Core Natural Resources, Inc. Q1 FY26 Results

I am pleased to report that Core is beginning to demonstrate the true potential of the combined platform. During Q1, Core’s operations executed at a high level, led by strong performances at Leer South and West Elk, while again deploying substantial free cash flow to our capital return program. The metallurgical segment achieved a significant, quarter-over-quarter increase in sales margins, underpinned by a substantial step-down in its cash cost of coal sold per ton, and the high calorific value thermal segment again delivered solid sales margins even as it navigated elevated electricity costs at the Pennsylvania Mining Complex stemming from this winter’s Arctic outbreak as well as several weeks of challenging geology at the PAMC. Most importantly, the team continued to operate in tight alignment with our core values – safety and compliance, continuous improvement, and financial performance. Looking ahead, we expect to maintain this positive momentum in pursuit of operational excellence across the entire enterprise. As anticipated, we believe we have reached an inflection point in Core’s operational and financial execution. With the entire operating platform now performing at a high level, we expect to generate substantial amounts of free cash flow for deployment in our capital return program in future quarters, while continuing to demonstrate Core’s ability to create stockholder value in a wide range of market environments. At the same time, our diversified portfolio of world-class assets – in concert with our extensive and strategic logistical network – should continue to position us to capitalize on the most compelling market opportunities in today’s highly dynamic energy markets, including resurgent power demand growth here in the United States, tightening global energy markets, and the ongoing infrastructure build-out in the developing world.

Looking ahead, we expect to build on the strong free cash flow generation achieved in the first quarter of 2026, supported by the anticipation of further improvements in our operational execution and cost performance in key operating segments; the expectation of significant incremental insurance proceeds related to last year’s combustion event at Leer South; and our strong book of contracted business, particularly in the high calorific value thermal segment. We expect that strong outlook for free cash flow generation to drive another year of robust capital returns to our stockholders, anchored by share repurchases.