Ramaco Returns to Positive EBITDA, Expands Low-Vol Bet
Second-quarter revenue reached $144.8 million as shipments rebounded from the start of the year.
Ramaco Resources (METC), a metallurgical-coal producer, returned to positive adjusted EBITDA in the second quarter as higher sales volume and improved pricing offset deliberate production cuts in weak high-volatility coal markets. Adjusted EBITDA was $5.7 million, compared with negative $1.8 million in the first quarter and $9.0 million a year earlier.
The quarter advanced Ramaco’s shift toward premium low-volatility coal, where pricing had strengthened relative to high-volatility products. The spread between low-vol and high-vol coal widened to roughly $40 per ton, and Ramaco plans to raise low-vol coal to at least 50% of production over the next few years from about 25%.
Revenue rose 19% sequentially but fell 5% from $153.0 million a year earlier. Sales volume increased 18% from the first quarter to 1.056 million tons, slightly above guidance, while realized revenue per ton improved 2% to $116. The net loss narrowed to $15.4 million from $18.3 million sequentially, and the Class A diluted loss improved to $0.26 a share from $0.30. A year earlier, Ramaco lost $14.0 million, or $0.29 a share.
Production declined 2% sequentially and 7% from a year earlier to 931,000 tons as the company curtailed high-vol output. Cash cost rose $1 sequentially to $99 per ton amid a roughly 33% increase in diesel prices, though it remained below $100 for a fourth consecutive quarter. Cash margin expanded to $17 per ton from $16 in the first quarter but fell from $20 a year earlier.
Ramaco approved a $25 million expansion at its Maben operation that is expected to add 600,000 annual tons of premium low-vol coal at full capacity, with cash margins roughly double the second-quarter level. The Maben and Berwind projects together are expected to add more than 1 million annualized low-vol tons in 2027. Quarterly capital spending rose 60% sequentially to $27.4 million, and full-year capital-expenditure guidance increased to $92 million to $97 million from $85 million to $90 million.
The company now expects 2026 production of 3.6 million to 3.9 million tons, down from 3.7 million to 4.1 million, and sales of 4.0 million to 4.3 million tons, down from 4.1 million to 4.5 million. Cash costs are forecast at $96 to $99 per ton, with third-quarter costs trending toward the high end because of elevated fuel prices. Third-quarter shipments are expected to range from 950,000 to 1.1 million tons.
Committed 2026 sales totaled 3.8 million tons, including 2.5 million fixed-price tons averaging $121 per ton and 1.3 million export tons tied to market indices. Ramaco ended the quarter with $400.1 million of liquidity and no revolver borrowings after repurchasing 3.5 million Class A shares for roughly $51 million during the period.