Warrior Met Coal Inc
NYSE:HCC
Warrior Met Coal Inc
Warrior Met Coal Inc., headquartered in Brookwood, Alabama, is a quintessential story of resilience in the face of industry adversity. Emerging from the ashes of bankrupt Walter Energy in 2016, Warrior Met Coal set out on a determined path to become a leader in the production and export of metallurgical coal. This specialized form of coal is integral in the steelmaking process. Bridging the gap between geology and global infrastructure needs, Warrior Met focuses on sourcing high-grade metallurgical coal from its rich mines in Alabama. The company leverages advanced mining techniques to maximize efficiency and safety, thus ensuring a steady and reliable output to supply the global steel market.
Warrior Met Coal's operational nucleus revolves around its two highly efficient underground mines, ensuring a steady production flow that feeds into the global demand for steel production inputs. The company's primary revenue stream stems from exporting this premium coal to esteemed international steelmakers, particularly in Europe, South America, and Asia. By honing their logistics and export strategies, Warrior Met Coal ensures that its product maintains a competitive edge in quality and delivery reliability. Embedded in its financial strategy is a meticulous focus on cost management and capital discipline, which collectively enhance its market positioning alongside a reputation for responsible environmental stewardship. Warrior Met Coal is not only tapping into the traditional steel supply chain but also positioning itself to ride the cyclical waves of industrial demand with strategic acumen.
Warrior Met Coal Inc., headquartered in Brookwood, Alabama, is a quintessential story of resilience in the face of industry adversity. Emerging from the ashes of bankrupt Walter Energy in 2016, Warrior Met Coal set out on a determined path to become a leader in the production and export of metallurgical coal. This specialized form of coal is integral in the steelmaking process. Bridging the gap between geology and global infrastructure needs, Warrior Met focuses on sourcing high-grade metallurgical coal from its rich mines in Alabama. The company leverages advanced mining techniques to maximize efficiency and safety, thus ensuring a steady and reliable output to supply the global steel market.
Warrior Met Coal's operational nucleus revolves around its two highly efficient underground mines, ensuring a steady production flow that feeds into the global demand for steel production inputs. The company's primary revenue stream stems from exporting this premium coal to esteemed international steelmakers, particularly in Europe, South America, and Asia. By honing their logistics and export strategies, Warrior Met Coal ensures that its product maintains a competitive edge in quality and delivery reliability. Embedded in its financial strategy is a meticulous focus on cost management and capital discipline, which collectively enhance its market positioning alongside a reputation for responsible environmental stewardship. Warrior Met Coal is not only tapping into the traditional steel supply chain but also positioning itself to ride the cyclical waves of industrial demand with strategic acumen.
Record Volumes: Warrior delivered record sales and production volumes in Q4 and FY 2025, with Q4 sales up 53% YoY and production up 61% YoY.
Blue Creek Early Launch: The Blue Creek longwall started production 8 months ahead of schedule, on budget, and fully funded from operational cash flow.
Margin Expansion: The company's adjusted EBITDA margin improved to 24% in Q4 2025 from 18% the year before, helped by lower costs from Blue Creek.
Cost Leadership: Cash cost of sales per ton dropped 22% YoY in Q4 to $94, making Warrior a first-quartile cost producer.
2026 Guidance: Management expects 2026 sales volumes to be over 30% higher and production over 20% higher than 2025, with 90% of sales already contracted.
Cautious Price Outlook: Despite recent price rallies, management assumes stable-to-lower steelmaking coal prices for 2026 and builds conservatism into guidance.
Capital Allocation: Remaining Blue Creek CapEx of $50M–$75M will be spent in Q1 2026; free cash flow is expected to turn positive in the second half of 2026.
Shareholder Returns: Once Blue Creek investment winds down, Warrior expects to prioritize higher fixed dividends, special dividends, and opportunistic buybacks.
