Education
About Us
Working with TipRanks
Follow Us
NACCO Industries (NC)
NYSE:NC
Top Page
NACCO Industries
(NYSE:NC)
Select Model
Select Model
Rating:65Neutral
Price Target:
$54.00
▲(12.97% Upside)
Action:ReiteratedDate:03/06/26
The score is primarily supported by a strong, low-leverage balance sheet and constructive 2026 guidance with operational momentum and contract wins. Offsetting this are historically volatile profitability and cash conversion (despite 2025 improvement), a weaker near-term technical setup, and a valuation that is only average given the company’s earnings/cash-flow variability.
Positive Factors
Conservative balance sheet and low leverage
Sustained low leverage and an improving debt-to-equity ratio provide durable financial flexibility. This conservatively financed balance sheet reduces refinancing and solvency risk, supports multi-year capex and contract performance, and cushions the business against cyclical coal and minerals swings.
Contract wins and Contract Mining growth
Major multiyear contracts and higher Contract Mining revenues create predictable, fee-based cash flows less tied to commodity spot cycles. These structural contract wins broaden backlog, enable scale, and improve margin visibility across years versus spot-exposed commodity sales.
Improved cash generation and solid liquidity
A material increase in operating cash flow and ample year-end liquidity strengthen the company's ability to fund growth and planned investments internally. This improves resilience to shocks, reduces near-term external financing need, and supports the execution of growth initiatives.
Negative Factors
Volatile profitability and cash conversion
Historical swings in margins and intermittent negative free cash flow indicate uneven earnings quality and conversion. Such volatility complicates long-term planning, raises the risk that occasional profitable years may not sustainably fund dividends, capex or debt service without contingency.
Large planned capital spending increases near-term cash use
Substantial planned capex materially raises cash burn in the near term and may require drawing revolver or issuing debt if operating cash flow softens. Higher investment intensity increases execution risk and puts pressure on liquidity management despite current cash buffers.
Commodity and customer demand exposure
Revenue and segment profits remain exposed to commodity price moves and concentrated customer outages. Such structural exposure can produce multi-period earnings declines if prices fall or key plants have extended maintenance, reducing the predictability of long-term cash flows.
NACCO Industries (NC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$378.08M
Dividend Yield2.02%
Average Volume (3M)11.04K
Price to Earnings (P/E)20.7
Beta (1Y)0.78
Revenue Growth25.35%
EPS GrowthN/A
CountryUS
Employees600
SectorEnergy
Sector Strength52
IndustryCoal
Share Statistics
EPS (TTM)-0.52
Shares Outstanding5,897,002
10 Day Avg. Volume13,078
30 Day Avg. Volume11,039
Financial Highlights & Ratios
PEG Ratio-0.43
Price to Book (P/B)0.85
Price to Sales (P/S)1.31
P/FCF Ratio7.15
Enterprise Value/Market Cap0.96
Enterprise Value/Revenue1.29
Enterprise Value/Gross Profit10.39
Enterprise Value/Ebitda12.41
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
NACCO Industries Business Overview & Revenue Model
Company DescriptionNACCO Industries, Inc., together with its subsidiaries, engages in the natural resources business. The company operates through three segments: Coal Mining, North American Mining, and Minerals Management. The Coal Mining segment operates surface coal mines under long-term contracts for power generation companies and an activated carbon producer in North Dakota, Texas, Mississippi, and Louisiana in the United States, as well as Navajo Nation in New Mexico. The North American Mining segment provides value-added contract mining and other services for producers of aggregates, lithium, and other minerals; and contract mining services for independently owned mines and quarries in Florida, Texas, Arkansas, and Indiana. The Minerals Management segment is involved in the leasing of its royalty and mineral interests to third-party exploration and production companies, and other mining companies, which grants them the rights to explore, develop, mine, produce, market, and sell gas, oil, and coal. The company was founded in 1913 and is headquartered in Cleveland, Ohio.
How the Company Makes MoneyNACCO Industries generates revenue primarily through its coal mining operations and the sale of household appliances. The North American Coal Corporation earns money by extracting lignite coal, which is then sold to utility companies for electricity generation and to industrial customers for various applications. This segment's profitability is influenced by coal market prices, contractual agreements with customers, and production efficiency. Additionally, Hamilton Beach Brands contributes to NACCO's revenue through the sale of its small appliances, leveraging both direct sales and partnerships with major retailers. The company's revenue model is supported by long-term contracts and relationships with key customers, alongside opportunities for growth in emerging markets and product innovation.
NACCO Industries Earnings Call Summary
Earnings Call Date:Mar 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call presented material operational and financial improvement: strong Q4 revenue and margin expansion, a meaningful increase in adjusted EBITDA, a clear turnaround in the Utility Coal Mining segment, successful execution of new contracts (Army Corps project, Phoenix quarry), and much stronger cash generation and liquidity. Offsetting these positives were a one-time pension settlement and tax true-up that produced a Q4 net loss, a tragic safety incident with associated costs, short-term demand risk at Mississippi Lignite due to a customer outage, commodity price/geopolitical uncertainty that could pressure Minerals results in H2 2026, and sizable planned capital spending that will increase near-term cash use. On balance, operational momentum, cash generation, contract wins and removal of pension liability outweigh the near-term headwinds and one-time charges.Q4-2025 Updates
Positive Updates
Strong Q4 Consolidated Profitability and Margin Expansion
Consolidated Q4 gross profit of $12.0M (+42% YoY) on revenue of $66.8M (+5% YoY). Consolidated operating profit rose to $7.6M from $3.9M a year ago. Adjusted EBITDA increased 59% YoY to $14.3M (J.C. also cited a 14% sequential increase in adjusted EBITDA), and management reported Q4 operating profit up 95% YoY.
Utility Coal Mining Segment Turnaround
Utility Coal Mining operating profit was $7.2M in Q4 vs $2.0M prior year; segment adjusted EBITDA increased to $9.7M from $4.2M. Mississippi Lignite produced and sold more tons, improving production efficiency, lowering cost per ton and moving the mine from prior-year losses to current-quarter gross profit.
Contract Mining Growth and Large New Infrastructure Contract
Contract Mining revenues (net of reimbursed costs) grew 9% YoY. The company secured a multiyear U.S. Army Corps of Engineers dragline services contract (significant, already ramping), plus a new substantial Phoenix/Arizona quarry operation expected to commence 2026 — providing predictable, non-market-exposed revenue opportunities and potential to scale.
Minerals & Royalties Segment Improvement and Active Investment Pipeline
Minerals & Royalties grew YoY on higher natural gas prices and volumes, with royalties more than offsetting lower oil revenue. Management has an active investment pipeline (Catapult) and budgeted $20.0M of investment capital for the minerals business to support future growth, plus targeted investments (e.g., Eiger) to diversify royalties/minerals exposure.
Strong Cash Generation and Solid Liquidity
Cash from operations for 2025 was $50.9M vs $22.3M in 2024 (increase of $28.6M). Total liquidity of $124.2M at year-end (cash $49.7M; revolver availability $74.5M) and only a modest increase in outstanding debt to $100.9M (from $99.5M).
Pension Plan Termination Completed
Company successfully settled all future pension obligations in Q4, removing ongoing pension exposure. The termination produced a noncash settlement charge of $7.8M pre-tax ($6.0M after-tax).
Mitigation Resources Positioned to Scale Profitability
Mitigation Resources is expected to generate profit in 2026 as mitigation credit sales and reclamation/restoration services expand. Management highlighted a clear pipeline of credits and projects that should support improving and more consistent future results.
Negative Updates
Reported Q4 Net Loss Driven by Pension Charge and Tax True-Up
Reported Q4 net loss of $3.8M (−$0.52 per share) compared with net income of $7.6M ($1.02 per share) in 2024; the loss primarily resulted from a $7.8M noncash pension settlement charge ($6.0M after-tax) and a fourth-quarter true-up of tax expense to the full-year effective tax rate.
Tragic Safety Incident and Related Costs
Two employees were lost in a December incident. The company recorded a $1.1M loss contingency in Contract Mining related to incident costs and emphasized increased safety reinforcement across operations.
Mississippi Lignite Demand Uncertainty (Short-Term)
Despite operational improvement, Mississippi Lignite faces short-term demand risk: a customer power plant maintenance outage began mid-February (expected to resume mid-March) which reduces Q1 demand and could delay anticipated 2026 improvements if outages or reduced plant availability persist.
Commodity Price and Geopolitical Risk Impacting Minerals Forecast
Management noted that Mineral & Royalties 2026 forecasts are sensitive to commodity price assumptions and recent Middle East developments; current modeling anticipates an overall YoY decrease in operating profit and segment adjusted EBITDA in 2026 (particularly in H2) absent favorable commodity moves.
Planned Capital Investments Will Increase Near-Term Cash Use
Management signaled significant 2026 capital investments (examples cited: $20.0M budgeted for minerals, $36.0M referenced for Contract Mining spending, and an overall figure up to ~$89.0M mentioned as potential total), which could make the company cash negative before financing and will require active liquidity/leverage management.
Higher Unallocated Expenses and Modest Debt Increase
Q4 results were partially offset by higher unallocated expenses. Outstanding debt increased modestly to $100.9M, and management flagged higher cash usage expectations in 2026 driven by growth investments.
Company Guidance
Management’s guidance for 2026 calls for meaningful year‑over‑year improvements in consolidated operating profit, net income and EBITDA, with the Utility Coal Mining segment expected to post higher operating profit (after Q4 segment operating profit rose to $7.2M from $2.0M and segment adjusted EBITDA to $9.7M from $4.2M), Contract Mining forecasting a significant YoY increase (Q4 revenues net of reimbursed costs grew 9%, with Q4 segment operating profit $0.9M and EBITDA $3.3M), and Mitigation Resources expected to generate a profit in 2026; Minerals & Royalties may see an overall YoY decline in operating profit and segment adjusted EBITDA (particularly in H2) despite new investments, and Mississippi Lignite’s upside from a contractually determined per‑ton price increase could be offset by a customer plant maintenance outage (mid‑Feb to mid‑March) that hurts Q1 demand. Management plans significant 2026 capital investments (majority for business development), including a $20M minerals budget and $36M referenced for Contract Mining (within a possible ~$89M total capex target), expects greater use of cash before financing in 2026 versus 2025, and enters the year with year‑end 2025 liquidity of $124.2M (cash $49.7M, revolver $74.5M), $100.9M of outstanding debt, and $50.9M of 2025 cash from operations.NACCO Industries Financial Statement Overview
Summary
Balance sheet strength is a clear positive (low leverage and improving debt-to-equity), supporting resilience and flexibility. However, profitability and cash generation have been volatile: a major loss in 2023, margin compression in 2025 vs 2024, and historically inconsistent free cash flow despite a notable improvement to positive FCF in 2025.Income Statement
Revenue rebounded strongly from 2020–2022 and has generally held up since, but growth has turned choppy (2025 down ~1.3% after 2024 up ~10.7%). Profitability is volatile: 2023 swung to a large loss with negative margins, followed by a recovery in 2024–2025 back to positive earnings. Margins in 2025 are notably lower than 2024 (net margin ~6.3% vs ~14.2%), pointing to weaker pricing/cost mix and less stable earnings power.62
Positive
Balance Sheet
The balance sheet looks conservatively financed with low leverage throughout the period, improving further in 2025 (debt-to-equity ~0.08 vs ~0.27 in 2024). Equity has steadily grown over time, and total assets have expanded versus 2020, supporting financial flexibility. The key weakness is profitability consistency for equity holders: returns on equity were strong in 2021–2022, turned negative in 2023, and have recovered but remain modest in 2025 (~4.1%).81
Very Positive
Cash Flow
Cash generation is uneven. Operating cash flow is positive in most years (strong in 2021–2023 and 2025), but free cash flow has been negative in several periods (2020, 2023, 2024), indicating meaningful reinvestment/capex pressure or working-capital swings. 2025 shows a sharp improvement with positive free cash flow (~$50.9M), but overall cash flow reliability remains mixed, and 2024’s negative free cash flow despite positive earnings highlights volatility in cash conversion.55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 280.84M | 277.20M | 237.71M | 214.79M | 241.72M | 191.85M |
| Gross Profit | 34.75M | 38.47M | 29.76M | 14.59M | 67.84M | 43.45M |
| EBITDA | 29.11M | 61.82M | 63.86M | -32.31M | 116.57M | 81.65M |
| Net Income | 28.98M | 17.57M | 33.74M | -39.59M | 74.16M | 48.13M |
Balance Sheet | ||||||
| Total Assets | 637.63M | 661.23M | 631.69M | 539.71M | 568.07M | 507.22M |
| Cash, Cash Equivalents and Short-Term Investments | 52.66M | 49.71M | 72.83M | 85.11M | 110.75M | 86.00M |
| Total Debt | 87.85M | 33.84M | 110.53M | 44.74M | 27.20M | 30.44M |
| Total Liabilities | 211.23M | 231.99M | 226.74M | 157.37M | 141.11M | 155.10M |
| Stockholders Equity | 426.40M | 429.24M | 404.95M | 382.34M | 426.97M | 352.12M |
Cash Flow | ||||||
| Free Cash Flow | 5.61M | 50.91M | -32.42M | -27.63M | 25.21M | 35.65M |
| Operating Cash Flow | 64.67M | 50.91M | 22.29M | 54.49M | 67.73M | 74.88M |
| Investing Cash Flow | -73.05M | -64.18M | -71.29M | -81.60M | -33.15M | -44.15M |
| Financing Cash Flow | -2.02M | -9.86M | 36.73M | 1.47M | -9.84M | -33.17M |
NACCO Industries Technical Analysis
Negative
47.80
Price Trends
51.25
Negative
48.56
Positive
43.62
Positive
Market Momentum
1.32
Positive
41.56
Neutral
40.81
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NC, the sentiment is Negative. The current price of 47.8 is below the 20-day moving average (MA) of 55.55, below the 50-day MA of 51.25, and above the 200-day MA of 43.62, indicating a neutral trend. The MACD of 1.32 indicates Positive momentum. The RSI at 41.56 is Neutral, neither overbought nor oversold. The STOCH value of 40.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NC.
NACCO Industries Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $1.59B | 10.38 | 26.19% | 4.05% | -14.79% | -17.10% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
65 Neutral | $378.08M | 20.71 | 7.04% | 2.02% | 25.35% | ― | |
59 Neutral | $530.85M | -13.93 | -6.92% | 6.72% | -6.44% | -24.68% | |
57 Neutral | $919.47M | 8.81 | -74.70% | ― | 7.60% | -591.73% | |
53 Neutral | $330.54M | -12.93 | ― | ― | -76.24% | -8.61% | |
49 Neutral | $963.47M | -18.74 | -12.16% | 2.83% | -16.99% | -184.02% |
* Energy Sector Average
NC
NACCO Industries
50.68
17.84
54.31%
HNRG
Hallador Energy Company
19.73
10.78
120.45%
NRP
Natural Resource PRN
119.65
23.52
24.47%
SXC
Suncoke Energy
6.27
-2.18
-25.78%
METC
Ramaco Resources
14.80
6.44
76.97%
AREC
American Resources
3.26
2.66
443.33%
NACCO Industries Corporate Events
Business Operations and StrategyExecutive/Board Changes
NACCO Industries Amends Retirement Plan and Ends Agreement
Neutral
Dec 16, 2025
On December 12, 2025, NACCO Industries‘ Compensation and Human Capital Committee approved an amendment to the Excess Retirement Plan, effective January 1, 2026, allowing separate deferral elections and stipulating that deferrals to the plan only begin after reaching the deferral limit under Section 402(g) of the Internal Revenue Code. Additionally, the company announced the mutual termination of its consulting agreement with Mr. Alfred M. Rankin, Jr., effective December 31, 2025.
The most recent analyst rating on (NC) stock is a Hold with a $51.00 price target. To see the full list of analyst forecasts on NACCO Industries stock, see the NC Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.