Alpha Metallurgical Resources Adjusted EBITDA Reaches $29.4 Million

By Amara Osei

Alpha Metallurgical Resources reported a third-quarter 2026 net loss of $9.3 million, or $0.73 per diluted share. The metallurgical coal producer's loss narrowed from $12.3 million in the second quarter but widened from $5.5 million in the year-earlier period. Alpha's latest result improved sequentially but remained weaker than the year-ago comparison.

Alpha's adjusted EBITDA rose sequentially to $29.4 million from $25.6 million. The measure remained below the $41.7 million recorded in the prior-year quarter, showing better sequential earnings but a weaker year-over-year result. Alpha said cost pressures continued to weigh on profitability despite more normalized shipment volumes.

Andy Eidson, chief executive officer of Alpha Metallurgical Resources, said: “Our third quarter volumes improved as compared to the first two quarters of the year, but cost pressures continue to influence our financial results.”

What did shipments and pricing show?

Alpha Metallurgical Resources sold 3.9 million tons of metallurgical coal in the third quarter. The company increased shipments from 3.5 million tons in the second quarter and matched the prior-year period. That combination gave Alpha higher sequential activity without year-over-year volume growth.

Alpha's metallurgical segment revenue reached $560.6 million, compared with $491.5 million in the second quarter. The company reported revenue excluding freight and handling of $474.1 million. Alpha also recorded net realized pricing of $121.09 per ton, up from $118.71 in the second quarter.

Alpha's third-quarter data showed sequential gains in volume, pricing and segment revenue. Those gains accompanied a smaller net loss and a rise in adjusted EBITDA, but not a recovery in year-over-year profitability. The latest comparison therefore mixed better sequential operating signals with weaker year-over-year results.

What did cash flow and capital spending show?

Alpha generated $46.9 million of operating cash flow during the third quarter. The company reported $39.9 million in the second quarter and $50.6 million in the year-earlier period. Alpha's cash generation improved sequentially but remained below the prior-year level.

Alpha spent $33.8 million on capital expenditures in the third quarter. The company reduced spending from $45.1 million in the second quarter, but outlays remained above the $25.1 million recorded in the prior-year quarter. Alpha's operating cash flow covered its reported capital spending during the period.

The cash measures moved in opposite directions in each comparison. Operating cash flow improved sequentially and declined year over year; capital spending fell sequentially and increased year over year.

What has Alpha committed to for 2027?

Alpha announced commitments to ship 3.5 million tons to domestic customers in 2027. The company said the domestic commitments provide a base for next year's sales program. Alpha separately identified additional seaborne commitments as a 2027 priority.

Alpha said its operational guidance accounts for damage to stacker-reclaimer equipment at Dominion Terminal Associates. The company also said the guidance reflects the expected effect of that damage on terminal capacity. The equipment issue makes terminal availability a direct operating variable for Alpha's future shipments.

To limit disruption while replacement work proceeds, Alpha plans to use capacity at other Hampton Roads terminals. The alternative-terminal approach gives the company a way to protect shipment continuity during the replacement work.

Alpha called the improved sequential loss, higher volumes and stronger operating cash flow constructive. The company also said the year-over-year decline in adjusted EBITDA showed the effect of costs and market conditions.

For 2027, Alpha said execution on logistics alternatives, cost management and additional seaborne commitments will be important to performance. The immediate logistics test is whether the company can use other Hampton Roads capacity to limit disruption while replacement work proceeds.