Warrior Reports $166 Million in Q3 2026 Operating Cash Flow, Declares $2.00 Special Dividend

The Tip Desk · November 10, 2026 · 3 min read

Free cash flow reached $138.9 million in the third quarter as Blue Creek volumes lifted sales 48% from a year earlier.

Warrior Met Coal, Inc. (HCC), the Alabama-based steelmaking coal producer, generated $166.0 million of cash from operations and $138.9 million of free cash flow in the third quarter of 2026, and its board declared a $2.00 special dividend totaling about $106 million on top of the regular $0.08 quarterly payout.

Chief executive Walt Scheller said the special dividend marked a milestone as Blue Creek, which began longwall operations about a year earlier, eight months ahead of schedule, began converting construction into cash. The company plans to distribute the special dividend on Nov. 20, 2026, to holders of record as of Nov. 9.

Sales volumes were 3.5 million short tons, up 48% from a year earlier, after a 65% year-over-year increase in the second quarter. Production was 3.1 million short tons, up 36%. Both figures were below the second-quarter records of 3.7 million sales tons and 3.3 million production tons. The company attributed the third-quarter volume lift to Blue Creek.

Total revenues were $507.9 million, essentially unchanged from $509.7 million in the second quarter. The average net selling price rose about 4% to $143.56 a short ton from $137.82 in the second quarter. Warrior said the price increase reflected improved Premium Low-Vol and High-Vol A steelmaking coal prices, partially offset by higher Pacific freight costs, demurrage and vessel loading delays tied to the Middle East conflict.

Average gross selling price realization fell to about 66% from 83% in the third quarter of 2025. The company said the mix shift was driven primarily by a 25% higher share of High-Vol A coal sold into the Pacific Basin at higher freight rates and lower second-tier price relativities to the Platts PLV FOB Australian index.

Net income was $49.3 million, or $0.93 a share, down from $87.4 million, or $1.65 a share, in the second quarter. Adjusted EBITDA was $124.0 million, up 76% from $70.6 million a year earlier. The Adjusted EBITDA margin was 24.4%. Warrior said the year-over-year profit increase reflected the Blue Creek ramp-up and improved steelmaking coal prices.

Cash cost of sales (free-on-board port) per short ton rose about 13% to $104.98 from $92.53 in the second quarter, reversing the 9% year-over-year decline reported then. Cost of sales was $368.5 million. The company cited higher steelmaking coal prices in its variable cost structure, including transportation and royalties, lower production at Mine No. 7, and inflation, partially offset by Blue Creek’s lower-cost contribution and the Section 45X Advanced Manufacturing Production Tax Credit.

Free cash flow conversion was 112.0%. Net working capital excluding cash decreased $33.7 million from the second quarter, primarily on lower inventories as Warrior monetized surplus High-Vol A coal. Cash and cash equivalents were $437.1 million at Sept. 30, 2026; total liquidity including $140.5 million of available ABL capacity was $577.6 million.

The company reaffirmed full-year 2026 guidance as updated last quarter: coal sales of 13.0 to 14.0 million short tons, production of 12.5 to 13.5 million short tons, and cash cost of sales of $95 to $105 a short ton. It listed one remaining longwall move in the fourth quarter, HCC index pricing, geography of sales and freight rates, trade and tariff policy, a new labor contract, and inflation among factors that may affect the outlook.