NYSE$HCC

Warrior Met Coal Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported momentum in its business despite end-user demand headwinds.

Warrior Met Coal reported a net income of $82.1 million for Q2 2023, with sales volumes up 15% to 1.8 million short tons and production reaching 1.9 million short tons. However, the average net realized price decreased to $208.56 per short ton, impacting total revenues.

  • Net income decreased to $82.1 million, or $1.58 per diluted share, compared to $297.0 million, or $5.74 per diluted share in Q2 2022.
  • Sales volumes increased by 15% to 1.8 million short tons.
  • Production ramped up to 1.9 million short tons, the largest since Q1 2021.
  • Average net realized price decreased to $208.56 per short ton from $403.95 per short ton in Q2 2022.

Headline financials

Total Revenue

$380M

Previous: $625M-39.3%
EPS (adj)

$1.63

Previous: $5.87-72.2%
Tons sold

1.8M

Previous: 1.5M+15.3%
Tons produced

1.9M

Previous: 1.7M+15.4%
Average net selling price

$208.56

Previous: $403.95-48.4%
Capital Expenditures

-$136M

Previous: -$68.2M-99.7%
Free Cash Flow

-$54M

Previous: $229M-123.6%
Net Income

$82.1M

Previous: $297M-72.4%
Operating Income

$90.4M

Previous: $373M-75.7%
Gross Profit

$149M

Previous: $434M-65.6%
Cash & Equivalents

$827M

Previous: $645M+28.3%
Total Assets

$2.24B

Previous: $1.9B+18.2%
Stock-Based Comp

$4.57M

Previous: $4.43M+3.2%

Revenue & EPS history

Warrior Met Coal · Revenue · Quarterly

$380M

Q2 2023-39.3%vs Q2 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

Warrior Met Coal updated its full year 2023 guidance, including coal sales of 7.1 - 7.7 million short tons, coal production of 6.8 - 7.4 million short tons, cash cost of sales (free-on-board port) of $113 - $125 per short ton, and capital expenditures for existing mines of $95 - $105 million.

Tailwinds

  • Strong customer demand for steelmaking coal.
  • Improved performance at the McDuffie Terminal.
  • Increased production due to adjusted work schedules.
  • Addition of approximately 250 eligible union-represented workers.
  • Development of Blue Creek mine to lower operating costs and increase flexibility.

Headwinds

  • Softening steelmaking coal prices.
  • Inflationary cost increases in operating expenses and capital expenditures.
  • Ongoing expenses related to legal and labor negotiations.
  • Potential mechanical issues at the McDuffie Terminal at the Port of Mobile.
  • Ongoing rail transportation issues.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

-1.6%

Avg return

Earnings day

-1.1%

Avg return

5 days after

+0.2%

Avg return

30 days after

41%

15 / 37 earnings

Positive

+23.8%

Q3 2025

Best reaction

-21.7%

Q4 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.0%-2.6%+5.1%
Q4 2025+0.2%+1.1%-1.1%
Q3 2025+23.8%+24.8%+23.5%
Q1 2025-5.0%-0.5%-5.0%
Q4 2024-8.4%-7.8%-9.0%
Q3 2024+1.4%+5.3%+12.9%
Q2 2024-10.2%-12.0%-11.3%
Q1 2024-4.2%-5.3%+0.1%
Q4 2023-1.3%-3.1%-9.7%
Q3 2023-0.1%+0.7%+19.8%
Q2 2023-14.7%-8.7%-8.0%
Q1 2023+6.5%+14.6%+4.5%
Q4 2022+1.6%+5.8%-15.8%
Q3 2022-1.5%-0.0%+1.6%
Q2 2022-11.4%-7.0%-0.8%
Q1 2022-9.3%-11.2%+2.4%
Q4 2021+0.3%+0.8%+22.2%
Q3 2021-3.5%-7.7%-10.1%
Q2 2021-1.9%-10.7%+27.0%
Q1 2021-5.1%-9.0%+11.5%
Q4 2020-21.7%-23.2%-32.5%
Q3 2020-2.6%+6.7%+25.1%
Q2 2020-5.9%-1.7%+6.7%
Q1 2020+7.6%+15.4%+20.8%
Q4 2019-14.2%-16.7%-42.7%
Q3 2019-15.2%-10.8%-10.7%
Q2 2019-13.6%-14.1%-16.4%
Q1 2019+6.2%-8.5%-16.7%
Q4 2018+2.6%+1.9%-1.7%
Q3 2018-3.5%-4.0%-13.7%
Q2 2018-3.5%-3.6%-7.0%
Q1 2018+12.3%+14.8%+22.4%
Q4 2016+10.7%+9.0%+4.7%
Q4 2017+10.7%+9.0%+4.7%
Q3 2017+4.2%+5.7%-8.4%
Q2 2017+6.5%+8.2%+20.2%
Q1 2017+4.2%+5.0%-7.0%
Q3 2016
Q2 2016
Q1 2016
Q4 2015

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