Warrior Met Coal reports Q1 EPS $2.63, consensus $2.75

Reports Q1 revenue $503.5M, consensus $476.6M. Recorded a 9% increase in sales volumes and a 17% increase in production volumes, resulting in “largest quarterly production in over three years”. Walt Scheller, CEO, says: “We delivered very strong performance during the first quarter, producing more than 2.1 million tons, levels not seen since 2020, driven primarily by strong operational performance. We were able to leverage the inventory levels we had built over the preceding quarters to generate $104.1 million in cash from operations, which we used to fund, among other things, the continued development of our Blue Creek growth project. While weaker demand from China and India, coupled with improved supply from Australia has driven down steelmaking coal prices since early March, Warrior’s results in the first quarter continue to reflect the strong demand from our contracted customers for our premium met coal. As a result, despite recent pressure on spot steelmaking coal prices, we are maintaining our sales and production guidance for the year.”