NACCO Industries Inc【NC】株式ニュース

NACCO INDUSTRIES ANNOUNCES FIRST QUARTER 2026 RESULTSMay 5, 2026 4:29 PM
PR Newswire (US) CLEVELAND, May 5, 2026 /PRNewswire/ --Consolidated Q1 2026 Highlights:Gross profit of $14.3 million improved 48% over Q1 2025 on 4% revenue decreaseOperating profit of $11.0 million up 43% over Q1 2025 and 45% sequentiallyNet income of $8.8 million increased 80% over Q1 2025Diluted EPS of $1.17 versus $0.66 in Q1 2025Adjusted EBITDA of $16.4 million improved 28% over Q1 2025 and 15% sequentiallyNACCO Industries® (NYSE: NC) today announced consolidated results for the three months ended March 31, 2026. First-quarter 2026 results demonstrated strong earnings growth momentum both year-over-year and sequentially. Meaningful operating profit growth in the Utility Coal and Contract Mining segments drove the year-over-year improvement, while sequential growth was led by Contract Mining primarily as a result of the commencement of a new U.S. Army Corps of Engineers construction project in Florida. Higher unallocated expenses partly offset the year-over-year improvement. Overall, the increase in operating profit combined with improvement in other investment income contributed to the substantial year-over-year increase in net income."We delivered a strong start to 2026, reporting significant growth in profitability," said J.C. Butler, NACCO President and Chief Executive Officer." These results reflect continued execution of our business model and the strength of our operations, particularly in the Utility Coal and Contract Mining segments. As we move forward, we plan to build on this momentum through investments in our growth platforms which are expected to deliver improvements in profitability and cash generation. We are encouraged by our performance and remain confident in our ability to generate long-term value for shareholders."
Three Months Ended($ in thousands, except per share amounts)3/31/20263/31/2025Year/Year
% Change12/31/2025Sequential
% ChangeRevenues$62,775$65,571(4) %$66,778(6) %Gross profit$14,291$9,65448 %$12,02819 %Operating profit$11,016$7,68243 %$7,57345 %Net Income (Loss)$8,836$4,90080 %$(3,840)**n/mDiluted EPS$1.17$0.6677 %$(0.52)**n/mConsolidated Adjusted EBITDA*$16,397$12,82928 %$14,30915 %
*Non-GAAP financial measures are defined and reconciled on page 7. / ** n/m = not meaningfulLiquidityAt March 31, 2026, the Company had outstanding debt of $126.4 million. Total liquidity was $102.7 million, which consisted of $53.2 million of cash and $49.5 million of availability under our revolving credit facility.Detailed Discussion of 2026 First Quarter Compared to 2025 First Quarter Utility Coal Mining Results
2026
2025Tons of coal delivered(in thousands)        Unconsolidated operations5,514
5,616        Consolidated operations491
591                        Total deliveries6,005
6,207

2026
2025
(in thousands)Revenues$      16,691
$ 19,239Gross profit (loss)$ 741
$ (3,331)Earnings of unconsolidated operations$      14,108
$      14,463Operating expenses(1)$ 7,425
$ 7,341Operating profit$ 7,424
$ 3,791Segment Adjusted EBITDA(2)$ 9,736
$ 5,809
(1) Operating expenses consist of Selling, general and administrative expenses, Amortization of intangible assets and (Gain) loss on sale of assets.(2) Segment Adjusted EBITDA is a non-GAAP measure and should not be considered in isolation or as a substitute for GAAP. See non-GAAP explanation and the related reconciliations to GAAP on page 8.Utility Coal Mining revenues decreased 13% from the prior year. A maintenance outage at Mississippi Lignite Mining Company's customer's power plant during the 2026 first quarter resulted in a decline in tons delivered. As anticipated, favorable contractual pricing partly offset the effect of reduced deliveries.The year-over-year operating profit and Segment Adjusted EBITDA improvements primarily reflect stronger operating performance at Mississippi Lignite Mining Company. Results benefited in part from redeploying crews to execute planned reclamation activities during the power plant outage. These factors drove a meaningful improvement in gross profit compared with the prior year, when results were affected by a $3.0 million inventory impairment charge.Contract Mining Results
2026
2025
(in thousands)Tons delivered14,960
12,853

2026
2025
(in thousands)Total revenues$ 32,639
$? 31,526Reimbursable costs16,865
19,547Revenues excluding reimbursable costs$ 15,774
$‍ ? 11,979Operating profit$ 3,988
$ 1,970Segment Adjusted EBITDA(1)$ 5,986
$ ? 4,672
(1) Segment Adjusted EBITDA is a non-GAAP measure and should not be considered in isolation or as a substitute for GAAP. See non-GAAP explanation and the related reconciliations to GAAP on page 8.Current quarter results benefited from the commencement of a multi-year dragline services contract, reflecting continued progress in the strategic expansion of Contract Mining's business model. This contract combined with increased customer requirements and deliveries at the limestone mining operations led to a 32% increase in revenues, net of reimbursed costs, and substantial year-over-year increases in both operating profit and Segment Adjusted EBITDA. A change in depreciation estimates during the current quarter also contributed $0.9 million to the improved operating profit.Minerals and Royalties Results
2026
2025
(in thousands)Revenues $       9,546
$      10,902Operating profit $       7,736
$ 7,907Segment Adjusted EBITDA(1)$       8,623
$ 9,815
(1) Segment Adjusted EBITDA is a non-GAAP measure and should not be considered in isolation or as a substitute for GAAP. See non-GAAP explanation and the related reconciliations to GAAP on page 8.At Minerals and Royalties, higher 2026 earnings from an equity investment mostly offset the effect of a decrease in natural gas revenues, resulting in comparable year-over-year operating profit.Unallocated
2026
2025
(in thousands)Operating loss$      (8,132)
$      (5,986)Segment Adjusted EBITDA(1)$      (7,822)
$      (5,821)
(1) Segment Adjusted EBITDA is a non-GAAP measure and should not be considered in isolation or as a substitute for GAAP. See non-GAAP explanation and the related reconciliations to GAAP on page 8.Unallocated primarily includes public company administrative costs and the financial results of Bellaire Corporation, as well as Mitigation Resources of North America®, ReGen Resources and other developing businesses that are not directly attributable to our reportable segments. Reduced profitability at Mitigation Resources and a modest asset impairment charge drove the increase in the Unallocated operating loss and Segment Adjusted EBITDA.OutlookNACCO Industries is a growing diversified natural resources company with a unique business model strategically positioned to deliver stable and growing financial returns over the long term. Our business model is purposely built for durability and resilience with an expanding portfolio of long-term contracts, relationships and investments that leverage our proven operational expertise, disciplined capital allocation and an entrepreneurial yet patient approach. We have methodically built unique capabilities and clear competitive advantages that allow us to pursue a wide range of growth opportunities, often completely integrated into customers' operations in partnership-based relationships. We have multiple vectors for value creation, and we are steadfastly committed to delivering compounding returns and expanding investor value over the long term. Our foundation rests on a stable base of long-term coal-mining contracts and legacy mineral and royalty assets, which generate dependable recurring cash flows. As new long-term contracts and investments are added across the Company, these new multi-year agreements create a "layering effect" as their contributions compound. The momentum our operations experienced in the second half of 2025 and the first quarter of 2026 is expected to continue throughout the remainder of 2026, resulting in meaningful year-over-year improvements in consolidated operating profit, net income and Adjusted EBITDA. Excluding the effect of a $6 million after-tax pension settlement charge in 2025, year-over-year growth is expected to moderate in the second half of 2026 as anticipated results are compared against stronger prior-year operational performance.At our Utility Coal Mining segment, operated by North American Coal®, we expect a meaningful increase in operating profit compared with 2025, primarily in the first half of 2026. We anticipate improved results at Mississippi Lignite Mining Company if the customer's power plant is able to operate as planned. An expected increase in the contractually determined per ton sales price and a lower cost per ton delivered are also anticipated to contribute to this improvement. We expect these operating profit improvements to be partly offset by lower earnings at the unconsolidated mining operations due to reduced income associated with the wind down of reclamation services at the Sabine Mining Company.The Contract Mining segment, operated by North American Mining®, serves as our mining growth platform. We are building a growing portfolio of long-term contracts through geographic and mineral expansion that are expected to strengthen the foundation for sustained profitability in this segment. In early 2026, we commenced activities under a multi-year dragline services contract as part of a U.S. Army Corps of Engineers construction project in Palm Beach County, Florida. We also anticipate commencing operations at a new limestone quarry in Arizona during the second half of 2026.Sawtooth Mining, a North American Mining subsidiary, provides exclusive comprehensive mining services at Thacker Pass, which is owned by a joint venture led by Lithium Americas Corp. Sawtooth will supply all of the lithium-bearing ore requirements for our customer's Thacker Pass lithium processing facility, which is currently under construction. This project is providing stable income during construction and is expected to contribute increased income and long-term cash flows once lithium production commences, which is targeted for late 2027.As a result of earnings contributions from new contracts and continued momentum from 2025 activities, we anticipate a substantial year-over-year increase in operating profit and Segment Adjusted EBITDA in the Contract Mining segment.The Minerals and Royalties segment, managed by Catapult Mineral Partners®, has constructed a high-quality, diversified portfolio of oil and gas mineral and royalty interests in the United States. The Catapult team is expanding its portfolio by leveraging a data-driven approach to capital deployment that incorporates a longer-term view of production and development. This segment also holds a meaningful equity investment in a company that has operating and non-operating working interests in oil and natural gas assets. Anticipated increases in income from our equity holding combined with higher oil prices are expected to be more than offset by anticipated production declines and a changing mix of production and development activity, resulting in an overall year-over-year decrease in Minerals and Royalties' operating profit and Segment Adjusted EBITDA. Changes in commodity prices or production and development assumptions, including as a result of the ongoing Middle East conflict, could alter current expectations.Mitigation Resources of North America® provides natural resource restoration and reclamation services that include stream and wetland mitigation solutions. Mitigation Resources is successfully leveraging its strong reputation and clear competitive strengths to expand into additional mitigation, restoration and reclamation markets. Mitigation Resources is expected to deliver increasing profitability over time from the sale of mitigation credits and as reclamation and restoration services expand. This business, while currently variable in performance due to permit and project timing, is expected to generate a profit in the second half of 2026 and move toward more consistent and improving results over time as the business expands.We continue to invest in our businesses to support future growth. Capital expenditures totaled $33 million in the first quarter of 2026. We anticipate additional spending of up to $57 million over the remainder of the year, primarily for business development opportunities. These expenditures will be made only if projects meet our growth investment criteria. As a result, we anticipate a greater use of cash before financing in 2026 compared with 2025.Our businesses provide essential inputs for electricity generation, construction and development, and industrial production. As demand for reliable uninterrupted energy continues to grow, natural resources fundamentals remain strong, reinforcing the importance of dependable baseload generation. Recent policy developments, including the re-establishment of the National Coal Council, highlight coal's ongoing strategic role in supporting grid reliability, economic competitiveness and national security. This development, along with a favorable regulatory environment, reinforces our confidence in our near-term outlook and long-term growth trajectory.Our conservative approach to maintaining a strong capital structure and operating discipline minimizes risk, while the compounding effect of a growing portfolio of long-term contracts and strategic growth investments create a robust foundation for cash flow growth. With a perspective that spans decades, we are methodically building a strong, stable business that is expected to deliver annuity-like returns. This long-term view allows us to leverage our core skills for strategic, measured expansion and pursue opportunities with longer-term horizons and higher returns. We pursue opportunities that other companies with shorter time horizons might overlook. Our commitment is to generate increasing cash flows and return value to stockholders, whether through reinvestment for growth or direct returns such as share repurchases and payment of dividends. We remain confident in our ability to drive growth, expand our capabilities and reward shareholders over the long run.****Conference CallIn conjunction with this news release, the management of NACCO Industries will host a conference call on Wednesday, May 6, 2026 at 8:30 a.m. Eastern Time. The call may be accessed by dialing (888) 880-3330 (North America Toll Free) or (646) 357-8766 (International), Conference ID:1610203, or over the Internet through NACCO Industries' website at ir.nacco.com/overview. For those not planning to ask a question of management, the Company recommends listening to the call via the online webcast. Please allow 15 minutes to register, download and install any necessary audio software required to listen to the webcast. A replay of the call will be available shortly after the call ends through May 13, 2026. An archive of the webcast will also be available on the Company's website approximately two hours after the live call ends.Non-GAAP and Other MeasuresThis release contains non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. Included in this release are reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with U.S. generally accepted accounting principles (GAAP). Adjusted EBITDA and Segment Adjusted EBITDA are provided solely as supplemental non-GAAP disclosures of operating results. Management believes that Adjusted EBITDA and Segment Adjusted EBITDA assist investors in understanding the results of operations of NACCO Industries. In addition, management evaluates results using these non-GAAP measures.Forward-looking Statements Disclaimer The statements contained in this news release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are made subject to certain risks and uncertainties, which could cause actual results to differ materially from those presented. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof. Among the factors that could cause plans, actions and results to differ materially from current expectations are, without limitation: (1) a significant reduction in demand by the Company's customers, (2) changes in the prices of hydrocarbons, particularly diesel fuel, natural gas, natural gas liquids and oil as a result of factors such as OPEC and/or government actions, geopolitical developments, economic conditions and regulatory changes, as well as supply and demand dynamics, (3) weather conditions, extended power plant outages, liquidity events or other events that would change the level of customers' coal or aggregates requirements, (4) changes to or termination of customer or other third-party contracts, or a customer or other third party default under a contract, (5) changes in development plans by third-party lessees of the Company's mineral interests, (6) failure or delays by the Company's lessees in achieving expected production of natural gas and other hydrocarbons; the availability and cost of transportation and processing services in the areas where the Company's oil and gas reserves are located; and the ability of lessees to obtain capital or financing needed for well-development operations and leasing and development of oil and gas reserves on federal lands, (7) any customer's premature facility closure or extended project development delay, (8) federal and state legislative and regulatory actions affecting fossil fuels, (9) supply chain disruptions, including price increases and shortages of parts and materials, inclusive of tariff effects, (10) failure to obtain adequate insurance coverages at reasonable rates, (11) changes in tax laws or regulatory requirements, including the elimination of, or reduction in, the percentage depletion tax deduction, changes in mining or power plant emission regulations and health, safety or environmental legislation, (12) impairment charges, (13) changes in costs related to geological and geotechnical conditions, repairs and maintenance, new equipment and replacement parts, fuel or other similar items, (14) equipment problems that could affect deliveries to customers, (15) changes in the costs to reclaim mining areas, (16) costs to pursue and develop new mining, mitigation, oil and gas and power generation development opportunities and other value-added service opportunities, (17) the ability to successfully evaluate investments and achieve intended financial results in new business and growth initiatives, (18) disruptions from natural or human causes, including severe weather, accidents, fires, earthquakes and terrorist acts, any of which could result in suspension of operations or harm to people or the environment, and (19) the ability to attract, retain, and replace workforce and administrative employees.About NACCO IndustriesNACCO Industries® brings natural resources to life by delivering aggregates, minerals, reliable fuels and environmental solutions through its robust portfolio of NACCO Natural Resources® businesses. Learn more about our companies at nacco.com, or get investor information at ir.nacco.com.*****NACCO INDUSTRIES, INC. AND SUBSIDIARIESUNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED
MARCH 31
2026
2025
(In thousands, except per share data)Revenues$      62,775
$      65,571Cost of sales48,484
55,917Gross profit14,291
9,654Earnings of unconsolidated operations16,571
15,986Operating expenses

Selling, general and administrative expenses19,701
17,868Amortization of intangible assets151
162Gain on sale of assets(6)
(72)
19,846
17,958Operating profit 11,016
7,682Other expense (income)

Interest expense1,658
1,774Interest income(595)
(865)Closed mine obligations489
473(Gain) loss on equity securities(455)
870Other, net92
303
1,189
2,555Income before income tax provision9,827
5,127Income tax provision991
227Net income$       8,836
$       4,900

Earnings per share:

Basic earnings per share$         1.18
$         0.67Diluted earnings per share$         1.17
$         0.66

Basic weighted average shares outstanding7,482
7,363Diluted weighted average shares outstanding7,552
7,447

CONSOLIDATED ADJUSTED EBITDA RECONCILIATION (UNAUDITED)

Quarter Ended
LTM
3/31/2025
6/30/2025
9/30/2025
12/31/2025
3/31/2026
3/31/2026

(in thousands)

Net income (loss)$        4,900
$       3,260
$      13,254
$      (3,840)
$       8,836
$      21,510Pension settlement charge—
—
—
7,804
—
7,804Income tax provision (benefit)227
(1,266)
(7,297)
3,906
991
(3,666)Interest expense1,774
1,944
1,087
949
1,658
5,638Interest income(865)
(770)
(708)
(709)
(595)
(2,782)Depreciation, depletion and amortization expense6,793
6,091
6,194
6,199
5,507
23,991Consolidated Adjusted EBITDA*$       12,829
$       9,259
$      12,530
$      14,309
$      16,397
$      52,495
*Consolidated Adjusted EBITDA is a non-GAAP measure and should not be considered in isolation or as a substitute for GAAP measures. NACCO defines Consolidated Adjusted EBITDA as net income (loss) before pension settlement charge, income taxes, net interest expense and depreciation, depletion and amortization expense. Consolidated Adjusted EBITDA is not a measure under U.S. GAAP and is not necessarily comparable to similarly titled measures of other companies. NACCO INDUSTRIES, INC. AND SUBSIDIARIESFINANCIAL SEGMENT HIGHLIGHTS AND SEGMENT ADJUSTED EBITDA RECONCILIATIONS (UNAUDITED)
Three Months Ended March 31, 2026
Utility Coal
Mining
Contract
Mining
Minerals and
Royalties
Unallocated
Items
Eliminations
Total
(In thousands)Revenues$     16,691
$     32,639
$       9,546
$       4,831
$       (932)
$     62,775Cost of sales15,950
27,744
1,121
4,612
(943)
48,484Gross profit 741
4,895
8,425
219
11
14,291Earnings of unconsolidated operations14,108
1,502
961
—
—
16,571Gain on sale of assets—
(5)
(1)
—
—
(6)Operating expenses*7,425
2,414
1,651
8,362
—
19,852Operating profit (loss)$       7,424
$       3,988
$       7,736
$      (8,143)
$         11
$     11,016Segment Adjusted EBITDA**

Operating profit (loss)$       7,424
$       3,988
$       7,736
$      (8,143)
$         11
$     11,016Depreciation, depletion and amortization2,312
1,998
887
310
—
5,507Segment Adjusted EBITDA**$       9,736
$       5,986
$       8,623
$      (7,833)
$         11
$     16,523

Three Months Ended March 31, 2025
Utility Coal
Mining
Contract
Mining
Minerals and
Royalties
Unallocated
Items
Eliminations
Total
(In thousands)Revenues$     19,239
$     31,526
$      10,902
$       4,400
$       (496)
$     65,571Cost of sales22,570
28,378
2,244
3,237
(512)
55,917Gross profit (loss)(3,331)
3,148
8,658
1,163
16
9,654Earnings of unconsolidated operations14,463
969
554
—
—
15,986Gain on sale of assets(72)
—
—
—
—
(72)Operating expenses*7,413
2,147
1,305
7,165
—
18,030Operating profit (loss)$       3,791
$       1,970
$       7,907
$      (6,002)
$         16
$       7,682Segment Adjusted EBITDA**

Operating profit (loss)$       3,791
$       1,970
$       7,907
$      (6,002)
$         16
$       7,682Depreciation, depletion and amortization2,018
2,702
1,908
165
—
6,793Segment Adjusted EBITDA**$       5,809
$       4,672
$       9,815
$      (5,837)
$         16
$     14,475
*Operating expenses consist of Selling, general and administrative expenses and Amortization of intangible assets.**Segment Adjusted EBITDA is a non-GAAP measure and should not be considered in isolation or as a substitute for GAAP measures. NACCO defines Segment Adjusted EBITDA as operating profit (loss) before depreciation, depletion and amortization expense. Segment Adjusted EBITDA is not a measure under U.S. GAAP and is not necessarily comparable with similarly titled measures of other companies. View original content to download multimedia:https://www.prnewswire.com/news-releases/nacco-industries-announces-first-quarter-2026-results-302763240.htmlSOURCE NACCO Industries Original: NACCO INDUSTRIES ANNOUNCES FIRST QUARTER 2026 RESULTS

NACCO INDUSTRIES ANNOUNCES FOURTH QUARTER AND FULL YEAR 2025 RESULTSMarch 4, 2026 4:47 PM
PR Newswire (US)

CLEVELAND, March 4, 2026 /PRNewswire/ -- Q4 Highlights:Gross profit of $12.0 million increased 42% from 2024 on 5% lower revenueOperating profit of $7.6 million up 95% over 2024 and 12% over Q3 2025 Net loss of $3.8 million compared with net income of $7.6 million in 20242025 net loss includes a $6.0 million after-tax, non-cash pension settlement chargeAdjusted EBITDA of $14.3 million improved 59% over 2024 and 14% over Q3 2025FY Highlights:Net income of $17.6 million, or $2.35/share, versus $33.7 million, or $4.55/share, in 2024Adjusted EBITDA of $48.9 million compared with $59.4 million in 2024 2024 included $13.6 million of business interruption insurance recoveriesNACCO Industries® (NYSE: NC) today announced financial results for the three months and year ended December 31, 2025. Fourth-quarter 2025 operating profit increased over the prior year, reflecting improved results across all three reportable segments, led by Utility Coal Mining. Higher unallocated expenses partly offset these improvements.During the 2025 fourth quarter, the Company recorded a $7.8 million pension settlement charge, $6.0 million after tax, associated with the planned termination of its pension plan. This charge and a significant unfavorable tax effect, primarily due to the true-up of tax expense to the annual effective tax rate, resulted in a net loss for the quarter."We delivered a strong close to 2025 as our fourth-quarter operating profit built upon the improving profitability and growth we experienced in the third quarter," said J.C. Butler, NACCO President and Chief Executive Officer. "While reported earnings were impacted by the pension settlement charge, our underlying results reflect a business delivering on its potential. We enter 2026 with clear opportunities to build on this momentum as we execute our growth strategy and create long-term value for our shareholders."
Three Months Ended($ in thousands except per share amounts)12/31/25
12/31/24
Year/Year$ Change
9/30/25
Sequential$ ChangeRevenues$66,778
$70,418
$(3,640)
$76,614
$(9,836)Gross profit$12,028
$8,476
$3,552
$9,971
$2,057Operating profit $7,573
$3,883
$3,690
$6,777
$796Net income (loss)$(3,840)
$7,564
$(11,404)
$13,254
$(17,094)Diluted EPS$(0.52)
$1.02
$(1.54)
$1.78
$(2.30)Consolidated Adjusted EBITDA*$14,309
$8,994
$5,315
$12,530
$1,779
*Non-GAAP financial measures are defined and reconciled on pages 8 to 10.LiquidityAt December 31, 2025, NACCO had outstanding debt of $100.9 million. Total liquidity was $124.2 million, which consisted of $49.7 million of cash and $74.5 million of availability under our revolving credit facility. For the 2025 full year, we generated cash from operations of $50.9 million compared with $22.3 million in 2024.Detailed Discussion of 2025 Fourth Quarter Compared to 2024 Fourth QuarterUtility Coal Mining Segment
2025
2024Tons of coal delivered(in thousands)        Unconsolidated operations5,579
5,563        Consolidated operations640
570                        Total deliveries6,219
6,133

2025
2024
(in thousands)Revenues$20,669
$20,364Gross profit (loss)$922
$(3,876)Earnings of unconsolidated operations$14,041
$13,987Operating expenses(1)$7,808
$8,088Operating profit$7,155
$2,023Segment Adjusted EBITDA(2)$9,685
$4,235
(1) Operating expenses consist of Selling, general and administrative expenses, Amortization of intangible assets and (Gain) loss on sale of assets.(2) Segment Adjusted EBITDA is a non-GAAP measure and should not be considered in isolation or as a substitute for GAAP. See non-GAAP explanation and the related reconciliations to GAAP on page 9.The year–over–year operating profit and Segment Adjusted EBITDA improvement primarily reflects stronger operating performance at Mississippi Lignite Mining Company. Mississippi Lignite Mining Company produced and sold more tons during the quarter and, as a result, benefited from higher production efficiency and a lower cost per ton sold. In addition, production outpaced deliveries in the period, resulting in certain production costs being capitalized into inventory. These factors drove a meaningful improvement in results compared with the prior year, when earnings were affected by a significant inventory write down. Lower general and administrative employee-related expenses also contributed to the improvement in the segment operating profit.Contract Mining Segment
2025
2024
(in thousands)Tons delivered13,700
11,785

2025
2024
(in thousands) Revenues$       32,153
$       34,871Operating profit $ 858
$ 806Segment Adjusted EBITDA(1)$         3,316
$         3,255
(1) Segment Adjusted EBITDA is a non-GAAP measure and should not be considered in isolation or as a substitute for GAAP. See non-GAAP explanation and the related reconciliations to GAAP on page 9.The year–over–year revenue decline is primarily due to lower reimbursed costs, which have a corresponding offset in cost of goods sold. Revenues, net of reimbursed costs, grew 9% over the prior year, primarily driven by higher parts sales partly offset by increased volumes of lower-priced tons.Contract Mining continues to benefit from ongoing progress on operational and strategic initiatives designed to enhance profitability. Improved margins at the operations and higher parts sales were offset by a $1.1 million loss contingency recognized during the quarter and increased employee-related expenses, resulting in operating profit in line with the prior year.Minerals and Royalties Segment
2025
2024
(in thousands)Revenues $       10,147
$         9,736Operating profit$         8,028
$         7,218Segment Adjusted EBITDA(1)$         8,919
$         8,083
(1) Segment Adjusted EBITDA is a non-GAAP measure and should not be considered in isolation or as a substitute for GAAP. See non-GAAP explanation and the related reconciliations to GAAP on page 9.Revenues, operating profit and Segment Adjusted EBITDA grew year over year primarily due to increased royalty revenues driven by improved natural gas pricing and increased production volumes. These benefits were partly offset by decreased oil revenues resulting from reduced oil prices and production volumes. Lower employee-related expenses and higher earnings from an equity investment also contributed to the year-over-year profit improvement.Unallocated
2025
2024
(in thousands)Operating loss$       (8,398)
$       (6,197)Segment Adjusted EBITDA(1)$       (8,078)
$       (6,021)
(1) Segment Adjusted EBITDA is a non-GAAP measure and should not be considered in isolation or as a substitute for GAAP. See non-GAAP explanation and the related reconciliations to GAAP on page 9.Unallocated primarily includes public company administrative costs and the financial results of Bellaire Corporation, Mitigation Resources of North America®, ReGen Resources and other developing businesses that are not directly attributable to our reportable segments. While fourth-quarter unallocated employee-related costs decreased year over year, fewer credit sales and higher operating expenses at Mitigation Resources and an increase in outside services at other developing businesses drove the significant increase in the Unallocated operating loss.OutlookNACCO Industries is a growing diversified natural resources company with a unique business model strategically positioned to deliver stable and growing financial returns over the long term. Our business model is purposely built for durability and resilience with an expanding portfolio of long-term contracts, relationships and investments that leverage our proven operational expertise, disciplined capital allocation and an entrepreneurial yet patient approach. We have methodically built unique capabilities and clear competitive advantages that allow us to pursue a wide range of growth opportunities, often completely integrated into customers' operations in partnership-based relationships. We have multiple vectors for value creation, and we are steadfastly committed to delivering compounding returns and expanding investor value over the long term.Our foundation rests on a stable base of long-term coal-mining contracts and legacy mineral and royalty assets, which generate dependable recurring cash flows. As new long-term contracts and investments are added across the Company, these new multi-year agreements create a "layering" effect as their contributions compound. This provides cash flow stability. The momentum our operations experienced in 2025, particularly in the second half, is expected to continue into 2026, with meaningful year-over-year improvements in consolidated operating profit, net income and EBITDA.At our Utility Coal Mining segment, operated by North American Coal®, we expect an increase in operating profit compared with 2025. Improvements at Mississippi Lignite Mining Company as a result of an increase in the contractually determined per ton sales price are expected to be partly offset by lower earnings at the unconsolidated mining operations due to reduced income associated with the wind down of reclamation services at the Sabine Mining Company.While we expect modest year-over-year improvements at Mississippi Lignite Mining Company, the customer's power plant began a maintenance outage in mid-February 2026. The power plant is expected to resume operations in mid-March. Any delay or further changes in demand, dispatch and/or reduced mechanical availability at the power plant could decrease current expectations.The Contract Mining segment, operated by North American Mining®, serves as our primary mining growth platform. Through continued geographic and mineral expansion, we are building a growing portfolio of long-term contracts that strengthen the foundation for sustained profitability. In October 2025, we secured a multi-year dragline services contract as part of a U.S. Army Corps of Engineers construction project in Palm Beach County, Florida. We also anticipate commencing operations at a new limestone quarry in Arizona in 2026. We expect the segment to deliver a significant year-over-year increase in operating profit and Segment Adjusted EBITDA as a result of higher customer demand, earnings contributions from new contracts and continued momentum from 2025 activities.Sawtooth Mining, a North American Mining subsidiary, provides exclusive comprehensive mining services at Thacker Pass, which is owned by a joint venture led by Lithium Americas Corp. (TSX: LAC; NYSE: LAC). Sawtooth will supply all of the lithium-bearing ore requirements for our customer's Thacker Pass lithium processing facility, which is currently under construction. This project is providing stable income during construction and is expected to contribute increased income and long-term cash flows once lithium production commences, which is targeted for late 2027.The Minerals and Royalties segment, managed by Catapult Mineral Partners®, has constructed a high-quality, diversified portfolio of oil and gas mineral and royalty interests in the United States. The Catapult team is expanding its portfolio by leveraging a data-driven approach to capital deployment that incorporates a longer-term view of production and development. We believe this provides a competitive advantage in the U.S. market.In July 2025, Catapult completed a $4.2 million acquisition of mineral interests within the Permian Basin. The acquisition includes a mix of producing wells, as well as additional development opportunities with existing operators in the area. This segment also has an investment in a company that holds operated and non-operated working interests in oil and natural gas assets. While these investments are expected to contribute favorably to 2026, commodity price forecasts as well as development and production assumptions are expected to result in an overall year-over-year decrease in Minerals and Royalties' operating profit and Segment Adjusted EBITDA, particularly in the second half of the year. Our forecast was developed prior to recent events in the Middle East. Any changes in commodity prices or production as a result of this conflict could alter current expectations.Mitigation Resources of North America® provides natural resource restoration and reclamation services that include stream and wetland mitigation solutions. Mitigation Resources is successfully leveraging its strong reputation and clear competitive strengths to expand into additional mitigation, restoration and reclamation markets. Mitigation Resources is expected to deliver increasing profitability over time from the sale of mitigation credits and as reclamation and restoration services expand. This business, while currently variable in performance due to permit and project timing, is expected to generate a profit in the second half of 2026 and move toward more consistent results over time as the business expands.We continue to invest in our businesses to drive future growth. In 2026, we anticipate total capital expenditures of up to $89 million. The majority of these expenditures relate to business development opportunities and will only be made if the projects meet our growth investment criteria. These anticipated capital investments are expected to result in a use of cash before financing greater than in 2025.Our businesses provide critical inputs for electricity generation, construction and development, and the production of industrial minerals and chemicals. As the need for uninterrupted energy grows, industry fundamentals for natural resources are expected to continue to strengthen, reinforcing the critical need to keep existing, reliable baseload resources online. In 2026, the National Coal Council, an advisory committee to the U.S. Secretary of Energy, was re-established. This council is focused on advising the Department of Energy on reinforcing coal's strategic role in U.S. energy policy and providing actionable advice on sustaining coal plant operations and prioritizing coal to support grid reliability to support our country's economic competitiveness and national security. The re-establishment of this council and the underlying improving regulatory environment reinforce our confidence in our prospects for 2026, our overall business trajectory and longer-term growth opportunities.Our conservative approach to maintaining a strong capital structure and operating discipline minimizes risk, while the compounding effect of a growing portfolio of long-term contracts and deliberate growth investments create a robust foundation for cash flow growth. With a perspective that spans decades, we are methodically building a strong, stable business that is expected to deliver annuity-like returns. This long-term view allows us to leverage our core skills for strategic, measured expansion and pursue opportunities with longer-term horizons and higher returns. We pursue opportunities that other companies with shorter time horizons might overlook. Our commitment is to generate increasing cash flows and return value to stockholders, whether through reinvestment for growth or direct returns such as share repurchases and payment of dividends. We remain confident in our ability to drive growth, expand our capabilities and reward shareholders over the long run.****Conference CallIn conjunction with this news release, the management of NACCO Industries will host a conference call on Thursday, March 5, 2026 at 8:30 a.m. Eastern Time. The call may be accessed by dialing (888) 880-3330 (North America Toll Free) or (646) 357-8766 (International), Conference ID: 5565879, or over the Internet through NACCO Industries' website at ir.nacco.com/home. For those not planning to ask a question of management, the Company recommends listening to the call via the online webcast. Please allow 15 minutes to register, download and install any necessary audio software required to listen to the webcast. A replay of the call will be available shortly after the call ends through March 12, 2026. An archive of the webcast will also be available on the Company's website approximately two hours after the live call ends.Annual Report on Form 10-KNACCO Industries, Inc.'s Annual Report on Form 10-K has been filed with the Securities and Exchange Commission. This document may be obtained by directing such requests to NACCO Industries, Inc., 22901 Millcreek Blvd., Suite 600, Cleveland, Ohio 44122, Attention: Investor Relations, by calling (440) 229-5130, or from NACCO Industries, Inc.'s website at nacco.com.Non-GAAP and Other MeasuresThis release contains non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. Included in this release are reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with U.S. generally accepted accounting principles (GAAP). Consolidated Adjusted EBITDA and Segment Adjusted EBITDA are provided solely as supplemental non-GAAP disclosures of operating results. Management believes that Consolidated Adjusted EBITDA and Segment Adjusted EBITDA assist investors in understanding the results of operations of NACCO Industries. In addition, management evaluates results using these non-GAAP measures.Forward-looking Statements DisclaimerThe statements contained in this news release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are made subject to certain risks and uncertainties, which could cause actual results to differ materially from those presented. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof. Among the factors that could cause plans, actions and results to differ materially from current expectations are, without limitation: (1) a significant reduction in demand by the Company's customers, (2) weather conditions, extended power plant outages, liquidity events or other events that would change the level of customers' coal or aggregates requirements, (3) changes to or termination of customer or other third-party contracts, or a customer or other third party default under a contract, (4) changes in the prices of hydrocarbons, particularly diesel fuel, natural gas, natural gas liquids and oil as a result of factors such as OPEC and/or government actions, geopolitical developments, economic conditions and regulatory changes, vehicle electrification, as well as supply and demand dynamics, (5) changes in development plans by third-party lessees of the Company's mineral interests, (6) failure or delays by the Company's lessees in achieving expected production of natural gas and other hydrocarbons; the availability and cost of transportation and processing services in the areas where the Company's oil and gas reserves are located; and the ability of lessees to obtain capital or financing needed for well-development operations and leasing and development of oil and gas reserves on federal lands, (7) any customer's premature facility closure or extended project development delay, (8) federal and state legislative and regulatory actions affecting fossil fuels, (9) supply chain disruptions, including price increases and shortages of parts and materials, inclusive of tariff effects, (10) failure to obtain adequate insurance coverages at reasonable rates, (11) changes in tax laws or regulatory requirements, including the elimination of, or reduction in, the percentage depletion tax deduction, changes in mining or power plant emission regulations and health, safety or environmental legislation, (12) impairment charges, (13) changes in costs related to geological and geotechnical conditions, repairs and maintenance, new equipment and replacement parts, fuel or other similar items, (14) equipment problems that could affect deliveries to customers, (15) changes in the costs to reclaim mining areas, (16) costs to pursue and develop new mining, mitigation, oil and gas and power generation development opportunities and other value-added service opportunities, (17) the ability to successfully evaluate investments and achieve intended financial results in new business and growth initiatives, (18) disruptions from natural or human causes, including severe weather, accidents, fires, earthquakes and terrorist acts, any of which could result in suspension of operations or harm to people or the environment, and (19) the ability to attract, retain, and replace workforce and administrative employees.About NACCO IndustriesNACCO Industries® brings natural resources to life by delivering aggregates, minerals, reliable fuels and environmental solutions through its robust portfolio of NACCO Natural Resources businesses. Learn more about our companies at nacco.com, or get investor information at ir.nacco.com.*****NACCO INDUSTRIES, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended December 31
Year Ended December 31
2025
2024
2025
2024
(In thousands, except per share data)Revenues$              66,778
$              70,418
$            277,198
$            237,708Cost of sales 54,750
61,942
238,725
207,952Gross profit 12,028
8,476
38,473
29,756Earnings of unconsolidated operations16,205
15,422
61,823
57,476Business interruption insurance recoveries—
—
—
13,612Operating expenses

Selling, general and administrative expenses20,661
20,094
77,851
69,754Amortization of intangible assets176
158
750
531Gain on sale of assets(177)
(237)
(286)
(5,146)
20,660
20,015
78,315
65,139Operating profit7,573
3,883
21,981
35,705Other expense (income)

Interest expense949
1,758
5,754
5,566Interest income(709)
(1,179)
(3,052)
(4,428)Closed mine obligations(997)
992
457
2,381Loss (gain) on equity securities489
(586)
726
(1,805)Gain on settlement of excess funding liability—
—
(3,590)
—Pension settlement charge7,804
—
7,804
—Other, net(29)
185
738
345
7,507
1,170
8,837
2,059Income before income tax expense (benefit)66
2,713
13,144
33,646Income tax expense (benefit)3,906
(4,851)
(4,430)
(95)Net income (loss)$ (3,840)
$ 7,564
$ 17,574
$ 33,741

Earnings (loss) per share:

Basic earnings (loss) per share$                 (0.52)
$                   1.04
$                   2.37
$                   4.58Diluted earnings (loss) per share$                 (0.52)
$                   1.02
$                   2.35
$                   4.55

Basic weighted average shares outstanding7,452
7,297
7,423
7,363Diluted weighted average shares outstanding7,452
7,422
7,481
7,411 CONSOLIDATED ADJUSTED EBITDA RECONCILIATION (UNAUDITED)

Three Months Ended
Year Ended
12/31/2025
12/31/2024
9/30/25
12/31/2025
12/31/2024
(in thousands)Net income (loss)$            (3,840)
$              7,564
$           13,254
$           17,574
$           33,741Pension settlement charge7,804
—
—
7,804
—Income tax expense (benefit)3,906
(4,851)
(7,297)
(4,430)
(95)Interest expense949
1,758
1,087
5,754
5,566Interest income(709)
(1,179)
(708)
(3,052)
(4,428)Depreciation, depletion and amortization expense6,199
5,702
6,194
25,277
24,652Consolidated Adjusted EBITDA*$           14,309
$              8,994
$           12,530
$           48,927
$           59,436
*Consolidated Adjusted EBITDA is a non-GAAP measure and should not be considered in isolation or as a substitute for GAAP measures. NACCO defines Consolidated Adjusted EBITDA as net income (loss) before pension settlement charge, income taxes, net interest expense and depreciation, depletion and amortization expense. Consolidated Adjusted EBITDA is not a measure under U.S. GAAP and is not necessarily comparable to similarly titled measures of other companies. NACCO INDUSTRIES, INC. AND SUBSIDIARIESFINANCIAL SEGMENT HIGHLIGHTS AND SEGMENT ADJUSTED EBITDA RECONCILIATIONS (UNAUDITED)

Three Months Ended December 31, 2025
Utility Coal
Mining
Contract
Mining
Minerals and
Royalties
Unallocated
Items
Eliminations
Total
(In thousands)Revenues$        20,669
$        32,153
$         10,147
$          5,499
$       (1,690)
$        66,778Cost of sales19,747
30,444
1,315
4,864
(1,620)
54,750Gross profit (loss)922
1,709
8,832
635
(70)
12,028Earnings of unconsolidated operations14,041
1,514
655
(5)
—
16,205Gain on sale of assets—
(160)
(17)
—
—
(177)Operating expenses*7,808
2,525
1,476
9,028
—
20,837Operating profit (loss)$          7,155
$              858
$           8,028
$        (8,398)
$            (70)
$          7,573Segment Adjusted EBITDA**

Operating profit (loss)$          7,155
$              858
$           8,028
$        (8,398)
$            (70)
$          7,573Depreciation, depletion and amortization2,530
2,458
891
320
—
6,199Segment Adjusted EBITDA**$          9,685
$ 3,316
$           8,919
$        (8,078)
$            (70)
$        13,772

Three Months Ended December 31, 2024
Utility Coal
Mining
Contract
Mining
Minerals and
Royalties
Unallocated
Items
Eliminations
Total
(In thousands)Revenues$        20,364
$        34,871
$           9,736
$          6,134
$          (687)
$        70,418Cost of sales24,240
33,517
1,083
3,822
(720)
61,942Gross profit (loss)(3,876)
1,354
8,653
2,312
33
8,476Earnings of unconsolidated operations13,987
1,075
361
(1)
—
15,422(Gain) loss on sale of assets(198)
(46)
—
7
—
(237)Operating expenses*8,286
1,669
1,796
8,501
—
20,252Operating profit (loss)$          2,023
$              806
$           7,218
$        (6,197)
$              33
$          3,883Segment Adjusted EBITDA**

Operating profit (loss)$          2,023
$              806
$           7,218
$        (6,197)
$              33
$          3,883Depreciation, depletion and amortization2,212
2,449
865
176
—
5,702Segment Adjusted EBITDA**$          4,235
$ 3,255
$           8,083
$        (6,021)
$              33
$          9,585
*Operating expenses consist of Selling, general and administrative expenses and Amortization of intangible assets.**Segment Adjusted EBITDA is a non-GAAP measure and should not be considered in isolation or as a substitute for GAAP measures. NACCO defines Segment Adjusted EBITDA as operating profit (loss) before depreciation, depletion and amortization expense. Segment Adjusted EBITDA is not a measure under U.S. GAAP and is not necessarily comparable with similarly titled measures of other companies. NACCO INDUSTRIES, INC. AND SUBSIDIARIESFINANCIAL SEGMENT HIGHLIGHTS AND SEGMENT ADJUSTED EBITDA RECONCILIATIONS

Year Ended December 31, 2025
Utility Coal
Mining
Contract
Mining
Minerals and
Royalties
Unallocated
Items
Eliminations
Total
(In thousands)Revenues$        88,188
$      140,013
$         37,630
$        15,080
$       (3,713)
$      277,198Cost of sales94,155
129,876
5,666
12,654
(3,626)
238,725Gross profit (loss)(5,967)
10,137
31,964
2,426
(87)
38,473Earnings of unconsolidated operations54,471
4,789
2,571
(8)
—
61,823Gain on sale of assets(103)
(162)
(17)
(4)
—
(286)Operating expenses*31,452
9,321
5,444
32,384
—
78,601Operating profit (loss)$        17,155
$          5,767
$         29,108
$ (29,962)
$            (87)
$        21,981Segment Adjusted EBITDA**

Operating profit (loss)$        17,155
$          5,767
$         29,108
$      (29,962)
$            (87)
$        21,981Depreciation, depletion and amortization8,815
10,854
4,579
1,029
—
25,277Segment Adjusted EBITDA**$        25,970
$        16,621
$         33,687
$      (28,933)
$            (87)
$        47,258

Year Ended December 31, 2024
Utility Coal
Mining
Contract
Mining
Minerals and
Royalties
Unallocated
Items
Eliminations
Total
(In thousands)Revenues$        68,611
$      119,600
$         34,579
$        17,707
$       (2,789)
$      237,708Cost of sales79,375
110,821
5,234
15,323
(2,801)
207,952Gross profit (loss)(10,764)
8,779
29,345
2,384
12
29,756Earnings of unconsolidated operations51,821
5,010
647
(2)
—
57,476Business interruption insurance recoveries13,612
—
—
—
—
13,612Gain on sale of assets(285)
(348)
(4,512)
(1)
—
(5,146)Operating expenses*30,643
8,365
5,577
25,700
—
70,285Operating profit (loss)$        24,311
$          5,772
$         28,927
$      (23,317)
$              12
$        35,705Segment Adjusted EBITDA**

Operating profit (loss)$        24,311
$          5,772
$         28,927
$      (23,317)
$              12
$        35,705Depreciation, depletion and amortization9,476
9,811
4,273
1,092
—
24,652Segment Adjusted EBITDA**$        33,787
$        15,583
$         33,200
$      (22,225)
$              12
$        60,357
*Operating expenses consist of Selling, general and administrative expenses and Amortization of intangible assets.**Segment Adjusted EBITDA is a non-GAAP measure and should not be considered in isolation or as a substitute for GAAP measures. NACCO defines Segment Adjusted EBITDA as operating profit (loss) before depreciation, depletion and amortization expense. Segment Adjusted EBITDA is not a measure under U.S. GAAP and is not necessarily comparable with similarly titled measures of other companies.

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Original: NACCO INDUSTRIES ANNOUNCES FOURTH QUARTER AND FULL YEAR 2025 RESULTS