Alliance Resource Partners, L.P. (NASDAQ: ARLP) Q2 2025 Earnings | 07/28/2025

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Alliance Resource Partners, L.P. reported a mixed Q2 2025 as both earnings and revenue fell short of analyst expectations amid lower coal pricing and higher costs. Revenue for the quarter declined to $547.5 million, a 7.7% drop from $593.4 million a year ago. Net income retreated to $59.4 million, or $0.46 per unit, compared to $100.2 million, or $0.77 per unit, last year, significantly missing the consensus estimate of $0.60 per unit. The weaker results were attributed to persistently lower coal sales prices and subdued royalty pricing, compounded by higher depreciation and impairment costs—including a $25 million non-cash charge related to a battery materials company investment. Adjusted EBITDA for the quarter was down 10.8% year-over-year to $161.9 million, though it improved slightly from the previous quarter. Operationally, coal sales volumes were higher compared to Q1, but year-over-year declines in profitability were mainly driven by challenging mining conditions in Appalachia, which have since improved following a major longwall move at the Tunnel Ridge mine. Management expressed optimism for stronger results in the second half of 2025, underscoring record shipment volumes from Illinois Basin operations and early signs of improving coal market fundamentals. Cost discipline was evident, with adjusted segment EBITDA expense per ton sold decreasing 9% year-over-year to $41.27, supported by reduced maintenance and supply costs and better recoveries at key mines. Alliance increased its guidance for oil and gas royalty volumes for the full year as segment revenue grew modestly, even as realized prices declined. The partnership ended the quarter with $499 million in liquidity, low net leverage, and strong free cash flow of $79 million after capital investments. The quarterly cash distribution was set at $0.60 per unit, down sharply from previous levels, which management described as a sustainable move aligning with current margins and cash flow needs, resulting in approximately $50 million of annual cash savings to support growth, debt reduction, or opportunistic buybacks. Looking forward, ARLP raised projected coal sales volumes in the Illinois Basin, reaffirmed its domestic market strength, and maintained its full-year pricing and margin expectations, though it flagged continued uncertainty in export and trade-driven sales opportunities. About Inside Ticker: For more expert analysis and real-time updates on Alliance Resource Partners, L.P. (NASDAQ: ARLP) and other market movers, follow Inside Ticker and visit http://www.insideticker.com/ for in-depth reports, financial insights, and the latest news on leading companies. #AllianceResourcePartners #ARLP #Q22025 #Earnings #FinancialResults #NetIncome #CoalProduction #RoyaltyRevenue #AdjustedEBITDA #CashFlow #Distribution #Mining #OperationalExcellence #Guidance #IllinoisBasin #Appalachia #CostDiscipline #StockMarket #InsideTicker #GrowthStrategy #2025Outlook #Energy #U.S.Coal #CapitalAllocation #Liquidity #ShareholderReturns