Alliance Resource Partners, L.P. Q2 2025 Earnings Recap

Alliance Resource Partners reported a 10.8% year-over-year decrease in adjusted EBITDA for Q2 2025, driven by lower coal prices and a significant noncash impairment, although production volumes showed a positive trend.

Key Takeaways

• Total revenues decreased to $547.5 million, down 7.7% from Q2 2024 due to lower coal sales prices and transportation revenues, despite a 6.8% increase in coal sales volumes.
• Net income fell to $59.4 million, impacted by a $25 million noncash impairment due to restructuring of a battery materials investment.
• Adjusted EBITDA was $161.9 million, marking a 10.8% decline year-over-year, though up 1.2% sequentially.
• Free cash flow for the quarter reached $79 million after upgrades in coal operations, with total liquidity of $499.2 million.
• The company anticipates improved performance in Appalachia following a successful longwall move at Tunnel Ridge and an uptick in long-term supply contracts.