Warrior Met Coal reports Q1 EPS (16c), consensus (23c)

Reports Q1 revenue $299.9M, consensus $284.6M. Sales volumes in the first quarter of 2025 were 2.2 million short tons compared to 2.1 million short tons in the first quarter of 2024, representing a 2% increase. The Company produced 2.3 million short tons of steelmaking coal in the first quarter of 2025, compared to 2.1 million short tons in the first quarter of 2023, representing a 10% increase and includes 251 thousand short tons produced at Blue Creek. Inventory levels remained consistent at 1.1 million short tons as of March 31, 2025 compared to December 31, 2024. “While weak market conditions continued as expected, we were able to leverage our operational strength and financial discipline to deliver an increase in volume and strong cost performance at our mines, enabling us to maintain positive cash margins. At the same time, we continued to make excellent progress at Blue Creek, as we move closer to the finish line of the world-class growth project,” commented Walt Scheller, CEO of Warrior. “I would like to thank our employees for their outstanding performance and hard work to accomplish these goals. The combination of broad economic uncertainty around global trade, seasonal demand weakness, and ample spot supply is expected to result in continued pressure on steelmaking coal prices. In this environment, we are increasing our focus on what is within our control: protecting margins and cash flow. We are confident that our unique asset base, highly flexible cost structure, and high-performing workforce will allow us to navigate successfully through the remainder of the year and beyond. Given the current lack of economic clarity, our 2025 guidance remains unchanged at this time and does not reflect any potential impact from the recent tariff announcements. Until there is more clarity on trade and tariff policy, including any retaliatory tariffs that may be implemented against the U.S., we are unable to quantify the potential impact of these changes on Warrior. We expect to provide further updates to our financial outlook in connection with our second quarter earnings call to be held in early August 2025.”