Key Highlights

  • Third-quarter Revenue reached USD 507.9 million, a 54.6% jump (calculated), as steelmaking coal sales Volume grew 48.2%.
  • Net income of USD 49.3 million equated to USD 0.93 per diluted share, compared with USD 36.6 million, or USD 0.70, in the prior-year quarter, which carried a USD 13.7 million tax benefit.
  • Adjusted EBITDA, a non-GAAP figure, reached USD 124.0 million, up from USD 70.6 million, as the average net selling price edged higher to USD 158.25 per metric ton.
  • Nine-month Operating Cash Flow totaled USD 286.5 million, and cash stood at USD 437.1 million at quarter end, with Capital spending easing to USD 136.2 million.

Blue Creek Volume Lifts Adjusted EBITDA by Roughly Three-Quarters

Warrior Met Coal (NYSE:HCC) submitted its 10-Q on November 4, 2026, covering the period ended September 30. The Alabama-based producer supplies non-thermal steelmaking coal to customers in Europe, South America and Asia. Output hit 2.8 million metric tons, a 35.8% increase, with the Blue Creek mine, which started longwall operations in October 2025, leading the gain. Sales reached USD 501.0 million, with higher volume adding USD 154.1 million and price contributing USD 27.0 million. Adjusted EBITDA, a non-GAAP measure, rose about 75.6% (calculated), and Operating Income reached USD 50.8 million, compared with USD 20.7 million. Management's production commentary ties the uplift to a full quarter of longwall output rather than one-off tonnage.

Cost per Ton Climbs as Depreciation and Tax Effects Shift

Cost of sales expanded USD 129.0 million, to USD 368.5 million, but as a share of revenue it slipped to 72.6% from 72.9%. Cash cost per metric ton went up USD 4.73, reflecting fewer tons from Mine No. 7 over which to spread costs, higher variable transport and Royalty expense, and inflation, partly countered by Blue Creek's lower unit cost and a Section 45X credit. Depreciation and depletion rose to USD 68.1 million, while interest expense roughly doubled to USD 4.5 million as Capitalized Interest came to an end. The tax line was a USD 0.4 million benefit, down from USD 13.7 million. For the nine months, profit totaled USD 209.1 million, which works out to USD 3.96 a share, while the year-earlier span produced USD 34.0 million, or USD 0.65.

Customer Mix, Capital Plans and the Open Labor Contract

Sales were split 55% to Asia, 35% to Europe and 10% to South America, a shift from a year earlier when Europe took 43% and Asia 38%, and the company attributes swings in the mix to shipment timing. Construction at Blue Creek finished in the first quarter, with total project spending of USD 1,028.1 million. Capital spending for full-year 2026 is projected between USD 155.0 million and USD 190.0 million. The quarterly Dividend held at USD 0.08 per share. Labor is still an open matter, as the filing describes negotiations over the hourly workforce contract, which it dates to an April 1, 2021 expiry.

Where Things Stand

Blue Creek volume did most of the work, with price adding only a modest lift. Adjusted EBITDA rose to USD 124.0 million, against USD 70.6 million, since sales volume grew 48.2% and the net selling price improved USD 8.52 per metric ton. Offsetting that, cost per ton rose, depreciation climbed and last year's quarter enjoyed a larger tax benefit. Next checkpoints are the fourth-quarter volume ramp, unit costs as Blue Creek matures, the customer mix, and the labor contract. The company also keeps a labor negotiation open, so cost risk is not fully behind it.