NACCO INDUSTRIES ANNOUNCES FOURTH QUARTER AND FULL YEAR 2024 RESULTS

PR Newswire

CLEVELAND, March 5, 2025

CLEVELAND, March 5, 2025 /PRNewswire/ --

Consolidated Highlights:

   -- Q4 2024 operating profit of $3.9 million and net income of $7.6 million 
      versus significant prior year losses 
 
   -- Q4 2024 Adjusted EBITDA increased to $9.0 million, up 26.8% from Q4 2023 
 
   -- FY 2024 consolidated net income increased to $33.7 million, or 
      $4.55/share, versus a 2023 net loss of $39.6 million, or $5.29/share 
 
   -- FY 2024 Adjusted EBITDA increased to $59.4 million, up 116% from 2023 
      primarily due to significant improvement in the Coal Mining segment 

NACCO Industries$(R)$ $(NC)$ today announced the following consolidated results for the three months and year ended December 31, 2024.

 
                      Three Months Ended                Year Ended 
                 ----------------------------  ---------------------------- 
($ in millions 
except per 
share amounts)   12/31/24  12/31/23  $ Change  12/31/24  12/31/23  $ Change 
                 --------  --------  --------  --------  --------  -------- 
Operating 
 Profit (Loss)     $3.9    $(67.4)    $71.3     $35.7    $(70.1)    $105.8 
Other (income) 
 expense, net      $1.2     $(1.5)    $(2.7)     $2.1     $(6.0)    $(8.1) 
Income (loss) 
 before taxes      $2.7    $(65.9)    $68.6     $33.6    $(64.2)    $97.8 
Income tax 
 benefit          $(4.9)   $(22.0)   $(17.1)    $(0.1)   $(24.6)   $(24.5) 
Net Income 
 (Loss)            $7.6    $(44.0)    $51.6     $33.7    $(39.6)    $73.3 
Diluted 
 Earnings 
 (Loss)/share     $1.02    $(5.88)    $6.90     $4.55    $(5.29)    $9.84 
Adjusted 
 EBITDA*           $9.0      $7.1      $1.9     $59.4     $27.5     $31.9 
---------------  --------  --------  --------  --------  --------  -------- 
 
  *Non-GAAP financial measures are defined and reconciled on pages 8 to 10. 
 

Fourth Quarter 2024 Compared to Fourth Quarter 2023

The substantial increase in financial results was primarily due to a $65.9 million non-cash asset impairment charge in the prior year. Improvements at the Coal Mining and North American Mining segments as well as at Mitigation Resources also contributed to the increased operating profit. These improvements were partly offset by an increase in Unallocated operating expenses, principally employee-related, and an unfavorable change in other (income)/expense due to higher net interest expense and lower income from investments.

Full Year 2024 Compared to Full Year 2023

The improvement in Adjusted EBITDA, which excludes the 2023 impairment charge, was mainly attributable to improved results in all operating segments, particularly Coal Mining. These improvements were partly offset by an increase in Unallocated costs, as well as an unfavorable change in other income. The effective income tax rate is highly variable depending on the mix of earnings and the recognition of discrete tax items. Adjustments to the annual rate can significantly affect the quarterly rate.

Liquidity

At December 31, 2024, the Company had consolidated cash of $72.8 million and total debt of $99.5 million, with availability of $99.1 million under its revolving credit facility.

In 2024, the Company paid $6.6 million in dividends and repurchased approximately 317,000 shares of its Class A Common Stock at prevailing market prices for an aggregate purchase price of $9.9 million. As of December 31, 2024, the Company had $8.5 million remaining under its $20 million share repurchase program that expires at the end of 2025.

Detailed Discussion of 2024 Fourth Quarter Results Compared to Fourth Quarter 2023

Coal Mining Segment

 
Coal deliveries were as follows: 
                                           2024      2023 
                                          -------  --------- 
Tons of coal delivered                      (in thousands) 
       Unconsolidated operations            5,563      4,842 
       Consolidated operations                570        686 
                                           ------   -------- 
                       Total deliveries     6,133      5,528 
                                           ======   ======== 
 
Key financial results were as follows: 
                                           2024      2023 
                                          -------  --------- 
                                            (in thousands) 
Revenues                                  $20,364  $  19,754 
Earnings of unconsolidated operations     $13,987  $  10,946 
Long-lived asset impairment charge        $    --  $  60,832 
Operating expenses(1)                     $ 8,088  $   9,357 
Operating profit (loss)                   $ 2,023  $(62,283) 
Segment Adjusted EBITDA(2)                $ 4,235  $   3,194 
 
 
 
(1) Operating expenses consist of Selling, general and administrative 
expenses, Amortization of intangible assets and (Gain) loss on sale of 
assets. 
(2) Segment Adjusted EBITDA is a non-GAAP measure and should not be considered 
in isolation or as a substitute for GAAP. See non-GAAP explanation and the 
related reconciliations to GAAP on page 9. 
 

Adjusted EBITDA, which excludes the 2023 impairment charge of $60.8 million, increased 32.6%. This significant improvement was primarily due to higher earnings at the unconsolidated operations, as well as lower general and administrative expenses. Operating results at the consolidated coal mining operations were comparable to the prior year quarter.

Earnings of unconsolidated operations improved primarily as a result of an increase in pricing at Falkirk and improved earnings at Coteau. Increased customer requirements at both mines led to higher tons delivered.

North American Mining Segment

 
Deliveries were as follows: 
                                    2024      2023 
                                 ----------  ------- 
                                   (in thousands) 
Tons delivered                       11,785   12,477 
 
Key financial results were as follows: 
                                    2024      2023 
                                 ----------  ------- 
                                   (in thousands) 
Revenues                          $  34,871  $26,461 
Operating profit (loss)           $     806  $ (562) 
Segment Adjusted EBITDA(1)        $   3,255  $ 1,811 
 
 
 
(1) Segment Adjusted EBITDA is a non-GAAP measure and should not be considered 
in isolation or as a substitute for GAAP. See non-GAAP explanation and the 
related reconciliations to GAAP on page 9. 
 

Revenues grew significantly in part due to an increase in reimbursed costs, which have an offsetting amount in cost of goods sold and therefore no impact on gross profit. Favorable pricing and delivery mix contributed to the 39% improvement in revenues, net of reimbursed costs.

North American Mining reported fourth-quarter operating profit compared with an operating loss in the prior year. The improvements in operating results and Segment Adjusted EBITDA were mainly due to a decrease in operating expenses, particularly outside services. The prior year operating loss and Segment Adjusted EBITDA also included a $0.5 million loss on sale of a dragline sold in connection with the extension of a customer contract.

North American Mining continues to benefit from progress on operational and strategic projects to improve profitability. While full-year operating profit was up 72% compared with 2023, North American Mining experienced lower profitability in the second half of 2024 compared with the first half due in part to an overall reduction in demand, partly attributable to the ongoing effects of three hurricanes in Florida.

Minerals Management Segment

 
Key financial results were as follows: 
                                  2024            2023 
                             --------------  -------------- 
                                     (in thousands) 
Revenues                     $        9,736  $        9,782 
Operating profit             $        7,218  $        2,475 
Segment Adjusted EBITDA(1)   $        8,083  $        8,269 
 
 
 
(1) Segment Adjusted EBITDA is a non-GAAP measure and should not be considered 
in isolation or as a substitute for GAAP. See non-GAAP explanation and the 
related reconciliations to GAAP on page 9. 
 

Revenues and Segment Adjusted EBITDA, which excludes the 2023 impairment charge of $5.1 million, were generally comparable to the prior year. An increase in revenue from oil royalties was offset by a reduction in revenue from natural gas and coal royalties.

Outlook

NACCO's businesses provide critical inputs for electricity generation, construction and development, and the production of industrial minerals and chemicals. Increasing demand for electricity, on-shoring and current federal policies are creating favorable macroeconomic trends within these industries. We are confident in our trajectory and business prospects as we enter 2025 and prepare for longer-term growth opportunities. Specifically in 2025, we expect to generate a modest year-over-year increase in consolidated operating profit.

In 2025, the Coal Mining segment anticipates solid customer demand, with deliveries expected to increase modestly from 2024. We anticipate that evolving policy frameworks may create a more favorable regulatory environment for the fossil fuel industry moving forward. These developments are expected to further support coal as an essential part of the energy mix in the United States for the foreseeable future.

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