On August 7, Alpha Metallurgical Resources (NYSE:AMR) held its second-quarter earnings call, and the numbers told a rougher story than investors likely wanted to hear. Adjusted EBITDA fell to $25.6 million from $30 million in the first quarter, while shipments slipped to 3.5 million tons from 3.6 million. Management also trimmed full-year shipment guidance and raised its cost outlook, all while dealing with storm damage at a key export terminal.
Even with a softer quarter, Alpha kept its financial footing. Cash from operating activities rose to $39.9 million from $29 million in the first quarter, and the company ended June with $447.8 million in total liquidity. The Met segment's cost of coal sales actually dropped to $103.07 per ton from $107.98, and incidental thermal realizations climbed to $79.36 per ton from $69.41.
Pricing commitments look solid too. Alpha has 70% of its 2026 met tonnage committed and priced at an average of $128.17 per ton, with another 30% committed but not yet priced, and its thermal byproduct is fully locked in at $75.94 per ton. Management also pointed to a narrowing gap between Australian and US coal pricing, with the Australian Premium Low-Vol index sitting roughly 14% above US East Coast Low-Vol, down from a 23% gap in May, a trend that could favor domestic producers like Alpha if it holds.
The headwinds are hard to ignore. Full-year shipment guidance dropped to a range of 14.2 million to 15.4 million tons, a cut of about 1 million tons at the midpoint, driven by weak met markets and a damaged stacker reclaimer at the DTA export terminal. That machine was hit by winds over 80 miles per hour during a storm on June 14, and management has no definitive timeline for full repairs, though an insurance claim has been filed.
Cost guidance rose to $103 to $107 per ton, up $7 at the midpoint, largely because of higher diesel and supply costs tied to the Iran war. Realizations also cooled across the board, with total weighted average met pricing falling to $124.30 per ton from $128.40, and total liquidity slipped to $447.8 million from $476.2 million at the end of March. Since the quarter closed, the Australian Premium Low-Vol index has dropped another 12% to $214.30 per metric ton as of August 6, while US indices have stayed mostly flat.
Hedge fund ownership fell from 39 funds to 30, a drop that points to institutions pulling back rather than adding. Short interest sits at 19.15% of float, a level that signals heavy skepticism among traders betting against the stock. That combination suggests the market is watching closely for a catalyst in either direction.
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