second quarter of 2026
Filed Aug 6, 2026Core Natural Resources reported net income of $126.5 million, adjusted EBITDA of $323.6 million, net cash provided by operating activities of $250 million, and free cash flow of $148 million in the second quarter of 2026.
The company generated $148 million of free cash flow, improved cash costs and cash margins in its high C.V. thermal and metallurgical segments, and returned $68 million to stockholders. Results also reflected seasonally depressed Powder River Basin volumes, a negative Powder River Basin cash margin per ton, and management's description of a relatively soft market environment.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenuesGAAP | $1.1 billion | – | – |
| Net incomeGAAP | $126.5 million | – | – |
| Diluted earnings per shareGAAP | $2.51 per diluted share | – | – |
| Adjusted EBITDAnon-GAAP | $323.6 million | – | – |
| Net cash provided by operating activitiesGAAP | $250 million | – | – |
| Free cash flownon-GAAP | $148 million | – | – |
| High C.V. Thermal Segment tons soldother | 8.4 million | 9 percent quarter-over-quarter increase | – |
| High C.V. Thermal Segment realized coal revenue per ton soldnon-GAAP | $58.11 | – | – |
| High C.V. Thermal Segment cash cost of coal sold per tonnon-GAAP | $38.58 | 9 percent quarter-over-quarter improvement | – |
| High C.V. Thermal Segment cash margin per ton soldnon-GAAP | $19.53 | – | – |
| Metallurgical Segment tons soldother | 2.6 million | – | – |
| Metallurgical Segment coking coal tons soldother | 2.3 million | 8 percent quarter-over-quarter improvement | – |
| Metallurgical Segment thermal byproduct tons soldother | 0.3 million | – | – |
| Metallurgical Segment realized coal revenue per ton soldnon-GAAP | $114.13 | – | – |
| Metallurgical Segment coking coal realized coal revenue per ton soldnon-GAAP | $121.43 | a slight decline versus Q1 2026 | – |
| Metallurgical Segment thermal byproduct realized coal revenue per ton soldnon-GAAP | $55.09 | – | – |
| Metallurgical Segment cash cost of coal sold per tonnon-GAAP | $85.65 | 7 percent improvement from the previous quarter | – |
| Metallurgical Segment cash margin per ton soldnon-GAAP | $28.48 | – | – |
| Powder River Basin Segment tons soldother | 10.2 million | – | – |
| Powder River Basin Segment realized coal revenue per ton soldnon-GAAP | $14.28 | generally in line with Q1 2026 | – |
| Powder River Basin Segment cash cost of coal sold per tonnon-GAAP | $14.85 | 9 percent increase | – |
| Powder River Basin Segment cash margin per ton soldnon-GAAP | $(0.57) | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| High C.V. Thermal SegmentCoal sales were 8.4 million tons; realized coal revenue per ton sold was $58.11; cash cost of coal sold per ton was $38.58; and cash margin per ton sold was $19.53. | Not reported | 9 percent quarter-over-quarter increase in tons sold; 9 percent quarter-over-quarter improvement in cash cost of coal sold per ton | – |
| Metallurgical SegmentCoking coal sales totaled 2.3 million tons and thermal byproduct sales totaled 0.3 million tons. Realized coal revenue per ton sold was $114.13, cash cost of coal sold per ton was $85.65, and cash margin per ton sold was $28.48. | Not reported | 8 percent quarter-over-quarter improvement in coking coal sales; 7 percent improvement from the previous quarter in cash cost of coal sold per ton | – |
| Powder River Basin SegmentSales volumes totaled 10.2 million tons, reflecting seasonally depressed spring shipment levels. Lower fixed cost absorption from lower shipment levels and increased fuel costs raised cash cost of coal sold per ton to $14.85, while cash margin per ton sold was $(0.57). | Not reported | Cash cost of coal sold per ton represented a 9 percent increase; realized coal revenue per ton sold was generally in line with Q1 2026 | – |
2026 outlook
- Tax rateCash Tax Rate 0% - 5%
- NoteCoking sales volume: 8.8 - 9.4 million tons
- NoteHigh C.V. Thermal sales volume: 31.5 - 33.0 million tons
- NotePowder River Basin sales volume: 47.0 - 50.0 million tons
- NoteTotal sales volume: 87.3 - 92.4 million tons
- NoteCommitted, priced coking: 6.0 million tons at $120.86 per ton
- NoteCommitted, unpriced coking: 2.7 million tons
- NoteTotal committed coking: 8.7 million tons
- NoteMetallurgical Cash Cost of Coal Sold per Ton: $86.00 - $91.00
- NoteCommitted, priced High C.V. Thermal: 30.9 million tons at $58.00 per ton
- NoteCommitted, unpriced High C.V. Thermal: 0.2 million tons
- NoteTotal committed High C.V. Thermal: 31.1 million tons
- NoteHigh C.V. Thermal Cash Cost of Coal Sold per Ton: $39.00 - $40.50
- NoteCommitted, priced Powder River Basin: 50.3 million tons at $14.27 per ton
- NotePowder River Basin Cash Cost of Coal Sold per Ton: $13.25 - $13.75
- NoteCapital Expenditures: $325 - $375
- NoteDepreciation, Depletion and Amortization: $600 - $650
- NoteCash Basis General and Administrative Costs: $85 - $100
Capital returns
- Invested $63.0 million to repurchase 719,904 shares of its common stock at an average share price of $87.54 during Q2 2026.
- Invested a total of $329.2 million to repurchase 4.3 million shares of common stock, or roughly 7.9 percent of total shares outstanding as of the program’s launch, at an average share price of $77.04.
- Returned a total of $360.1 million, inclusive of dividend payments, in the capital return program overall.
- Returned approximately 80 percent of its free cash flow to stockholders via its capital return program since February 2025.
- Capital return framework targets the return to stockholders of around 75 percent of free cash flow, with the significant majority directed to share repurchases complemented by a sustaining quarterly dividend of $0.10 per share.
- Board declared a $0.10 per share quarterly dividend payable on September 18, 2026, to stockholders of record on August 31, 2026.
- Had $670.8 million of remaining authorization under its existing $1.0 billion share repurchase program as of June 30, 2026.
What drove it
- The marketing team secured 16 million tons of new sales commitments across all segments for delivery in future periods, at prices expected to support advantageous margins.
- High C.V. thermal volume increased and cash cost per ton improved from the previous quarter.
- Metallurgical cash cost per ton improved from the previous quarter, lifting cash margin per ton sold to $28.48.
- The Leer South claim was settled for the full limit recovery, with the company recognizing the remaining $125.4 million of proceeds during Q2.
- Core expects a substantial improvement in Powder River Basin sales volumes and unit costs in the year’s back half.
Concerns
- U.S. thermal coal demand was pressured by moderate temperatures, low natural gas prices, and inflated customer stockpiles during Q2.
- Powder River Basin sales volumes reflected seasonally depressed spring shipment levels.
- Powder River Basin cash cost of coal sold per ton increased due to lower fixed cost absorption stemming from lower shipment levels and increased fuel costs.
- Powder River Basin cash margin per ton sold was $(0.57).
- Seaborne metallurgical markets remain muted in the face of two years of contraction in global hot metal output, and coking coal price assessments on the U.S. East Coast continue to lag Australian price indices by a historically wide margin.
- Coking coal realized coal revenue per ton sold of $121.43 represented a slight decline versus Q1 2026.
What to watch
- Delivery and margin realization on 16 million tons of new sales commitments secured for future periods.
- Whether projected drawdown of coal inventories and an improving shipping outlook support Powder River Basin volume and unit-cost improvement in the year’s second half.
- High C.V. Thermal cash cost performance against 2026 guidance of $39.00 - $40.50 per ton.
- Metallurgical cash cost performance against 2026 guidance of $86.00 - $91.00 per ton.
- Capital expenditure execution against 2026 guidance of $325 - $375 and the pace of share repurchases under the remaining $670.8 million authorization.
- Recovery in U.S. East Coast coking coal prices and the outlook for global hot metal demand.
Balance sheet and cash flow
- Generated net cash provided by operating activities of $250 million.
- Generated free cash flow of $148 million.
- Collected $88.1 million of insurance proceeds in Q2 and the remaining $37.9 million in July as part of the Leer South insurance claim recovery.
- Leer South insurance claim netted a total of $154.5 million across all periods.
- Had total liquidity of $1.0 billion as of June 30, 2026, including $474.0 million in cash and cash equivalents and short-term investments.
Analysis
Core reported $1.1 billion of revenue, $126.5 million of net income, $323.6 million of adjusted EBITDA, $250 million of net cash provided by operating activities, and $148 million of free cash flow for the second quarter of 2026. The period also included settlement of the Leer South insurance claim for the full limit recovery, with $88.1 million of insurance proceeds collected in Q2 and $125.4 million of remaining proceeds recognized during the quarter.
Operating performance improved most visibly in the high C.V. thermal and metallurgical segments. High C.V. thermal tons sold increased to 8.4 million from 7.7 million in the prior quarter, while cash cost of coal sold per ton improved to $38.58 from $42.56 and cash margin per ton increased to $19.53 from $16.30. Metallurgical segment cash cost of coal sold per ton improved to $85.65 from $92.35, and cash margin per ton rose to $28.48 from $19.68. Metallurgical realized coal revenue per ton sold reached $114.13, although coking coal realized revenue per ton of $121.43 was described as a slight decline versus Q1 2026.
Powder River Basin remained the operational pressure point. Segment volume fell to 10.2 million tons from 11.9 million tons in the prior quarter amid seasonally depressed spring shipment levels. Realized coal revenue per ton sold was $14.28, generally in line with Q1 2026, but cash cost rose to $14.85 from $13.64 because of lower fixed-cost absorption and increased fuel costs. This produced a negative cash margin per ton sold of $(0.57), versus $0.75 in the prior quarter. Management expects substantial improvement in segment sales volumes and unit costs in the year’s back half.
Capital allocation remained substantial. Core repurchased 719,904 shares for $63.0 million during Q2 and declared a $0.10 per share quarterly dividend. Since February 2025, it has returned approximately 80 percent of free cash flow to stockholders and retained $670.8 million of authorization under its $1.0 billion repurchase program. Liquidity was $1.0 billion at June 30, 2026, including $474.0 million in cash and cash equivalents and short-term investments.
The 2026 outlook provides volume, cost, capital expenditure, depreciation, G&A, and cash tax-rate targets, but does not provide consolidated revenue, gross margin, or operating-expense guidance. Sales commitments stand at 8.7 million tons of total committed coking coal and 31.1 million tons of total committed high C.V. thermal coal, while the company secured 16 million tons of new sales commitments for delivery in future periods. The principal demand risks identified by management are pressured U.S. thermal demand, muted seaborne metallurgical markets, and U.S. East Coast coking coal prices lagging Australian price indices.
Management, verbatim
During Q2, the Core team made excellent progress in driving operational excellence across the combined mining platform while generating strong free cash flow and robust capital returns.
Jimmy Brock, chairman and CEO
During Q2, Core continued to perform at world-class levels and once again demonstrated the value of its diversified, strategic, world-class mining portfolio by generating substantial levels of free cash flow and funding robust capital returns despite a relatively soft market environment.
Mitesh Thakkar, president and chief financial officer
Not in the filing
stated, not guessed- Prior-year and prior-quarter total revenue.
- GAAP gross profit, gross margin, operating income, operating margin, income tax expense, tax rate, and detailed net-income reconciliation.
- Non-GAAP adjusted earnings per share.
- Debt and net debt.
- Segment revenue by reportable segment.
- Consolidated revenue guidance, gross-margin guidance, and operating-expense guidance.
- Prior-period guidance, so no comparison of reported results with prior guidance is available.
- Detailed financial statements and non-GAAP reconciliations referenced as available in the Quarterly Report on Form 10-Q once filed.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.