Diluted EPS $(0.13) declined from $0.44 in Q2 2025
Consolidated Adjusted EBITDA $15,908 thousand up 72% from $9,259 thousand in Q2 2025
Guidance

Management expects full-year 2026 Consolidated Adjusted EBITDA to improve versus 2025, excluding solar impairments and a 2025 pension settlement charge, but projects full-year operating profit and net income will be significantly lower than in 2025, with second-half results moderating before improving in 2027.

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FAQ

How did NACCO Industries (NC) perform financially in Q2 2026?
NACCO reported Q2 2026 revenue of $72.3 million, up 6% year over year, with gross profit of $15.2 million, a 123% increase. Consolidated Adjusted EBITDA rose 72% to $15.9 million, demonstrating stronger underlying operations despite impairment charges.

Why did NACCO Industries (NC) report a net loss in Q2 2026?
NACCO recorded a Q2 2026 net loss of $1.0 million, or $(0.13) per diluted share, primarily due to $12.0 million of solar asset impairment charges within ReGen Resources. Without these charges, operating performance was stronger across most segments.

What is NACCO Industries’ (NC) liquidity and debt position as of June 30, 2026?
At June 30, 2026, NACCO had outstanding debt of $120.1 million and total liquidity of $114.6 million, including $45.5 million of cash and $69.1 million of availability under its revolving credit facility, supporting ongoing investment and balance sheet priorities.

How did NACCO Industries’ (NC) major segments perform in Q2 2026?
Utility Coal Mining, Contract Mining and Minerals & Royalties all showed year-over-year profit improvement. Contract Mining’s revenues excluding reimbursables rose 34%, while Minerals & Royalties increased revenues and Segment Adjusted EBITDA on higher oil prices and favorable pricing adjustments.

What outlook did NACCO Industries (NC) provide for full-year 2026 and 2027?
NACCO expects full-year 2026 Consolidated Adjusted EBITDA to improve versus 2025, excluding solar impairments and a prior pension charge, but operating profit and net income to be significantly lower. For 2027, management anticipates improved profitability, particularly in Contract Mining and coal operations.

How are solar investments affecting NACCO Industries’ (NC) results and guidance?
Solar investments led to $12.0 million of Q2 2026 impairment charges and could incur additional curtailment costs as NACCO pursues asset sales, contract amendments and other actions, contributing to expectations that 2026 operating profit and net income will be significantly below 2025.
0000789933falseChicago Stock Exchange, Inc.00007899332026-08-052026-08-050000789933exch:XNYS2026-08-052026-08-050000789933exch:XCHI2026-08-052026-08-05


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549

 _______________________________________________________________________________________________________________________________________________________________________________________________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):August 5, 2026
NACCO INDUSTRIES, INC.
(Exact name of registrant as specified in its charter)
Delaware1-917234-1505819
(State or other jurisdiction of incorporation)(Commission File Number)(IRS Employer Identification No.)
22901 Millcreek Blvd.
Suite 600
Cleveland, Ohio44122
(Address of principal executive offices)(Zip code)
(440)229-5151
(Registrant's telephone number, including area code)
N/A
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act
Title of each class
Trading Symbol
Name of each exchange on which registered
Class A Common Stock, $1 par value per shareNCNew York Stock Exchange
Class A Common Stock, $1 par value per shareNCNew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter):
Emerging growth company       ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.     ☐


Item 2.02 Results of Operations and Financial Condition.
    
On August 5, 2026, NACCO Industries, Inc. (the Company) issued a press release announcing the unaudited financial results for the three and six months ended June 30, 2026, a copy of which is attached as Exhibit 99 to this Current Report on Form 8-K.
    
The information set forth in Item 2.02 of this Current Report on Form 8-K and the information attached hereto are being furnished by the Company pursuant to Item 2.02 of Form 8-K, insofar as they disclose historical information regarding the Company's results of operations.

The information in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99, shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits.

As described in Item 2.02 of this Current Report on Form 8-K, the following Exhibit is furnished as part of this Current Report on Form 8-K.
    

(d) Exhibits
99
NACCO Industries, Inc. second quarter ended June 30, 2026 earnings release, dated August 5, 2026
104Cover Page Interactive Data File (embedded within the Inline XBRL document)




SIGNATURES

    Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date:August 5, 2026NACCO INDUSTRIES, INC.
By:/s/ Elizabeth I. Loveman
Elizabeth I. Loveman
Senior Vice President and Controller



Exhibit 99

naccoindnew2025logoregistea.jpg                                                 
NEWS RELEASE22901 Millcreek Boulevard • Suite 600 • Cleveland, Ohio 44122
Tel. (440) 229-5151
FOR FURTHER INFORMATION, CONTACT:
Christina KmetkoFor Immediate Release
(440) 229-5130Wednesday, August 5, 2026
NACCO INDUSTRIES
ANNOUNCES SECOND QUARTER 2026 RESULTS

Consolidated Q2 2026 Highlights:
•Gross profit of $15.2 million improved 123% over Q2 2025 on 6% revenue increase
•Operating loss of $2.3 million includes $12.0 million of solar asset impairment charges
•Net loss of $1.0 million, or $0.13 per share, versus Q2 2025 net income of $3.3 million, or $0.44 per share
•Adjusted EBITDA of $15.9 million up 72% over Q2 2025; down 3% sequentially

Cleveland, Ohio, Wednesday, August 5, 2026 - NACCO Industries® (NYSE: NC) today announced consolidated results for the three and six months ended June 30, 2026.

"NACCO delivered significant year-over-year improvement in both gross profit and Adjusted EBITDA," said J.C. Butler, NACCO President and Chief Executive Officer. "While consolidated results included asset impairment charges related to solar projects, underlying momentum across our segments during the first half of 2026 remained strong. We expect operating performance to moderate in the second half, but the growth opportunities underway and our disciplined capital criteria give us confidence in our trajectory as we move into 2027. We will continue to focus on executing our business plan, strengthening our balance sheet and creating long-term value for our shareholders."

Three Months Ended
($ in thousands, except per share amounts)
6/30/20266/30/2025
Year/Year % Change
3/31/2026
Sequential % Change
Revenues$72,310$68,2356%$62,77515%
Gross profit$15,202$6,820123%$14,2916%
Asset impairment charges$11,984$—**n/m$—**n/m
Operating profit (loss)$(2,267)$(51)**n/m$11,016(121)%
Net Income (loss)$(963)$3,260(130)%$8,836**n/m
Diluted EPS$(0.13)$0.44(130)%$1.17**n/m
Consolidated Adjusted EBITDA*
$15,908$9,25972%$16,397(3)%
*Non-GAAP financial measures are defined and reconciled on page 8. / ** n/m = not meaningful

Strong second-quarter 2026 performance across each reportable segment led to substantial year-over-year improvements in gross profit. This strong operating performance was more than offset by impairment charges related to certain solar development projects within ReGen Resources.

1

Excluding the effect of the impairment charges, operating results decreased moderately from the first quarter of 2026. The decline was primarily due to lower earnings than anticipated from an equity investment in the Minerals and Royalties segment. In the Coal Mining segment, operational issues at Mississippi Lignite Mining Company's customer's power plant and reduced earnings of unconsolidated mines also contributed to the decline.

Liquidity
At June 30, 2026, the Company had outstanding debt of $120.1 million. Total liquidity was $114.6 million, which consisted of $45.5 million of cash and $69.1 million of availability under our revolving credit facility. Consistent with our focus on balance sheet strength, we are prioritizing the use of free cash flow to enhance liquidity and reduce debt while continuing to fund disciplined, high-return investment opportunities.

Detailed Discussion of 2026 Second Quarter Compared to 2025 Second Quarter

Utility Coal Mining Results
20262025
Tons of coal delivered(in thousands)
        Unconsolidated operations4,920 3,736 
        Consolidated operations633 890 
                        Total deliveries5,553 4,626 

20262025
(in thousands)
Revenues$21,477 $28,626 
Gross profit (loss)$373 $(1,701)
Earnings of unconsolidated operations$13,646 $11,656 
Operating expenses(1)
$7,739 $8,733 
Operating profit
$6,280 $1,222 
Segment Adjusted EBITDA(2)
$8,684 $3,354 
(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 9.

Utility Coal Mining revenues decreased 25% from the prior year. Operational issues at Mississippi Lignite Mining Company's customer's power plant during the 2026 second quarter resulted in a decline in consolidated tons delivered. Favorable contractual pricing partly offset the effect of reduced deliveries.

Despite lower revenues, operating profit and Segment Adjusted EBITDA improved significantly year over year. These gains primarily reflect improved Mississippi Lignite Mining Company results, increased earnings of unconsolidated operations and decreased operating expenses.

Mississippi Lignite Mining Company results benefited from redeploying crews to execute planned reclamation activities during power plant outages. These factors drove a meaningful improvement in gross profit compared with the prior year, when results were affected by a $1.3 million inventory impairment charge.

Earnings of unconsolidated operations improved year over year primarily due to increased customer requirements at Coteau and Coyote Creek.

2

Contract Mining Results
20262025
(in thousands)
Tons delivered16,013 13,947 

20262025
(in thousands)


Total revenues
$36,919 $30,723 
Reimbursable costs20,480 18,503 
Revenues excluding reimbursable costs$16,439 $12,220 
Operating profit$3,765 $1,010 
Segment Adjusted EBITDA(1)
$6,258 $3,927 
(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 9.

Second-quarter 2026 results benefited from the commencement and ramp up of a new dragline services contract, reflecting continued progress in the strategic expansion of Contract Mining's business model. This contract combined with increased customer requirements at the limestone mining operations led to a 34% increase in revenues, net of reimbursed costs, and substantial year-over-year increases in both operating profit and Segment Adjusted EBITDA.

Minerals and Royalties Results
20262025
(in thousands)
Revenues $10,617 $7,268 
Operating profit $6,748 $5,205 
Segment Adjusted EBITDA(1)
$7,692 $6,050 
(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 9.

Minerals and Royalties revenues, operating profit and Segment Adjusted EBITDA increased primarily due to a 46% increase in royalty revenues. The improvements were primarily driven by higher oil prices and a favorable adjustment to prior period pricing estimates. The revenue growth was partially offset by lower second-quarter 2026 earnings from an equity investment.

Unallocated

20262025
(in thousands)
Revenues$3,297 $1,618 
Asset impairment charges$11,984 $— 
Operating loss$(19,060)$(7,488)
Segment Adjusted EBITDA(1)
$(6,807)$(7,291)
(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 9.

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

Unallocated revenues increased over the prior year quarter primarily as a result of higher restoration and reclamation service revenue at Mitigation Resources. The significant increase in the operating loss is due to the impairment charges of $12 million for certain solar development projects within ReGen Resources. Excluding these impairment charges, the Unallocated operating loss and Segment Adjusted EBITDA improved moderately year over year.
3

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 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 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. As part of this process, changing market conditions, regulatory developments and project-specific challenges led us to reassess certain solar investments during the 2026 second quarter. In early July, we began pursuing a range of alternatives, including potential asset sales, contract amendments and other strategic actions, to monetize these investments and reduce our exposure. Depending on the outcome of these activities, additional curtailment costs could be incurred.

Strong first-half 2026 operating performance across our reportable segments is expected to drive year‑over‑year improvements in full-year 2026 Consolidated Adjusted EBITDA, which excludes the solar impairment charges and a $7.8 million pre-tax pension settlement charge recorded in 2025. While we expect Consolidated Adjusted EBITDA to remain strong in the second half of 2026, growth is expected to moderate relative to both the first half of 2026 and prior-year periods.

We also expect second-half consolidated operating profit and net income to decline from first-half 2026 and prior-year levels. Expectations for lower second-half operating profit are primarily driven by potential additional solar project curtailment costs and expected inventory write-downs at Mississippi Lignite Mining Company. Given the effect of the realized and anticipated 2026 charges, we expect full-year operating profit and net income will be significantly lower than in 2025. Comparisons to prior-year net income also reflect a $6.0 million after-tax pension settlement charge recognized in the second half of 2025.

At our Utility Coal Mining segment, operated by North American Coal®, full-year customer demand is expected to be comparable and operating profit is expected to increase year over year due to a shift in focus to reclamation activities in the first half of 2026. During the second half of 2026, customer demand is expected to decline modestly compared with the prior-year period, provided Mississippi Lignite Mining Company's customer's power plant operates as currently planned. Operating results at Mississippi Lignite Mining Company are expected to decline from the first half of 2026, particularly in the third quarter, due to lower customer demand, higher diesel fuel costs and an anticipated inventory impairment charge. A higher contractually determined per ton sales price is anticipated to mitigate the lower demand. Earnings at the unconsolidated mining operations are also expected to decline primarily due to reclamation services at the Sabine Mining Company concluding as of September 30, 2026.


4

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. Anticipated improved results at the remaining unconsolidated mining locations should mostly 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 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 new dragline services contract as part of a U.S. Army Corps of Engineers construction project in Palm Beach County, Florida. We also anticipate commencing operations at a new limestone quarry in Arizona during fourth-quarter 2026.

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 as lithium production commences and ramps up to full production, which is targeted for 2028.

As a result of earnings contributions from new contracts, we anticipate substantial year-over-year growth in Contract Mining operating profit and Segment Adjusted EBITDA for both the second half and full year of 2026. Second-half results are expected to moderate from the strong first-half levels as customer demand is projected to decline, primarily in the fourth quarter.

We expect significant operating profit improvement in the Contract Mining segment in 2027. This growth is driven by a full year of the dragline services contract in Palm Beach County, Florida, and contributions from operations at the Arizona quarry as well as potential new deals in the pipeline.

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 that has working interests in oil and natural gas assets. Anticipated increases in income from Eiger and the benefit of higher oil prices are projected to be more than offset by anticipated production declines and a changing mix of production and development activity. As a result, operating profit and Segment Adjusted EBITDA are expected to decline compared with the first half of 2026 as well as the second-half and full-year 2025. The Minerals and Royalties segment is projected to continue generating meaningful earnings and cash flow in 2027, while operating profit is expected to moderate primarily due to normal production declines and a continuation of the current moderate pace of domestic development activity. Changes in commodity prices or production and development assumptions, including effects of the ongoing Middle East conflict, could alter current expectations.

Mitigation Resources of North America® provides natural resource restoration and reclamation services that include stream and wetland mitigation solutions. Mitigation Resources is successfully 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 2027 and move toward more consistent and improving results over
5

time as the business expands and its portfolio of mitigation projects matures.

We continue to invest in our businesses to support future growth. Based on the current project pipeline, we anticipate investing up to $35 million in the remainder of the year, primarily for business development opportunities. These expenditures will be made only if projects meet our disciplined capital investment criteria. While we anticipate a moderate year-over-year increase in cash generated from operations, cash flow before financing is projected to remain a use of cash in 2026, reflecting our planned investment activity. We expect full-year 2026 cash flow before financing to improve modestly over 2025, and continue to improve into 2027.

We remain confident in our ability to deliver improving results and increasing cash flow over time. 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, as our recent investments mature, they are expected to support sustained earnings growth and stronger cash flow.

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.

****

Conference Call
In conjunction with this news release, the management of NACCO Industries will host a conference call on Thursday, August 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:3241028, 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 August 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
6

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 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 ENDEDSIX MONTHS ENDED
JUNE 30JUNE 30
2026202520262025
(In thousands, except per share data)
Revenues$72,310 $68,235 $135,085 $133,806 
Cost of sales57,108 61,415 105,592 117,332 
Gross profit15,202 6,820 29,493 16,474 
Earnings of unconsolidated operations14,164 13,138 30,735 29,124 
Operating expenses
Selling, general and administrative expenses19,248 19,773 38,949 37,641 
Amortization of intangible assets196 245 347 407 
Loss (gain) on sale of assets
205 (9)199 (81)
    Asset impairment charges11,984 — 11,984 — 
31,633 20,009 51,479 37,967 
Operating profit (loss)(2,267)(51)8,749 7,631 
Other expense (income)
Interest expense1,620 1,944 3,278 3,718 
Interest income(633)(770)(1,228)(1,635)
Closed mine obligations445 503 934 976 
(Gain) loss on equity securities(858)(349)(1,313)521 
  Gain on settlement of excess funding liability— (3,590)— (3,590)
Other, net332 217 424 520 
906 (2,045)2,095 510 
Income (loss) before income tax benefit(3,173)1,994 6,654 7,121 
Income tax benefit(2,210)(1,266)(1,219)(1,039)
Net income (loss)$(963)$3,260 $7,873 $8,160 
Earnings (loss) per share:
Basic earnings (loss) per share$(0.13)$0.44 $1.05 $1.10 
Diluted earnings (loss) per share$(0.13)$0.44 $1.04 $1.10 
Basic weighted average shares outstanding7,542 7,445 7,508 7,398 
Diluted weighted average shares outstanding7,542 7,445 7,548 7,446 
CONSOLIDATED ADJUSTED EBITDA RECONCILIATION (UNAUDITED)
Quarter EndedLTM
6/30/20259/30/202512/31/20253/31/20266/30/20266/30/2026
(in thousands)
Net income (loss) $3,260 $13,254 $(3,840)$8,836 $(963)$17,287 
Pension settlement charge— — 7,804 — — 7,804 
Asset impairment charges— — — — 11,984 11,984 
Income tax provision (benefit)(1,266)(7,297)3,906 991 (2,210)(4,610)
Interest expense1,944 1,087 949 1,658 1,620 5,314 
Interest income(770)(708)(709)(595)(633)(2,645)
Depreciation, depletion and amortization expense6,091 6,194 6,199 5,507 6,110 24,010 
Consolidated Adjusted EBITDA*$9,259 $12,530 $14,309 $16,397 $15,908 $59,144 
*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, 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.

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NACCO INDUSTRIES, INC. AND SUBSIDIARIES
FINANCIAL SEGMENT HIGHLIGHTS AND SEGMENT ADJUSTED EBITDA RECONCILIATIONS (UNAUDITED)

Three Months Ended June 30, 2026
Utility Coal MiningContract MiningMinerals and RoyaltiesUnallocated ItemsEliminationsTotal
(In thousands)
Revenues$21,477 $36,919 $10,617 $4,433 $(1,136)$72,310 
Cost of sales21,104 32,045 1,278 3,815 (1,134)57,108 
Gross profit (loss)373 4,874 9,339 618 (2)15,202 
Earnings (loss) of unconsolidated operations13,646 1,579 (1,061)— — 14,164 
Loss (gain) on sale of assets122 105 — (22)— 205 
Asset impairment charges— — — 11,984 — 11,984 
Operating expenses*7,617 2,583 1,530 7,714 — 19,444 
Operating profit (loss)$6,280 $3,765 $6,748 $(19,058)$(2)$(2,267)
Segment Adjusted EBITDA**
Operating profit (loss)$6,280 $3,765 $6,748 $(19,058)$(2)$(2,267)
Depreciation, depletion and amortization2,404 2,493 944 269 — 6,110 
Asset impairment charges— — — 11,984 — 11,984 
Segment Adjusted EBITDA**$8,684 $6,258 $7,692 $(6,805)$(2)$15,827 

Three Months Ended June 30, 2025
Utility Coal MiningContract MiningMinerals and RoyaltiesUnallocated ItemsEliminationsTotal
(In thousands)
Revenues$28,626 $30,723 $7,268 $2,223 $(605)$68,235 
Cost of sales30,327 28,659 986 2,051 (608)61,415 
Gross profit (loss)(1,701)2,064 6,282 172 3 6,820 
Earnings (loss) of unconsolidated operations11,656 1,232 251 (1)— 13,138 
(Gain) loss on sale of assets(14)— — 5 — (9)
Operating expenses*8,747 2,286 1,328 7,657 — 20,018 
Operating profit (loss)$1,222 $1,010 $5,205 $(7,491)$3 $(51)
Segment Adjusted EBITDA**
Operating profit (loss)$1,222 $1,010 $5,205 $(7,491)$3 $(51)
Depreciation, depletion and amortization2,132 2,917 845 197 — 6,091 
Segment Adjusted EBITDA**$3,354 $3,927 $6,050 $(7,294)$3 $6,040 
*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 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.






9




NACCO INDUSTRIES, INC. AND SUBSIDIARIES
FINANCIAL SEGMENT HIGHLIGHTS AND SEGMENT ADJUSTED EBITDA RECONCILIATIONS (UNAUDITED)

Six Months Ended June 30, 2026
Utility Coal MiningContract MiningMinerals and RoyaltiesUnallocated ItemsEliminationsTotal
(In thousands)
Revenues$38,168 $69,558 $20,163 $9,264 $(2,068)$135,085 
Cost of sales37,054 59,789 2,399 8,427 (2,077)105,592 
Gross profit 1,114 9,769 17,764 837 9 29,493 
Earnings (loss) of unconsolidated operations27,754 3,081 (100)— — 30,735 
Loss (gain) on sale of assets122 100 (1)(22)— 199 
Asset impairment charges— — — 11,984 — 11,984 
Operating expenses*15,042 4,997 3,181 16,076 — 39,296 
Operating profit (loss)$13,704 $7,753 $14,484 $(27,201)$9 $8,749 
Segment Adjusted EBITDA**
Operating profit (loss)$13,704 $7,753 $14,484 $(27,201)$9 $8,749 
Depreciation, depletion and amortization4,716 4,491 1,831 579 — 11,617 
Asset impairment charges— — — 11,984 — 11,984 
Segment Adjusted EBITDA**$18,420 $12,244 $16,315 $(14,638)$9 $32,350 

Six Months Ended June 30, 2025
Utility Coal MiningContract MiningMinerals and RoyaltiesUnallocated ItemsEliminationsTotal
(In thousands)
Revenues$47,865 $62,249 $18,170 $6,623 $(1,101)$133,806 
Cost of sales52,897 57,037 3,230 5,288 (1,120)117,332 
Gross profit (loss)(5,032)5,212 14,940 1,335 19 16,474 
Earnings (loss) of unconsolidated operations26,119 2,201 805 (1)— 29,124 
(Gain) loss on sale of assets(86)— — 5 — (81)
Operating expenses*16,160 4,433 2,633 14,822 — 38,048 
Operating profit (loss)$5,013 $2,980 $13,112 $(13,493)$19 $7,631 
Segment Adjusted EBITDA**
Operating profit (loss)$5,013 $2,980 $13,112 $(13,493)$19 $7,631 
Depreciation, depletion and amortization4,150 5,619 2,753 362 — 12,884 
Segment Adjusted EBITDA**$9,163 $8,599 $15,865 $(13,131)$19 $20,515 
*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 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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