Warrior Met Coal

Warrior Met Coal (HCC) Q2 2026 Earnings

Reported Aug 5, 2026 at 4:03 PM ET · SEC Source

Q2 26 EPS GAAP

$1.65

BEAT +13.08%

Est. $1.46

SG&A includes a $2.4 million gain related to recoveries from Walter Energy bankruptcy proceedings; effective tax rate was approximately 4.1% ($3.7 million tax on $91.1 million pre-tax income), significantly below statutory rates

Q2 26 Revenue

$509.7M

BEAT +4.23%

Est. $489.0M

vs S&P Since Q2 26

+18.2%

BEATING MARKET

HCC +18.7% vs S&P +0.5%

Market Reaction

Did HCC Beat Earnings? Q2 2026 Results

Warrior Met Coal posted a blowout second quarter in 2026, with the Blue Creek mine's full ramp-up driving record sales volumes and a dramatic earnings beat that caught Wall Street off guard. The company reported GAAP EPS of $1.65, beating the $1.46 c… Read more Warrior Met Coal posted a blowout second quarter in 2026, with the Blue Creek mine's full ramp-up driving record sales volumes and a dramatic earnings beat that caught Wall Street off guard. The company reported GAAP EPS of $1.65, beating the $1.46 consensus by 13.08%, on revenue of $509.69 million that topped estimates by 4.23% and surged 71.3% from the year-ago period. The quarter's results included a $2.4 million SG&A gain tied to Walter Energy bankruptcy recoveries and a notably low effective tax rate of roughly 4.1% on pre-tax income of $91.14 million. The single most compelling driver was a 65% year-over-year jump in sales volumes to a record 3.7 million short tons, paired with a 9% decline in cash cost per ton to $92.53, as Blue Creek's lower-cost structure delivered the margin expansion management had long promised. Free cash flow swung to $103.35 million from negative $56.70 million a year ago. Buoyed by the strong operational momentum and positive customer reception for Blue Creek coal, Warrior raised its full-year sales volume guidance to 13.0 to 14.0 million short tons, with analysts at Jefferies maintaining a Buy rating and $110 price target on the stock.

Key Takeaways

  • Blue Creek mine ramp-up driving record sales volumes, lower unit costs, and margin expansion
  • 65% increase in sales volumes to record 3.7 million short tons
  • 45% increase in production volumes to 3.3 million short tons
  • Cash cost of sales per short ton decreased 9% to $92.53 driven by Blue Creek's lower cost structure and 45X Credit
  • 6% increase in average net selling price to $137.82 per short ton
  • Adjusted EBITDA margin expanded to 30.8% from 18.0% year-over-year
  • Capital expenditures declined significantly as Blue Creek construction phase completed
  • Section 45X Advanced Manufacturing Production Tax Credit benefit

HCC Forward Guidance & Outlook

Warrior raised full-year 2026 volume guidance by 0.5 million short tons, reflecting continued positive customer reception of Blue Creek product. Updated guidance: coal sales of 13.0-14.0 million short tons; coal production of 12.5-13.5 million short tons; cash cost of sales (FOB port) of $95-$105 per short ton; capital expenditures for sustaining mines of $105-$115 million; Blue Creek project capex of $50-$75 million; depreciation and depletion of $225-$250 million; SG&A of $75-$85 million; interest expense of $20-$25 million; interest income of $3-$8 million. Key factors include one longwall move completed in Q2, three planned longwall moves before year-end (two in Q3, one in Q4), HCC index pricing, geography of sales and freight rates, global trade and tariff policies, new labor contract, and inflationary pressures.

24/7 Wall St

HCC YoY Financials

Q2 2026 vs Q2 2025, source: SEC Filings

24/7 Wall St

HCC Revenue by Segment

Business unit performance breakdown

“We delivered record sales volumes, improved pricing and a lower-cost profile in the second quarter, driving significant margin expansion and generating more than $103 million of free cash flow. Blue Creek continues to be an important contributor to our performance, adding incremental earnings and cash flow as customers respond positively to our offering.”

— Walt Scheller, Q2 2026 Earnings Press Release