Warrior reported net income for 3Q25 of US$36.6 million, or US$0.70 per diluted share, a decrease from net income of US$41.8 million, or US$0.80 per diluted share, in 3Q24. The company reported adjusted EBITDA of US$70.6 million in 3Q25 compared to adjusted EBITDA of US$78.5 million in 3Q24.
These results continue to be impacted by significantly weaker steelmaking coal market conditions driven primarily by ongoing depressed global steel demand, excess Chinese steel exports and ample supply of steelmaking coal globally. As a result, the average index price for premium low-vol steelmaking coal was 13% lower than the prior year's comparable quarter. At the same time, Warrior reported a 27% increase in total sales volumes and a 17% increase in total production volumes compared to the prior year comparable quarter, primarily attributable to the Blue Creek mine.
Third quarter and other recent highlights
- Commenced the highly anticipated longwall operations at Blue Creek in October eight months ahead of schedule and on budget, where the commissioning towards full production is expected to be completed in early 2026.
- Completed the installation of the Blue Creek overland clean coal belt, along with the remaining modules of the preparation plant in October, and made significant progress on the barge loadout with investments of US$64.2 million in Blue Creek during 3Q25.
- Achieved record quarterly sales volumes of 2.4 million short t of steelmaking coal, including 378 thousand short t sold from the Blue Creek mine.
- Reduced cash cost of sales (free-on-board port) per short t by 18% to US$100.73 from US$123.45 per short t q/q, driven by a combination of a variable cost structure, a disciplined approach to cost control, and operational efficiency – enhanced by the inherently lower cost structure of Blue Creek.
- Won the bidding in the federal coal lease sale of 58 million short t of high-quality steelmaking coal reserves which are accessible by Warrior's existing facilities, therefore extending the life of its mining operations, and allowing for access to additional resources, that could add further life to both Mine 4 and Blue Creek beyond the 58 million t.
“It is gratifying to see our detailed planning and laser-focused execution result in the successful startup of longwall operations at our transformational Blue Creek mine eight months ahead of schedule, while keeping the overall project on budget,” commented Walt Scheller, CEO of Warrior. “This milestone reflects Warrior's unwavering commitment to operational excellence and highlights the exceptional teamwork and dedication of our employees. Their efforts have propelled us forward and enhanced our position for sustained growth and long-term success.”
“The early startup of Blue Creek's longwall significantly increases our production capacity and has already begun contributing to revenue and free cash flow. As a result of our success on this project, we have raised our full-year production volume guidance by 10%, further reinforcing Warrior's position as the premier US pure-play producer of premium steelmaking metallurgical coal,” Mr. Scheller concluded.