Alpha Metallurgical (NYSE: AMR) narrows its loss to $9.3 million but costs per ton rise

What happened

Alpha Metallurgical Resources, Inc. (NYSE: AMR) narrowed its third-quarter net loss to $9.3 million from $12.3 million in the second quarter. The loss is wider than the $5.5 million of a year earlier. Per share, it was $0.73, against $0.96 in the second quarter and $0.42 a year earlier.

Adjusted EBITDA, a non-GAAP measure, rose to $29.4 million from $25.6 million in the second quarter, a $3.8 million gain. It was still below the $41.7 million of a year earlier. Tons sold reached 3.9 million, up from 3.5 million in the second quarter and level with a year earlier.

Chief executive Andy Eidson said volumes improved from the first two quarters but cost pressures continue to affect results. Alpha also issued 2027 operating guidance and announced domestic sales commitments for next year. It updated investors on storm damage at Dominion Terminal Associates (DTA) in Newport News.

Key numbers

Metric	Latest	Change	Source
Third-quarter net loss	$9.3 million	from $5.5 million	SEC 8-K press release (Ex. 99.1)
Third-quarter Adjusted EBITDA	$29.4 million	from $41.7 million, -$12.3 million	Calculated from SEC 8-K
Non-GAAP cost of coal sales per ton	$106.93	from $97.27, +$9.66	Calculated from SEC 8-K
Non-GAAP coal sales realization per ton	$121.09	from $114.94, +$6.15	Calculated from SEC 8-K
Average buyback price since program start (as of Oct. 31, 2026)	$166.31		SEC 8-K press release (Ex. 99.1)
Total liquidity (Sept. 30, 2026)	$443.4 million		SEC 8-K press release (Ex. 99.1)

Read more: Alpha Metallurgical Resources (AMR) company research

Why it matters

Profit per ton is thin and slipping. Non-GAAP coal margin, which is realized price less non-GAAP cost, was $14.16 a ton in the third quarter. It was $15.64 in the second quarter and $17.68 a year earlier.

Price did improve. Realization rose to $121.09 a ton from $118.71 in the second quarter. But non-GAAP cost per ton rose to $106.93 from $103.07, so costs climbed by more than price did.

OptimistFi has argued that Alpha's assets can generate outsized cash in cyclical upswings. A net loss and a per-ton margin below last year's level do not yet show that upswing. Volumes and cash flow did improve from the second quarter.

Management says cost pressures continue to affect results. The loss before income taxes was $15.0 million, and a $5.7 million tax benefit reduced it to the reported net loss.

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Cash, liquidity and the buyback

Cash flow improved even with the loss. Operating cash flow was $46.9 million, up from $39.9 million in the second quarter. Capital spending fell to $33.8 million from $45.1 million.

Total liquidity at Sept. 30 was $443.4 million, including $334.1 million of cash. Alpha had no borrowings under its asset-based revolving credit facility. Long-term debt, including the current portion, was $10.6 million.

Much of the cash has gone to share repurchases. As of Oct. 31, Alpha had bought about 7.1 million shares for about $1.2 billion, an average of $166.31 a share. The program is authorized for up to $1.5 billion. Shares outstanding were 12,662,046 on that date.

In the first nine months of 2026, Alpha spent $39.7 million on repurchases and related expenses, up from $25.2 million a year earlier. It says timing and amount depend on market conditions, the stock price, legal requirements and its debt agreements.

The 2027 outlook and the DTA repair

Alpha has committed about 3.5 million tons of metallurgical coal to domestic customers for 2027 at an average $135.48 a ton. Only 0.1 million tons of export metallurgical coal were committed and priced for 2027 as of Oct. 29, at $100.32 a ton. Eidson called the domestic deals a foundation for seaborne sales.

Guidance calls for 13.1 million to 14.1 million tons of metallurgical coal and 14.3 million to 15.7 million tons in total. Cost of coal sales is guided at $104.00 to $110.00 a ton, against $103.00 to $107.00 in the 2026 guidance. Capital spending is guided at $145 million to $165 million and the cash tax rate at 0% to 5%.

In June, a high-wind storm damaged a stacker reclaimer at DTA. Eidson said replacement is expected to take a long time, but Alpha does not expect significant capital outlays. Meanwhile it will use capacity at other Hampton Roads terminals. He said talks with DTA's insurance provider continue to progress positively.

What's next

Alpha scheduled a conference call on the quarter for 10 a.m. Eastern on Nov. 6. Listen for how management ties cost per ton to its 2027 cost guidance.

The case strengthens if costs stay within that guidance as seaborne 2027 sales are priced. It weakens if costs keep rising faster than realizations.

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