Warrior Met Coal, Inc. specializes in the extraction and international distribution of coking coal, a critical raw material for steel production. The ...
Warrior Met Coal, Inc. is a large-scale, low-cost producer and exporter of premium hard coking coal (HCC), operating highly efficient longwall operations in Alabama. The company specializes in the extraction and international distribution of coking coal, a critical raw material for steel production. Its primary client base consists of blast ...Warrior Met Coal, Inc. is a large-scale, low-cost producer and exporter of premium hard coking coal (HCC), operating highly efficient longwall operations in Alabama. The company specializes in the extraction and international distribution of coking coal, a critical raw material for steel production. Its primary client base consists of blast furnace steel producers, predominantly located across Europe, South America, and Asia. In addition to coal, the company also sells natural gas, which is recovered as a byproduct of its mining activities. Established as a corporation in 2015, Warrior Met Coal maintains its headquarters in Brookwood, Alabama. The company was formed with backing from private equity firms Apollo Global Management, Blackstone Inc., KKR, and Franklin Mutual. Warrior Met Coal operates three active mines in Tuscaloosa County and has approximately 1,400 employees. The company is committed to environmental and social responsibility, with a lower incidence rate than the U.S. rate. Financially, Warrior Met Coal has a market capitalization of around $4.86 billion, a price-to-earnings ratio of 22.1, and a dividend yield of 0.3%. The company reported a gross profit margin of 41.8% and a net profit margin of 13.1% for the trailing twelve months. With a beta of 0.671, the stock is less volatile than the market. Warrior Met Coal trades on the New York Stock Exchange under the symbol HCC. The company is led by CEO Walter J. Scheller, III, and has a strong focus on delivering high-quality met coal to global steelmakers while maintaining operational efficiency and sustainability.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$1.3B
-14.1%
+11.1%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$57.0M
-77.3%
+20.9%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+8.5%
-91.2%
-67.5%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+3.5%
-79.2%
+7.2%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+4.4%
-73.5%
+8.7%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$-91.0M
-1.4%
+212.5%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
-6.9%
-18.1%
+201.2%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
12.7%
+52.9%
-14.8%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
3.19x
-38.7%
+12.9%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Good afternoon. My name is Drew, and I will be your conference operator today. At this time, I would like to welcome everyone to the Warrior's Second Quarter 2026 Financial Results Conference Call. [Operator Instructions] This call is being recorded and will be available for replay on the company's website. I would now like to turn the call over to Brian Chopin, Chief Accounting Officer and Controller.
Brian M. Chopin: Good afternoon, and welcome, everyone, to Warrior's Second Quarter 2026 Earnings Conference Call. Before we begin, let me remind you that certain statements made during this call, including statements relating to our expected future business and financial performance, may be considered forward-looking statements according to the Private Securities Litigation Reform Act. Forward-looking statements, by their nature, address matters that are to different degrees uncertain. These uncertainties, which are described in more detail in the company's annual and quarterly reports filed with the SEC, may cause our actual future results to be materially different from those expected in our forward-looking statements. We do not undertake to update our forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law. For more information regarding forward-looking statements, please refer to the company's press releases and SEC filings. We'll also be discussing certain non-GAAP financial measures, which are defined and reconciled to comparable GAAP financial measures in our second quarter press release furnished to the SEC on Form 8-K, which is also posted on our website. Additionally, we will be filing our Form 10-Q for the quarter ended June 30, 2026, with the SEC this afternoon. You can find additional information regarding the company on our website at www.warriormetcoal.com, which also includes a second quarter supplemental slide deck that was posted this afternoon. Today on the call with me are Mr. Walt Scheller, Chief Executive Officer; and Mr. Dale Boyles, Chief Financial Officer. After our formal remarks, we'll be happy to answer any questions. With that, I will now turn the call over to Walt.
Walter Scheller: Thanks, Brian. Hello, everyone, and thank you for taking the time to join us today to discuss our second quarter 2026 results. I'll start by providing an overview of the quarter before Dale reviews our results in additional detail. The second quarter marked a key inflection point as we clearly realized the incremental earnings and cash flow contributions of Blue Creek. We believe there's even more value to be realized as we work towards Blue Creek's full potential. This inflection point was characterized by significant margin expansion and generation of more than $103 million of free cash flow, which came as a result of record sales volumes, improved pricing, and a lower cost profile. These results brought free cash flow to a positive $11 million at the …