HCC earnings analysis
What we found in HCC's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Warrior Met Coal, Inc. reported Q1 2026 earnings with total revenues of $458.6 million and net income of $72.3 million, translating to EPS of $1.37, slightly below the consensus estimate of $1.38. The overall performance showed a significant year-over-year improvement, driven primarily by higher sales volumes and pricing from the Blue Creek mine operations, although free cash flow remained negative due to increased capital expenditures.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Improved Revenue Performance
- Total revenues rose to $458.6 million, up 53% from $299.9 million in Q1 2025.
- Strong Volume Growth
- Steelmaking coal sales volume increased by 38.2%, totaling 2.7 million metric tons.
- Increase in Average Selling Price
- Average selling price per metric ton rose to $164.70 from $149.71 YoY, a $14.99 increase.
- Positive Operating Income
- Operating income for Q1 2026 was $79.4 million compared to a loss of $17.4 million in Q1 2025.
- Successful Blue Creek Operations
- Blue Creek mine's contribution enhanced production capacity, achieving 3.2 million metric tons produced this quarter.
- Significant Segment EBITDA Growth
- Segment Adjusted EBITDA increased to $158.1 million, up from $49.2 million YoY.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Negative Free Cash Flow
- Net cash used in operating activities was $11.7 million, highlighting liquidity pressure.
- Increased Working Capital Needs
- Total working capital rose significantly due to higher inventories and accounts receivable, impacting cash flow.
- Commodity price volatility
- Market demand for steelmaking coal remains uncertain, especially with mixed demand from key customers like China.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $1.37
- Gross margin
- 36.7%
- Operating margin
- 17.3%
- Segment
- Mining
What they said about what is next.
Full year sales guidance is maintained, targeting 12.5 - 13.5 million short tons for sales and 12.0 - 13.0 million short tons for production.
The filing reads about the same as the one before it.
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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