Alpha Metallurgical Resources Cuts Guidance as Storm Damage, Falling Margins Weigh on Quarter
The coal producer lowered its 2026 shipment outlook after storm damage at its DTA terminal compounded a fourth straight quarterly net loss.
Alpha Metallurgical Resources (AMR) posted a net loss of $12.3 million in the second quarter of 2026, widening from $11.0 million in the prior quarter and $5.0 million a year earlier, as lower coal prices, reduced shipment volumes and a storm-related operational disruption at its DTA terminal converged on results.
The quarter extended a losing streak that now spans four consecutive periods, with losses widening from $5.5 million in the third quarter of 2025 to $17.3 million in the fourth quarter before narrowing slightly in the first quarter of 2026 and then expanding again. Adjusted EBITDA fell to $25.6 million, down 15 percent from the first quarter and 44 percent from the year-ago period, continuing a slide from $53.2 million in the fourth quarter of 2024.
Revenue pressure came from both volume and price. Tons of coal sold declined to 3.5 million from 3.6 million in the first quarter and 3.9 million a year earlier, extending a downtrend from 4.1 million tons in the fourth quarter of 2024. In the metallurgical segment, the non-GAAP sales realization per ton slipped to $118.71 from $124.39 in the first quarter, erasing gains that had built from $114.94 in the third quarter of 2025. A mix shift toward lower-realization export-other tons — which rose to 48 percent of met shipments from 43 percent in the first quarter, while Australian-indexed tons fell to 22 percent from 33 percent — contributed to the pricing decline.
Costs offered only partial relief. The met segment's non-GAAP cost of coal sales per ton decreased to $103.07 from $107.98 in the first quarter but remained above the $100.06 level of a year ago and the $97.27 trough recorded in the third quarter of 2025. The combination of softer pricing and elevated costs compressed the non-GAAP coal margin per ton to $15.64, down from $16.41 sequentially and $19.36 a year earlier. Under GAAP measures, the margin was $1.69 a ton, compared with $4.47 in the second quarter of 2025.
A June 2026 high-wind storm damaged the stacker reclaimer at the company's DTA terminal, prompting force majeure letters to affected customers and forcing Alpha to reroute shipments through other East Coast terminal capacity. The disruption led the company to lower its full-year 2026 metallurgical shipment guidance to 14.2 million to 15.4 million tons and raise its cost-of-coal-sales forecast to $103 to $107 per ton due to reduced efficiency at DTA and higher supply costs. As of July 30, 70 percent of 2026 met coal was committed and priced at an average of $128.17 per ton, with domestic tons at $136.18 and export tons at $122.77.
Operating cash flow improved to $39.9 million from $29.0 million in the first quarter but trailed the $53.2 million generated a year ago. Capital expenditures accelerated to $45.1 million from $40.7 million sequentially and $34.6 million in the year-ago quarter. Total liquidity declined to $447.8 million as of June 30 from $524.3 million at the end of 2025, reflecting ongoing share repurchases and higher capital spending.
The company continued its buyback program, repurchasing approximately 7.0 million shares for roughly $1.2 billion — about $166.29 a share — out of a $1.5 billion authorization, leaving roughly 12.7 million shares outstanding as of July 31. Despite the quarterly deterioration, first-half 2026 adjusted EBITDA of $55.6 million edged above the $51.7 million recorded in the first half of 2025, a period that included an exceptionally weak first quarter.