Consolidated Q1 2026 Highlights:
Gross profit of $14.3 million improved 48% over Q1 2025 on 4% revenue decrease
Operating profit of $11.0 million up 43% over Q1 2025 and 45% sequentially
Net income of $8.8 million increased 80% over Q1 2025
Diluted EPS of $1.17 versus $0.66 in Q1 2025
Adjusted EBITDA of $16.4 million improved 28% over Q1 2025 and 15% sequentially
NACCO Industries® (NYSE:NC) today announced consolidated results for the three months ended March 31, 2026. First-quarter 2026 results demonstrated strong earnings growth momentum both year-over-year and sequentially. Meaningful operating profit growth in the Utility Coal and Contract Mining segments drove the year-over-year improvement, while sequential growth was led by Contract Mining primarily as a result of the commencement of a new U.S. Army Corps of Engineers construction project in Florida. Higher unallocated expenses partly offset the year-over-year improvement. Overall, the increase in operating profit combined with improvement in other investment income contributed to the substantial year-over-year increase in net income.
"We delivered a strong start to 2026, reporting significant growth in profitability," said J.C. Butler, NACCO President and Chief Executive Officer." These results reflect continued execution of our business model and the strength of our operations, particularly in the Utility Coal and Contract Mining segments. As we move forward, we plan to build on this momentum through investments in our growth platforms which are expected to deliver improvements in profitability and cash generation. We are encouraged by our performance and remain confident in our ability to generate long-term value for shareholders."
Three Months Ended
($ in thousands, except per share amounts)
3/31/2026
3/31/2025
Year/Year % Change
12/31/2025
Sequential % Change
Revenues
$62,775
$65,571
(4) %
$66,778
(6) %
Gross profit
$14,291
$9,654
48 %
$12,028
19 %
Operating profit
$11,016
$7,682
43 %
$7,573
45 %
Net Income (Loss)
$8,836
$4,900
80 %
$(3,840)
**n/m
Diluted EPS
$1.17
$0.66
77 %
$(0.52)
**n/m
Consolidated Adjusted EBITDA*
$16,397
$12,829
28 %
$14,309
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 $126.4 million. Total liquidity was $102.7 million, which consisted of $53.2 million of cash and $49.5 million of availability under our revolving credit facility.
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 13% from the prior year. A maintenance outage at Mississippi Lignite Mining Company's customer's power plant during the 2026 first quarter resulted in a decline in tons delivered. As anticipated, favorable contractual pricing partly offset the effect of reduced deliveries.
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 $3.0 million inventory impairment charge.
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 32% increase in revenues, net of reimbursed costs, and substantial year-over-year increases in both operating profit and Segment Adjusted EBITDA. A change in depreciation estimates during the current quarter also contributed $0.9 million to the improved operating profit.
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 North America®, ReGen Resources and other developing businesses that are not directly attributable to our reportable segments. Reduced profitability at Mitigation Resources and a modest asset impairment charge drove the increase in the Unallocated operating loss and Segment Adjusted EBITDA.
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 $6 million after-tax pension settlement charge in 2025, year‑over‑year growth is expected to moderate in the second half of 2026 as ...
