9 unchanged sentences
Prepaid profit sharing 11,205 11,529
−Removed: Deposits with vendors — 9,394
Inventories 58,799 63,648
27 unchanged sentences
Asset retirement obligations 37,572 39,516
−Removed: Pension and other postretirement obligations 4,483 4,787
+Added: Retirement benefit plans 4,447 4,558
Other long-term liabilities 20,158 18,531
13 unchanged sentences
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
−Removed: THREE MONTHS ENDED NINE MONTHS ENDED
−Removed: SEPTEMBER 30 SEPTEMBER 30
−Removed: 2025 2024 2025 2024
+Added: THREE MONTHS ENDED
(In thousands, except per share data)
3 unchanged sentences
Earnings of unconsolidated operations 16,571 15,986
−Removed: Business interruption insurance recoveries — 13,612 — 13,612
Operating expenses
3 unchanged sentences
19,846 17,958
−Removed: 19,688 16,312 57,655 45,124
Operating profit 11,016 7,682
4 unchanged sentences
(Gain) loss on equity securities ( 455 ) 870
−Removed: Gain on settlement of excess funding liability — — ( 3,590 ) —
Other, net 92 303
−Removed: 820 567 1,330 889
−Removed: Income before income tax (benefit) provision 5,957 19,132 13,078 30,933
−Removed: Income tax (benefit) provision ( 7,297 ) 3,497 ( 8,336 ) 4,756
+Added: Income before income tax provision 9,827 5,127
+Added: Income tax provision 991 227
Net income $ 8,836 $ 4,900
8 unchanged sentences
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
−Removed: THREE MONTHS ENDED NINE MONTHS ENDED
−Removed: SEPTEMBER 30 SEPTEMBER 30
−Removed: 2025 2024 2025 2024
+Added: THREE MONTHS ENDED
(In thousands)
Net income $ 8,836 $ 4,900
−Removed: Reclassification of pension and postretirement adjustments into earnings, net of $ 32 and $ 97 tax benefit in the three and nine months ended September 30, 2025, respectively, and net of $ 20 and $ 68 tax benefit in the three and nine months ended September 30, 2024, respectively.
−Removed: 109 78 326 231
+Added: Reclassification of pension and postretirement adjustments into earnings, net of $ 14 and $ 31 tax benefit in the three months ended March 31, 2026 and 2025, respectively.
Total other comprehensive income 48 109
4 unchanged sentences
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
−Removed: NINE MONTHS ENDED
+Added: THREE MONTHS ENDED
(In thousands)
Operating activities
−Removed: Net cash provided by (used for) operating activities $ 39,502 $ ( 2,879 )
+Added: Net cash provided by operating activities $ 12,374 $ 5,023
Investing activities
Expenditures for property, plant and equipment and acquisition of mineral interests ( 33,430 ) ( 8,808 )
−Removed: Proceeds from the sale of property, plant and equipment 392 416
+Added: Proceeds from the sale of assets 6 72
+Added: Return of equity method investment 999 —
Other ( 100 ) 207
1 unchanged sentence
Financing activities
−Removed: Additions to long-term debt 2,768 3,090
−Removed: Reductions of long-term debt ( 3,489 ) ( 3,894 )
−Removed: Net (reductions) additions to revolving credit agreements ( 20,000 ) 27,221
+Added: Net additions (reductions) to revolving credit agreement 25,000 ( 5,000 )
+Added: Reductions to long-term debt ( 1,169 ) ( 1,153 )
+Added: Additions to note payable to affiliate 1,676 1,096
Cash dividends paid ( 1,903 ) ( 1,691 )
Purchase of treasury shares — ( 695 )
−Removed: Net cash (used for) provided by financing activities ( 26,868 ) 11,877
+Added: Net cash provided by (used for) financing activities 23,604 ( 7,443 )
Cash and cash equivalents
−Removed: Total decrease for the period ( 20,176 ) ( 22,057 )
+Added: Total increase (decrease) for the period 3,453 ( 10,949 )
Balance at the beginning of the period 49,708 72,833
15 unchanged sentences
Balance, March 31, 2025 $ 5,877 $ 1,566 $ 35,718 $ 375,899 $ ( 9,943 ) $ 409,117
−Removed: Stock-based compensation
−Removed: 11 — 1,378 — — 1,389
−Removed: Purchase of treasury shares ( 108 ) — — ( 3,177 ) — ( 3,285 )
−Removed: — — — 5,972 — 5,972
−Removed: Cash dividends on Class A and Class B common stock:
−Removed: $ 0.2275 per share
−Removed: — — — ( 1,676 ) — ( 1,676 )
−Removed: Reclassification adjustment to net income, net of tax
−Removed: — — — — 77 77
−Removed: Balance, June 30, 2024 $ 5,788 $ 1,566 $ 30,451 $ 355,786 $ ( 9,501 ) $ 384,090
−Removed: Stock-based compensation 12 — 1,170 — — 1,182
−Removed: Purchase of treasury shares ( 68 ) — — ( 1,949 ) — ( 2,017 )
−Removed: — — — 15,635 — 15,635
−Removed: Cash dividends on Class A and Class B common stock:
−Removed: $ 0.2275 per share
−Removed: — — — ( 1,658 ) — ( 1,658 )
−Removed: Reclassification adjustment to net income, net of tax — — — — 78 78
−Removed: Balance, September 30, 2024 $ 5,732 $ 1,566 $ 31,621 $ 367,814 $ ( 9,423 ) $ 397,310
Balance, January 1, 2026 $ 5,864 $ 1,563 $ 42,427 $ 381,130 $ ( 1,741 ) $ 429,243
Stock-based compensation 114 — 773 — — 887
−Removed: Purchase of treasury shares ( 22 ) — — ( 673 ) — ( 695 )
Net income — — — 8,836 — 8,836
4 unchanged sentences
Balance, March 31, 2026 $ 5,978 $ 1,563 $ 43,200 $ 388,063 $ ( 1,693 ) $ 437,111
−Removed: Stock-based compensation
−Removed: 9 — 2,505 — — 2,514
−Removed: Conversion of Class B to Class A shares 2 ( 2 ) —
−Removed: — — — 3,260 — 3,260
−Removed: Cash dividends on Class A and Class B common stock:
−Removed: $ 0.2525 per share
−Removed: — — — ( 1,879 ) — ( 1,879 )
−Removed: Reclassification adjustment to net income, net of tax
−Removed: — — — — 108 108
−Removed: Balance, June 30, 2025 $ 5,888 $ 1,564 $ 38,223 $ 377,280 $ ( 9,835 ) $ 413,120
−Removed: Stock-based compensation 8 — 1,793 — — 1,801
−Removed: Net income — — — 13,254 — 13,254
−Removed: Cash dividends on Class A and Class B common stock:
−Removed: $ 0.2525 per share
−Removed: — — — ( 1,882 ) — ( 1,882 )
−Removed: Reclassification adjustment to net income, net of tax — — — — 109 109
−Removed: Balance, September 30, 2025 $ 5,896 $ 1,564 $ 40,016 $ 388,652 $ ( 9,726 ) $ 426,402
See notes to Unaudited Condensed Consolidated Financial Statements.
2 unchanged sentences
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
−Removed: SEPTEMBER 30, 2025
+Added: MARCH 31, 2026
(In thousands, except as noted and per share amounts)
3 unchanged sentences
NACCO Natural Resources brings natural resources to life by delivering aggregates, minerals, reliable fuels and environmental solutions through our robust portfolio of businesses.
−Removed: We operate under three business segments:
+Added: We operate under three reportable business segments:
Utility Coal Mining, Contract Mining and Minerals and Royalties.
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.
−Removed: 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.
−Removed: The Minerals and Royalties segment, which includes the Catapult Mineral Partners ® (Catapult) business, acquires and promotes the development of mineral interests and related investments.
−Removed: Mitigation Resources of North America ® (Mitigation Resources) provides stream and wetland mitigation solutions as well as comprehensive reclamation and restoration construction services.
+Added: The Contract Mining segment, operated by North American Mining ® , is a leading provider of a broad range of specialized, long-term contract mining services.
+Added: The Minerals and Royalties segment, which includes the Catapult Mineral Partners ® (Catapult) business, acquires and promotes the development of mineral and royalty interests and other related investments.
+Added: In addition to the reportable segments discussed above, we also operate other businesses that are not currently reported as separate segments.
+Added: These businesses complement out existing operations and support our long-term growth strategic objectives.
+Added: Mitigation Resources of North America ® (Mitigation Resources) provides natural resource restoration and reclamation services that include stream and wetland mitigation solutions.
ReGen Resources is pursuing opportunities to develop new power generation resources.
−Removed: We have items not directly attributable to a reportable segment, which are therefore excluded from the financial results of the operating segments.
−Removed: 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.
−Removed: Bellaire manages its long-term liabilities related to former Eastern U.S.
+Added: We also have items not directly attributable to an operating segment.
+Added: These items primarily include administrative costs related to public company reporting requirements, including management and board compensation, the financial results of developing businesses and Bellaire Corporation (Bellaire).
+Added: Bellaire manages long-term liabilities related to former Eastern U.S.
underground mining activities.
−Removed: Intercompany accounts and transactions are eliminated in consolidation.
See Note 8 for further discussion of segment reporting.
−Removed: During 2025, we changed the names of our reportable segments to make it easier for our stakeholders to understand the business activities within each segment.
−Removed: The Utility Coal Mining, Contract Mining and Minerals and Royalties segments were formerly the Coal Mining, North American Mining and Minerals Management segments, respectively.
−Removed: There were no changes to the composition of each segment and therefore no changes to historical segment reporting.
−Removed: Our operating segments are further described below:
+Added: Our reportable segments are further described below:
Utility Coal Mining Segment
1 unchanged sentence
Each mine is fully integrated with the operation of these facilities.
−Removed: During the three and nine months ended September 30, 2025, the Utility Coal Mining segment's operating coal mines were:
+Added: During the three months ended March 31, 2026, 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).
13 unchanged sentences
The decision regarding which power plants to dispatch is determined by TVA.
−Removed: As a significant portion of MLMC’s costs are fixed, reduction in dispatch and/or reduced mechanical availability of the Red Hills Power Plant can increase per ton costs and materially affect operating results at MLMC.
+Added: As a significant portion of MLMC’s costs are fixed, reduction in dispatch and/or reduced mechanical availability of the Red Hills Power Plant can materially reduce operating results at MLMC.
Conversely, periods of higher dispatch can improve results.
−Removed: The Red Hills Power Plant operated at below full baseload capacity
−Removed: and experienced periods of reduced mechanical availability during 2024 and 2025.
−Removed: These factors increased per ton operating costs which adversely affected operating results in both 2024 and 2025.
−Removed: In December 2023, MLMC received notice from its customer related to a boiler issue at the Red Hills Power Plant.
−Removed: While this issue has been resolved, it resulted in a reduction in customer demand which had a significant impact on our results of operations during 2024.
−Removed: We recognized income of $ 13.6 million in the third quarter of 2024 related to business interruption insurance recoveries to partially offset losses related to the boiler outage.
The Sabine Mining Company (Sabine) operates the Sabine Mine in Texas.
All production from Sabine was delivered to Southwestern Electric Power Company's (SWEPCo) Henry W.
−Removed: Pirkey Plant (the Pirkey Plant).
−Removed: SWEPCO is an American Electric Power (AEP) company.
−Removed: As a result of the early retirement of the Pirkey Plant, Sabine ceased deliveries and commenced final reclamation on April 1, 2023.
−Removed: Funding for mine reclamation is the responsibility of SWEPCO, and Sabine receives compensation for providing mine reclamation services.
−Removed: Sabine will provide mine reclamation services through September 30, 2026.
−Removed: As of October 1, 2026, SWEPCO is obligated to acquire all of the capital stock of Sabine and complete the remaining mine reclamation.
+Added: Pirkey Plant until its retirement in 2023.
+Added: Sabine’s post-production operations primarily consist of reclamation and other land-related activities.
+Added: Under the provisions of the lignite mining agreement, SWEPCo is required to pay an amount equal to Sabine’s operating costs plus a management fee and
+Added: SWEPCo holds an option agreement to purchase Sabine, which SWEPCo exercised in 2023.
+Added: As a result, SWEPCo will take direct control over reclamation activities in October 2026.
At Coteau, Coyote Creek and Falkirk, we are paid a management fee per ton of coal or heating unit (MMBtu) delivered.
1 unchanged sentence
Our customers are responsible for funding all mine operating costs, including final mine reclamation, and directly or indirectly providing all of the capital required to build and operate the mine.
−Removed: This contract structure eliminates exposure to spot coal market price fluctuations while providing income and cash flow with minimal capital investment.
+Added: This contract structure eliminates exposure to spot coal market price fluctuations while providing predictable income and cash flow with minimal capital investment.
Other than at Coyote Creek, debt financing provided by or supported by the customers is without recourse to us.
8 unchanged sentences
For tax purposes, the Unconsolidated Subsidiaries are included within our consolidated U.S.
−Removed: therefore, the Income tax (benefit) provision line on the Unaudited Condensed Consolidated Statements of Operations includes income taxes related to these entities.
+Added: therefore, the Income tax provision line on the Unaudited Condensed Consolidated Statements of Operations includes income taxes related to these entities.
See Note 6 for further information on the Unconsolidated Subsidiaries.
4 unchanged sentences
Contract Mining Segment
−Removed: The Contract Mining segment provides value-added contract mining and other services for producers of industrial minerals.
+Added: The Contract Mining segment provides value-added contract mining and other services for producers of industrial minerals and products.
The segment is a platform for our growth and diversification of mining activities outside of the thermal coal industry.
2 unchanged sentences
materials handling and processing, product sales and distribution.
−Removed: As of September 30, 2025, Contract Mining operates at quarries in Florida, Arkansas and Nebraska and is expected to begin operations upon dragline commission at a quarry in Arizona during the first quarter of 2026.
−Removed: 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.
+Added: As of March 31, 2026, the Contract Mining segment operates at quarries in Florida, Arkansas and Nebraska and is expected to begin operations at a quarry in Arizona during the second half of 2026.
+Added: During the first quarter of 2026, the Contract Mining segment began providing dragline services as part of a U.S.
+Added: Army Corps of Engineers construction project in Palm Beach County, Florida.
+Added: In addition, Contract Mining's subsidiary, Sawtooth, is the exclusive provider of comprehensive mining services for the Thacker Pass lithium project in Humboldt County, Nevada.
Thacker Pass is owned by a joint venture between Lithium Americas Corp.
−Removed: (TSX:LAC) (NYSE:
−Removed: LAC) and General Motors Holdings LLC.
+Added: and General Motors Holdings LLC.
Department of Energy holds warrants to purchase five percent non-voting, non-transferable equity in this joint venture.
−Removed: Thacker Pass commenced construction in 2023 and is targeting initial lithium production in late 2027.
−Removed: 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.
+Added: Thacker Pass is targeting initial lithium production in late 2027.
+Added: The contract requires reimbursement for costs of mining, capital expenditures and mine closure.
+Added: Sawtooth 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.
4 unchanged sentences
Royalty interests generally result when the owner of a mineral interest leases the underlying minerals to an exploration and production company pursuant to an oil and gas lease.
−Removed: Typically, the resulting royalty interest is a cost-free percentage of production revenues for minerals extracted from the acreage.
−Removed: A holder of royalty interests is generally not responsible for capital expenditures or lease operating expenses, but royalty interests may be calculated net of post-production expenses, and typically have no environmental liability.
+Added: Typically, the resulting royalty interest is a
+Added: cost-free percentage of production revenues for minerals extracted from the acreage.
+Added: A holder of royalty interests is generally not responsible for capital expenditures or lease operating expenses, but royalty interests may be calculated net of post-production expenses.
Royalty interests leased to producers expire upon the expiration of the oil and gas lease and revert to the mineral owner.
15 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 September 30, 2025 and December 31, 2024, Minerals and Royalties holds an equity investment of $ 19.1 million in Eiger Resources, which holds non-operated working interests in oil and natural gas assets in the Kansas and the Oklahoma portion of the Hugoton basin.
−Removed: This entity meets the definition of a VIE.
−Removed: NACCO is not the primary beneficiary of the VIE as it does not exercise financial control;
−Removed: therefore, we do not consolidate the results of these operations within our financial statements.
−Removed: Instead, this contract is accounted for as an equity method investment.
−Removed: During the three months ended September 30, 2025 and 2024, we recorded our share of earnings of $ 1.1 million and $ 0.2 million, respectively.
−Removed: During the nine months ended September 30, 2025 and 2024, we recorded our share of earnings of $ 1.9 million and $ 0.4 million, respectively.
−Removed: These earnings are presented in the line Earnings of unconsolidated operations on the Unaudited Condensed Consolidated Statements of Operations.
−Removed: Our investment is reported on the line Equity method investment in Eiger Resources in the Unaudited Condensed Consolidated Balance Sheets.
−Removed: Due to the timing and availability of financial information, earnings or losses from this investment are recorded on a one quarter lag.
−Removed: During the first nine months of 2025, $ 14.5 million of excess funds from the terminated Falkirk pension plan were directly transferred to the NACCO 401(k) plan.
−Removed: The NACCO 401(k) plan is a qualified replacement plan;
−Removed: therefore, these funds will be utilized to offset future profit sharing contributions to 401(k) plan participants.
−Removed: As of September 30, 2025, the remaining $ 9.6 million asset is recorded on the line Prepaid profit sharing and will continue to be reduced as profit sharing contributions are made to employees.
−Removed: During the first nine months 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.
−Removed: In accordance with the agreement reached with the former customer, $ 5.5 million was paid to the former customer during 2025.
−Removed: The remaining $ 5.4 million, recorded on the line Excess funding liability on the Unaudited Condensed Consolidated Balance Sheet at September 30, 2025, will be paid to the former customer in 2026.
−Removed: At September 30, 2025 and December 31, 2024, we had $ 15.4 million and $ 14.2 million, respectively, classified as Assets held for sale.
−Removed: The assets held for sale consist of draglines not in use and an office building in North Dakota.
−Removed: During the first nine months 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.
+Added: We also maintain equity investments in Eiger Resources, a private company that holds operated and non-operated working interests in oil and natural gas assets in the Kansas and the Oklahoma portion of the Hugoton basin.
+Added: See Note 7 for further information on Eiger Resources.
+Added: Effective January 1, 2026, the Company’s Contract Mining segment changed its depreciation method for certain assets (primarily draglines and other large mining equipment) from the straight-line method to the units-of-production method.
+Added: The units-of-production method is based on the total tons expected to be mined by these assets over their estimated useful lives.
+Added: Management believes the new method is preferable as it more closely matches the pattern in which the assets’ future economic benefits are expected to be consumed.
+Added: The Company determined that the change in depreciation method is considered a change in accounting estimate affected by a change in accounting principle.
+Added: Accordingly, this change was applied prospectively.
+Added: The effect of the change to the units of production method resulted in a reduction of $ 0.9 million in depreciation expense and an estimated $ 0.9 million increase in net income, or approximately $ 0.12 per basic and diluted share for the three months ended March 31, 2026.
+Added: The Contract Mining segment’s total cost basis of machinery subject to units of production method was $ 94.2 million as of March 31, 2026.
+Added: Straight-line depreciation continues to be applied to other classes of assets where usage is time-based rather than activity-based.
+Added: As of March 31, 2026 and December 31, 2025, we had $ 12.2 million and $ 12.8 million, respectively, classified as Assets held for sale on the Unaudited Condensed Consolidated Balance Sheets.
+Added: As of March 31, 2026, Assets held for sale consists of two draglines not in use in the Contract Mining segment and an office building in North Dakota in Unallocated Items.
Accounting Standards Not Yet Adopted:
−Removed: In December 2023, the Financial Accounting Standards Board (FASB) issued ASU No.
−Removed: 2023-09, Income Taxes (Topic 740):
−Removed: Improvements to Income Tax Disclosures (ASU 2023-09), which requires entities to disclose more detailed information about their effective tax rate reconciliation as well as information on income taxes paid.
−Removed: ASU 2023-09 is effective for fiscal years beginning after December 15, 2024.
−Removed: 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 September 30, 2025, the results of our operations, comprehensive income, cash flows and changes in equity for the nine months ended September 30, 2025 and 2024 have been included.
+Added: In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair
+Added: presentation of our financial position at March 31, 2026, the results of our operations, comprehensive income, cash flows and changes in equity for the three months ended March 31, 2026 and 2025 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, 2025.
16 unchanged sentences
Fluctuations in revenue from period to period result from changes in customer demand primarily due to increases and decreases in activity levels on individual contracts and variances in reimbursable costs.
−Removed: Revenue from part sales is recognized upon transfer of control of the parts to the customer.
+Added: Revenue from equipment sales and part sales is recognized upon transfer of control to the customer.
The Minerals and Royalties segment enters into contracts which grant the right to explore, develop, produce and sell minerals controlled by us.
7 unchanged sentences
We believe that the pricing provisions of royalty contracts are customary in the industry.
−Removed: 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 comprehensive reclamation and restoration construction services.
−Removed: In mitigation banking, each mitigation credit sale is considered a separate performance obligation.
−Removed: Mitigation banks are regulated and approved by the U.S.
−Removed: Army Corps of Engineers and other federal, state and local agencies.
−Removed: Mitigation credits are released in phases over the life of the mitigation bank.
−Removed: 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 timing of mitigation credit releases and/or customer demand.
−Removed: For other restoration construction services, contracts are generally structured as an agreement under which Mitigation Resources is reimbursed for all costs incurred in performing the required services plus a fixed fee.
+Added: Mitigation Resources provides natural resource restoration and reclamation services that include stream and wetland mitigation solutions.
+Added: For restoration and reclamation services, the service contracts are generally structured as an agreement under which Mitigation Resources is reimbursed for all costs incurred plus a fixed fee.
The services provided represent the performance obligation and are accounted for as a series.
4 unchanged sentences
Fluctuations in revenue from period to period result from increases and decreases in activity levels of individual contracts and variances in reimbursable costs.
+Added: Mitigation Resources also generates and sells stream and wetland mitigation credits (known as mitigation banking).
+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.
+Added: Revenue is recognized at the point in time that control of each mitigation credit
+Added: transfers to the customer.
+Added: Fluctuations in revenue from period to period generally result from changes in timing of mitigation credit releases and/or customer demand.
Significant Judgments:
10 unchanged sentences
We typically receive payment for oil and natural gas sales within 90 days of the month of delivery.
−Removed: For the three and nine months ended September 30, 2025 and September 30, 2024, respectively, differences between our pricing estimates and the actual amounts received from operators were immaterial .
+Added: For the three months ended March 31, 2026 and 2025, respectively, differences between our estimates and the actual amounts received from operators were immaterial .
Cost Reimbursement:
10 unchanged sentences
As discussed above, we record royalty income in the month production is delivered to the purchaser.
−Removed: The expected sales volumes and prices for these properties are estimated and recorded in Other current assets in the accompanying Unaudited Condensed Consolidated Balance Sheets.
+Added: The expected sales volumes and prices for these properties are estimated and recorded in Other current assets in the Unaudited Condensed Consolidated Balance Sheets.
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 and nine months ended September 30, 2025, royalty income recognized in the reporting period relating to production satisfied in prior periods was immaterial and $ 1.5 million, respectively.
−Removed: For the three and nine months ended September 30, 2024, royalty income recognized in the reporting period relating to production satisfied in prior periods was immaterial .
+Added: During the three months ended March 31, 2026 and 2025, royalty income recognized in the reporting period relating to production satisfied in prior periods was immaterial and $ 1.5 million, respectively.
Disaggregation of Revenue:
2 unchanged sentences
Our business consists of the Utility Coal Mining, Contract Mining and Minerals and Royalties segments as well as Unallocated Items.
−Removed: 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 September 30:
−Removed: THREE MONTHS ENDED NINE MONTHS ENDED
−Removed: SEPTEMBER 30 SEPTEMBER 30
−Removed: 2025 2024 2025 2024
+Added: Revenue included in Unallocated Items is primarily related to Mitigation Resources.
+Added: See Note 8 for further discussion of segment reporting.
+Added: The following table disaggregates revenue by major sources as of March 31:
+Added: THREE MONTHS ENDED
Timing of Revenue Recognition
11 unchanged sentences
$ 42,921 $ 382 $ 3,500 $ 1,358 $ 10,593
−Removed: Balance at September 30, 2025
+Added: Balance at March 31, 2026
33,398 644 3,500 1,586 11,651
Increase (decrease) $ ( 9,523 ) $ 262 $ — $ 228 $ 1,058
−Removed: We expect to recognize $ 0.7 million in the remainder of 2025, $ 0.4 million in 2026 and 2027, $ 1.2 million in 2028, $ 2.6 million in 2029 and $ 5.3 million thereafter related to the contract liability remaining at September 30, 2025.
+Added: We expect to recognize $ 0.8 million in the remainder of 2026, $ 1.1 million in 2027, $ 1.2 million in 2028, $ 0.2 million in 2029 and 2030, and $ 9.8 million thereafter related to the contract liability remaining at March 31, 2026.
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.
3 unchanged sentences
2026 DECEMBER 31
−Removed: Coal and aggregates $ 20,600 $ 27,076
+Added: $ 25,883 $ 24,585
Mining supplies 75,731 73,858
Total inventories $ 101,614 $ 98,443
−Removed: We recorded inventory impairment charges of $ 2.7 million and $ 7.0 million during the three and nine months ended September 30, 2025, respectively, and $ 1.0 million and $ 4.1 million during the three and nine months ended September 30, 2024, respectively.
+Added: We recorded inventory impairment charges of $ 3.0 million during the three months ended March 31, 2025.
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.
3 unchanged sentences
Stock Repurchase Program:
−Removed: 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 September 30, 2025 there were no stock repurchases.
−Removed: During the nine months ended September 30, 2025, we repurchased 22,198 shares of Class A Common Stock for an aggregate purchase price of $ 0.7 million.
−Removed: During the three and nine months ended September 30, 2024, we repurchased 68,282 and 304,340 shares, respectively, of Class A Common Stock for an aggregate purchase price of $ 2.0 million and $ 9.6 million, respectively.
−Removed: 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.
+Added: On November 18, 2025, our Board of Directors approved a stock purchase program (2025 Stock Repurchase Program) providing for the purchase of up to $ 20.0 million of our outstanding Class A common stock through December 31, 2027.
+Added: NACCO's previous repurchase program would have expired on December 31, 2025 but was terminated and replaced by the 2025 Stock Repurchase Program.
+Added: During the three months ended March 31, 2026, there were no stock repurchases.
+Added: During the three months ended March 31, 2025, we repurchased 22,198 shares of Class A common stock for an aggregate purchase price of $ 0.7 million.
+Added: The timing and amount of any repurchases under the 2025 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
+Added: conditions for our Class A common stock and other legal and contractual restrictions.
The 2025 Stock Repurchase Program does not require us to acquire any specific number of shares and may be modified, suspended, extended or terminated by us without prior notice and may be executed through open market purchases, privately negotiated transactions or otherwise.
2 unchanged sentences
Recurring Fair Value Measurements :
−Removed: The following table presents our assets and liabilities accounted for at fair value on a recurring basis:
+Added: The following table presents our assets accounted for at fair value on a recurring basis:
Fair Value Measurements at Reporting Date Using
3 unchanged sentences
Description Date (Level 1) (Level 2) (Level 3)
−Removed: September 30, 2025
+Added: March 31, 2026
Equity securities $ 18,194 $ 18,194 $ — $ —
+Added: Money market funds
11,205 11,205 — —
+Added: $ 29,399 $ 29,399 $ — $ —
December 31, 2025
Equity securities $ 17,696 $ 17,696 $ — $ —
+Added: Money market funds
14,579 14,579 — —
−Removed: Bellaire is our non-operating subsidiary with legacy liabilities relating to closed mining operations.
−Removed: Prior to 2024, Bellaire contributed $ 5.0 million to establish a mine water treatment trust (Mine Water Treatment Trust) to assure the long-term treatment of post-mining discharge.
+Added: $ 32,275 $ 32,275 $ — $ —
+Added: In a previous period, Bellaire established a $ 5.0 million Mine Water Treatment Trust, which is legally restricted for purposes of settling the Bellaire asset retirement obligation, to assure the long-term treatment of post-mining discharges.
Bellaire's Mine Water Treatment Trust invests in equity securities that are reported at fair value based upon quoted market prices in active markets for identical assets;
therefore, they are classified as Level 1 within the fair value hierarchy.
−Removed: The fair value of the Mine Water Treatment Trust was $ 13.2 million and $ 12.3 million at September 30, 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 gains of $ 0.7 million and $ 1.2 million during the three and nine months ended September 30, 2025, respectively, and gains of $ 0.6 million and $ 1.5 million during the three and nine months ended September 30, 2024, respectively, related to the Mine Water Treatment Trust.
−Removed: Prior to 2024, we invested $ 2.0 million in equity securities of a public company with a diversified portfolio of royalty producing mineral interests.
+Added: The fair value of the Mine Water Treatment Trust was $ 13.1 million and $ 13.5 million at March 31, 2026 and December 31, 2025, respectively, and is recognized as a component of Equity securities in the Unaudited Condensed Consolidated Balance Sheets.
+Added: We recognized losses of $ 0.4 million and $ 0.3 million during the three months ended March 31, 2026 and 2025, respectively, related to the Mine Water Treatment Trust.
+Added: In a previous period, we invested $ 2.0 million in equity securities of a public company with a diversified portfolio of royalty producing mineral interests.
The investment is reported at fair value based upon quoted market prices in active markets for identical assets;
therefore, it is classified as Level 1 within the fair value hierarchy.
−Removed: The fair value of this investment was $ 4.9 million and $ 6.3 million at September 30, 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 losses of $ 0.4
−Removed: million and $ 1.4 million during the three and nine months ended September 30, 2025, respectively, and losses of $ 0.1 million and $ 0.3 million during the three and nine months ended September 30, 2024, respectively, related to the investment in these equity securities.
+Added: The fair value of this investment was $ 5.1 million and $ 4.2 million at March 31, 2026 and December 31, 2025, respectively, and is recognized as a component of Equity securities in the Unaudited Condensed Consolidated Balance Sheets.
+Added: We recognized a gain of $ 0.9 million and a loss of $ 0.6 million during the three months ended March 31, 2026 and 2025, respectively, related to the investment in these equity securities.
The change in fair value of equity securities is reported on the line (Gain) loss 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 nine months ended September 30, 2025 and 2024.
+Added: During 2025, excess funds from the terminated Combined Defined Benefit Plan and the Falkirk Defined Benefit Plan were invested in a money market fund.
+Added: These funds are recorded on the line Prepaid profit sharing in the Unaudited Condensed Consolidated Balance Sheets and will be utilized to fund future profit sharing contributions to eligible 401(k) plan participants.
+Added: The money market investment is reported at fair value based upon quoted market prices in active markets for identical assets;
+Added: therefore, it is classified as Level 1 within the fair value hierarchy.
+Added: There were no transfers into or out of Levels 1, 2 or 3 during the three months ended March 31, 2026 and 2025.
NOTE 6— Unconsolidated Subsidiaries
5 unchanged sentences
See Note 1 for a discussion of these entities.
−Removed: The Investment in the unconsolidated subsidiaries and related tax positions totaled $ 18.6 million and $ 14.1 million at September 30, 2025 and December 31, 2024, respectively.
−Removed: Our risk of loss relating to these entities is limited to our invested capital, which was $ 5.7 million and $ 5.5 million at September 30, 2025 and December 31, 2024, respectively.
−Removed: Earnings of Unconsolidated Subsidiaries were $ 15.4 million and $ 43.7 million during the three and nine months ended September 30, 2025, respectively, and $ 14.9 million and $ 41.8 million during the three and nine months ended September 30, 2024, respectively.
+Added: The Investment in the unconsolidated subsidiaries and related tax positions totaled $ 15.5 million and $ 14.8 million at March 31, 2026 and December 31, 2025, respectively.
+Added: Our risk of loss relating to these entities is limited to our invested capital, which was $ 5.6 million and $ 6.7 million at March 31, 2026 and December 31, 2025, respectively.
+Added: Earnings of Unconsolidated Subsidiaries were $ 15.6 million and $ 15.4 million during the three months ended March 31, 2026 and 2025, respectively.
NACCO Natural Resources is a party to certain guarantees related to Coyote Creek.
−Removed: Under certain circumstances of default or termination of Coyote Creek’s Lignite Sales Agreement (LSA), NACCO Natural Resources would be obligated for payment of a make-whole amount to Coyote Creek’s third-party lenders.
+Added: Under certain circumstances of default or termination of Coyote Creek’s Lignite Sales Agreement (LSA), NACCO Natural Resources would be obligated to pay a make-whole amount to Coyote Creek’s third-party lenders.
The make-whole amount is based on the excess, if any, of the discounted value of the remaining scheduled debt payments over the principal amount.
2 unchanged sentences
We believe that the likelihood NACCO Natural Resources would be required to perform under the guarantees is remote, and no amounts related to these guarantees have been recorded.
+Added: NOTE 7— Eiger Resources
+Added: As of both March 31, 2026 and December 31, 2025, the Minerals and Royalties segment holds an equity investment of $ 33.7 million in Eiger Resources, which holds operated and non-operated working interests in oil and natural gas assets in the Kansas and the Oklahoma portion of the Hugoton basin.
+Added: Eiger Resources meets the definition of a VIE.
+Added: As we own less than 20 %, NACCO does not exercise financial control and is not the primary beneficiary of the VIE;
+Added: therefore, we do not consolidate the results of these operations within our financial statements.
+Added: Instead, this contract is accounted for as an equity method investment.
+Added: Our investment is reported on the line Equity method investment in Eiger Resources in the Unaudited Condensed Consolidated Balance Sheets.
+Added: The Minerals and Royalties segment records its share of earnings as Earnings of unconsolidated operations on the Unaudited Condensed Consolidated Statements of Operations.
+Added: During the three months ended March 31, 2026 and 2025, we recorded our share of earnings of $ 1.0 million and $ 0.6 million, respectively.
+Added: Due to the timing and availability of financial information, earnings or losses from this investment are recorded on a one quarter lag.
+Added: Changes in the Eiger Resources equity method investment balance are summarized as follows:
+Added: Balance at January 1, 2026
+Added: Share of earnings
+Added: Capital contributions
+Added: Distributions received
+Added: Balance at March 31, 2026
NOTE 8— Business Segments
4 unchanged sentences
Our CODM considers actual, budgeted and forecasted Operating profit (loss) from operations on a monthly basis for evaluating the performance of each segment and making decisions about allocating capital and other resources to each segment.
−Removed: See Note 1 for a discussion of our reportable segments.
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.
+Added: See Note 1 for a discussion of our reportable segments.
+Added: All current operations reside in the U.S.
The following table provides segment financial information and a reconciliation of segment results to consolidated results:
−Removed: THREE MONTHS ENDED NINE MONTHS ENDED
−Removed: SEPTEMBER 30 SEPTEMBER 30
−Removed: 2025 2024 2025 2024
+Added: THREE MONTHS ENDED
Utility Coal Mining $ 16,691 $ 19,239
15 unchanged sentences
Minerals and Royalties 961 554
−Removed: Unallocated Items ( 2 ) ( 1 ) ( 3 ) ( 1 )
Total $ 16,571 $ 15,986
13 unchanged sentences
*Operating expenses (income) consist of Selling, general and administrative expenses, Amortization of intangible assets and Gain on sale of assets.
−Removed: THREE MONTHS ENDED NINE MONTHS ENDED
−Removed: SEPTEMBER 30 SEPTEMBER 30
−Removed: 2025 2024 2025 2024
+Added: THREE MONTHS ENDED
Expenditures for property, plant and equipment and acquisition of mineral interests
35 unchanged sentences
® (NACCO) and its wholly owned subsidiary, NACCO Natural Resources Corporation ® (NACCO Natural Resources and with NACCO collectively, the Company, we, our or us).
−Removed: NACCO Natural Resources brings natural resources to life by delivering aggregates, minerals, reliable fuels and environmental solutions through our robust business portfolio.
−Removed: We operate under three business segments:
+Added: NACCO Natural Resources brings natural resources to life by delivering aggregates, minerals, reliable fuels and environmental solutions through our robust portfolio of businesses.
+Added: We operate under three reportable business segments:
Utility Coal Mining, Contract Mining and Minerals and Royalties.
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.
−Removed: 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.
−Removed: The Minerals and Royalties segment, which includes the Catapult Mineral Partners ® (Catapult) business, acquires and promotes the development of mineral interests and related investments.
−Removed: Mitigation Resources of North America ® (Mitigation Resources) provides stream and wetland mitigation solutions as well as comprehensive reclamation and restoration construction services.
+Added: The Contract Mining segment, operated by North American Mining ® , is a leading provider of a broad range of specialized, long-term contract mining services.
+Added: The Minerals and Royalties segment, which includes the Catapult Mineral Partners ® (Catapult) business, acquires and promotes the development of mineral and royalty interests and other related investments.
+Added: In addition to the reportable segments discussed above, we also operate other businesses that are not currently reported as separate segments.
+Added: These businesses complement our existing operations and support our long-term growth strategic objectives.
+Added: Mitigation Resources of North America ® (Mitigation Resources) provides natural resource restoration and reclamation services that include stream and wetland mitigation solutions.
ReGen Resources is pursuing opportunities to develop new power generation resources.
−Removed: 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, which are therefore excluded from the financial results of the operating segment.
−Removed: 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.
−Removed: Bellaire manages its long-term liabilities related to former Eastern U.S.
+Added: See Note 1 to the Unaudited Condensed Consolidated Financial Statements within this Form 10-Q for further discussion of our reportable segments.
+Added: We also have items not directly attributable to an operating segment.
+Added: These items primarily include administrative costs related to public company reporting requirements, including management and board compensation, the financial results of developing businesses and Bellaire Corporation (Bellaire).
+Added: Bellaire manages long-term liabilities related to former Eastern U.S.
underground mining activities.
−Removed: During 2025, we changed the names of our reportable segments to make it easier for our stakeholders to understand the business activities within each segment.
−Removed: The Utility Coal Mining, Contract Mining and Minerals and Royalties segments were formerly the Coal Mining, North American Mining and Minerals Management segments, respectively.
−Removed: There were no changes to the composition of each segment and therefore no changes to historical segment reporting.
−Removed: 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.
−Removed: Government Regulation Update:
−Removed: There have been no material changes to the Government Regulation Update 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: The Environmental Protection Agency (EPA)
−Removed: 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.
−Removed: 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).
−Removed: Litigation over the previously adopted Clean Power Plan 2.0 and MATS rules continues to be held in abeyance while the EPA conducts new rulemaking to repeal the rules.
−Removed: 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.
−Removed: The EPA is required to submit status reports every 120 days and submitted its first status report on September 30, 2025.
−Removed: This case continues to be held in abeyance while the EPA reconsiders the rule.
−Removed: 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.
−Removed: Since March 2025, the Trump Administration announced that the EPA will undertake historic actions of deregulation, as discussed above, but also including:
−Removed: • Reconsideration of regulations on the oil and gas industry;
−Removed: • Reconsideration of mandatory Greenhouse Gas Reporting Program;
−Removed: • Reconsideration of limitations, guidelines and standards for the Steam Electric Power Generating Industry to ensure low-cost electricity while protecting water resources;
−Removed: • Reconsideration of wastewater regulations for oil and gas development to help unleash American energy;
−Removed: • Reconsideration of the Risk Management Program rule;
−Removed: • Rescinding the 2009 Carbon Dioxide Endangerment Finding and regulations and actions that rely on that Finding;
−Removed: • Reconsideration of Particulate Matter National Ambient Air Quality Standards;
−Removed: • Reconsideration of multiple National Emission Standards for Hazardous Air Pollutants for American energy and manufacturing sectors;
−Removed: • Restructuring the Regional Haze Program;
−Removed: • Overhauling the Social Cost of Carbon;
−Removed: • Redirecting enforcement resources to the EPA’s core mission;
−Removed: • Ending the Good Neighbor Plan;
−Removed: • Working with states and tribes to resolve massive backlog with State Implementation Plans and Tribal Implementation Plans.
−Removed: Federal Coal Leasing
−Removed: In April 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: We enter into leases of federally owned coal for a small portion of the coal mined at certain of our North Dakota mines.
−Removed: In October 2025, the Company's two federal coal lease applications were issued by the Department of Interior’s Bureau of Land Management.
−Removed: Other Regulations
−Removed: On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law.
−Removed: The OBBBA includes changes to U.S.
−Removed: tax law including provisions for bonus depreciation, current expensing of research expenditures and changes to the interest deductibility threshold.
−Removed: The changes resulting from the tax provisions in OBBBA did not have a material impact on our results of operations.
−Removed: The OBBBA includes substantial changes to U.S.
−Removed: solar energy tax policy which could have a material impact on the solar projects being developed by ReGen Resources.
−Removed: Our investments in solar projects are dependent, in part, upon current state regulatory incentives and federal tax credits in order for the projects to be economically viable.
−Removed: To mitigate the impacts of evolving regulations, we are focused on safe-harboring certain projects by establishing the beginning of construction through physical work of a significant nature to retain federal investment tax credits.
−Removed: We have approximately $7.2 million of capitalized assets associated with our solar projects.
−Removed: 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.
−Removed: The United States has recently enacted and proposed to enact significant new tariffs.
−Removed: Additionally, President Trump has directed various federal agencies to further evaluate key aspects of U.S.
−Removed: trade policy and there has been ongoing discussion and commentary regarding potential significant changes to U.S.
−Removed: trade policies, treaties and tariffs.
−Removed: There continues to exist significant uncertainty about the future relationship between the U.S.
−Removed: and other countries with respect to such trade policies, treaties and tariffs.
−Removed: 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.
+Added: All financial statement line items below operating profit (other expense, including interest expense and interest income, the provision for income taxes and net income) are presented and discussed within this Form 10-Q on a consolidated basis.
+Added: Government Regulation and Environmental Matters:
+Added: Refer to the discussion of Government Regulation and Environmental Matters as disclosed on pages 9 through 14 in our Annual Report on Form 10-K for the year ended December 31, 2025.
+Added: The Government Regulation and Environmental Matters have not materially changed since December 31, 2025.
Critical Accounting Policies and Estimates:
2 unchanged sentences
CONSOLIDATED FINANCIAL SUMMARY
−Removed: Our results of operations were as follows for the three and nine months ended September 30:
−Removed: THREE MONTHS NINE MONTHS
−Removed: 2025 2024 2025 2024
+Added: Our results of operations were as follows for the three months ended March 31:
Utility Coal Mining $ 16,691 $ 19,239
11 unchanged sentences
Total operating profit
−Removed: 6,777 19,699 14,408 31,822
Interest expense 1,658 1,774
2 unchanged sentences
(Gain) loss on equity securities
−Removed: (284) (442) 237 (1,219)
−Removed: Gain on settlement of excess funding liability
−Removed: — — (3,590) —
Other, net 92 303
Other expense, net
−Removed: 820 567 1,330 889
−Removed: Income before income tax (benefit) provision
−Removed: 5,957 19,132 13,078 30,933
−Removed: Income tax (benefit) provision
−Removed: (7,297) 3,497 (8,336) 4,756
+Added: Income before income tax provision
+Added: Income tax provision
Net income $ 8,836 $ 4,900
1 unchanged sentence
The components of the change in revenues and operating profit are discussed below in Segment Results.
−Removed: Third Quarter of 2025 Compared with Third Quarter of 2024, and First Nine Months Ended September 30, 2025 Compared with First Nine Months Ended September 30, 2024
+Added: First Quarter of 2026 Compared with First Quarter of 2025
Other expense, net
−Removed: Interest expense decreased in the third quarter of 2025 compared with the respective 2024 period due to an increase in capitalized interest as well as lower average interest rates.
−Removed: Interest expense increased in the first nine months of 2025 compared with the respective 2024 period due to higher average borrowings, partially offset by an increase in capitalized interest and lower average interest rates.
−Removed: Interest income decreased in the third quarter of 2025 and the first nine months of 2025 compared with the respective 2024 periods due to lower earnings on reduced invested cash balances.
+Added: Interest income decreased in the first quarter of 2026 compared with the 2025 period due to lower earnings on reduced invested cash balances.
(Gain) loss on equity securities represents changes in the market price of invested assets reported at fair value.
−Removed: The change in the third quarter of 2025 and the first nine months of 2025 compared with the respective 2024 periods was due to fluctuations in the market prices of the exchange-traded equity securities.
+Added: The favorable change in the first quarter of 2026 compared with the 2025 period is 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.
−Removed: During the first nine months of 2025, $14.5 million of excess funds from the terminated Falkirk pension plan were directly transferred to the NACCO 401(k) plan.
−Removed: The NACCO 401(k) plan is a qualified replacement plan;
−Removed: therefore, these funds will be
−Removed: utilized to offset future profit sharing contributions to 401(k) plan participants.
−Removed: During the first nine months of 2025, NACCO and 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.
2 unchanged sentences
The benefit of percentage depletion is not directly related to the amount of consolidated pre-tax income recorded in a period.
−Removed: Accordingly, as a result of the reduction in 2025 income before income tax compared with 2024, the proportional effect of the benefit from percentage depletion on the effective income tax rate results in a negative forecasted effective tax rate for 2025.
−Removed: This contributed to the income tax benefit recorded for the three and nine months ended September 30, 2025.
−Removed: 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.
−Removed: LIQUIDITY AND CAPITAL RESOURCES OF NACCO
−Removed: The following tables detail the changes in cash flow for the nine months ended September 30:
+Added: LIQUIDITY AND CAPITAL RESOURCES
+Added: The following tables detail the changes in cash flow for the three months ended March 31:
2026 2025 Change
Operating activities:
−Removed: Net cash provided by (used for) operating activities
+Added: Net cash provided by operating activities
$ 12,374 $ 5,023 $ 7,351
4 unchanged sentences
Cash flow before financing activities $ (20,151) $ (3,506) $ (16,645)
−Removed: The $42.4 million change in net cash provided by (used for) operating activities was primarily due to a favorable change in the adjustments to reconcile net income to net cash provided by operating activities.
−Removed: The Company’s adjustments primarily include the business interruption insurance recoveries at MLMC in 2024, Gain on sale of assets, deferred income taxes, depreciation, depletion and amortization and stock-based compensation.
−Removed: A change in operating assets and liabilities also contributed to the increase in net cash provided by (used for) operating activities.
−Removed: Accounts receivable decreased during the current-year period due to the timing of collections, whereas accounts receivable was comparable in the prior periods.
−Removed: Inventory levels at September 30, 2025 are relatively consistent with year-end balances, whereas inventories increased during 2024.
−Removed: These favorable items were partially offset by an unfavorable change in accrued expenses, mainly attributable to a decrease in accrued payroll during the 2025 period, whereas accrued payroll was comparable in prior periods.
+Added: The $7.4 million favorable change in net cash provided by operating activities was primarily due to changes in operating assets and liabilities.
+Added: This improvement was mainly attributable to an increase in Accounts payable during the first quarter of 2026, primarily due to purchases related to ReGen Resources' solar projects, whereas Accounts payable decreased during the first quarter of 2025 due to the timing of expenditures in the Coal Mining and Contract Mining segments.
+Added: In addition, a decrease in Accounts receivable, mainly attributable to lower revenues at MLMC, contributed to the improvement but was partially offset by cash payments associated with reclamation work at MLMC during the first quarter of 2026.
2026 2025 Change
Financing activities:
−Removed: Net (reductions) additions to long-term debt and revolving credit agreements $ (20,721) $ 26,417 $ (47,138)
+Added: Net additions (reductions) to long-term debt and revolving credit agreements
+Added: $ 25,507 $ (5,057) $ 30,564
Cash dividends paid (1,903) (1,691) (212)
Purchase of treasury shares — (695) 695
−Removed: Net cash (used for) provided by financing activities $ (26,868) $ 11,877 $ (38,745)
−Removed: The change in net cash (used for) provided by financing activities was primarily due to reductions in debt borrowings during the first nine months of 2025 compared with additions during the first nine months of 2024, partially offset by a decrease in share repurchases during the first nine months of 2025.
+Added: Net cash provided by (used for) financing activities
+Added: $ 23,604 $ (7,443) $ 31,047
+Added: The change in net cash provided by (used for) financing activities was primarily due to additions in debt borrowings during the first three months of 2026 compared with reductions during the first three months of 2025 as well as a decrease in share repurchases during the first three months of 2026.
Financing Activities
−Removed: 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.
−Removed: Borrowings outstanding under the Facility were $50.0 million at September 30, 2025.
−Removed: At September 30, 2025, the excess availability under the Facility was $99.3 million, which reflects a reduction for outstanding letters of credit of $50.7 million.
+Added: NACCO Natural Resources has a $200.0 million secured revolving line of credit (Facility) that matures in September 2028.
+Added: Borrowings outstanding under the Facility were $100.0 million at March 31, 2026.
+Added: At March 31, 2026, the excess availability under the Facility was $49.5 million, which reflects a reduction for outstanding letters of credit of $50.5 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 September 30, 2025, for base rate and Term Secured Overnight Financing Rate loans were 1.50% and 2.50%, respectively.
+Added: The applicable margins, effective March 31, 2026, 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 0.40% on the unused commitment at September 30, 2025.
−Removed: During the three and nine months ended September 30, 2025, the average borrowing under the Facility was $47.1 million and $57.5 million, respectively, and the weighted-average annual interest rate was 8.53% and 7.41%, respectively.
+Added: The commitment fee was 0.45% on the unused commitment at March 31, 2026.
+Added: During the three months ended March 31, 2026, the average borrowing under the Facility was $84.7 million and the weighted-average annual interest rate was 6.52%.
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 September 30, 2025, NACCO Natural Resources was in compliance with all financial covenants in the Facility.
+Added: At March 31, 2026, 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 $34.3 million during the first nine months of 2025, primarily for a dragline and dragline related repairs in the Contract Mining segment.
+Added: Actual expenditures were $33.4 million during the first three months of 2026, primarily for land in Tennessee at Mitigation Resources and a dragline in the Contract Mining segment.
Planned expenditures for the remainder of 2026 are expected to be approximately $57 million.
This amount includes $6 million in the Utility Coal Mining segment, $25 million in the Contract Mining segment, $20 million in the Minerals and Royalties segment and $6 million in growth businesses included in Unallocated Items.
−Removed: Planned expenditures in 2026 are expected to be approximately $70 million.
+Added: The majority of these expenditures relate to business development opportunities and will only be made if the projects meet our growth investment criteria.
Expenditures are expected to be funded from internally generated funds and/or bank borrowings.
10 unchanged sentences
Debt to total capitalization 22% 19% 3%
−Removed: The increase in other net tangible assets at September 30, 2025 compared with December 31, 2024 was mainly the result of increases in Property, plant and equipment and tax assets.
−Removed: These increases were partially offset by a decrease in Trade accounts receivable during the first nine months of 2025 primarily due to the timing of payments.
+Added: The change in other net tangible assets at March 31, 2026 compared with December 31, 2025 was mainly the result of an increase in Property, plant and equipment and a decrease in Accrued payroll for incentive compensation payments made during the first quarter of 2026.
+Added: These increases were partially offset by a decrease in Trade accounts receivable primarily due to lower revenue at MLMC during the first quarter of 2026 compared with the fourth quarter of 2025.
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, 2025, 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 page 52 in our Annual Report on Form 10-K for the year ended December 31, 2025.
See Note 6 to the Unaudited Condensed Consolidated Financial Statements for a discussion of certain guarantees related to Coyote Creek.
2 unchanged sentences
FINANCIAL REVIEW
−Removed: Tons of coal delivered by the Utility Coal Mining segment were as follows for the three and nine months ended September 30:
−Removed: THREE MONTHS NINE MONTHS
−Removed: 2025 2024 2025 2024
+Added: Tons of coal delivered by the Utility Coal Mining segment were as follows for the three months ended March 31:
Unconsolidated operations 5,514 5,616
1 unchanged sentence
Total tons delivered 6,005 6,207
−Removed: The results of operations for the Utility Coal Mining segment were as follows for the three and nine months ended September 30:
−Removed: THREE MONTHS NINE MONTHS
−Removed: 2025 2024 2025 2024
+Added: The results of operations for the Utility Coal Mining segment were as follows for the three months ended March 31:
Revenues $ 16,691 $ 19,239
Cost of sales 15,950 22,570
−Removed: (1,857) (348) (6,889) (6,888)
+Added: Gross profit (loss)
Earnings of unconsolidated operations (a)
14,108 14,463
−Removed: Business interruption insurance recoveries — 13,612 — 13,612
Selling, general and administrative expenses 7,274 7,251
Amortization of intangible assets 151 162
−Removed: (Gain) loss on sale of assets
−Removed: (17) 2 (103) (87)
+Added: Gain on sale of assets
Operating profit $ 7,424 $ 3,791
(a) See Note 6 to the Unaudited Condensed Consolidated Financial Statements for a discussion of our unconsolidated subsidiaries.
−Removed: Third Quarter of 2025 Compared with Third Quarter of 2024
−Removed: Revenues increased 11.0% in the third quarter of 2025 compared with the third quarter of 2024 primarily due to an increase in customer requirements at MLMC.
−Removed: A boiler issue at the customer's Red Hills Power Plant reduced customer requirements in 2024.
−Removed: The following table identifies the components of change in Operating profit for the third quarter of 2025 compared with the third quarter of 2024:
+Added: During the first quarter of 2026, MLMC's customer's power plant experienced a maintenance outage.
+Added: As a result, revenues decreased 13.2% in the first quarter of 2026 compared with the first quarter of 2025 due to lower customer requirements.
+Added: This decrease was partially offset by an increase in the contractually determined per ton sales price at MLMC.
+Added: The following table identifies the components of change in Operating profit for the first quarter of 2026 compared with the first quarter of 2025:
Operating Profit
−Removed: 2024 $ 19,938
Increase (decrease) from:
−Removed: Business interruption insurance recoveries in 2024
−Removed: Gross loss (1,509)
−Removed: Selling, general and administrative expenses (303)
+Added: Gross profit (loss)
Amortization of intangibles 11
1 unchanged sentence
Net change on sale of assets (72)
−Removed: Operating profit decreased by $15.0 million in the third quarter of 2025 compared with the 2024 period.
−Removed: This decrease was primarily due to the absence of MLMC's business interruption insurance recoveries for the boiler issue at the Red Hills Power Plant, an increase in gross loss and higher selling, general and administrative expenses.
−Removed: These unfavorable changes were partially offset by an increase in earnings of unconsolidated operations.
−Removed: Gross loss was unfavorable at MLMC during the third quarter of 2025 compared with the 2024 period, primarily due to a decrease in the contractual sales price per ton.
−Removed: The increase in selling, general and administrative expenses was mainly the result of higher employee-related costs.
−Removed: The increase in earnings of unconsolidated operations was primarily due to a higher per ton management fee at Coteau as well as an increase in customer demand and a higher per ton management fee at Falkirk.
−Removed: First Nine Months of 2025 Compared with First Nine Months of 2024
−Removed: Revenues increased 39.9% in the first nine months of 2025 compared with the first nine months of 2024 primarily due to an increase in customer requirements at MLMC.
−Removed: A boiler issue at the customer's Red Hills Power Plant reduced customer requirements in 2024.
−Removed: The following table identifies the components of change in Operating profit for the first nine months of 2025 compared with the first nine months of 2024:
−Removed: Operating Profit
−Removed: 2024 $ 22,288
−Removed: Increase (decrease) from:
−Removed: Business interruption insurance recoveries in 2024
Selling, general and administrative expenses (23)
−Removed: Amortization of intangibles (201)
−Removed: Gross loss (1)
−Removed: Earnings of unconsolidated operations 2,596
−Removed: Net change on sale of assets 16
−Removed: 2025 $ 10,000
−Removed: Operating profit decreased by $12.3 million in the first nine months of 2025 compared with the 2024 period.
−Removed: This decrease was primarily due to the absence of MLMC's business interruption insurance recoveries for the boiler issue at the Red Hills Power Plant and higher selling, general and administrative expenses.
−Removed: These unfavorable changes were partially offset by an increase in earnings of unconsolidated operations.
−Removed: The increase in selling, general and administrative expenses was mainly the result of higher employee-related costs.
−Removed: 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: Operating profit increased by $3.6 million in the first quarter of 2026 compared with the first quarter of 2025, primarily due to a reduction in cost per ton delivered at MLMC.
+Added: Lower demand during the Red Hills Power Plant outage resulted in a shift of certain costs from inventory and cost of sales to reduce MLMC’s asset retirement obligation, which favorably impacted quarterly results.
+Added: In addition, the first quarter of 2025 included a $3.0 million inventory impairment charge to write down MLMC's coal inventory to its net realizable value.
+Added: The increase in operating profit was partially offset by a decrease in earnings of unconsolidated operations primarily due to a lower management fee at Sabine during the first quarter of 2026.
CONTRACT MINING SEGMENT
FINANCIAL REVIEW
−Removed: Tons delivered by the Contract Mining segment were as follows for the three and nine months ended September 30:
−Removed: THREE MONTHS NINE MONTHS
−Removed: 2025 2024 2025 2024
+Added: Tons delivered by the Contract Mining segment were as follows for the three months ended March 31:
Total tons delivered 14,960 12,853
−Removed: The results of operations for the Contract Mining segment were as follows for the three and nine months ended September 30:
−Removed: THREE MONTHS NINE MONTHS
−Removed: 2025 2024 2025 2024
+Added: The results of operations for the Contract Mining segment were as follows for the three months ended March 31:
Total revenues $ 32,639 $ 31,526
5 unchanged sentences
Earnings of unconsolidated operations (a)
−Removed: 1,074 1,122 3,275 3,935
Selling, general and administrative expenses 2,414 2,147
Gain on sale of assets (5) —
−Removed: Operating profit (loss)
+Added: Operating profit
$ 3,988 $ 1,970
(a) See Note 6 to the Unaudited Condensed Consolidated Financial Statements for a discussion of our unconsolidated subsidiaries.
−Removed: Third Quarter of 2025 Compared with Third Quarter of 2024
−Removed: Total revenues increased in the third quarter of 2025 compared with the third 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 increased 21.6% in the third quarter of 2025 compared with the 2024 period, mainly the result of more tons delivered due to higher customer requirements and an increase in part sales.
−Removed: The increase in tons delivered is partially due to an increase in planned customer outages and significant rain events in Florida during the third quarter of 2024 that did not recur in the 2025 period.
−Removed: The following table identifies the components of change in Operating profit (loss) for the third quarter of 2025 compared with the third quarter of 2024:
−Removed: Operating Profit (Loss)
−Removed: Increase (decrease) from:
−Removed: Gross profit 2,269
−Removed: Selling, general and administrative expenses 480
−Removed: Net change on sale of assets
−Removed: Earnings of unconsolidated operations (48)
−Removed: Operating profit (loss) improved by $2.4 million in the third quarter of 2025 compared with the 2024 period.
−Removed: The favorable change was primarily due to an increase in gross profit and a decrease in selling, general and administrative expenses.
−Removed: The improvement in gross profit was mainly the result of an increase in tons delivered and improved margins at the consolidated limestone quarries.
−Removed: The decrease in selling, general and administrative expenses was the result of the absence of a $0.9 million charge to establish an allowance against a customer receivable.
−Removed: First Nine Months of 2025 Compared with First Nine Months of 2024
−Removed: Total revenues increased in the first nine months of 2025 compared with the first nine 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.
−Removed: Revenues excluding reimbursable costs increased 8.7% in the first nine months of 2025 compared with the 2024 period primarily due to an increase in part sales.
−Removed: The following table identifies the components of change in Operating profit for the first nine months of 2025 compared with the first nine months of 2024:
+Added: Revenues excluding reimbursable costs increased 31.7% in the first quarter of 2026 compared with the 2025 period primarily due to a new dragline mining service contract as well as higher customer requirements at the consolidated limestone quarries.
+Added: Reimbursable costs have an offsetting amount in cost of sales and have no impact on gross profit.
+Added: The following table identifies the components of change in Operating profit for the first quarter of 2026 compared with the first quarter of 2025:
Operating Profit
4 unchanged sentences
Selling, general and administrative expenses (267)
−Removed: Operating profit in the first nine months of 2025 was comparable to the 2024 period.
−Removed: An increase in gross profit was largely offset by a decrease in earnings of unconsolidated operations.
−Removed: The improvement in gross profit was mainly the result of an increase in part sales, partially offset by a decrease in tons delivered and higher operating costs, including unexpected repairs and maintenance costs.
−Removed: The decrease in earnings of unconsolidated operations was primarily due to a reduction in tons delivered.
+Added: Operating profit improved by $2.0 million in the first quarter of 2026 compared with the first quarter of 2025, primarily due to increases in gross profit and earnings of unconsolidated operations.
+Added: These improvements were mainly the result of an increase in tons delivered, improved margins at limestone quarries and contributions from a new dragline mining service contract, partially offset by lower profit on part sales.
+Added: The improved margins were partially due to $0.9 million in lower depreciation expense.
+Added: Effective January 1, 2026, the Company’s Contract Mining segment changed its depreciation method for certain assets (primarily draglines and other large mining equipment) from the straight-line method to the units-of-production method.
+Added: See Note 1 to the Unaudited Condensed Consolidated Financial Statements for further discussion of this change.
MINERALS AND ROYALTIES SEGMENT
1 unchanged sentence
The following table sets forth our estimate of the number of gross and net productive wells:
−Removed: September 30, 2025 September 30, 2024
+Added: March 31, 2026 March 31, 2025
Gross Net Gross Net
4 unchanged sentences
Oil and natural gas prices have been historically volatile and may continue to be volatile in the future.
−Removed: The table below demonstrates such volatility and shows the average prices as reported by the United States Energy Information Administration for the three and nine months ended September 30:
−Removed: THREE MONTHS NINE MONTHS
−Removed: 2025 2024 2025 2024
+Added: The table below shows the average prices as reported by the United States Energy Information Administration for the three months ended March 31:
West Texas Intermediate Average Crude Oil Price $ 71.98 $ 71.84
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 and Royalties segment were as follows for the three and nine months ended September 30:
−Removed: THREE MONTHS NINE MONTHS
−Removed: 2025 2024 2025 2024
+Added: The results of operations for the Minerals and Royalties segment were as follows for the three months ended March 31:
Oil and natural gas revenues $ 7,827 $ 9,117
Other revenues
−Removed: 1,797 1,733 4,869 5,496
Total Revenues $ 9,546 $ 10,902
3 unchanged sentences
Earnings from unconsolidated operations
−Removed: 1,111 213 1,916 286
Selling, general and administrative expenses 1,651 1,305
Gain on sale of assets
−Removed: — — — (4,512)
Operating profit $ 7,736 $ 7,907
−Removed: Revenues increased 5.2% and 10.6% in the third quarter and the first nine 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 a decrease in oil revenue as a result of lower oil prices.
−Removed: The following table identifies the components of change in Operating profit for the third quarter of 2025 compared with the third quarter of 2024:
−Removed: Operating Profit
−Removed: Increase (decrease) from:
−Removed: Earnings of unconsolidated operations 898
−Removed: Gross profit 629
−Removed: Selling, general and administrative expenses 253
−Removed: Operating profit increased by $1.8 million in the third quarter of 2025 compared with the 2024 period, primarily due to improvements in earnings of unconsolidated operations and gross profit.
−Removed: The increase in earnings of unconsolidated operations was primarily related to an additional investment in Eiger Resources during the fourth quarter of 2024.
−Removed: The increase in gross profit was mainly due to higher natural gas prices.
−Removed: The following table identifies the components of change in Operating profit for the first nine months of 2025 compared with the first nine months of 2024:
+Added: Revenues decreased 12.4% in the first quarter of 2026 compared with the first quarter of 2025 primarily due to lower natural gas revenue as a result of decreased production.
+Added: The following table identifies the components of change in Operating profit for the first quarter of 2026 compared with the first quarter of 2025:
Operating Profit
−Removed: 2024 $ 21,709
Increase (decrease) from:
−Removed: Gain on sale of assets
−Removed: Selling, general and administrative expenses (187)
+Added: Selling, general and administrative expenses, including Gain on sale of assets
Gross profit (233)
Earnings of unconsolidated operations 407
−Removed: 2025 $ 21,080
−Removed: Operating profit decreased by $0.6 million in the first nine months of 2025 compared with the 2024 period, primarily due to the absence of a $4.5 million prior year gain on sale of land.
−Removed: This decrease was partially offset by improvements in gross profit and earnings of unconsolidated operations.
−Removed: The increase in gross profit was mainly due to higher natural gas prices.
−Removed: The increase in earnings of unconsolidated operations was primarily related to an additional investment in Eiger Resources during the fourth quarter of 2024.
+Added: Operating profit decreased by $0.2 million in the first quarter of 2026 compared with the first quarter of 2025 primarily due to an increase in selling, general and administrative expenses and lower gross profit.
+Added: The increase in selling, general and administrative expenses was primarily due to higher employee-related costs.
+Added: The decrease in gross profit was mainly due to lower production, partially offset by a decrease in depletion expense.
+Added: These decreases were partially offset by an improvement in earnings of unconsolidated operations related to an additional investment in Eiger Resources during the fourth quarter of 2024.
+Added: Due to the timing and availability of financial information, earnings or losses from this investment are recorded on a one quarter lag.
UNALLOCATED ITEMS AND ELIMINATIONS
FINANCIAL REVIEW
−Removed: Unallocated Items and Eliminations were as follows for the three and nine months ended September 30:
−Removed: THREE MONTHS NINE MONTHS
−Removed: 2025 2024 2025 2024
+Added: Unallocated Items and Eliminations were as follows for the three months ended March 31:
Operating loss $ (8,132) $ (5,986)
−Removed: The operating loss increased in the third quarter and first nine months of 2025 compared to the 2024 periods primarily due to higher employee-related costs and increased costs related to our business development projects.
−Removed: Employee-related costs increased primarily due to elevated medical costs and higher share based incentive compensation expense as a result of an increase in our share price during 2025.
+Added: The operating loss increased in the first quarter of 2026 compared to the first quarter of 2025 primarily due to higher operating expenses at Mitigation Resources and a $0.5 million long-lived asset impairment charge for an office building in North Dakota that is held for sale.
NACCO Industries, Inc.
−Removed: NACCO is a growing diversified natural resource company, strategically positioned to deliver consistent financial returns over the long term.
−Removed: Our businesses operate exclusively in the U.S.
−Removed: and provide critical inputs for electricity generation, construction and development, and the production of industrial minerals and products.
−Removed: Increasing demand for electricity, on-shoring and current federal policies are creating favorable macroeconomic trends within these industries.
−Removed: We continue to capitalize on these tailwinds, pursuing longer-term growth opportunities.
−Removed: 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.
−Removed: 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.
−Removed: Our business model is purposely built for durability and resilience.
−Removed: Our foundation rests on a stable base of long-term coal-mining contracts, generating dependable recurring cash flows.
−Removed: 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.
−Removed: This, combined with income generated by our mineral and royalty assets, provide cash flow stability.
−Removed: We remain confident in our ability to deliver sound fourth-quarter 2025 operating results, with momentum building as we move into 2026.
−Removed: We anticipate consolidated operating profit for the 2025 fourth-quarter to be comparable to the prior year quarter.
−Removed: Full-year operating profit will be lower than 2024 due in part to the 2025 second-quarter break-even results.
−Removed: In addition, we intend to terminate our defined benefit pension plan in the fourth quarter of 2025.
−Removed: Although the plan is currently over funded, a significant non-cash settlement charge is anticipated upon termination.
−Removed: 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 fourth quarter and full year.
−Removed: We expect meaningful year-over-year improvements in both operating profit and net income in 2026.
−Removed: Our Utility Coal Mining segment, operated by North American Coal, constitutes the foundation of our business, anchored by our long-term mining contracts.
−Removed: We anticipate steady customer demand for the remainder of 2025 and in 2026 at the
−Removed: unconsolidated mining operations.
−Removed: At MLMC, fourth-quarter 2025 results are expected to improve over 2024 due to operational efficiencies.
−Removed: However, this improvement is not expected to offset the effect of the reduction in the 2025 contractually determined per ton sales price, causing MLMC's and the Utility Coal Mining segment's 2025 full-year results to decline compared with 2024.
−Removed: Looking ahead, we expect improving profitability for this segment in 2026, driven by 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.
−Removed: The Contract Mining segment, operated by North American Mining, represents our mining growth platform.
−Removed: Our expanding pipeline of potential deals and continued engagement with customers position this segment as a key pillar for future growth.
−Removed: Through ongoing geographic and mineral expansion, we are building a growing portfolio of long-term contracts.
−Removed: As an example, North American Mining executed a multi-year contract in October 2025 to provide dragline services as part of a project to construct an embankment dam in Palm Beach County, Florida.
−Removed: This project should be accretive to earnings beginning in the second quarter of 2026.
−Removed: Sawtooth, a North American Mining subsidiary, is the exclusive provider of comprehensive mining services at Thacker Pass, which is owned by a joint venture between Lithium Americas Corp.
−Removed: LAC) and General Motors Holdings LLC.
−Removed: Department of Energy also holds warrants to purchase five percent non-voting, non-transferable equity in this joint venture.
+Added: NACCO Industries is a growing diversified natural resources company with a unique business model strategically positioned to deliver stable and growing financial returns over the long term.
+Added: Our business model is purposely built for durability and resilience with an expanding portfolio of long-term contracts, relationships and investments that leverage our proven operational expertise, disciplined capital allocation and an entrepreneurial yet patient approach.
+Added: We have methodically built unique capabilities and clear competitive advantages that allow us to pursue a wide range of growth opportunities, often completely integrated into customers’ operations in partnership-based relationships.
+Added: We have multiple vectors for value creation, and we are steadfastly committed to delivering compounding returns and expanding investor value over the long term.
+Added: Our foundation rests on a stable base of long-term coal-mining contracts and legacy mineral and royalty assets, which generate dependable recurring cash flows.
+Added: As new long-term contracts and investments are added across the Company, these new multi-year agreements create a “layering effect" as their contributions compound.
+Added: The momentum our operations experienced in the second half of 2025 and the first quarter of 2026 is expected to continue throughout the remainder of 2026, resulting in meaningful year‑over‑year improvements in consolidated operating profit, net income and Adjusted EBITDA.
+Added: Excluding the effect of a $6 million after-tax pension settlement charge in 2025, year‑over‑year growth is expected to moderate in the second half of 2026 as anticipated results are compared against stronger prior-year operational performance.
+Added: At our Utility Coal Mining segment, operated by North American Coal, we expect a meaningful increase in operating profit compared with 2025, primarily in the first half of 2026.
+Added: We anticipate improved results at MLMC if the customer's power plant is able to operate as planned.
+Added: An expected increase in the contractually determined per ton sales price and a lower cost per ton delivered are also anticipated to contribute to this improvement.
+Added: We expect these operating profit improvements to be partly offset by lower earnings at the unconsolidated mining operations due to reduced income associated with the wind down of reclamation services at Sabine.
+Added: The Contract Mining segment, operated by North American Mining, serves as our mining growth platform.
+Added: We are building a growing portfolio of long-term contracts through geographic and mineral expansion that are expected to strengthen the foundation for sustained profitability in this segment.
+Added: In early 2026, we commenced activities under a multi-year dragline services contract as part of a U.S.
+Added: Army Corps of Engineers construction project in Palm Beach County, Florida.
+Added: We also anticipate commencing operations at a new limestone quarry in Arizona during the second half of 2026.
+Added: Sawtooth, a North American Mining subsidiary, provides exclusive comprehensive mining services at Thacker Pass, which is owned by a joint venture led by Lithium Americas Corp.
Sawtooth will supply all of the lithium-bearing ore requirements for our customer's Thacker Pass lithium processing facility, which is currently under construction.
−Removed: 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.
−Removed: Phase 1 lithium production is estimated to begin in late 2027.
−Removed: While overall customer demand within the Contract Mining segment is expected to increase year-over-year, profitability improvements in the 2025 fourth quarter are expected to be driven by operational efficiencies partly offset by elevated operating expenses.
−Removed: Momentum from the strong full-year 2025 results and operational efficiencies is expected to accelerate in 2026.
−Removed: These factors, combined with earnings from the new contract signed in October 2025 are expected to lead to a significant increase in year-over-year results.
−Removed: 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: This project is providing stable income during construction and is expected to contribute increased income and long-term cash flows once lithium production commences, which is targeted for late 2027.
+Added: As a result of earnings contributions from new contracts and continued momentum from 2025 activities, we anticipate a substantial year-over-year increase in operating profit and Segment Adjusted EBITDA in the Contract Mining segment.
+Added: The Minerals and Royalties segment, managed by Catapult, has constructed a high-quality, diversified portfolio of oil and gas mineral and royalty interests in the United States.
The Catapult team is expanding its portfolio by leveraging a data-driven approach to capital deployment that incorporates a longer-term view of production and development.
−Removed: We believe this provides a competitive advantage in the U.S.
−Removed: Minerals and Royalties' operating profit and Segment Adjusted EBITDA for the 2025 fourth quarter are expected to decrease compared with 2024 primarily driven by current market expectations for natural gas and oil prices, as well as development and production assumptions on currently owned reserves.
−Removed: While fourth-quarter 2025 results are projected to decline, full-year operating profit is expected to increase over 2024, excluding the $4.5 million gain on sale recognized in the 2024 second quarter.
−Removed: This increase is due in part to recent investments made by Catapult.
−Removed: In July 2025, Catapult completed a $4.2 million acquisition of mineral interests within the Midland Basin.
−Removed: The acquisition includes a mix of producing wells, as well as additional upside opportunities through future development with existing operators in the area.
−Removed: This segment also has an investment in a company that holds non-operated working interests in oil and natural gas assets.
−Removed: While these investments are expected to contribute to 2026 profits, reductions in earnings from legacy assets are expected to mostly offset these improvements resulting in a modest operating profit increase compared with 2025.
−Removed: Mitigation Resources provides stream and wetland mitigation solutions, as well as comprehensive reclamation and restoration construction services.
−Removed: Mitigation Resources has a strong reputation and clear competitive strengths, which are supporting continued expansion into new markets.
−Removed: This business, while currently variable in performance due to permit and project timing, is expected to achieve a key milestone in profitability in 2026 and move toward more consistent results over time as the business expands.
−Removed: We continue to invest in our businesses to drive future growth.
−Removed: Based on the current project pipeline, we anticipate capital expenditures of approximately $44 million in the remainder of 2025, and up to $70 million in 2026, with the majority earmarked for future business development — the kind of prudent reinvestment that is expected to generate significant long-term value creation.
−Removed: As we begin to harvest returns from prior investments, we project a substantial improvement in full-year 2025 cash provided by operations.
−Removed: This improvement is expected to be offset by anticipated capital investments, resulting in a lower use of cash before financing compared with 2024.
−Removed: In 2026, we expect a use of cash before financing comparable to 2025.
−Removed: Our conservative approach to maintaining a strong capital structure and operating discipline minimizes risk, while the compounding effect of a growing portfolio of long-term contracts and deliberate growth investments create a robust foundation for cash flow growth.
+Added: This segment also holds a meaningful equity investment in a company that has operating and non-operating working interests in oil and natural gas assets.
+Added: Anticipated increases in income from our equity holding combined with higher oil prices are expected to be more than offset by
+Added: anticipated production declines and a changing mix of production and development activity, resulting in an overall year-over-year decrease in Minerals and Royalties' operating profit and Segment Adjusted EBITDA.
+Added: Changes in commodity prices or production and development assumptions, including as a result of the ongoing Middle East conflict, could alter current expectations.
+Added: Mitigation Resources provides natural resource restoration and reclamation services that include stream and wetland mitigation solutions.
+Added: Mitigation Resources is successfully leveraging its strong reputation and clear competitive strengths to expand into additional mitigation, restoration and reclamation markets.
+Added: Mitigation Resources is expected to deliver increasing profitability over time from the sale of mitigation credits and as reclamation and restoration services expand.
+Added: This business, while currently variable in performance due to permit and project timing, is expected to generate a profit in the second half of 2026 and move toward more consistent and improving results over time as the business expands.
+Added: We continue to invest in our businesses to support future growth.
+Added: Capital expenditures totaled $33 million in the first quarter of 2026.
+Added: We anticipate additional spending of up to $57 million over the remainder of the year, primarily for business development opportunities.
+Added: These expenditures will be made only if projects meet our growth investment criteria.
+Added: As a result, we anticipate a greater use of cash before financing in 2026 compared with 2025.
+Added: Our businesses provide essential inputs for electricity generation, construction and development, and industrial production.
+Added: As demand for reliable uninterrupted energy continues to grow, natural resources fundamentals remain strong, reinforcing the importance of dependable baseload generation.
+Added: Recent policy developments, including the re-establishment of the National Coal Council, highlight coal’s ongoing strategic role in supporting grid reliability, economic competitiveness and national security.
+Added: This development, along with a favorable regulatory environment, reinforces our confidence in our near-term outlook and long-term growth trajectory.
+Added: Our conservative approach to maintaining a strong capital structure and operating discipline minimizes risk, while the compounding effect of a growing portfolio of long-term contracts and strategic growth investments create a robust foundation for cash flow growth.
With a perspective that spans decades, we are methodically building a strong, stable business that is expected to deliver annuity-like returns.
−Removed: 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: 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.
+Added: We pursue opportunities that other companies with shorter time horizons might overlook.
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.
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Among the factors that could cause plans, actions and results to differ materially from current expectations are, without limitation:
−Removed: (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;
+Added: (1) a significant reduction in demand by the Company's customers, (2) 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, (3) weather conditions, extended power plant outages, liquidity events or other events that would change the level of customers' coal or aggregates requirements, (4) changes to or termination of customer or other third-party contracts, or a customer or other third party default under a contract, (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, (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 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.
+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 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
+Added: 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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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.