Alliance Resource Partners, L.P. (ARLP) Q3 2025 Financial Results Summary
TULSA, OKLAHOMA, October 27, 2025 — Alliance Resource Partners, L.P. (NASDAQ: ARLP) reported its financial and operating results for the third quarter of 2025. The results highlight significant year-over-year developments in revenue, net income, and production volumes.
Summary of Key Results
- Revenue:
- Q3 2025 revenue totaled $571.4 million, a decrease of 6.9% compared to $613.6 million in Q3 2024.
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Revenue increased by 4.4% from the sequential quarter (Q2 2025), which was $547.5 million.
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Net Income:
- Net income for Q3 2025 was $95.1 million, marking an increase of 10.2% from $86.3 million in Q3 2024.
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Compared to the sequential quarter, net income surged by 60.1% from $59.4 million in Q2 2025.
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Adjusted EBITDA:
- Q3 2025 Adjusted EBITDA rose to $185.8 million, which is a 9.0% increase year-over-year from $170.4 million in Q3 2024.
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Compared to the sequential quarter, Adjusted EBITDA experienced a 14.8% increase from $161.9 million in Q2 2025.
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Production Volumes:
- Coal sales reached 8.7 million tons sold, marking an increase of 3.9% compared to 8.4 million tons sold in Q3 2024.
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Coal production totaled 8.4 million tons, an 8.5% increase year-over-year compared to 7.7 million tons produced in Q3 2024.
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Appalachia Segment Adjusted EBITDA:
- The expense per ton improved by 11.7% year-over-year, reflecting efficient operational strategies.
Investment and Financial Position
- Quarterly Distribution:
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ARLP declared a quarterly cash distribution of $0.60 per unit, equivalent to an annualized rate of $2.40 per unit. This payment is scheduled for November 14, 2025, to unitholders of record as of November 7, 2025.
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Investments:
- The Partnership invested $22.1 million towards a $25.0 million commitment in a limited partnership indirectly acquiring a 2.7 gigawatt coal-fired power plant, indicating a focus on energy infrastructure.
Year-To-Date Performance
- Nine-Month Results:
- For the nine months ended September 30, 2025, total revenue was $1.66 billion, a decrease of 10.7% from $1.86 billion for the same period in 2024.
- Net income for the period was $228.5 million, or $1.76 per unit, compared to $344.5 million, or $2.64 per unit in the same period last year.
Operational Insights
- Efficiency Gains:
- The Illinois Basin operations demonstrated significant development, marked by enhancements at the Hamilton mine leading to successful production moves.
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In Appalachia, mining conditions improved drastically, with the Tunnel Ridge operation transitioning to a more productive longwall district.
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Outlook for Future Quarters:
- Management indicated expectations for continued operational execution and improvement, with a forecast to maintain strong revenue levels throughout Q4 2025.
Conclusion
Alliance Resource Partners, L.P.’s Q3 2025 financial results reflect both challenges and advancements. The decreased revenues were partially offset by increased production volumes and strategic expenses management. The announced quarterly distribution showcases the company’s commitment to returning value to its unitholders. Management remains optimistic about ongoing projects and the robust domestic thermal coal market outlook, setting a constructive tone heading into the last quarter of 2025.
| Three Months Ended | September 30, 2025 | September 30, 2024 | Nine Months Ended | September 30, 2025 | September 30, 2024 |
|---|---|---|---|---|---|
| Tons Sold | |||||
| Tons Produced | 8,703 | 8,379 | 24,856 | 24,904 | |
| Mineral Interest Volumes | 8,416 | 7,754 | 24,978 | 25,305 | |
| (BOE) | 899 | 864 | 2,659 | 2,579 | |
| SALES AND OPERATING REVENUES: | |||||
| Coal sales | $511,593 | $532,647 | $1,465,573 | $1,607,185 | |
| Oil & gas royalties | 32,055 | 34,448 | 103,612 | 107,907 | |
| Transportation revenues | 7,701 | 24,617 | 26,459 | 82,071 | |
| Other revenues | 20,018 | 21,857 | 63,654 | 61,453 | |
| Total revenues | 571,367 | 613,569 | 1,659,298 | 1,858,616 | |
| EXPENSES: | |||||
| Operating expenses (excluding depreciation, depletion and amortization) | 354,604 | 384,844 | 1,040,328 | 1,100,308 | |
| Transportation expenses | 7,701 | 24,617 | 26,459 | 82,071 | |
| Outside coal purchases | 4,514 | 8,192 | 19,038 | 27,912 | |
| General and administrative | 21,373 | 21,878 | 62,333 | 64,569 | |
| Depreciation, depletion and amortization | 78,211 | 72,971 | 223,180 | 204,974 | |
| Total operating expenses | 466,403 | 512,502 | 1,371,338 | 1,479,834 | |
| INCOME FROM OPERATIONS | 104,964 | 101,067 | 287,960 | 378,782 | |
| Interest expense, net | -11,033 | -9,527 | -28,719 | -26,553 | |
| Interest income | 682 | 2,175 | 2,119 | 5,535 | |
| Net income (loss) on equity method investments | 4,487 | -2,327 | 945 | -3,032 | |
| Change in fair value of digital assets | 3,739 | 332 | 11,021 | 8,437 | |
| Impairment loss on investments | — | — | -25,000 | — | |
| Other income (expense) | -135 | -681 | 493 | -2,245 | |
| INCOME BEFORE INCOME TAXES | 102,704 | 91,039 | 248,819 | 360,924 | |
| INCOME TAX EXPENSE | 5,886 | 4,123 | 15,416 | 12,932 | |
| NET INCOME | 96,818 | 86,916 | 233,403 | 347,992 | |
| LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST | -1,714 | -635 | -4,906 | -3,467 | |
| NET INCOME ATTRIBUTABLE TO ARLP | $95,104 | $86,281 | $228,497 | $344,525 | |
| EARNINGS PER LIMITED PARTNER UNIT – BASIC AND DILUTED | $0.73 | $0.66 | $1.76 | $2.64 | |
| WEIGHTED-AVERAGE NUMBER OF UNITS OUTSTANDING – BASIC AND DILUTED | 128,428,024 | 128,061,981 | 128,374,391 | 127,932,095 |
| September 30, 2025 | December 31, 2024 | |
|---|---|---|
| ASSETS | ||
| CURRENT ASSETS: | ||
| Cash and cash equivalents | $94,481 | $136,962 |
| Trade receivables (net of allowance of $5,260 and $2,087, respectively) | 169,883 | 166,829 |
| Other receivables | 2,272 | 10,158 |
| Inventories, net | 130,636 | 120,661 |
| Advance royalties | 9,537 | 11,422 |
| Digital assets | 64,809 | 45,037 |
| Prepaid expenses and other assets | 14,494 | 22,161 |
| Total current assets | 486,112 | 513,230 |
| PROPERTY, PLANT AND EQUIPMENT: | ||
| Property, plant and equipment | 4,511,236 | 4,435,535 |
| Less accumulated depreciation, depletion and amortization | -2,347,584 | -2,269,265 |
| Total property, plant and equipment, net | 2,163,652 | 2,166,270 |
| OTHER ASSETS: | ||
| Advance royalties | 75,788 | 70,264 |
| Equity method investments | 54,582 | 35,532 |
| Equity securities | 67,541 | 92,541 |
| Debt securities | 13,193 | — |
| Operating lease right-of-use assets | 17,631 | 15,871 |
| Other long-term assets | 29,842 | 22,022 |
| Total other assets | 258,577 | 236,230 |
| TOTAL ASSETS | $2,908,341 | $2,915,730 |
| LIABILITIES AND PARTNERS’ CAPITAL | ||
| CURRENT LIABILITIES: | ||
| Accounts payable | $103,757 | $98,188 |
| Accrued taxes other than income taxes | 24,566 | 21,051 |
| Accrued payroll and related expenses | 36,318 | 26,946 |
| Accrued interest | 10,660 | 1,821 |
| Workers’ compensation and pneumoconiosis benefits | 14,815 | 14,838 |
| Other current liabilities | 42,131 | 48,023 |
| Current maturities, long-term debt, net | 23,361 | 22,275 |
| Total current liabilities | 255,608 | 233,142 |
| LONG-TERM LIABILITIES: | ||
| Long-term debt, excluding current maturities, net | 433,117 | 450,885 |
| Pneumoconiosis benefits | 124,794 | 120,152 |
| Workers’ compensation | 38,943 | 37,177 |
| Asset retirement obligations | 157,753 | 155,156 |
| Long-term operating lease obligations | 15,068 | 13,638 |
| Deferred income tax liabilities | 27,417 |
