In This Article:
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Sales Volume: Increased by 23% to 1.9 million short tons in Q4 2024 compared to 1.5 million short tons in Q4 2023.
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Production Volume: Increased by 7% to 2.1 million short tons in Q4 2024 compared to 2 million short tons in Q4 2023.
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Cash from Operations: Over $367 million generated in 2024.
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Net Income: $1.1 million or $0.02 per diluted share in Q4 2024, compared to $129 million or $2.47 per diluted share in Q4 2023.
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Adjusted EBITDA: $53 million in Q4 2024, down from $164 million in Q4 2023.
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Adjusted EBITDA Margin: 18% in Q4 2024, compared to 45% in Q4 2023.
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Total Revenues: $297 million in Q4 2024, down from $364 million in Q4 2023.
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Average Net Selling Price: $155 per short ton in Q4 2024, compared to $235 per short ton in Q4 2023.
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Cash Cost of Sales: $226 million or 77% of mining revenues in Q4 2024, compared to $185 million or 51% in Q4 2023.
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Free Cash Flow: Negative $88 million in Q4 2024.
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Capital Expenditures: $142 million in Q4 2024, with $116 million related to Blue Creek.
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Blue Creek Project Investment: Total project investment to date is $717 million.
Release Date: February 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Warrior Met Coal Inc (NYSE:HCC) achieved a 23% increase in sales volumes and a 7% increase in production volumes compared to the previous year's fourth quarter.
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The company generated over $367 million in cash from operations, which was used to further develop the Blue Creek project and return $43 million to stockholders via dividends.
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The Blue Creek growth project is progressing on schedule and on budget, with significant infrastructure developments completed and production expected to ramp up in 2025.
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Warrior Met Coal Inc (NYSE:HCC) maintained strong safety results and met or exceeded all guidance targets for 2024.
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The company has a strong balance sheet and sufficient liquidity to complete the Blue Creek project without slowing down or suspending it, even in weak market conditions.
Negative Points
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Warrior Met Coal Inc (NYSE:HCC) faced weak market conditions with steelmaking coal prices reaching their lowest levels since 2021, impacting profitability.
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The company reported a significant decrease in net income for the fourth quarter of 2024 compared to the same period in 2023, primarily due to lower average net selling prices.
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Adjusted EBITDA margin dropped from 45% in the fourth quarter of 2023 to 18% in the fourth quarter of 2024.
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The company anticipates continued weak market conditions and downward pressure on steelmaking coal prices due to global economic factors.
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Warrior Met Coal Inc (NYSE:HCC) has not yet reached a new labor contract with the United Mine Workers, which remains an ongoing negotiation.