Warrior Reports Second Quarter 2025 Results and Updates Outlook

First commercial sales of Blue Creek steelmaking coal achieved ahead of schedule

Inclusion of premium steelmaking coal from Blue Creek in sales mix contributed to strong cash margins, positive net income and positive operating cash flows despite market conditions

Startup of Blue Creek longwall operations ahead of schedule and on budget

Full year outlook updated

Warrior Met Coal, Inc. (NYSE: HCC) (“Warrior” or the “Company”) today announced results for the second quarter of 2025. Warrior is the leading dedicated U.S.-based producer and exporter of high-quality steelmaking coal for the global steel industry.

Warrior reported net income for the second quarter of 2025 of $5.6 million, or $0.11 per diluted share, a decrease from net income of $70.7 million, or $1.35 per diluted share, in the second quarter of 2024. The Company reported Adjusted EBITDA of $53.6 million in the second quarter of 2025 compared to Adjusted EBITDA of $115.9 million in the second quarter of 2024. These results continue to be substantially impacted by significantly weaker steelmaking coal market conditions reflected in the 24% lower average index price for premium low-vol steelmaking coal from the prior year comparable quarter.

Second Quarter Highlights

• Achieved the first commercial sales of 239 thousand short tons of steelmaking coal from the Blue Creek mine ahead of schedule and produced 348 thousand short tons from continuous miner development on the first longwall panel;
• Announced the acceleration of the longwall startup at Blue Creek to early first quarter of 2026;
• Completed the installation of the truck dump and rail loadout at Blue Creek, which enabled sending the first trainloads of steelmaking coal to the port for the first shipments to customers;
• Completed the installation and commissioning of module A of the preparation plant at Blue Creek and made significant progress on the overland clean coal belt and the barge loadout;
• Reported a 6% increase in total sales and production volumes compared to the prior year comparable quarter, primarily attributable to Blue Creek;
• Recorded cash cost of sales (free-on-board port) per short ton of $101.17, an 18% reduction from $123.78 per short ton quarter-over-quarter, driven by a variable cost structure, a disciplined approach to cost control and operational efficiency, and the sales mix of Blue Creek steelmaking coal and its inherent lower cost structure; and
• Recorded $37.5 million of cash provided by operating activities despite an average Platts Premium Low Vol FOB Australian index price of $167.12 per short ton during the quarter which represented a 24% decrease from the prior year comparable quarter.

“Despite headwinds in the global steelmaking industry, Warrior delivered strong operational results, maintained positive cash margins, and generated positive operating cash flows,” commented Walt Scheller, CEO of Warrior. “These outcomes reflect the strength of our cost discipline, the flexibility of our variable cost structure, and the resilience of our team in managing volatile market conditions. As we navigate challenging market dynamics driven by excess Chinese steel exports, global tariff uncertainties, seasonal demand softness, and ample spot supply, we remain focused on what we can control—protecting margins, preserving cash flow, and executing on our long-term growth strategy."

“This quarter was bolstered by the first commercial sales of steelmaking coal from our Blue Creek mine, which occurred ahead of schedule. This major milestone marks a critical inflection point in the development of this premier asset, representing the beginning of a transition from capital investment to revenue generation. The strong market interest in Blue Creek's high-quality steelmaking coal, combined with the mine's inherently low-cost structure, reinforces our confidence in the long-term value of this project and its role in driving sustainable shareholder returns. Importantly, we now anticipate the longwall startup to occur ahead of schedule early in the first quarter of 2026,” Scheller concluded.

Operating Results

Sales volumes in the second quarter of 2025 were 2.2 million short tons compared to 2.1 million short tons in the second quarter of 2024, representing a 6% increase, driven primarily by sales of Blue Creek steelmaking coal.

The Company produced 2.3 million short tons of steelmaking coal in the second quarter of 2025, compared to 2.2 million short tons in the second quarter of 2024, representing a 6% increase, including 348 thousand short tons produced at Blue Creek. Inventory levels remained consistent at 1.2 million short tons as of June 30, 2025, compared to March 31, 2025.

Additional Financial Results

Total revenues were $297.5 million for the second quarter of 2025, which compares to total revenues of $396.5 million for the second quarter of 2024. The average net selling price of the Company's steelmaking coal decreased 30.1% from $186.09 per short ton in the second quarter of 2024 to $130.01 per short ton in the second quarter of 2025. The average gross selling price realization was approximately 80% of the Platts Premium Low Vol FOB Australian index price for the second quarter of 2025 primarily driven by a higher sales mix of high-vol A steelmaking coal and a lower price index relativity to premium low-vol.

Cost of sales for the second quarter of 2025 were $226.4 million compared to $261.3 million for the second quarter of 2024. Cash cost of sales (free-on-board port) for the second quarter of 2025 were $224.5 million, or 78% of mining revenues, compared to $259.7 million, or 67% of mining revenues in the same period of 2024. Cash cost of sales (free-on-board port) per short ton decreased to $101.17 in the second quarter of 2025 from $123.78 in the second quarter of 2024, driven primarily by lower steelmaking coal prices and its effect on Warrior's variable cost structure, primarily for wages, transportation and royalties combined with the Company's disciplined approach to cost control and operational efficiency and the sales mix of Blue Creek coal and its inherent lower cost structure.

Selling, general and administrative expenses for the second quarter of 2025 were $11.9 million, or 4% of total revenues, and were lower than the same period last year of $15.5 million due to lower employee-related expenses combined with a continued focus on tightly managing expenses across the business.

Depreciation and depletion expenses for the second quarter of 2025 were $43.3 million, or 14.5% of total revenues and were higher than the same period last year of 9.6% of total revenues primarily due to depreciation expense recognized on additional assets placed into service at Blue Creek and higher sales volumes. Warrior achieved net interest income of $2.2 million during the second quarter of 2025, which is lower than the prior year due to lower interest income on lower cash balances and lower earned rates of return combined with higher interest expense due to interest on new leased equipment.

Income tax expense was $4.3 million in the second quarter of 2025 on a pre-tax income of $9.9 million primarily driven by an income tax benefit for foreign-derived intangible income and depletion expense. This compares to an income tax expense of $8.5 million on pre-tax income of $79.2 million in the second quarter of 2024.

Cash Flow and Liquidity

The Company generated positive cash flows from operations of $37.5 million in the second quarter of 2025, compared to $147.0 million in the second quarter of 2024. Capital expenditures and mine development for the second quarter of 2025 were $94.3 million compared to $121.6 million in the second quarter of 2024. The second quarter of 2025 includes $51.8 million of capital expenditures for the continued development of Blue Creek, which brings the total year-to-date capital expenditures to $107.0 million and project-to-date capital expenditures to $823.5 million. Free cash flows in the second quarter of 2025 were negative $56.7 million compared to free cash flows of $25.4 million in the second quarter of 2024, driven primarily by lower steelmaking coal prices.

Net working capital, excluding cash, for the second quarter of 2025 increased by $13.5 million from the first quarter of 2025, primarily reflecting higher supplies inventory partially offset by lower accounts receivable.

Cash flows used in financing activities for the second quarter of 2025 were $14.8 million, primarily due to principal repayments of financing lease obligations of $10.6 million and payment of a regular quarterly dividend of $4.2 million.

The Company’s total liquidity as of June 30, 2025 was $545.0 million, consisting of cash and cash equivalents of $383.3 million, short-term investments of $38.1 million, which is net of $9.7 million posted as collateral, long-term investments of $10.1 million and available liquidity under its ABL Facility of $113.5 million, net of outstanding letters of credit of $2.5 million.

Capital Allocation

On July 29, 2025, our Board declared a regular quarterly cash dividend of $0.08 per share, which the Company plans to distribute on August 15, 2025, to stockholders of record as of the close of business on August 8, 2025.

Company Outlook

In order to better reflect the expected market conditions for the year and Warrior's disciplined approach to managing costs, the Company is updating its guidance for the full year 2025. This guidance is subject to many risks that may impact performance, such as global trade and tariff uncertainties, market conditions in the steel and steelmaking coal industries and overall global economic and competitive conditions, all as more fully described under Forward-Looking Statements. Warrior will continue to evaluate the impact of trade and tariff uncertainties on its business for the remainder of the fiscal year.

The Company's 2025 production and sales guidance contains approximately 1.0 million short tons of High Vol A steelmaking coal from the Blue Creek continuous miner units, which are expected to be sold primarily in the second half of 2025.

Key factors that may affect the full year 2025 outlook include:

• One longwall move in Q2 and three planned longwall moves before year end (two in Q3 and one in Q4),
• HCC index pricing, geography of sales and freight rates,
• Trade and tariff policies,
• Exclusion of other non-recurring costs,
• New labor contract, and
• Inflationary pressures.

The Company's guidance for its capital expenditures consists of sustaining capital spending of approximately $90-$100 million, including regulatory gas requirements and final 4 North bunker construction, and discretionary capital spending of $225-$250 million for the development of the Blue Creek reserves.

The Company does not provide reconciliations of its outlook for cash cost of sales (free-on-board port) to cost of sales in reliance on the unreasonable efforts exception provided for under Item 10(e)(1)(i)(B) of Regulation S-K. The Company is unable, without unreasonable efforts, to forecast certain items required to develop the meaningful comparable Generally Accepted Accounting Principles ("GAAP") cost of sales. These items typically include non-cash asset retirement obligation accretion expenses and other non-recurring indirect mining expenses that are difficult to predict in advance in order to include in a GAAP estimate. The unavailable information could have a significant impact on the Company's reported financial results.

Use of Non-GAAP Financial Measures

This release contains the use of certain non-GAAP financial measures. These non-GAAP financial measures are provided as supplemental information for financial measures prepared in accordance with GAAP. Management believes that these non-GAAP financial measures provide additional insights into the performance of the Company, and they reflect how management analyzes Company performance and compares that performance against other companies. These non-GAAP financial measures may not be comparable to other similarly titled measures used by other entities. The definition of these non-GAAP financial measures and a reconciliation of non-GAAP to GAAP financial measures is provided in the financial tables section of this release.

Conference Call

The Company will hold a conference call to discuss its second quarter 2025 results today, August 6, 2025, at 4:30 p.m. ET. To listen to the event live or access an archived recording, please visit http://investors.warriormetcoal.com. Analysts and investors who would like to participate in the conference call should dial 1-844-340-9047 (domestic) or 1-412-858-5206 (international) 10 minutes prior to the start time and reference the Warrior Met Coal conference call. Telephone playback will also be available from 6:30 p.m. ET on August 6, 2025 until 6:30 p.m. ET on August 13, 2025. The replay will be available by calling: 1-877-344-7529 (domestic) or 1-412-317-0088 (international) and entering passcode 1271409.

About Warrior

Warrior is a U.S.-based, environmentally and socially minded supplier to the global steel industry. It is dedicated entirely to mining non-thermal metallurgical (met) steelmaking coal used as a critical component of steel production by metal manufacturers in Europe, South America and Asia. Warrior is a large-scale, low-cost producer and exporter of premium quality met coal, also known as hard-coking coal (HCC), operating highly efficient longwall operations in its underground mines based in Alabama. The HCC that Warrior produces from the Blue Creek coal seam contains very low sulfur and has strong coking properties. The premium nature of Warrior’s HCC makes it ideally suited as a base feed coal for steel makers. For more information, please visit www.warriormetcoal.com.

Forward-Looking Statements

This press release contains, and the Company’s officers and representatives may from time to time make, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements, including statements regarding 2025 guidance, sales and production growth, ability to maintain cost structure, demand, pricing trends, management of liquidity, cash flows, expenses and expected capital expenditures, the Company's future ability to create value for stockholders, as well as statements regarding production, inflationary pressures, the development of the Blue Creek project including the schedule for the startup of longwall operations, and the terms of any new labor contract. The words “believe,” “expect,” “anticipate,” “plan,” “intend,” “estimate,” “project,” “target,” “foresee,” “should,” “would,” “could,” “potential,” “outlook,” “guidance” or other similar expressions are intended to identify forward-looking statements. However, the absence of these words does not mean that the statements are not forward-looking. These forward-looking statements represent management’s good faith expectations, projections, guidance, or beliefs concerning future events, and it is possible that the results described in this press release will not be achieved. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of the Company’s control, that could cause actual results to differ materially from the results discussed in the forward-looking statements, including, without limitation, fluctuations or changes in the pricing or demand for the Company’s coal (or met coal generally) by the global steel industry, including the risk of a continued decline in the index price for premium low-vol steelmaking coal; the impacts of U.S. and international trade policies and tariffs; the impact of global pandemics, including the impact of any such pandemic on its business and that of its customers, including the risk of a decline in demand for the Company's met coal due to the impact of any such pandemic on steel manufacturers; the impact of inflation on the Company, the impact of geopolitical events, including the effects of the Russia-Ukraine war and the ongoing conflict in the Middle East; the inability of the Company to effectively operate its mines and the resulting decrease in production; the inability of the Company to transport its products to customers due to rail performance issues or the impact of weather and mechanical failures at the McDuffie Terminal at the Port of Mobile; federal and state tax legislation; changes in interpretation or assumptions and/or updated regulatory guidance regarding the Tax Cuts and Jobs Act of 2017 and the One Big Beautiful Bill Act of 2025; legislation and regulations relating to the Clean Air Act and other environmental initiatives; regulatory requirements associated with federal, state and local regulatory agencies, and such agencies’ authority to order temporary or permanent closure of the Company’s mines; operational, logistical, geological, permit, license, labor and weather-related factors, including equipment, permitting, site access, operational risks and new technologies related to mining and labor strikes or slowdowns; the timing and impact of planned longwall moves; the Company’s obligations surrounding reclamation and mine closure; inaccuracies in the Company’s estimates of its met coal reserves; any projections or estimates regarding Blue Creek, including the expected returns from this project, if any, and the ability of Blue Creek to enhance the Company's portfolio of assets, the Company's expectations regarding its future tax rate as well as its ability to effectively utilize its net operating losses to reduce or eliminate its cash taxes; the Company's ability to develop Blue Creek; the Company’s ability to develop or acquire met coal reserves in an economically feasible manner; significant cost increases and fluctuations, and delay in the delivery of raw materials, mining equipment and purchased components; competition and foreign currency fluctuations; fluctuations in the amount of cash the Company generates from operations, including cash necessary to pay any special or quarterly dividend; the Company’s ability to comply with covenants in its ABL Facility or indenture relating to its senior secured notes; integration of businesses that the Company may acquire in the future; adequate liquidity and the cost, availability and access to capital and financial markets; failure to obtain or renew surety bonds on acceptable terms, which could affect the Company’s ability to secure reclamation and coal lease obligations; costs associated with litigation, including claims not yet asserted; and other factors described in the Company’s Form 10-K for the year ended December 31, 2024 and other reports filed from time to time with the Securities and Exchange Commission (the “SEC”), which could cause the Company’s actual results to differ materially from those contained in any forward-looking statement. The Company’s filings with the SEC are available on its website at www.warriormetcoal.com and on the SEC's website at www.sec.gov.

Any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, the Company does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for the Company to predict all such factors.

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Warrior Reports Second Quarter 2025 Results and Updates Outlook