Alpha Metallurgical Resources (NYSE:AMR), a key U.S. supplier of metallurgical coal for the steel industry, saw its stock climb 3.5% on Thursday following a better-than-anticipated second-quarter loss, as cost-cutting efforts started to pay off.

The company reported a net loss of $5.0 million, or -$0.38 per diluted share, for Q2 — a marked improvement compared to analyst estimates of a -$2.04 loss per share. Revenue stood at $548.7 million, slightly below the consensus forecast of $552.15 million and down from a net income of $58.9 million a year earlier.

A standout for the quarter was Alpha’s ability to reduce costs, with the metallurgical coal sales cost dropping to $100.06 per ton from $110.34 in Q1. This progress led the company to revise its full-year cost guidance downward to $101-$107 per ton, from the prior $103-$110 per ton range.

“I want to commend our team on a great quarter and an especially impressive cost performance,” said Andy Eidson, CEO of Alpha Metallurgical Resources. “We achieved significant improvement in our cost of coal sales for the quarter as our previously announced savings initiatives began to take effect.”

Adjusted EBITDA surged to $46.1 million from $5.7 million in the first quarter. The company also bolstered its liquidity, reporting $556.9 million in total available cash as of June 30.

For 2025, Alpha has priced roughly 69% of its metallurgical coal production at an average of $127.37 per ton and secured 100% of its thermal coal at an average price of $80.52 per ton.

Alongside the cost guidance cut, the firm trimmed its SG&A expense forecast to $48-$54 million from $53-$59 million and increased its projected net cash interest income to $6-$12 million, up from $2-$10 million.

Alpha Metallurgical Resources stock price

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