NACCO (NC) Q4 2025 Earnings Call Transcript

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Thu, March 5, 2026 astatine 8:57 AM CST 25 min read

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Thursday, March 5, 2026 astatine 8:30 a.m. ET

• President and Chief Executive Officer — J.C. Butler

• Vice President and Controller — Elizabeth I. Loveman

• Investor Relations — Christina Kmetko

J.C. Butler: Thanks, Christie, and bully morning, everyone. Before I begin, I would similar to instrumentality a infinitesimal to sermon an incidental that happened astatine 1 of our Florida operations. The information and well-being of our employees has ever been a cornerstone of our company’s values. Despite this focus, a tragic incidental successful December resulted successful the nonaccomplishment of 2 employees. This nonaccomplishment profoundly affected us, and we widen our heartfelt condolences to the family, friends, and colleagues of these 2 individuals. This is simply a solemn reminder of the value we spot connected protecting the well-being of our radical each day. In the aftermath of this tragedy, we are actively reinforcing our information expectations crossed the organization.

Our employees are the nucleus of our success, and their information volition ever travel earlier each else. I volition present sermon our operating performance. We delivered a beardown adjacent to 2025. Our 4th fourth operating nett roseate 95% implicit past twelvemonth and astir 12% sequentially. All 3 of our reportable segments reported improved year-over-year results, led by a important summation successful the Utility Coal Mining segment. Overall, we continued to physique upon the improving profitability and maturation we experienced successful the 3rd quarter, highlighting the 2nd fractional that overcame operational challenges experienced during the archetypal fractional of the year.

We disclosed implicit the past respective quarters that we were terminating our pension program during the 4th quarter, and I americium blessed to study that we person present successfully settled each aboriginal pension obligations. As a effect of completing this process, we recognized an after-tax termination complaint of $6,000,000. This charge, and an summation successful taxation disbursal which Liz volition explicate successful much detail, contributed to our reported 4th fourth nett nonaccomplishment of $3,800,000. These transactional anomalies aside, I consciousness bully astir our underlying operating results, which contributed to the 59% year-over-year and 14% sequential summation successful adjusted EBITDA. I judge these results correspond a concern delivering connected its potential.

Our Utility Coal Mining segment, which features semipermanent mining contracts, remains the instauration of our business. I americium pleased to accidental that our Utility Coal Mining conception reported a gross nett this 4th aft a fig of quarters of losses. For much than a year, I person discussed Mississippi Lignite’s unfavorable declaration mechanics that resulted successful a little per ton income terms that unfavorably affected results. The squad astatine Mississippi Lignite Mining Company has worked diligently to excavation efficiently and power costs. And this quarter, the excavation produced and sold much tons and, arsenic a result, benefited from higher accumulation ratio and a little outgo per ton sold.