12 unchanged sentences
Assets held for sale 17,022 14,159
+Added: Prepaid insurance 11,193 1,740
Other current assets 14,792 16,505
39 unchanged sentences
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
−Removed: THREE MONTHS ENDED
+Added: THREE MONTHS ENDED SIX MONTHS ENDED
+Added: JUNE 30 JUNE 30
+Added: 2025 2024 2025 2024
(In thousands, except per share data)
9 unchanged sentences
20,009 13,244 37,967 28,812
−Removed: Operating profit 7,682 4,757
−Removed: Other expense (income)
+Added: Operating (loss) profit ( 51 ) 7,366 7,631 12,123
+Added: Other (income) expense
Interest expense 1,944 1,311 3,718 2,422
1 unchanged sentence
Closed mine obligations 503 471 976 926
−Removed: Loss (gain) on equity securities 870 ( 1,041 )
+Added: (Gain) loss on equity securities ( 349 ) 264 521 ( 777 )
+Added: Gain on settlement of excess funding liability ( 3,590 ) — ( 3,590 ) —
Other, net 217 130 520 ( 84 )
( 2,045 ) 1,138 510 322
−Removed: Income before income tax provision 5,127 5,573
−Removed: Income tax provision 227 1,003
+Added: Income before income tax (benefit) provision 1,994 6,228 7,121 11,801
+Added: Income tax (benefit) provision ( 1,266 ) 256 ( 1,039 ) 1,259
Net income $ 3,260 $ 5,972 $ 8,160 $ 10,542
8 unchanged sentences
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
−Removed: THREE MONTHS ENDED
+Added: THREE MONTHS ENDED SIX MONTHS ENDED
+Added: JUNE 30 JUNE 30
+Added: 2025 2024 2025 2024
(In thousands)
Net income $ 3,260 $ 5,972 $ 8,160 $ 10,542
−Removed: Reclassification of pension and postretirement adjustments into earnings, net of $ 31 and $ 23 tax benefit in the three months ended March 31, 2025 and March 31, 2024, respectively.
+Added: Reclassification of pension and postretirement adjustments into earnings, net of $ 34 and $ 65 tax benefit in the three and six months ended June 30, 2025, respectively, and net of $ 25 and $ 48 tax benefit in the three and six months ended June 30, 2024, respectively.
+Added: 108 77 217 153
Total other comprehensive income 108 77 217 153
4 unchanged sentences
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
−Removed: THREE MONTHS ENDED
+Added: SIX MONTHS ENDED
(In thousands)
Operating activities
−Removed: Net cash provided by (used for) operating activities $ 5,023 $ ( 9,758 )
+Added: Net cash used for operating activities $ ( 2,753 ) $ ( 5,698 )
Investing activities
29 unchanged sentences
Balance, March 31, 2024 $ 5,885 $ 1,566 $ 29,073 $ 354,667 $ ( 9,578 ) $ 381,613
+Added: Stock-based compensation
+Added: 11 — 1,378 — — 1,389
+Added: Purchase of treasury shares ( 108 ) — — ( 3,177 ) — ( 3,285 )
+Added: — — — 5,972 — 5,972
+Added: Cash dividends on Class A and Class B common stock:
+Added: $ 0.2275 per share
+Added: — — — ( 1,676 ) — ( 1,676 )
+Added: Reclassification adjustment to net income, net of tax
+Added: — — — — 77 77
+Added: Balance, June 30, 2024 $ 5,788 $ 1,566 $ 30,451 $ 355,786 $ ( 9,501 ) $ 384,090
Balance, January 1, 2025 $ 5,730 $ 1,566 $ 34,340 $ 373,363 $ ( 10,052 ) $ 404,947
7 unchanged sentences
Balance, March 31, 2025 $ 5,877 $ 1,566 $ 35,718 $ 375,899 $ ( 9,943 ) $ 409,117
+Added: Stock-based compensation
+Added: 9 — 2,505 — — 2,514
+Added: Conversion of Class B to Class A shares 2 ( 2 ) —
+Added: — — — 3,260 — 3,260
+Added: Cash dividends on Class A and Class B common stock:
+Added: $ 0.2525 per share
+Added: — — — ( 1,879 ) — ( 1,879 )
+Added: Reclassification adjustment to net income, net of tax
+Added: — — — — 108 108
+Added: Balance, June 30, 2025 $ 5,888 $ 1,564 $ 38,223 $ 377,280 $ ( 9,835 ) $ 413,120
See notes to Unaudited Condensed Consolidated Financial Statements.
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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
−Removed: MARCH 31, 2025
+Added: JUNE 30, 2025
(In thousands, except as noted and per share amounts)
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We operate under three business segments:
−Removed: Coal Mining, North American Mining ® (NAMining) and Minerals Management.
−Removed: The Coal Mining segment operates surface coal mines for power generation companies.
−Removed: The NAMining segment is a trusted mining partner for producers of aggregates, activated carbon, lithium and other industrial minerals.
−Removed: The Minerals Management segment, which includes the Catapult Mineral Partners (Catapult) business, acquires and promotes the development of mineral interests and investments.
+Added: Utility Coal Mining, Contract Mining and Minerals and Royalties.
+Added: The Utility Coal Mining segment, operated by North American Coal ® , manages surface coal mines that are exclusive, long-term fuel providers for power generation companies.
+Added: The Contract Mining segment, operated by North American Mining ® , is a leading provider of a broad range of specialized contract mining services for producers of industrial minerals.
+Added: The Minerals and Royalties segment, which includes the Catapult Mineral Partners (Catapult) business, acquires and promotes the development of mineral interests and related investments.
Mitigation Resources of North America ® (Mitigation Resources) provides stream and wetland mitigation solutions as well as comprehensive reclamation and restoration construction services.
−Removed: In addition, ReGen Resources is pursuing opportunities to develop new power generation resources.
−Removed: We have items not directly attributable to a reportable segment that are not included in the reported financial results of the operating segments.
+Added: ReGen Resources is pursuing opportunities to develop new power generation resources.
+Added: We have items not directly attributable to a reportable segment, which are therefore excluded from the financial results of the operating segments.
These items primarily include administrative costs related to public company reporting requirements, including management and board compensation, and the financial results of Bellaire Corporation (Bellaire), Mitigation Resources, ReGen Resources and other developing businesses.
3 unchanged sentences
See Note 7 for further discussion of segment reporting.
+Added: During the second quarter of 2025, we changed the names of our reportable segments to make it easier for our stakeholders to understand the business activities within each segment.
+Added: The Utility Coal Mining, Contract Mining and Minerals and Royalties segments were formerly the Coal Mining, North American Mining and Minerals Management segments, respectively.
+Added: There were no changes to the composition of each segment and therefore no changes to historical segment reporting.
Our operating segments are further described below:
−Removed: Coal Mining Segment:
−Removed: The Coal Mining segment operates surface coal mines under long-term contracts with power generation companies pursuant to a service-based business model.
−Removed: Coal is surface mined in North Dakota and Mississippi.
−Removed: Each mine is fully integrated with our customer's operations.
−Removed: During the three months ended March 31, 2025, the Coal Mining segment's operating coal mines were:
+Added: Utility Coal Mining Segment:
+Added: The Utility Coal Mining segment operates surface coal mines under exclusive, long-term contracts to supply 100 % of the fuel requirements for adjacent power plants and a synfuels plant.
+Added: Each mine is fully integrated with the operation of these facilities.
+Added: During the three and six months ended June 30, 2025, the Utility Coal Mining segment's operating coal mines were:
The Coteau Properties Company (Coteau), Coyote Creek Mining Company, LLC (Coyote Creek), The Falkirk Mining Company (Falkirk) and Mississippi Lignite Mining Company (MLMC).
−Removed: Each of these mines supply lignite coal for power generation and delivers our coal production to an adjacent power plant or synfuels plant under a long-term supply contract.
+Added: Coteau, Falkirk and Coyote Creek are in North Dakota and MLMC is in Mississippi.
+Added: Each of these mines produce lignite coal.
While MLMC’s coal supply contract contains a take or pay provision, the contract contains a force majeure provision that allows for the temporary suspension of the take or pay provision during the duration of certain specified events beyond the control of either party;
4 unchanged sentences
MLMC sells coal to its customer at a contractually agreed-upon price which adjusts monthly, primarily based on changes in the level of established indices which reflect general U.S.
−Removed: inflation rates.
+Added: inflation rates and includes adjustments for coal quality and certain reimbursable costs.
Profitability at MLMC is affected by customer demand for coal and changes in the indices that determine sales price and actual costs incurred.
4 unchanged sentences
The decision regarding which power plants to dispatch is determined by TVA.
−Removed: Reduction in dispatch of the Red Hills Power Plant will result in reduced earnings at MLMC.
+Added: Reduction in dispatch and/or reduced mechanical availability of the Red Hills Power Plant will result in reduced earnings at MLMC.
The Sabine Mining Company (Sabine) operates the Sabine Mine in Texas.
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To the extent the Unconsolidated Subsidiary performs such final reclamation, it is compensated for providing those services in addition to receiving reimbursement from customers for costs incurred.
−Removed: NAMining Segment:
−Removed: The NAMining segment provides value-added contract mining and other services for producers of industrial minerals.
+Added: Contract Mining Segment:
+Added: The Contract Mining segment provides value-added contract mining and other services for producers of industrial minerals.
The segment is a platform for our growth and diversification of mining activities outside of the thermal coal industry.
−Removed: NAMining provides contract mining services for independently owned mines and quarries, creating value for our customers by performing the mining aspects of our customers’ operations.
+Added: Contract Mining provides contract mining services for independently owned mines and quarries, creating value for our customers by performing the mining aspects of our customers’ operations.
This allows customers to focus on their areas of expertise:
materials handling and processing, product sales and distribution.
−Removed: As of March 31, 2025, NAMining operates in Florida, Texas, Arkansas, Virginia and Nebraska.
+Added: As of June 30, 2025, Contract Mining operates at quarries in Florida, Arkansas and Nebraska and is overseeing the construction of a dragline in Arizona.
In addition, Sawtooth Mining, LLC (Sawtooth) will be the exclusive provider of comprehensive mining services for the Thacker Pass lithium project in Humboldt County, Nevada.
2 unchanged sentences
LAC) and General Motors Holdings LLC.
−Removed: Thacker Pass commenced construction in 2023 and is targeting initial production in late 2027.
−Removed: Sawtooth will be reimbursed for costs of mining, capital expenditures and mine closure and will recognize a contractually agreed upon production fee once the mine is operating.
+Added: Thacker Pass commenced construction in 2023 and is targeting initial lithium production in late 2027.
+Added: Sawtooth is being reimbursed for costs of mining, capital expenditures and mine closure and will recognize a contractually agreed upon production fee once the mine is operating.
In addition to providing comprehensive mining services, Sawtooth is currently assisting with certain construction services and will transport clay tailings once lithium production commences.
−Removed: Minerals Management Segment:
−Removed: The Minerals Management segment derives income primarily by leasing our royalty and mineral interests to third-party exploration and production companies, and, to a lesser extent, other mining companies, granting them the rights to explore, develop, mine, produce, market and sell gas, oil, and coal in exchange for royalty payments based on the lessees' sales of those minerals.
−Removed: The Minerals Management segment owns royalty interests, mineral interests, non-participating royalty interests and overriding royalty interests (collectively mineral and royalty interests).
+Added: Minerals and Royalties Segment:
+Added: The Minerals and Royalties segment derives income primarily by leasing our royalty and mineral interests to third-party exploration and production companies, and, to a lesser extent, other mining companies, granting them the rights to explore, develop, mine, produce, market and sell gas, oil, and coal in exchange for royalty payments based on the lessees' sales of those minerals.
+Added: The Minerals and Royalties segment owns royalty interests, mineral interests, non-participating royalty interests and overriding royalty interests (collectively mineral and royalty interests).
• Royalty Interest.
5 unchanged sentences
Mineral interests are perpetual rights of the owner to explore, develop, exploit, mine and/or produce any or all of the minerals lying below the surface of the property.
−Removed: The holder of a mineral interest has the right to lease
−Removed: the minerals to an exploration and production company.
+Added: The holder of a mineral interest has the right to lease the minerals to an exploration and production company.
Upon the execution of an oil and gas lease, the lessee (the exploration and production company) becomes the working interest owner and the lessor (the mineral interest owner) has a royalty interest.
11 unchanged sentences
For example, where we own an ORRI in a lease on the same tract of land in which we own a mineral interest, the ORRI in that tract will relate to the same gross acres as the mineral interest in that tract.
−Removed: As of March 31, 2025 and December 31, 2024, Minerals Management holds an equity investment of $ 19.7 million and $ 19.1 million, respectively, in Eiger, LLC (Eiger), which holds non-operated working interests in oil and natural gas assets in the Kansas and the Oklahoma portion of the Hugoton basin.
+Added: As of June 30, 2025 and December 31, 2024, Minerals and Royalties holds an equity investment of $ 19.0 million and $ 19.1 million, respectively, in Eiger, LLC, which holds non-operated working interests in oil and natural gas assets in the Kansas and the Oklahoma portion of the Hugoton basin.
This entity meets the definition of a VIE.
2 unchanged sentences
Instead, this contract is accounted for as an equity method investment.
−Removed: During the three months ended March 31, 2025 and 2024, we recorded our share of earnings of $ 0.6 million and our share of losses of $ 0.1 million, respectively, as Earnings of unconsolidated operations on the Unaudited Condensed Consolidated Statements of Operations.
+Added: During the three months ended June 30, 2025 and 2024, we recorded our share of earnings of $ 0.3 million and $ 0.1 million, respectively.
+Added: During the six months ended June 30, 2025 and 2024, we recorded our share of earnings of $ 0.8 million and $ 0.1 million, respectively.
+Added: These earnings are presented in the line Earnings of unconsolidated operations on the Unaudited Condensed Consolidated Statements of Operations.
Our investment is reported on the line Equity method investment in Eiger, LLC in the Unaudited Condensed Consolidated Balance Sheets.
−Removed: Due to a lag in Eiger's financial reporting, earnings or losses from this investment are recorded on a one quarter lag.
+Added: Due to the timing and availability of Eiger LLC's financial information, earnings or losses from this investment are recorded on a one quarter lag.
During the first quarter of 2025, $ 14.5 million of excess funds from the terminated Falkirk pension plan were directly transferred to the NACCO 401(k) plan.
1 unchanged sentence
therefore, these funds will be utilized to offset future profit sharing contributions to 401(k) plan participants.
−Removed: As of March 31, 2025, the $ 14.5 million asset is recorded on the line Prepaid profit sharing and will be reduced as profit sharing contributions are made to employees.
−Removed: The corresponding liability to Falkirk’s former customer is also recognized in Excess funding liability on the Unaudited Condensed Consolidated Balance Sheet at March 31, 2025.
−Removed: At March 31, 2025 and December 31, 2024, we had $ 13.2 million and $ 14.2 million, respectively, classified as Assets held for sale, primarily for draglines at NAMining and a building.
+Added: As of June 30, 2025, the remaining $ 12.0 million asset is recorded on the line Prepaid profit sharing and will continue to be reduced as profit sharing contributions are made to employees.
+Added: During the second quarter of 2025, the Company and Falkirk’s former customer agreed to settle the corresponding liability for $ 10.9 million, resulting in a gain of $ 3.6 million on the Unaudited Condensed Consolidated Statement of Operations.
+Added: In accordance with the agreement reached with the former customer, $ 5.5 million was paid to the former customer during the second quarter of 2025.
+Added: The remaining $ 5.4 million, recorded on the line Excess funding liability on the Unaudited Condensed Consolidated Balance Sheet at June 30, 2025, will be paid to the former customer in the second quarter of 2026.
+Added: At June 30, 2025 and December 31, 2024, we had $ 17.0 million and $ 14.2 million, respectively, classified as Assets held for sale, primarily for draglines, other equipment and an office building in North Dakota.
+Added: During the second quarter of 2024, we sold land for $ 7.0 million and recognized a $ 4.5 million gain in the Minerals and Royalties segment on the Unaudited Condensed Consolidated Statements of Operations.
Accounting Standards Not Yet Adopted:
3 unchanged sentences
ASU 2023-09 is effective for fiscal years beginning after December 15, 2024.
−Removed: The adoption of this standard only impacts disclosures and is not expected to have a material impact on our Financial Statements.
+Added: The adoption of this standard only impacts disclosures.
In November 2024, the FASB issued ASU No.
8 unchanged sentences
GAAP for complete financial statements.
−Removed: In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of our financial position at March 31, 2025, the results of our operations, comprehensive income, cash flows and
−Removed: changes in equity for the three months ended March 31, 2025 and 2024 have been included.
+Added: In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of our financial position at June 30, 2025, the results of our operations, comprehensive income, cash flows and changes in equity for the six months ended June 30, 2025 and 2024 have been included.
These Unaudited Condensed Consolidated Financial Statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2024.
10 unchanged sentences
Fluctuations in revenue from period to period generally result from changes in customer demand.
−Removed: At NAMining, the management service to oversee the operation of the equipment, and delivery of aggregates or other minerals is the performance obligation accounted for as a series.
+Added: In the Contract Mining segment, the management service to oversee the operation of the equipment, and delivery of aggregates or other minerals is the performance obligation accounted for as a series.
Performance momentarily creates an asset that the customer simultaneously receives and consumes;
4 unchanged sentences
Revenue from part sales is recognized upon transfer of control of the parts to the customer.
−Removed: The Minerals Management segment enters into contracts which grant the right to explore, develop, produce and sell minerals controlled by us.
+Added: The Minerals and Royalties segment enters into contracts which grant the right to explore, develop, produce and sell minerals controlled by us.
These arrangements result in the transfer of mineral rights for a period of time;
4 unchanged sentences
The transaction price consists of a variable sales-based royalty and, in certain arrangements, a fixed component in the form of an up-front lease bonus payment.
−Removed: As the amount of consideration we will ultimately be entitled to is entirely susceptible to factors outside of our control, the entire amount of variable consideration is constrained at contract inception.
+Added: As the amount of consideration we will ultimately be entitled to is entirely susceptible to factors outside of our control, the entire amount of variable consideration is constrained at contract
We believe that the pricing provisions of royalty contracts are customary in the industry.
Up-front lease bonus payments represent the fixed portion of the transaction price and are recognized over the primary term of the contract, which is generally three to five years .
−Removed: Mitigation Resources generates and sells stream and wetland mitigation credits (known as mitigation banking) and provides services to those engaged in permittee-responsible stream and wetland mitigation.
−Removed: Each mitigation credit sale is considered a separate performance obligation.
+Added: Mitigation Resources generates and sells stream and wetland mitigation credits (known as mitigation banking) and provides comprehensive reclamation and restoration construction services.
+Added: In mitigation banking, each mitigation credit sale is considered a separate performance obligation.
+Added: Mitigation banks are regulated and approved by the U.S.
+Added: Army Corps of Engineers and other federal, state and local agencies.
+Added: Mitigation credits are released in phases over the life of the mitigation bank.
Revenue is recognized at the point in time that control of each mitigation credit transfers to the customer.
−Removed: Fluctuations in revenue from period to period generally result from changes in customer demand.
−Removed: Under the permittee-responsible stream and wetland mitigation model, the contracts are generally structured as a management fee agreement under which Mitigation Resources is reimbursed for all costs incurred in performing the required mitigation plus an agreed profit percentage or a fixed fee.
−Removed: The mitigation services provided is the performance obligation and is accounted for as a series.
+Added: Fluctuations in revenue from period to period generally result from changes in timing of mitigation credit releases and/or customer demand.
+Added: For other ecological restoration services, contracts are generally structured as a management fee agreement under which Mitigation Resources is reimbursed for all costs incurred in performing the required services plus an agreed profit percentage or as a fixed fee contract.
+Added: The services provided represent the performance obligation and are accounted for as a series.
Performance momentarily creates an asset that the customer simultaneously receives and consumes;
4 unchanged sentences
Significant Judgments:
−Removed: Our contracts with our customers in the Coal Mining and NAMining segments contain different types of variable consideration including, but not limited to, management fees that adjust based on volumes or MMBtu delivered.
+Added: The contracts with our customers in the Utility Coal Mining and Contract Mining segments contain different types of variable consideration including, but not limited to, management fees that adjust based on volumes or MMBtu delivered.
However, the terms of these variable payments relate specifically to our efforts to satisfy one or more, but not all, of the performance obligations (or to a specific outcome from satisfying the performance obligations) in the contract.
2 unchanged sentences
Index adjustments, if applicable, are effective prospectively.
−Removed: In the Minerals Management segment, we have the right to receive revenues from the sale of oil and natural gas through sales of the third-party lessees in which we own a mineral or royalty interest.
+Added: In the Minerals and Royalties segment, we have the right to receive revenues from the sale of oil and natural gas through sales of the third-party lessees in which we own a mineral or royalty interest.
Revenue is recognized at the point control of the product is transferred from the operator to the purchaser.
3 unchanged sentences
We typically receive payment for oil and natural gas sales within 90 days of the month of delivery.
−Removed: For the three months ended March 31, 2025 and 2024, differences between our pricing estimates and the actual amounts received from operators were immaterial .
+Added: For the three months ended June 30, 2025, differences between our first quarter pricing estimates and the actual amounts received from operators in the second quarter were immaterial .
+Added: For the three months ended June 30, 2024, differences between our pricing estimates and the actual amounts received from operators resulted in a $ 2.3 million change in estimate.
+Added: For the six months ended June 30, 2025 and 2024, change in estimates was immaterial .
Cost Reimbursement:
6 unchanged sentences
In prior years, the customer received a $ 3.5 million advance from Sawtooth, which is included in the long-term contract asset.
−Removed: The customer will either pay a $ 4.7 million success fee to Sawtooth upon achieving commercial mining milestones or repay the $ 3.5 million advance if such commercial mining milestones are not met.
+Added: The customer will pay a $ 4.7 million success fee to Sawtooth if commercial mining milestones are met, at which time Sawtooth will recognize the revenue for the difference between the success fee and the amount advanced.
+Added: If commercial mining milestones are not met, the customer will only repay the $ 3.5 million advance.
Prior Period Performance Obligations:
2 unchanged sentences
The difference between our estimates and the actual amounts received is recorded in the month that payment is received from the third-party lessee.
−Removed: For the three months ended March 31, 2025, royalty income recognized in the reporting period related to production satisfied in prior reporting periods was $ 1.5 million.
−Removed: For the three months ended March 31, 2024, royalty income recognized in the reporting period related to production satisfied in prior reporting periods was immaterial .
+Added: For the three and six months ended June 30, 2025, royalty income recognized in the reporting period relating to production satisfied in prior periods
+Added: was immaterial and $ 1.5 million, respectively.
+Added: For the three and six months ended June 30, 2024, royalty income recognized in the reporting period relating to production satisfied in prior periods was immaterial .
Disaggregation of Revenue:
1 unchanged sentence
We determined that disaggregating revenue into these categories achieves the disclosure objective of depicting how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.
−Removed: Our business consists of the Coal Mining, NAMining and Minerals Management segments as well as Unallocated Items.
+Added: Our business consists of the Utility Coal Mining, Contract Mining and Minerals and Royalties segments as well as Unallocated Items.
See Note 7 to the Unaudited Condensed Consolidated Financial Statements for further discussion of segment reporting.
−Removed: The following table disaggregates revenue by major sources as of March 31:
−Removed: THREE MONTHS ENDED
+Added: The following table disaggregates revenue by major sources as of June 30:
+Added: THREE MONTHS ENDED SIX MONTHS ENDED
+Added: JUNE 30 JUNE 30
+Added: 2025 2024 2025 2024
Timing of Revenue Recognition
−Removed: Goods transferred at a point in time $ 18,680 $ 15,108
−Removed: Services transferred over time 46,891 38,181
+Added: Transferred at a point in time
+Added: $ 29,472 $ 14,498 $ 50,326 $ 29,606
+Added: Transferred over time
+Added: 38,763 37,847 83,480 76,028
Total revenues $ 68,235 $ 52,345 $ 133,806 $ 105,634
6 unchanged sentences
$ 49,706 $ 313 $ 3,500 $ 484 $ 5,119
−Removed: Balance at March 31, 2025
+Added: Balance at June 30, 2025
38,861 388 3,500 1,450 8,435
Increase (decrease) $ ( 10,845 ) $ 75 $ — $ 966 $ 3,316
−Removed: We expect to recognize $ 1.0 million in the remainder of 2025, $ 0.2 million in 2026, $ 0.1 million in 2027, $ 1.0 million in 2028, $ 2.4 million in 2029 and $ 2.5 million thereafter related to the contract liability remaining at March 31, 2025.
+Added: We expect to recognize $ 1.2 million in the remainder of 2025, $ 0.4 million in 2026 and 2027, $ 1.2 million in 2028, $ 2.6 million in 2029 and $ 4.1 million thereafter related to the contract liability remaining at June 30, 2025.
The difference between the opening and closing balances of our contract balances results from the timing difference between our performance and the customer’s payment.
6 unchanged sentences
Total inventories $ 92,243 $ 94,608
−Removed: During the three months ended March 31, 2025 and 2024, we recorded a $ 3.0 million and $ 2.5 million inventory impairment charge, respectively, in the line Cost of sales in the accompanying Unaudited Condensed Consolidated Statements of Operations as mining costs exceeded net realizable value of coal inventory at MLMC.
−Removed: Mining supplies inventory consists primarily of critical spare parts to support NAMining’s dragline operations and other general supplies used on day-to-day operations.
+Added: We recorded inventory impairment charges of $ 1.3 million and $ 4.3 million during the three and six months ended June 30, 2025, respectively, and $ 0.7 million and $ 3.1 million during the three and six months ended June 30, 2024, respectively.
+Added: The inventory impairment charges are in the Cost of sales line in the accompanying Unaudited Condensed Consolidated Statements of Operations as mining costs exceeded the net realizable value of coal inventory at MLMC.
+Added: Mining supplies inventory consists primarily of critical spare parts to support Contract Mining’s dragline operations and other general supplies used on day-to-day operations.
Mining supplies inventory not expected to be utilized within the next 12 months is classified as long-term on the Unaudited Condensed Consolidated Balance Sheet.
2 unchanged sentences
On November 7, 2023, our Board of Directors approved a stock repurchase program (2023 Stock Repurchase Program) providing for the purchase of up to $ 20.0 million of our outstanding Class A Common stock through December 31, 2025.
−Removed: During the three months ended March 31, 2025 and 2024, we repurchased 22,198 and 127,687 shares of Class A Common Stock under the 2023 Stock Repurchase Program for an aggregate purchase price of $ 0.7 million and $ 4.3 million, respectively.
+Added: During the three months ended June 30, 2025 there were no stock repurchases.
+Added: During the six months ended June 30, 2025, we repurchased 22,198 shares of Class A Common Stock under the 2023 Stock Repurchase Program for an aggregate purchase price of $ 0.7 million.
+Added: During the three and six months ended June 30, 2024, we repurchased 108,371 and 236,058 shares, respectively, of Class A Common Stock under the 2023 Stock Repurchase Program for an aggregate purchase price of $ 3.3 million and $ 7.6 million, respectively.
The timing and amount of any repurchases under the 2023 Stock Repurchase Program are determined at the discretion of our management based on a number of factors, including the availability of capital, other capital allocation alternatives, market conditions for our Class A Common Stock and other legal and contractual restrictions.
9 unchanged sentences
Description Date (Level 1) (Level 2) (Level 3)
−Removed: March 31, 2025
+Added: June 30, 2025
Equity securities $ 17,769 $ 17,769 $ — $ —
7 unchanged sentences
therefore, they are classified as Level 1 within the fair value hierarchy.
−Removed: The fair value of the Mine Water Treatment Trust was $ 12.1 million and $ 12.3 million at March 31, 2025 and December 31, 2024, respectively, and is recognized as a component of Equity securities in the accompanying Unaudited Condensed Consolidated Balance Sheets.
−Removed: We recognized a loss of $ 0.3 million and a gain of $ 0.7 million during the three months ended March 31, 2025 and 2024, respectively, related to the Mine Water Treatment Trust.
+Added: The fair value of the Mine Water Treatment Trust was $ 12.5 million and $ 12.3 million at June 30, 2025 and December 31, 2024, respectively, and is recognized as a component of Equity securities in the accompanying Unaudited Condensed Consolidated Balance Sheets.
+Added: We recognized a gain of $ 0.8 million and $ 0.5 million during the three and six months ended June 30, 2025, respectively, and a gain of $ 0.3 million and $ 1.0 million during the three and six months ended June 30, 2024, respectively, related to the Mine Water Treatment Trust.
Prior to 2024, we invested $ 2.0 million in equity securities of a public company with a diversified portfolio of royalty producing mineral interests.
1 unchanged sentence
therefore, it is classified as Level 1 within the fair value hierarchy.
−Removed: The fair value of this investment was $ 5.7 million and $ 6.3 million at March 31, 2025 and December 31, 2024, respectively, and is recognized as a component of Equity securities in the accompanying Unaudited Condensed Consolidated Balance Sheets.
−Removed: We recognized a loss of $ 0.6 million and a gain of $ 0.4 million during the three months ended March 31, 2025 and 2024, respectively, related to the investment in these equity securities.
−Removed: The change in fair value of equity securities is reported on the line Loss (gain) on equity securities in the Other expense (income) section of the Unaudited Condensed Consolidated Statements of Operations.
−Removed: There were no transfers into or out of Levels 1, 2 or 3 during the three months ended March 31, 2025 and 2024.
+Added: The fair value of this investment was $ 5.3 million and $ 6.3 million at June 30, 2025 and December 31, 2024, respectively, and is recognized as a component of Equity securities in the accompanying Unaudited Condensed Consolidated Balance Sheets.
+Added: We recognized a loss of $ 0.4 million and $ 1.0 million during the three and six months ended June 30, 2025, respectively, and a loss of $ 0.5 million and $ 0.2 million during the three and six months ended June 30, 2024, respectively, related to the investment in these equity securities.
+Added: The change in fair value of equity securities is reported on the line (Gain) loss on equity securities in the Other (income) expense section of the Unaudited Condensed Consolidated Statements of Operations.
+Added: There were no transfers into or out of Levels 1, 2 or 3 during the six months ended June 30, 2025 and 2024.
NOTE 6— Unconsolidated Subsidiaries
−Removed: Each of our wholly owned Unconsolidated Subsidiaries, within the Coal Mining and NAMining segments, meet the definition of a VIE.
+Added: Each of our wholly owned Unconsolidated Subsidiaries, within the Utility Coal Mining and Contract Mining segments, meet the definition of a VIE.
The Unconsolidated Subsidiaries are capitalized primarily with debt financing provided by or supported by their respective customers, and generally without recourse to us.
3 unchanged sentences
See Note 1 for a discussion of these entities.
−Removed: The Investment in the unconsolidated subsidiaries and related tax positions totaled $ 16.0 million and $ 14.1 million at March 31, 2025 and December 31, 2024, respectively.
−Removed: Our risk of loss relating to these entities is limited to our invested capital, which
−Removed: was $ 5.5 million at March 31, 2025 and December 31, 2024.
−Removed: Earnings of unconsolidated operations were $ 15.4 million and $ 13.4 million during the three months ended March 31, 2025 and 2024, respectively.
+Added: The Investment in the unconsolidated subsidiaries and related tax positions totaled $ 16.1 million and $ 14.1 million at June 30, 2025 and December 31, 2024, respectively.
+Added: Our risk of loss relating to these entities is limited to our invested capital, which was $ 4.8 million and $ 5.5 million at June 30, 2025 and December 31, 2024, respectively.
+Added: Earnings of Unconsolidated Subsidiaries were $ 12.9 million and $ 28.3 million during the three and six months ended June 30, 2025, respectively, and $ 13.5 million and $ 26.8 million during the three and six months ended June 30, 2024, respectively.
NACCO Natural Resources is a party to certain guarantees related to Coyote Creek.
6 unchanged sentences
Our operating segments are:
−Removed: (i) Coal Mining, (ii) NAMining and (iii) Minerals Management.
+Added: (i) Utility Coal Mining, (ii) Contract Mining and (iii) Minerals and Royalties.
We determine our reportable segments by first identifying our operating segments, and then by assessing whether any components of these segments constitute a business for which discrete financial information is available and where segment management regularly reviews the operating results of that component.
4 unchanged sentences
The following table provides segment financial information and a reconciliation of segment results to consolidated results:
−Removed: THREE MONTHS ENDED
−Removed: Coal Mining $ 19,239 $ 15,545
−Removed: NAMining 31,526 24,483
−Removed: Minerals Management 10,902 10,401
+Added: THREE MONTHS ENDED SIX MONTHS ENDED
+Added: JUNE 30 JUNE 30
+Added: 2025 2024 2025 2024
+Added: Utility Coal Mining $ 28,626 $ 14,996 $ 47,865 $ 30,541
+Added: Contract Mining 30,723 27,920 62,249 52,403
+Added: Minerals and Royalties 7,268 5,593 18,170 15,994
Unallocated Items 2,223 4,566 6,623 7,828
2 unchanged sentences
Cost of sales
−Removed: Coal Mining $ 22,570 $ 20,943
−Removed: NAMining 28,378 21,671
−Removed: Minerals Management 2,244 1,364
+Added: Utility Coal Mining $ 30,327 $ 16,138 $ 52,897 $ 37,081
+Added: Contract Mining 28,659 24,254 57,037 45,925
+Added: Minerals and Royalties 986 1,501 3,230 2,865
Unallocated Items 2,051 4,167 5,288 6,879
2 unchanged sentences
Earnings of unconsolidated operations
−Removed: Coal Mining $ 14,463 $ 12,007
−Removed: NAMining 969 1,365
−Removed: Minerals Management 554 ( 65 )
+Added: Utility Coal Mining $ 11,656 $ 12,006 $ 26,119 $ 24,013
+Added: Contract Mining 1,232 1,448 2,201 2,813
+Added: Minerals and Royalties 251 138 805 73
+Added: Unallocated Items ( 1 ) — ( 1 ) —
Total $ 13,138 $ 13,592 $ 29,124 $ 26,899
−Removed: Operating expenses*
−Removed: Coal Mining $ 7,341 $ 7,026
−Removed: NAMining 2,147 1,822
−Removed: Minerals Management 1,305 1,042
+Added: Operating expenses (income)*
+Added: Utility Coal Mining $ 8,733 $ 8,097 $ 16,074 $ 15,123
+Added: Contract Mining 2,286 2,029 4,433 3,851
+Added: Minerals and Royalties 1,328 ( 3,361 ) 2,633 ( 2,319 )
Unallocated Items 7,662 6,479 14,827 12,157
Total $ 20,009 $ 13,244 $ 37,967 $ 28,812
−Removed: Operating profit (loss)
−Removed: Coal Mining $ 3,791 $ ( 417 )
−Removed: NAMining 1,970 2,355
−Removed: Minerals Management 7,907 7,930
+Added: Operating (loss) profit
+Added: Utility Coal Mining $ 1,222 $ 2,767 $ 5,013 $ 2,350
+Added: Contract Mining 1,010 3,085 2,980 5,440
+Added: Minerals and Royalties 5,205 7,591 13,112 15,521
Unallocated Items ( 7,491 ) ( 6,080 ) ( 13,493 ) ( 11,208 )
1 unchanged sentence
Total $ ( 51 ) $ 7,366 $ 7,631 $ 12,123
−Removed: *Operating expenses consist of Selling, general and administrative expenses, Amortization of intangible assets and (Gain) loss on sale of assets.
−Removed: THREE MONTHS ENDED
+Added: *Operating expenses (income) consist of Selling, general and administrative expenses, Amortization of intangible assets and Gain on sale of assets.
+Added: THREE MONTHS ENDED SIX MONTHS ENDED
+Added: JUNE 30 JUNE 30
+Added: 2025 2024 2025 2024
Expenditures for property, plant and equipment and acquisition of mineral interests
−Removed: Coal Mining $ 617 $ 1,794
−Removed: NAMining 6,754 5,818
−Removed: Minerals Management 807 136
+Added: Utility Coal Mining $ 1,433 $ 1,913 $ 2,050 $ 3,707
+Added: Contract Mining 1,032 5,168 7,786 10,986
+Added: Minerals and Royalties — 10 807 146
Unallocated Items 677 827 1,307 7,562
1 unchanged sentence
Depreciation, depletion and amortization
−Removed: Coal Mining $ 2,018 $ 2,214
−Removed: NAMining 2,702 2,256
−Removed: Minerals Management 1,908 993
+Added: Utility Coal Mining $ 2,132 $ 2,896 $ 4,150 $ 5,110
+Added: Contract Mining 2,917 2,434 5,619 4,690
+Added: Minerals and Royalties 845 1,323 2,753 2,316
Unallocated Items 197 354 362 583
1 unchanged sentence
2025 DECEMBER 31
−Removed: Coal Mining $ 116,649 $ 125,301
−Removed: NAMining 210,990 204,889
−Removed: Minerals Management 99,702 99,905
+Added: Utility Coal Mining $ 117,201 $ 125,301
+Added: Contract Mining 212,254 204,889
+Added: Minerals and Royalties 96,247 99,905
Unallocated Items**
21 unchanged sentences
We operate under three business segments:
−Removed: Coal Mining, North American Mining ® (NAMining) and Minerals Management.
−Removed: The Coal Mining segment operates surface coal mines for power generation companies.
−Removed: The NAMining segment is a trusted mining partner for producers of aggregates, activated carbon, lithium and other industrial minerals.
−Removed: The Minerals Management segment, which includes the Catapult Mineral Partners (Catapult) business, acquires and promotes the development of mineral interests and investments.
+Added: Utility Coal Mining, Contract Mining and Minerals and Royalties.
+Added: The Utility Coal Mining segment, operated by North American Coal ® , manages surface coal mines that are exclusive, long-term fuel providers for power generation companies.
+Added: The Contract Mining segment, operated by North American Mining ® , is a leading provider of a broad range of specialized contract mining services for producers of industrial minerals.
+Added: The Minerals and Royalties segment, which includes the Catapult Mineral Partners (Catapult) business, acquires and promotes the development of mineral interests and related investments.
Mitigation Resources of North America ® (Mitigation Resources) provides stream and wetland mitigation solutions as well as comprehensive reclamation and restoration construction services.
−Removed: In addition, ReGen Resources is pursuing opportunities to develop new power generation resources.
+Added: ReGen Resources is pursuing opportunities to develop new power generation resources.
See Note 1 to the Unaudited Condensed Consolidated Financial Statements within this Form 10-Q for further discussion of our operating segments.
−Removed: We have items not directly attributable to a reportable segment that are not included in the reported financial results of the operating segment.
+Added: We have items not directly attributable to a reportable segment, which are therefore excluded from the financial results of the operating segment.
These items primarily include administrative costs related to public company reporting requirements, including management and board compensation, and the financial results of Bellaire Corporation (Bellaire), Mitigation Resources, ReGen Resources and other developing businesses.
1 unchanged sentence
underground mining activities.
+Added: During the second quarter of 2025, we updated the names of our reportable segments to make it easier for our stakeholders to understand the business models within each segment.
+Added: The Utility Coal Mining, Contract Mining and Minerals and Royalties segments were formerly the Coal Mining, North American Mining and Minerals Management segments, respectively.
+Added: There were no changes to the composition of each segment and therefore no changes to historical segment reporting.
All financial statement line items below operating profit (other income, including interest expense and interest income, the provision (benefit) for income taxes and net income) are presented and discussed within this Form 10-Q on a consolidated basis.
1 unchanged sentence
There have been no material changes to the Government Regulation previously disclosed on pages 9 through 17 in our Annual Report on Form 10-K for the year ended December 31, 2024, except as follows:
−Removed: On April 9, 2025, President Trump signed four executive orders designed to boost the U.S.
−Removed: coal industry, outlining steps to protect coal-fired power plants and expedite leases for coal mining on U.S.
−Removed: On March 12, 2025, the Trump Administration announced that the Environmental Protection Agency (EPA) will undertake 31 historic actions of deregulation, including, but not limited to:
−Removed: • Reconsideration of regulations on power plants (Clean Power Plan 2.0);
+Added: The Environmental Protection Agency (EPA)
+Added: In July 2025, the EPA issued a final rule and companion proposal that will extend the compliance deadlines for coal combustion residual (CCR) management unit (CCRMU) requirements.
+Added: In June 2025, the EPA announced plans to repeal regulations on power plants (Clean Power Plan 2.0) and Mercury and Air Toxics Standards (MATS).
+Added: In May 2025, the EPA granted an administrative petition for reconsideration of the portion of the Clean Air Act’s regional haze rule which disapproved North Dakota's state implementation plan.
+Added: The EPA is required to submit status reports every 120 days, with the first report due October 2, 2025.
+Added: In May 2025, the EPA proposed to approve North Dakota’s CCR program application, which would allow the state, rather than the federal government, to manage coal ash disposal in surface impoundments and landfills.
+Added: In March 2025, the Trump Administration announced that the EPA will undertake historic actions of deregulation, as discussed above, but also including:
• Reconsideration of regulations on the oil and gas industry;
−Removed: • Reconsideration of Mercury and Air Toxics Standards (MATS);
• Reconsideration of mandatory Greenhouse Gas Reporting Program;
10 unchanged sentences
• Working with states and tribes to resolve massive backlog with State Implementation Plans and Tribal Implementation Plans.
−Removed: • Prioritizing the coal ash program to expedite state permit reviews and update coal ash regulations (CCR Rule).
−Removed: President Trump, paired with Republican control of Congress, is likely to continue to have a significant impact on the regulatory environment, particularly for fossil fuels.
−Removed: It is not yet clear how existing regulations affecting existing fossil fuel assets will be reconsidered or repealed.
+Added: Federal Coal Leasing
+Added: In April 2025, President Trump signed four executive orders designed to boost the U.S.
+Added: coal industry, outlining steps to protect coal-fired power plants and expedite leases for coal mining on U.S.
+Added: We enter into leases of federally owned coal for a small portion of the coal mined at certain of our North Dakota mines.
+Added: These lease applications require review under the National Environmental Policy Act (NEPA).
+Added: The Department of Interior’s Bureau of Land Management (BLM) conducted the NEPA process for almost five years on two federal coal lease applications with no published Environmental Assessments.
+Added: In April 2025 and June 2025, respectively, the BLM published the draft Environmental Assessments for the lease applications in the Federal Register subject to a 30-day public comment period for the April publication and a 15-day public comment period for the June publication.
+Added: Other Regulations
+Added: On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law.
+Added: The OBBBA includes changes to U.S.
+Added: tax law including provisions for bonus depreciation, current expensing of research expenditures and changes to the interest deductibility threshold.
+Added: The changes resulting from the tax provisions in OBBBA are not expected to have a material impact on our results of operations.
+Added: The OBBBA includes substantial changes to U.S.
+Added: solar energy tax policy which could have a material impact on the solar projects being developed by ReGen Resources.
+Added: Our investments in solar and other energy projects are dependent, in part, upon current state regulatory incentives and federal tax credits in order for the projects to be economically viable.
+Added: We have approximately $4.5 million of capitalized assets associated with our solar projects.
+Added: We have incurred, and will continue to incur, costs in connection with these projects and the results of operations and/or return on investment could be lower than anticipated.
The United States has recently enacted and proposed to enact significant new tariffs.
4 unchanged sentences
and other countries with respect to such trade policies, treaties and tariffs.
−Removed: These developments, or the perception that any of them could occur, could restrict our access to suppliers and increase the cost of equipment and supplies imported into the U.S.
+Added: These developments, or the perception that any such policies, treaties or tariffs could be implemented, could restrict our access to suppliers and increase the cost of equipment and supplies imported into the U.S.
CRITICAL ACCOUNTING POLICIES AND ESTIMATES
2 unchanged sentences
CONSOLIDATED FINANCIAL SUMMARY
−Removed: Our results of operations were as follows for the three months ended March 31:
−Removed: Coal Mining $ 19,239 $ 15,545
−Removed: NAMining 31,526 24,483
−Removed: Minerals Management 10,902 10,401
+Added: Our results of operations were as follows for the three and six months ended June 30:
+Added: THREE MONTHS SIX MONTHS
+Added: 2025 2024 2025 2024
+Added: Utility Coal Mining $ 28,626 $ 14,996 $ 47,865 $ 30,541
+Added: Contract Mining 30,723 27,920 62,249 52,403
+Added: Minerals and Royalties 7,268 5,593 18,170 15,994
Unallocated Items 2,223 4,566 6,623 7,828
1 unchanged sentence
Total revenue $ 68,235 $ 52,345 $ 133,806 $ 105,634
−Removed: Operating profit (loss):
−Removed: Coal Mining $ 3,791 $ (417)
−Removed: NAMining 1,970 2,355
−Removed: Minerals Management 7,907 7,930
+Added: Operating (loss) profit:
+Added: Utility Coal Mining $ 1,222 $ 2,767 $ 5,013 $ 2,350
+Added: Contract Mining 1,010 3,085 2,980 5,440
+Added: Minerals and Royalties 5,205 7,591 13,112 15,521
Unallocated Items (7,491) (6,080) (13,493) (11,208)
Eliminations 3 3 19 20
−Removed: Total operating profit 7,682 4,757
+Added: Total operating (loss) profit (51) 7,366 7,631 12,123
Interest expense 1,944 1,311 3,718 2,422
1 unchanged sentence
Closed mine obligations 503 471 976 926
−Removed: Loss (gain) on equity securities 870 (1,041)
+Added: (Gain) loss on equity securities
+Added: (349) 264 521 (777)
+Added: Gain on settlement of excess funding liability
+Added: (3,590) — (3,590) —
Other, net 217 130 520 (84)
−Removed: Other expense (income), net 2,555 (816)
−Removed: Income before income tax provision 5,127 5,573
−Removed: Income tax provision 227 1,003
+Added: Other (income) expense, net
+Added: (2,045) 1,138 510 322
+Added: Income before income tax (benefit) provision
+Added: 1,994 6,228 7,121 11,801
+Added: Income tax (benefit) provision
+Added: (1,266) 256 (1,039) 1,259
Net income $ 3,260 $ 5,972 $ 8,160 $ 10,542
1 unchanged sentence
The components of the change in revenues and operating profit are discussed below in Segment Results.
−Removed: First Quarter of 2025 Compared with First Quarter of 2024
−Removed: Other expense (income), net
−Removed: Interest expense increased in the first quarter of 2025 compared with the first quarter of 2024 due to higher average borrowings, partially offset by a decrease in interest rates.
−Removed: Interest income decreased in the first quarter of 2025 compared with the first quarter of 2024 due to lower earnings on reduced cash balances.
−Removed: Loss (gain) on equity securities represents changes in the market price of invested assets reported at fair value.
−Removed: The change in the first quarter of 2025 compared with the first quarter of 2024 was due to fluctuations in the market prices of the exchange-traded equity securities.
+Added: Second Quarter of 2025 Compared with Second Quarter of 2024, and First Six Months Ended June 30, 2025 Compared with First Six Months Ended June 30, 2024
+Added: Other (income) expense, net
+Added: Interest expense increased in the second quarter of 2025 and the first six months of 2025 compared with the respective 2024 periods due to higher average borrowings, partially offset by lower average interest rates.
+Added: Interest income decreased in the second quarter of 2025 and the first six months of 2025 compared with the respective 2024 periods due to lower earnings on reduced invested cash balances.
+Added: (Gain) loss on equity securities represents changes in the market price of invested assets reported at fair value.
+Added: The change in the second quarter of 2025 and the first six months of 2025 compared with the respective 2024 periods was due to fluctuations in the market prices of the exchange-traded equity securities.
See Note 5 to the Unaudited Condensed Consolidated Financial Statements for further discussion of equity securities.
+Added: During the first quarter of 2025, $14.5 million of excess funds from the terminated Falkirk pension plan were directly transferred to the NACCO 401(k) plan.
+Added: The NACCO 401(k) plan is a qualified replacement plan;
+Added: therefore, these funds will be utilized to offset future profit sharing contributions to 401(k) plan participants.
+Added: During the second quarter of 2025, NACCO and
+Added: Falkirk’s former customer agreed to settle the corresponding liability for $10.9 million, resulting in a $3.6 million Gain on settlement of excess funding liability.
We evaluate and update our estimated annual effective income tax rate on a quarterly basis based on current and forecasted operating results and tax laws.
−Removed: For the three months ended March 31, 2024, the effective income tax rate was impacted by a $0.8 million discrete tax item.
−Removed: Without the discrete tax item, the effective income tax rate for the three months ended March 31, 2024 would have been 4.1%.
−Removed: There were no discrete tax items for the three months ended March 31, 2025.
Historically, our actual effective tax rates have differed from the statutory effective tax rate primarily due to the benefit received from percentage depletion.
−Removed: The benefit from percentage depletion varies based upon the mix and timing of actual earnings compared to projections of earnings between entities that benefit from percentage depletion and those that do not, and as such the effective tax rate may vary quarterly and may make quarterly comparisons not meaningful.
+Added: The effective rate benefit from percentage depletion varies based upon the mix and timing of actual earnings compared to projections of earnings between entities that benefit from percentage depletion and those that do not, and as such the effective tax rate may vary quarterly and may make quarterly comparisons not meaningful.
The benefit of percentage depletion is not directly related to the amount of consolidated pre-tax income recorded in a period.
Accordingly, in periods where income before tax is relatively small, the proportional effect of the benefit from percentage depletion on the effective tax rate may be significant.
+Added: This contributed to the income tax benefit recorded for the three and six months ended June 30, 2025.
Each quarter, we update our estimate of the annual effective tax rate, and the cumulative impact of the change in the estimated annual tax rate is recorded, which can make quarterly comparisons not meaningful.
LIQUIDITY AND CAPITAL RESOURCES OF NACCO
−Removed: The following tables detail the changes in cash flow for the three months ended March 31:
+Added: The following tables detail the changes in cash flow for the six months ended June 30:
2025 2024 Change
Operating activities:
−Removed: Net cash provided by (used for) operating activities $ 5,023 $ (9,758) $ 14,781
+Added: Net cash used for operating activities $ (2,753) $ (5,698) $ 2,945
Investing activities:
3 unchanged sentences
Cash flow before financing activities $ (13,788) $ (28,973) $ 15,185
−Removed: The $14.8 million change in net cash provided by (used for) operating activities was primarily due to a net favorable change in working capital.
−Removed: The favorable change in working capital was mainly the result of a change in timing of insurance payments as well as a larger decrease in Trade accounts receivable during the first quarter of 2025 when compared with the first quarter of 2024.
−Removed: The decrease in Trade accounts receivable is primarily due to the timing of payments.
−Removed: These favorable working capital changes were partially offset by an increase in Deposits with vendors.
+Added: The $2.9 million change in net cash used for operating activities was primarily due to a favorable change in non-cash items.
+Added: The Company’s non-cash items primarily include Gain on sale of assets, deferred income taxes, depreciation, depletion and amortization and stock-based compensation.
2025 2024 Change
4 unchanged sentences
Net cash (used for) provided by financing activities $ (9,643) $ 6,225 $ (15,868)
−Removed: The change in net cash (used for) provided by financing activities was primarily due to reductions in debt borrowings during the first three months of 2025 compared with additions during the first three months of 2024, partially offset by a decrease in share repurchases during the first three months of 2025.
+Added: The change in net cash (used for) provided by financing activities was primarily due to reductions in debt borrowings during the first six months of 2025 compared with additions during the first six months of 2024, partially offset by a decrease in share repurchases during the first six months of 2025.
Financing Activities
−Removed: In September 2024, NACCO Natural Resources amended the secured revolving line of credit (Facility) to increase the revolving credit commitments to $200.0 million and extend the maturity to September 2028.
−Removed: Borrowings outstanding under the Facility were $65.0 million at March 31, 2025.
−Removed: At March 31, 2025, the excess availability under the Facility was $90.5 million, which reflects a reduction for outstanding letters of credit of $44.5 million.
+Added: In September 2024, NACCO Natural Resources amended its secured revolving line of credit (Facility) to increase the revolving credit commitments to $200.0 million and extend the maturity to September 2028.
+Added: Borrowings outstanding under the Facility were $65.0 million at June 30, 2025.
+Added: At June 30, 2025, the excess availability under the Facility was $90.5 million, which reflects a reduction for outstanding letters of credit of $44.5 million.
NACCO has not guaranteed any borrowings of NACCO Natural Resources.
3 unchanged sentences
Borrowings bear interest at a floating rate plus a margin based on the level of debt to EBITDA ratio achieved.
−Removed: The applicable margins, effective March 31, 2025, for base rate and Term Secured Overnight Financing Rate loans were 1.75% and 2.75%, respectively.
+Added: The applicable margins, effective June 30, 2025, for base rate and Term Secured Overnight Financing Rate loans were 1.75% and 2.75%, respectively.
The Facility has a commitment fee which is based upon achieving various levels of debt to EBITDA ratios.
−Removed: The commitment fee was 0.45% on the unused commitment at March 31, 2025.
−Removed: During the three months ended March 31, 2025, the average borrowing under the Facility was $59.5 million and the weighted-average annual interest rate was 6.87%.
+Added: The commitment fee was 0.45% on the unused commitment at June 30, 2025.
+Added: During the three and six months ended June 30, 2025, the average borrowing under the Facility was $66.0 million and $62.7 million, respectively, and the weighted-average annual interest rate was 7.05% and 7.00%, respectively.
The Facility contains restrictive covenants, which require, among other things, NACCO Natural Resources to maintain a maximum net debt to EBITDA ratio of 2.75 to 1.00 and an interest coverage ratio of not less than 4.00 to 1.00.
The Facility provides the ability to make loans, dividends and advances to NACCO, with some restrictions based on maintaining a maximum debt to EBITDA ratio of 1.50 to 1.00, or if greater than 1.50 to 1.00, a Fixed Charge Coverage Ratio of 1.10 to 1.00.
−Removed: At March 31, 2025, NACCO Natural Resources was in compliance with all financial covenants in the Facility.
+Added: At June 30, 2025, NACCO Natural Resources was in compliance with all financial covenants in the Facility.
The obligations under the Facility are guaranteed by certain of NACCO Natural Resources' direct and indirect, existing and future domestic subsidiaries, and is secured by certain assets of NACCO Natural Resources and the guarantors, subject to customary exceptions and limitations.
1 unchanged sentence
Expenditures for property, plant and equipment and mineral interests
−Removed: Expenditures for property, plant and equipment were $8.8 million during the first three months of 2025, primarily for equipment in the NAMining segment.
+Added: Expenditures for property, plant and equipment were $12.0 million during the first six months of 2025, primarily for equipment in the Contract Mining segment.
Planned expenditures for the remainder of 2025 are expected to be approximately $74 million.
−Removed: This amount includes $12 million in the Coal Mining segment, $16 million in the NAMining segment, $20 million in the Minerals Management segment and $7 million in growth businesses included in Unallocated Items.
+Added: This amount includes $11 million in the Utility Coal Mining segment, $31 million in the Contract Mining segment, $20 million in the Minerals and Royalties segment and $12 million in growth businesses included in Unallocated Items.
Expenditures are expected to be funded from internally generated funds and/or bank borrowings.
10 unchanged sentences
Debt to total capitalization 19% 20% (1)%
−Removed: The increase in other net tangible assets at March 31, 2025 compared with December 31, 2024 was mainly the result of:
−Removed: • A decrease in Accrued payroll for payments made during the first quarter of 2025 related to our incentive compensation plans;
−Removed: • An increase in Deposits with vendors for equipment;
−Removed: • An increase in Property, plant and equipment during the first quarter of 2025.
−Removed: These changes were partially offset by a decrease in Trade accounts receivable during the first quarter of 2025 due to the timing of payments, as well as lower revenue in the first quarter of 2025 compared with the fourth quarter of 2024.
+Added: The increase in other net tangible assets at June 30, 2025 compared with December 31, 2024 was mainly the result of:
+Added: • An increase in Prepaid insurance due to the timing of payments;
+Added: • A decrease in Accrued payroll for payments made during the first six months of 2025 related to our incentive compensation plans;
+Added: • An increase in Deposits with vendors.
+Added: These changes were partially offset by a decrease in Trade accounts receivable during the first six months of 2025 due to the timing of payments.
Contractual Obligations, Contingent Liabilities and Commitments
−Removed: Since December 31, 2024, other than the changes identified above, there have been no significant changes in the total amount of NACCO's contractual obligations, contingent liabilities or commercial commitments, or the timing of cash flows in accordance with those obligations as reported on pages 56 and 57 in our Annual Report on Form 10-K for the year ended December 31, 2024.
+Added: Since December 31, 2024, other than the changes identified above, there have been no significant changes in the total amount of NACCO's contractual obligations, contingent liabilities or commercial commitments, or the timing of cash flows in accordance with those obligations as reported on pages 56 and 57 in our Annual Report on Form 10-K for the year ended
+Added: December 31, 2024.
See Note 6 to the Unaudited Condensed Consolidated Financial Statements for a discussion of certain guarantees related to Coyote Creek.
SEGMENT RESULTS
−Removed: COAL MINING SEGMENT
+Added: UTILITY COAL MINING SEGMENT
FINANCIAL REVIEW
−Removed: Tons of coal delivered by the Coal Mining segment were as follows for the three months ended March 31:
+Added: Tons of coal delivered by the Utility Coal Mining segment were as follows for the three and six months ended June 30:
+Added: THREE MONTHS SIX MONTHS
+Added: 2025 2024 2025 2024
Unconsolidated operations 3,736 4,930 9,352 10,410
1 unchanged sentence
Total tons delivered 4,626 5,353 10,833 11,288
−Removed: The results of operations for the Coal Mining segment were as follows for the three months ended March 31:
+Added: The results of operations for the Utility Coal Mining segment were as follows for the three and six months ended June 30:
+Added: THREE MONTHS SIX MONTHS
+Added: 2025 2024 2025 2024
Revenues $ 28,626 $ 14,996 $ 47,865 $ 30,541
6 unchanged sentences
Gain on sale of assets (14) (79) (86) (89)
−Removed: Operating profit (loss) $ 3,791 $ (417)
+Added: Operating profit $ 1,222 $ 2,767 $ 5,013 $ 2,350
(a) See Note 6 to the Unaudited Condensed Consolidated Financial Statements for a discussion of our unconsolidated subsidiaries.
−Removed: Revenues increased 23.8% in the first quarter of 2025 compared with the first quarter of 2024 due to an increase in customer requirements at MLMC.
−Removed: The first quarter of 2024 was impacted by lower customer requirements as a result of a boiler issue at the customer's Red Hills Power Plant.
−Removed: The following table identifies the components of change in Operating profit (loss) for the first quarter of 2025 compared with the first quarter of 2024:
−Removed: Operating Profit (Loss)
+Added: Second Quarter of 2025 Compared with Second Quarter of 2024
+Added: Revenues increased 90.9% in the second quarter of 2025 compared with the second quarter of 2024 primarily due to an increase in customer requirements at MLMC.
+Added: A boiler issue at the customer's Red Hills Power Plant reduced customer requirements in 2024.
+Added: The following table identifies the components of change in Operating profit for the second quarter of 2025 compared with the second quarter of 2024:
+Added: Operating Profit
Increase (decrease) from:
−Removed: Gross loss, excluding inventory impairment charges 2,638
+Added: Gross loss (559)
+Added: Selling, general and administrative expenses (442)
Earnings of unconsolidated operations (350)
+Added: Amortization of intangibles (129)
Net change on sale of assets (65)
−Removed: Inventory impairment charges (571)
+Added: Operating profit decreased by $1.5 million in the second quarter of 2025 compared with the second quarter of 2024, primarily due to an increase in gross loss, higher selling, general and administrative expenses and a decrease in earnings of unconsolidated operations.
+Added: Gross loss was unfavorable at MLMC during the second quarter of 2025 compared with the 2024 period.
+Added: Although the cost per ton delivered improved during the second quarter of 2025, the contractual sales price per ton decreased.
+Added: In addition, the number of tons sold exceeded tons mined resulting in the recognition of costs previously capitalized into inventory.
+Added: In comparison,
+Added: during the second quarter of 2024, inefficiencies at the customer's power plant created mining inefficiencies, and thus higher mining costs.
+Added: The tons mined exceeded tons sold resulting in a portion of production costs being capitalized into inventory during the 2024 period.
+Added: The increase in selling, general and administrative expenses was mainly the result of higher employee-related costs.
+Added: The decrease in earnings of unconsolidated operations was primarily due to lower customer demand at Coteau, Coyote and Falkirk, partially offset by higher per ton management fees, mainly the result of temporary price concessions ending at Falkirk in June 2024.
+Added: First Six Months of 2025 Compared with First Six Months of 2024
+Added: Revenues increased 56.7% in the first six months of 2025 compared with the first six months of 2024 primarily due to an increase in customer requirements at MLMC.
+Added: A boiler issue at the customer's Red Hills Power Plant reduced customer requirements in 2024.
+Added: The following table identifies the components of change in Operating profit for the first six months of 2025 compared with the first six months of 2024:
+Added: Operating Profit
+Added: Increase (decrease) from:
+Added: Earnings of unconsolidated operations 2,106
+Added: Gross loss 1,508
Selling, general and administrative expenses (783)
Amortization of intangibles (165)
−Removed: Operating profit (loss) improved by $4.2 million in the first quarter of 2025 compared with the first quarter of 2024, primarily due to a decrease in the gross loss, excluding inventory impairment charges, and an increase in earnings of unconsolidated operations.
−Removed: The decrease in gross loss at MLMC was primarily due to a decrease in the cost per ton delivered during the first quarter of 2025 compared with the first quarter of 2024.
−Removed: The reduction in cost per ton delivered was primarily attributable to an increase in the number of tons severed and tons sold at MLMC in the first quarter of 2025 as the boiler issue that impacted the customer's Red Hills Power Plant has been resolved.
−Removed: The first quarter of 2025 and 2024 included a $3.0 million and a $2.5 million inventory impairment charge, respectively, to write down MLMC's coal inventory to its net realizable value.
−Removed: The increase in earnings of unconsolidated operations was primarily due to improved results at Falkirk, mainly due to a higher per ton management fee beginning in June 2024 when temporary price concessions ended.
−Removed: An increase in demand at Coteau also contributed to the increase in earnings of unconsolidated operations.
−Removed: NORTH AMERICAN MINING (NAMining) SEGMENT
+Added: Net change on sale of assets (3)
+Added: Operating profit increased by $2.7 million in the first six months of 2025 compared with the first six months of 2024 primarily due to an increase in earnings of unconsolidated operations and a decrease in gross loss.
+Added: These improvements were partially offset by higher selling, general and administrative expenses.
+Added: The increase in earnings of unconsolidated operations was primarily due to higher per ton management fees, mainly the result of temporary price concessions ending at Falkirk in June 2024, partially offset by lower customer demand at Coteau, Coyote and Falkirk.
+Added: The improvement in gross loss at MLMC was primarily due to a reduction in the cost per ton delivered during the first six months of 2025 compared with the 2024 period.
+Added: The reduction in cost per ton delivered was primarily attributable to an increase in the tons sold at MLMC in the first six months of 2025 due to the resolution of the boiler issue that impacted the customer's Red Hills Power Plant during 2024.
+Added: The increase in selling, general and administrative expenses was mainly the result of higher employee-related costs.
+Added: CONTRACT MINING SEGMENT
FINANCIAL REVIEW
−Removed: Tons delivered by the NAMining segment were as follows for the three months ended March 31:
+Added: Tons delivered by the Contract Mining segment were as follows for the three and six months ended June 30:
+Added: THREE MONTHS SIX MONTHS
+Added: 2025 2024 2025 2024
Total tons delivered 13,947 16,000 26,800 31,173
−Removed: The results of operations for the NAMining segment were as follows for the three months ended March 31:
+Added: The results of operations for the Contract Mining segment were as follows for the three and six months ended June 30:
+Added: THREE MONTHS SIX MONTHS
+Added: 2025 2024 2025 2024
Total revenues $ 30,723 $ 27,920 $ 62,249 $ 52,403
5 unchanged sentences
Earnings of unconsolidated operations (a)
+Added: 1,232 1,448 2,201 2,813
Selling, general and administrative expenses 2,286 2,030 4,433 3,853
2 unchanged sentences
(a) See Note 6 to the Unaudited Condensed Consolidated Financial Statements for a discussion of our unconsolidated subsidiaries.
−Removed: Total revenues increased 28.8% in the first quarter of 2025 compared with the first quarter of 2024, primarily due to an increase in reimbursable costs, which have an offsetting amount in cost of sales and have no impact on gross profit.
−Removed: Revenues excluding reimbursable costs were comparable in the first quarter of 2025 compared with the 2024 period, as an increase in part sales was largely offset by fewer tons delivered due to reduced customer requirements.
−Removed: The following table identifies the components of change in Operating profit for the first quarter of 2025 compared with the first quarter of 2024:
+Added: Second Quarter of 2025 Compared with Second Quarter of 2024
+Added: Total revenues increased in the second quarter of 2025 compared with the second quarter of 2024, primarily due to an increase in reimbursable costs, which have an offsetting amount in cost of sales and have no impact on gross profit.
+Added: Revenues excluding reimbursable costs increased 2.9% in the second quarter of 2025 compared with the 2024 period, as an increase in part sales was partially offset by fewer tons delivered due to reduced customer requirements, in part due to operational delays at several quarries.
+Added: The following table identifies the components of change in Operating profit for the second quarter of 2025 compared with the second quarter of 2024:
Operating Profit
Increase (decrease) from:
−Removed: Earnings of unconsolidated operations (396)
+Added: Gross profit (1,602)
Selling, general and administrative expenses (256)
+Added: Earnings of unconsolidated operations (216)
+Added: Gain on sale of assets (1)
+Added: Operating profit decreased $2.1 million in the second quarter of 2025 compared with the second quarter of 2024.
+Added: The change in Operating profit was primarily due to a decrease in gross profit, an increase in selling, general and administrative expenses and a decrease in earnings of unconsolidated operations.
+Added: The reduction in gross profit was mainly the result of a decrease in tons delivered and higher operating costs, including unexpected equipment repairs and maintenance costs, partially offset by an increase in part sales.
+Added: The increase in selling, general and administrative expenses was mainly the result of higher employee-related costs.
+Added: The decrease in earnings of unconsolidated operations was primarily due to a reduction in tons delivered.
+Added: First Six Months of 2025 Compared with First Six Months of 2024
+Added: Total revenues increased in the first six months of 2025 compared with the first six months of 2024, primarily due to an increase in reimbursable costs, which have an offsetting amount in cost of sales and have no impact on gross profit.
+Added: Revenues excluding reimbursable costs increased 3.0% in the first six months of 2025 compared with the 2024 period, as an increase in part sales was partially offset by fewer tons delivered due to reduced customer requirements, in part due to operational delays at several quarries.
+Added: The following table identifies the components of change in Operating profit for the first six months of 2025 compared with the first six months of 2024:
+Added: Operating Profit
+Added: Increase (decrease) from:
Gross profit (1,266)
+Added: Earnings of unconsolidated operations (612)
+Added: Selling, general and administrative expenses (580)
Gain on sale of assets (2)
−Removed: Operating profit decreased $0.4 million in the first quarter of 2025 compared with the first quarter of 2024.
−Removed: The change in Operating profit was primarily due to a decrease in earnings of unconsolidated operations and an increase in selling, general and administrative expenses, partially offset by an increase in gross profit.
+Added: Operating profit decreased $2.5 million in the first six months of 2025 compared with the first six months of 2024.
+Added: The change in Operating profit was primarily due to a decrease in gross profit, a decrease in earnings of unconsolidated operations and an increase in selling, general and administrative expenses.
+Added: The reduction in gross profit was mainly the result of a decrease in tons delivered and higher operating costs, including unexpected repairs and maintenance costs, partially offset by an increase in part sales.
The decrease in earnings of unconsolidated operations was primarily due to a reduction in tons delivered.
The increase in selling, general and administrative expenses was mainly the result of higher employee-related costs.
−Removed: The improvement in gross profit was mainly the result of an increase in part sales, partially offset by a reduction in tons delivered.
−Removed: MINERALS MANAGEMENT SEGMENT
+Added: MINERALS AND ROYALTIES SEGMENT
FINANCIAL REVIEW
The following table sets forth our estimate of the number of gross and net productive wells:
−Removed: March 31, 2025 March 31, 2024
+Added: June 30, 2025 June 30, 2024
Gross Net Gross Net
−Removed: Oil 1,441 4.8 1,740 8.8
−Removed: Natural Gas 887 18.5 261 12.9
−Removed: Total 2,328 23.3 2,001 21.7
+Added: Oil and Natural Gas Wells
+Added: 2,377 23.3 1,986 22.2
Gross wells are the total wells in which an interest is owned.
Net wells are calculated based on our net royalty interest, factoring in both ownership percentage of gross wells and royalty rate.
−Removed: The table below shows the average prices as reported by the United States Energy Information Administration for the three months ended March 31:
+Added: Oil and natural gas prices have been historically volatile and may continue to be volatile in the future.
+Added: The table below demonstrates such volatility and shows the average prices as reported by the United States Energy Information Administration for the three and six months ended June 30:
+Added: THREE MONTHS SIX MONTHS
+Added: 2025 2024 2025 2024
West Texas Intermediate Average Crude Oil Price $ 64.63 $ 81.71 $ 68.23 $ 79.64
3 unchanged sentences
We do not have information that would be available to a company with working interests in oil and natural gas operations because detailed information is not generally available to owners of royalty and mineral interests.
−Removed: The results of operations for the Minerals Management segment were as follows for the three months ended March 31:
+Added: The results of operations for the Minerals and Royalties segment were as follows for the three and six months ended June 30:
+Added: THREE MONTHS SIX MONTHS
+Added: 2025 2024 2025 2024
Oil and natural gas revenues $ 5,981 $ 3,995 $ 15,098 $ 12,231
Other revenues
+Added: 1,287 1,598 3,072 3,763
Total Revenues $ 7,268 $ 5,593 $ 18,170 $ 15,994
2 unchanged sentences
Gross profit 6,282 4,092 14,940 13,129
−Removed: Earnings (loss) from unconsolidated operations 554 (65)
+Added: Earnings from unconsolidated operations
+Added: 251 138 805 73
Selling, general and administrative expenses 1,328 1,151 2,633 2,193
+Added: Gain on sale of assets
+Added: — (4,512) — (4,512)
Operating profit $ 5,205 $ 7,591 $ 13,112 $ 15,521
−Removed: Revenues increased 4.8% in the first quarter of 2025 compared with the first quarter of 2024, primarily due to an increase in natural gas revenue as a result of higher natural gas prices.
−Removed: These improvements were partially offset by a reduction in oil revenues and other revenues, primarily coal royalty income.
−Removed: The following table identifies the components of change in Operating profit for the first quarter of 2025 compared with the first quarter of 2024:
+Added: Revenues increased 29.9% and 13.6% in the second quarter and the first six months of 2025, respectively, compared with the 2024 periods, primarily due to an increase in natural gas revenue as a result of higher natural gas prices, partially offset by decreased production volumes.
+Added: The following table identifies the components of change in Operating profit for the second quarter of 2025 compared with the second quarter of 2024:
Operating Profit
Increase (decrease) from:
+Added: Gain on sale of assets
+Added: Selling, general and administrative expenses (177)
Gross profit 2,190
+Added: Earnings of unconsolidated operations 113
+Added: The following table identifies the components of change in Operating profit for the first six months of 2025 compared with the first six months of 2024:
+Added: Operating Profit
+Added: 2024 $ 15,521
+Added: Increase (decrease) from:
+Added: Gain on sale of assets
Selling, general and administrative expenses (440)
+Added: Gross profit 1,811
Earnings of unconsolidated operations 732
−Removed: Operating profit in the first quarter of 2025 was comparable to the first quarter of 2024.
−Removed: A decrease in gross profit and an increase in selling, general and administrative expenses was offset by an increase in earnings of unconsolidated operations.
−Removed: The $0.6 million increase in earnings of unconsolidated operations was primarily related to an additional $15.7 million investment in Eiger, LLC during the fourth quarter of 2024.
+Added: 2025 $ 13,112
+Added: Operating profit decreased $2.4 million in both the second quarter and the first six months of 2025 compared with 2024 periods, primarily due to the absence of a $4.5 million prior year gain on sale of land.
+Added: These decreases were partially offset by improvements in gross profit due to higher natural gas prices.
UNALLOCATED ITEMS AND ELIMINATIONS
FINANCIAL REVIEW
−Removed: Unallocated Items and Eliminations were as follows for the three months ended March 31:
+Added: Unallocated Items and Eliminations were as follows for the three and six months ended June 30:
+Added: THREE MONTHS SIX MONTHS
+Added: 2025 2024 2025 2024
Operating loss $ (7,488) $ (6,077) $ (13,474) $ (11,188)
−Removed: The operating loss increased in the first quarter of 2025 compared to the first quarter of 2024, primarily due to higher employee-related and outside service costs, partially offset by higher earnings at Mitigation Resources.
+Added: The operating loss increased in the second quarter and first six months of 2025 compared to the 2024 periods primarily due to higher employee-related and outside service costs.
+Added: The increase in outside services is mainly attributable to developing businesses.
NACCO Industries, Inc.
−Removed: NACCO's businesses provide critical inputs for electricity generation, construction and development, and the production of industrial minerals and chemicals.
+Added: NACCO is a growing diversified natural resource company, strategically positioned to deliver consistent financial returns.
+Added: Our businesses operate exclusively in the U.S.
+Added: and provide critical inputs for electricity generation, construction and development, and the production of industrial minerals and products.
Increasing demand for electricity, on-shoring and current federal policies are creating favorable macroeconomic trends within these industries.
−Removed: We are confident in our trajectory and business prospects in 2025, and we continue to prepare for longer-term growth opportunities.
−Removed: Specifically for 2025, we expect to generate a moderate year-over-year increase in consolidated operating profit.
−Removed: In 2025, the Coal Mining segment anticipates solid customer demand, with deliveries expected to increase modestly from 2024.
−Removed: We expect a more favorable near-term regulatory environment for the fossil fuel industry moving forward.
−Removed: These developments are expected to further support coal as an essential part of the energy mix in the United States for the foreseeable future.
−Removed: The Coal Mining segment expects to benefit from the expiration of temporary price concessions at Falkirk and increased customer requirements at Coteau.
−Removed: In addition, MLMC continues to recover from inefficiencies experienced while its customer's Red Hills Power Plant operated on one of two generation units for more than half of 2024.
−Removed: With the power plant now anticipated to operate at a level consistent with historical averages, coal deliveries are expected to return to more normal levels, resulting in moderate cost efficiencies.
−Removed: However, an anticipated reduction in the 2025 contractually determined per ton sales price compared with 2024 is expected to offset these improvements, causing MLMC results to decline from prior year levels.
−Removed: An expected increase in operating expenses will contribute to an overall anticipated moderate year-over-year decrease in Coal Mining segment operating profit.
−Removed: NAMining is expected to generate increasing levels of operating profit over time as benefits of new and extended contracts add to the profitability of existing contracts.
−Removed: During 2024, NAMining executed three new or amended existing contracts, which are expected to deliver net present value after-tax cash flows of approximately $20 million over contract terms that range from 6 to 20 years.
−Removed: NAMining is expected to deliver improved results in 2025, with anticipated lower first half results offset by expected performance gains in the second half of the year.
−Removed: While customer demand is projected to remain relatively stable year-over-year, profitability improvements will be driven by operational efficiencies and an increased focus on part sales.
−Removed: NAMining is continuously seeking to enter into new or amended contracts to solidify its position as the foundation for NACCO's mining-related growth initiatives.
−Removed: NAMining's subsidiary, Sawtooth, is the exclusive provider of comprehensive mining services at Thacker Pass, which is owned through a joint venture between Lithium Americas Corp.
+Added: We continue to capitalize on these tailwinds, pursuing longer-term growth opportunities.
+Added: Through disciplined capital allocation, operational expertise and an entrepreneurial yet cautious approach to growth, we have unique capabilities and clear competitive advantages that enable us to capture a wide range of attractive growth opportunities.
+Added: Our platform is supported by multiple vectors for value creation, and we are steadfastly committed to delivering compounding returns and expanding investor value over the long term.
+Added: While the current quarter presented some unexpected operational challenges, our business model is purposely built for durability and resilience.
+Added: Our foundation rests on a stable base of long-term coal-mining contracts, generating dependable recurring cash flows.
+Added: As new long-term contracts are added each year in our other businesses, these multi-year agreements create a “layering” effect as their contributions compound.
+Added: This, combined with income generated by our Mineral and Royalty assets, provide cash flow stability.
+Added: We remain confident in our ability to deliver improving results during the second half of 2025, with momentum building as we move into 2026.
+Added: Over the remainder of the year, we anticipate a substantial increase in consolidated operating profit compared to the first half, although full-year results will be lower than the prior year due in part to $13.6 million of business interruption insurance income recognized in the third quarter of 2024.
+Added: In addition, we intend to terminate our defined benefit pension plan in the fourth quarter of 2025.
+Added: Although the plan is currently over funded, a significant non-cash settlement charge is anticipated upon termination.
+Added: The pension settlement charge and lower operating profit are expected to lead to a substantial year-over-year decrease in net income and EBITDA compared with the 2024 second half and full year.
+Added: Our Utility Coal Mining segment, operated by North American Coal, constitutes the foundation of our business, anchored by a stable portfolio of long-term mining contracts.
+Added: We anticipate customer demand to remain steady in the second half of 2025 and throughout 2026 at the unconsolidated mining operations.
+Added: At MLMC, results for the 2025 second half are expected to improve over the first half of 2025.
+Added: However, a reduction in the 2025 contractually determined per ton sales price compared with 2024 is anticipated to continue to offset expected improvements in cost efficiencies, causing MLMC's and the Utility Coal Mining segment's 2025 second half and full year results to decline from the respective prior year levels, which include the business interruption insurance income.
+Added: Looking ahead, we expect improving profitability for this segment in 2026, driven by continued stable earnings at our unconsolidated operations and anticipated improvements at MLMC in both sales price and cost per ton delivered, particularly if the customer's power plant is able to operate more consistently.
+Added: The Contract Mining segment, operated by North American Mining, represents our mining growth platform, benefiting from ongoing geographic and mineral expansion and the signing of new, more favorable long-term contracts.
+Added: Each new contract perpetuates the compounding effect that underpins our growth strategy—much like building an annuity portfolio over time.
+Added: For example, in 2024, the Contract Mining segment executed three new or amended contracts, which are projected to generate approximately $20 million in after-tax net present value cash flows over contract terms ranging from 6 to 20 years.
+Added: Our expanding pipeline of potential deals and continued engagement with customers position this segment as a key pillar for future growth.
+Added: Sawtooth, a North American Mining subsidiary, is the exclusive provider of comprehensive mining services at Thacker Pass, which is owned through a joint venture between Lithium Americas Corp.
LAC) and General Motors Holdings LLC.
−Removed: Sawtooth will supply all of the lithium-bearing ore requirements for Thacker Pass, which is currently under construction.
−Removed: We expect to continue to recognize moderate income at Sawtooth while it assists with certain construction services.
−Removed: Once the mine is operating, Sawtooth will be reimbursed for costs of mining, capital expenditures and mine closure and will recognize a contractually agreed upon production fee.
−Removed: In addition to providing comprehensive mining services, Sawtooth will receive a fee to transport clay tailings once lithium production commences.
+Added: Sawtooth will supply all of the lithium-bearing ore requirements for Thacker Pass, which is currently under
+Added: construction.
+Added: This project is currently providing stable income during the construction phase and will contribute enhanced income and long-term cash flows once lithium production commences.
Phase 1 lithium production is estimated to begin in late 2027.
−Removed: The Minerals Management segment, through its Catapult business, has constructed a high-quality, diversified portfolio of oil and gas mineral and royalty interests in the United States.
−Removed: In late 2024, Minerals Management invested an additional $15.7 million in Eiger, a company that holds non-operated working interests in oil and natural gas assets in the Kansas and Oklahoma portions of the Hugoton basin.
−Removed: This investment, accounted for under the equity method, is expected to be accretive and contribute to the anticipated improvement in 2025 operating profit compared with 2024.
−Removed: First-half earnings are expected to be comparable to prior year results with an anticipated significant improvement in the second half given expected trends in oil and natural gas prices and projected volumes.
−Removed: Minerals Management continues to build its portfolio with a mix of producing wells, near-term development opportunities and undeveloped acreage.
−Removed: We believe our data-driven approach to acquisitions and our long-term perspective provides a competitive advantage as undeveloped assets provide additional upside potential over the life of the reserve.
−Removed: While we continue to budget up to $20 million annually to expand our portfolio and provide long-term stable cash flow generation, our business model allows flexibility regarding the cadence and type of investment based on available opportunities that we believe will create long-term value and generate increasing profitability.
+Added: Near term, while overall customer demand within the Contract Mining segment is expected to remain stable year-over-year, profitability improvements in the 2025 second half and full year are expected to be driven by operational efficiencies and an increased focus on parts sales.
+Added: This momentum is expected to continue into 2026.
+Added: The Minerals and Royalties segment, led by Catapult, has constructed a high-quality, diversified portfolio of oil and gas mineral and royalty interests in the United States.
+Added: The business is a scalable platform for growth, with its data-driven approach to portfolio expansion and disciplined capital deployment providing a distinct competitive advantage in the U.S.
+Added: In July 2025, Catapult completed a $4.2 million acquisition of mineral interests within the Midland Basin which included 10,500 gross acres and approximately 400 net royalty acres.
+Added: The acquisition includes a mix of producing wells, as well as additional upside opportunities through future development with existing operators in the area.
+Added: This business also has an investment in a company that holds non-operated working interests in oil and natural gas assets.
+Added: These investments are expected to contribute to the anticipated improvement in second-half operating profit compared with both the first half of 2025 and second half of 2024.
+Added: Improvements in operating profit are expected to continue into 2026.
Mitigation Resources provides stream and wetland mitigation solutions, as well as comprehensive reclamation and restoration construction services.
−Removed: This business is an avenue for growth and diversification in an area where NACCO has built a strong reputation based on its substantial knowledge and expertise.
−Removed: Mitigation Resources continues to expand, and as of March 31, 2025, has projects located in Alabama, Florida, Georgia, Mississippi, Pennsylvania, Tennessee and Texas.
−Removed: Mitigation Resources also provides ecological restoration services for abandoned surface mines and plans to pursue other environmental restoration projects.
−Removed: It was named a designated provider of abandoned mine land restoration by the State of Texas, and in January 2025 secured a restoration project in Kentucky that is expected to be accretive to earnings beginning in 2026.
−Removed: Mitigation Resources reported its second consecutive quarter of profitability in the first quarter of 2025 and is expected to achieve full-year 2025 profitability based on current expectations for the timing of permit approvals and mitigation credit releases, as well as income generated from service-related projects.
−Removed: Mitigation Resources is expected to increase profitability over time, and provide a return on capital employed in the mid-teens as the business matures.
−Removed: We established ReGen Resources in 2023 to address the rapidly increasing demand for additional power generation sources in the United States through development of energy and energy-related projects that utilize multiple-generation technologies, such as solar combined with gas-fired generation, primarily on reclaimed mining properties.
−Removed: These projects could be developed by ReGen Resources directly or through joint ventures that include partners with expertise in energy development projects.
−Removed: Current projects include solar arrays, solar-gas hybrid projects and carbon capture projects on reclaimed mine land in Mississippi and Texas.
−Removed: Additional projects in other states are in early-stage review.
−Removed: We are taking actions to terminate our defined benefit pension plan in 2025, which will eliminate future earnings volatility from changes in the pension obligation.
−Removed: Once complete, obligations under the terminated plan will be transferred to a third-party insurance provider.
−Removed: Surplus assets are expected to be utilized to fund a qualified replacement plan, reducing future cash funding requirements.
−Removed: Although the plan is currently over funded, a significant non-cash settlement charge is anticipated upon termination, which is expected to lead to a substantial year-over-year decrease in net income and EBITDA compared with 2024.
−Removed: Excluding the anticipated settlement charge, net income is expected to decrease moderately from the prior year.
−Removed: Consolidated capital expenditures are expected to total approximately $64 million in 2025, which includes approximately $13 million for Coal Mining, $23 million for NAMining, $20 million for Minerals Management and $8 million predominantly for ReGen Resources and other growth businesses.
−Removed: Based on our current business plan, we project a steady increase in annual cash flow generation beginning in 2025.
−Removed: We believe that each of our businesses has competitive advantages that provide value to customers and create long-term value for stockholders.
−Removed: We are pursuing organic growth and diversification by strategically leveraging our core natural resources management skills to build a robust portfolio of affiliated businesses.
−Removed: Opportunities for growth remain strong and are increasing amid recent successes and a significant positive change in the regulatory environment, particularly for fossil fuels.
−Removed: Acquisitions of additional mineral interests and improvements in the outlook for Coal Mining segment customers, as well as new contracts at Mitigation Resources and NAMining should be accretive to the longer-term outlook.
−Removed: We are committed to maintaining a conservative capital structure as we continue to grow and diversify, while avoiding unnecessary risk.
−Removed: We believe strategic diversification will generate cash that can be re-invested to strengthen and expand the businesses or distributed to investors in the form of share repurchases or dividends.
−Removed: We continue to maintain the highest levels of customer service and operational excellence with an unwavering focus on safety and environmental stewardship.
+Added: Mitigation Resources, underpinned by a strong reputation and clear competitive strengths, is an avenue for continued expansion into new markets.
+Added: This business, while currently variable in performance due to permit and project timing, is expected to achieve key milestones in profitability in 2026 and move toward more consistent results over time as new projects are layered on top of existing projects.
+Added: We continue to invest in our businesses to drive future growth.
+Added: Based on the current project pipeline, we anticipate capital expenditures of up to a total of $86 million in 2025, with the majority earmarked for future business development— the kind of prudent reinvestment that generates exponential, long-term value creation.
+Added: We project a substantially lower use of cash for the 2025 full year compared with 2024 as we begin to harvest returns from prior investments and expect a steady increase in annual cash flow generation beginning in 2026.
+Added: Our conservative approach to maintaining a strong capital structure and operating discipline minimizes risk, while the compounding effect of layered long-term contracts and deliberate growth investments create a robust foundation for cash flow growth.
+Added: With a perspective that spans decades, we are methodically building a strong, stable business that is expected to deliver annuity-like returns.
+Added: This long-term view allows us to leverage our core skills for strategic, measured expansion and pursue opportunities with longer-term horizons and higher returns, that others with shorter time horizons might overlook.
+Added: Our commitment is to generate increasing cash flows and return value to stockholders, whether through reinvestment for growth or direct returns such as share repurchases and payment of dividends.
+Added: We remain confident in our ability to drive growth, expand our capabilities and reward shareholders over the long run.
FORWARD-LOOKING STATEMENTS
4 unchanged sentences
Among the factors that could cause plans, actions and results to differ materially from current expectations are, without limitation:
−Removed: (1) changes to or termination of customer or other third-party contracts, or a customer or other third party default under a contract, (2) any customer's premature facility closure or extended project development delay, (3) federal and state legislative and regulatory actions affecting fossil fuels, (4) a significant reduction in purchases by the Company's customers, including as a result of changes in coal consumption patterns of U.S.
−Removed: electric power generators, or changes in the power industry that would affect demand for the Company's coal and other mineral reserves, (5) supply chain disruptions, including price increases and shortages of parts and materials, inclusive of tariff effects, (6) changes in the prices of hydrocarbons, particularly diesel fuel, natural gas, natural gas liquids and oil as a result of factors such as OPEC and/or government actions, geopolitical developments, economic conditions and regulatory changes, as well as supply and demand dynamics, (7) changes in development plans by third-party lessees of the Company's mineral interests, (8) failure or delays by the Company's lessees in achieving expected production of natural gas and other hydrocarbons;
+Added: (1) a significant reduction in demand by the Company's customers, (2) weather conditions, extended power plant outages, liquidity events or other events that would change the level of customers' coal or aggregates requirements, (3) changes to or termination of customer or other third-party contracts, or a customer or other third party default under a contract, (4) changes in the prices of hydrocarbons, particularly diesel fuel, natural gas, natural gas liquids and oil as a result of factors such as OPEC and/or government actions, geopolitical developments, economic conditions and regulatory changes, vehicle electrification, as well as supply and demand dynamics, (5) changes in development plans by third-party lessees of the Company's mineral interests, (6) failure or delays by the Company's lessees in achieving expected production of natural gas and other hydrocarbons;
the availability and cost of transportation and processing services in the areas where the Company's oil and gas reserves are located;
−Removed: and the ability of lessees to obtain capital or financing needed for well-development operations and leasing and development of oil and gas reserves on federal lands, (9) failure to obtain adequate insurance coverages at reasonable rates, (10) changes in tax laws or regulatory requirements, including the elimination of, or reduction in, the percentage depletion tax deduction, changes in mining or power plant emission regulations and health, safety or environmental legislation, (11) impairment charges, (12) changes in costs related to geological and geotechnical conditions, repairs and maintenance, new equipment and replacement parts, fuel or other similar items, (13) weather conditions, extended power plant outages, liquidity events or other events that would change the level of customers' coal or aggregates requirements, (14) weather or equipment problems that could affect deliveries to customers, (15) changes in the costs to reclaim mining areas, (16) costs to pursue and develop new mining,
−Removed: mitigation, oil and gas and power generation development opportunities and other value-added service opportunities, (17) delays or reductions in coal or aggregates deliveries, (18) the ability to successfully evaluate investments and achieve intended financial results in new business and growth initiatives, (19) disruptions from natural or human causes, including severe weather, accidents, fires, earthquakes and terrorist acts, any of which could result in suspension of operations or harm to people or the environment, and (20) the ability to attract, retain, and replace workforce and administrative employees.
+Added: and the ability of lessees to obtain capital or financing needed for well-development operations and leasing and development of oil and gas reserves on federal lands, (7) any customer's premature facility closure or extended project development delay, (8) federal and state legislative and regulatory actions affecting fossil fuels, (9) supply
+Added: chain disruptions, including price increases and shortages of parts and materials, inclusive of tariff effects, (10) failure to obtain adequate insurance coverages at reasonable rates, (11) changes in tax laws or regulatory requirements, including the elimination of, or reduction in, the percentage depletion tax deduction, changes in mining or power plant emission regulations and health, safety or environmental legislation, (12) impairment charges, (13) changes in costs related to geological and geotechnical conditions, repairs and maintenance, new equipment and replacement parts, fuel or other similar items, (14) equipment problems that could affect deliveries to customers, (15) changes in the costs to reclaim mining areas, (16) costs to pursue and develop new mining, mitigation, oil and gas and power generation development opportunities and other value-added service opportunities, (17) the ability to successfully evaluate investments and achieve intended financial results in new business and growth initiatives, (18) disruptions from natural or human causes, including severe weather, accidents, fires, earthquakes and terrorist acts, any of which could result in suspension of operations or harm to people or the environment, and (19) the ability to attract, retain, and replace workforce and administrative employees.
Quantitative and Qualitative Disclosures About Market Risk
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