Earnings ShortfallCNR reported a 1Q adjusted EBITDA of $123M, which fell short of the $177M consensus and the $186M estimate, largely due to $36M in idling costs related to Leer South.
Operational ChallengesThe combustion event at Leer South will limit coking coal sales to 7.5M-8.0M tons, impacting shipment and cost expectations.
Valuation ConcernsAnalyst's discounted cash flow and EV/EBITDA multiple analysis imply little upside to the Core share price based on current coal price assumptions.