A maker of premium hard coking coal for the global steel industry, Warrior Met Coal runs three underground longwall mines in Alabama — Mine No. 4, Mine No. 7, and the newly operational Blue Creek — and ships to steelmakers in Asia, Europe, and South America through the port of Mobile. It was formed in 2015 after the bankruptcy of Walter Energy, when a group of creditors took over the Alabama mining assets, and its name blends "Warrior" (the Warrior Coal Basin it digs in) with "Met," short for metallurgical. A fun detail: Blue Creek's longwall operations started eight months ahead of schedule in 2025.
Blue Creek volumes drove a 65% sales increase and net income of $87.4M, up from $5.6M a year ago.
Blue Creek's ramp-up reshaped Warrior Met Coal's quarter. rose 71.3% to $509.7 million and reached $87.4 million as sales volumes climbed 65% to 3.3 million metric tons, driven by the new longwall mine, while cash cost of sales per ton fell to $101.99. The mine is now the company's dominant earnings engine, but cash reserves fell to $302.3 million after final construction spending.
Key takeaways
Sales volumes rose 64.7% to 3.3 million metric tons, driven primarily by the Blue Creek mine, which contributed a full quarter of longwall production after starting ahead of schedule in October 2025.
The average net selling price rose $8.60 per metric ton, or 6.4%, to roughly $152 per ton, providing a alongside the volume increase.
fell $9.54 to $101.99, the lowest in the series, reflecting the lower-cost Blue Creek production mix, a $9.7 million benefit from the Section 45X tax credit, and cost controls.
Section summaries
Management's Discussion and Analysis
Blue Creek mine ramp-up drove a 65% sales volume surge and lower unit costs, lifting Q2 net income to $87.4M from $5.6M.
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Sales rose 74.6% to $503.6M, driven by a 64.7% increase in steelmaking coal sales volumes to 3.3M metric tons, primarily from the Blue Creek mine, and an $8.60/ton higher average net selling price.
widened 9.4 points to 33.3%, as the volume-driven increase and lower unit costs more than offset higher total cost of sales from the expanded production base.
swung to $132.3 million from $37.5 million a year ago, as higher earnings and a partial release of the prior quarter's build supported cash generation.
Cash and equivalents fell 21.1% to $302.3 million, as $71.3 million in year-to-date Blue Creek continued to draw on liquidity; total liquidity stood at $452.9 million.
What changed
The met coal price decline that dominated prior quarters eased: the average net selling price rose 6.4% , the second consecutive quarter of year-over-year price increases after the Q1 2026 rise of 10%, suggesting the price floor flagged in earlier filings may be firming.
Blue Creek's ramp-up is ahead of the trajectory flagged in FY 2025: the longwall started in October 2025, eight months early, and Q2 2026 production of 3.3 million total metric tons puts the company on pace toward the 4.1–4.4 million ton 2026 target.
Cash cost of sales per ton fell further to $101.99, below the $106.02 in Q1 2026 and the $111.66 full-year 2025 level, confirming that the Blue Creek mix and cost controls flagged as a watch item are producing a durable improvement.
Cash and equivalents fell to $302.3 million, the lowest quarter-end level since Q4 2017, as the final Blue Creek construction spending continued to draw down reserves; the company guided full-year 2026 to $155–$190 million, down from $402.2 million in 2025, suggesting the cash draw may slow.
What to watch
Blue Creek production pace toward the 4.1–4.4 million ton 2026 target, to confirm the longwall is sustaining the Q2 run-rate and that the mine can reach full capacity.
Cash and equivalents trajectory now that Blue Creek construction spending is winding down; whether can rebuild liquidity from the $302.3 million level or if further draws are needed.
Metallurgical coal price index direction, given the second consecutive quarter of price increases; whether this marks a sustained recovery from the 2025 trough or a temporary lift.
Cash cost of sales per ton sustainability at the $101.99 level, to see whether the Blue Creek mix and Section 45X tax credit benefit can maintain costs near this level as production volumes continue to grow.
per metric ton decreased $9.54 to $101.99, reflecting the lower-cost Blue Creek production mix, a $9.7M benefit from the Section 45X tax credit, and disciplined cost control.
more than doubled to $163.5M from $62.1M, as higher volumes and lower unit costs more than offset increased and depletion expenses.
Total liquidity stood at $452.9M at quarter-end, with $302.3M in cash and $140.5M available under the Amended ABL Facility, while for Blue Creek's final construction totaled $71.3M year-to-date.
The company recognized a $9.7M benefit from the 45X Credit for met coal classified as a critical mineral, which reduced cost of sales, and expects full-year 2026 of $155M–$190M.
See Note 8 of the “Notes to Condensed Financial Statements” in this Form 10-Q for a description of current legal proceedings, which is incorporated by reference in this Part II, Item 1. We and our subsidiaries are parties to a number of other lawsuits arising in the ordinary cou…
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See Note 8 of the “Notes to Condensed Financial Statements” in this Form 10-Q for a description of current legal proceedings, which is incorporated by reference in this Part II, Item 1.
We and our subsidiaries are parties to a number of other lawsuits arising in the ordinary course of our business. We record costs relating to these matters when a loss is probable and the amount can be reasonably estimated. The effect of the outcome of these matters on our future results of operations cannot be predicted with certainty as any such effect depends on future results of operations and the amount and timing of the resolution of such matters. While the results of litigation cannot be predicted with certainty, we believe that the final outcome of such litigation will not have a material adverse effect on our financial statements.
There have been no material changes to the risk factors disclosed in “Risk Factors” in “Part I, Item 1A. Risk Factors” in our 2025 Annual Report. Our business, financial condition, operating results and cash flows can be impacted by a number of factors, any one of which could ca…
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There have been no material changes to the risk factors disclosed in “Risk Factors” in “Part I, Item 1A. Risk Factors” in our 2025 Annual Report. Our business, financial condition, operating results and cash flows can be impacted by a number of factors, any one of which could cause actual results to vary materially from recent results or from anticipated future results. In addition to the other information set forth in this Form 10-Q, you should carefully consider the risks discussed in “Part I, Item 1A. Risk Factors” in our 2025 Annual Report, which could materially affect our business, financial condition or future results. However, the risks described in our 2025 Annual Report are not the only risks we face. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial may also become material and adversely affect our business, financial condition and/or operating results.
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