Key Highlights

  • Diluted EPS at NACCO Industries (NYSE:NC) slipped to USD 1.44 from USD 1.78, with Net Income at USD 10.9 million versus USD 13.3 million.
  • Operating profit grew to USD 9.3 million from USD 6.8 million, roughly 37% higher (calculated), with Revenue of USD 80.5 million against USD 76.6 million.
  • Contract Mining's operating profit went from USD 1.9 million to USD 4.9 million, Utility Coal Mining's from USD 5.0 million to USD 6.6 million, and Minerals and Royalties eased to USD 7.7 million.
  • Receivables at Mississippi Lignite Mining Company totaled USD 25.5 million at September 30, 2026, and USD 8.8 million was overdue because a customer postponed coal invoice payments.

Operating Gains Coexist With a Lower Earnings Per Share Figure

NACCO Industries (NYSE:NC), whose NACCO Natural Resources unit operates surface coal mines, provides contract mining services and holds mineral and Royalty interests, submitted its Quarterly Report on November 4, 2026. Operating profit improved, but net income declined because of taxes: the company recorded a USD 1.6 million tax provision against a USD 7.3 million benefit a year earlier, an effective rate of 13.0% versus negative 122.5%. Interest expense doubled to USD 2.2 million from USD 1.1 million on heavier average borrowing and higher rates, while a USD 4.5 million gain from settling excess pension funding tied to the Sabine plan partly cushioned results. For nine months, net income reached USD 18.8 million, or USD 2.49 per diluted share, against USD 21.4 million, or USD 2.87.

Contract Mining Expansion and Utility Coal Price Gains

Contract Mining revenue excluding reimbursable costs jumped 75.1% in the quarter, helped by a new dragline mining services contract and greater equipment sales, and its operating profit improved by USD 3.0 million. A change in Depreciation method for draglines and other large equipment, effective January 1, 2026, also reduced depreciation expense. Utility Coal Mining revenue advanced 5.7% on a higher contractually set price per ton, even though customer requirements declined, and the quarter carried a USD 0.9 million inventory Impairment versus USD 2.7 million a year earlier. Minerals and Royalties revenue fell to USD 6.1 million from USD 9.3 million, and unallocated costs widened to USD 10.0 million from USD 8.1 million.

Late Customer Payments, Revolver Use and Capital Spending

In July 2026, the customer of the Mississippi Lignite Mining Company informed it that coal invoice payments would be delayed because operational problems at the Red Hills Power Plant reduced the customer's cash receipts. Some invoices have been paid, but others remain outstanding, and management says collection timing is uncertain. Operating Cash Flow over nine months dropped to USD 29.2 million from USD 39.5 million. Borrowings under the USD 200.0 million revolving Facility stood at USD 105.5 million, leaving USD 58.7 million of availability. Capital spending totaled USD 44.3 million, with about USD 32 million planned for the rest of 2026, and cash dividends paid were USD 5.9 million for the nine months. The company reported compliance with all covenants and provided no guidance.

Where Things Stand

Operating profit is higher, so the answer is partly yes: the underlying mining businesses improved, mainly Contract Mining. Still, NACCO Industries (NYSE:NC) reported lower earnings per share, because a tax benefit from a year earlier did not recur and interest costs rose. The risks are concentrated in one customer's payment delays, rising Debt and a smaller royalty contribution. The filing gives no share price move or consensus figure. Watch collections from the Red Hills customer, revolver use and the contract mining ramp-up.