NCNYSEBituminous Coal & Lignite Surface MiningUS GAAP · USD

NACCO Industries, Inc

NACCO Industries is a U.S.-based natural resources company built around long-term mining, royalty, and land-restoration businesses. It operates through Utility Coal Mining, Contract Mining, and Minerals and Royalties, supplying fuel for power generation, specialized mining services, and income-producing mineral interests, while also developing mitigation and other growth businesses.

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Revenue277m USD
+16.6 %y/y
Operating profit (EBIT)22.0m USD
−38.4 %y/y
EBIT margin7.9%
−7.1 ppy/y
Net income17.6m USD
−47.9 %y/y
Free cash flow2.3m USD
+107.0 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

-1000100200300m USD2020: 128 m USD2020: EBIT 13 m USD20202021: 192 m USD2021: EBIT 55 m USD20212022: 242 m USD2022: EBIT 70 m USD20222023: 215 m USD2023: EBIT -70 m USD20232024: 238 m USD2024: EBIT 36 m USD20242025: 277 m USD2025: EBIT 22 m USD202527722
RevenueOperating profit (EBIT)
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Business

Share of revenue
Utility Coal Mining45 %

Surface coal mines that provide exclusive, long-term fuel supply to power generation customers.

Contract Mining30 %

Specialized contract mining services, including dragline and limestone-related work for industrial and infrastructure customers.

Minerals and Royalties20 %

Mineral and royalty interests that generate income from oil, gas, and coal production.

Mitigation Resources and Other Growth Businesses5 %

Environmental restoration, reclamation, and early-stage energy-related development activities.

Customers

NACCO sells primarily to a small number of large, long-duration industrial and utility customers, which makes contract retention central to its revenue base. Its coal business serves power generation companies, while contract mining serves customers needing specialized extraction services and minerals support. The minerals and royalties business monetizes production from oil, gas, and coal operators, with limited operational control but recurring royalty exposure.

Electric utility customers

Buy surface coal under exclusive, long-term supply contracts to fuel baseload power plants.

Contract mining customers

Outsource specialized mining, dragline, and limestone services to reduce capital needs and execution risk.

Oil and gas producers

Generate royalty income for NACCO through production from mineral and royalty interests.

Coal producers and lessees

Pay royalty-based lease payments tied to coal production and commodity pricing.

Infrastructure and public-sector project owners

Use contract mining and dragline services for construction-related excavation and material handling.

Strategy

NACCO is pursuing a diversified natural resources strategy built on long-term contracts, mineral ownership, and selective growth projects. Management emphasizes disciplined capital allocation, conservative leverage, and using core mining expertise to add adjacent businesses such as mitigation, reclamation, and energy-related development. The goal is to compound cash flow over time while reducing dependence on any single commodity or customer.

Win and extend long-duration mining contractsShort term

Contracted work supports predictable cash flow and reduces exposure to spot-market volatility.

Expand mineral and royalty assetsMedium term

Royalty interests provide recurring income with limited operating cost and diversify earnings.

Develop mitigation and reclamation businessesMedium term

Environmental restoration can create adjacent growth with similar project execution capabilities.

Maintain conservative capital structureLong term

Lower leverage supports resilience in cyclical commodity and project markets.

Geography

NACCO states that its businesses operate exclusively in the United States, so its operating footprint is domestic and tied to U.S. energy, construction, and minerals markets. The company’s coal mines are located adjacent to customer facilities or linked by short-haul rail or conveyor systems, which creates a transportation advantage and makes location critical to competitiveness. Its mineral interests are concentrated in U.S. basins such as Kansas and the Oklahoma portion of the Hugoton basin, while contract mining projects can be awarded across the country.

Risks

NACCO is exposed to customer concentration, commodity price swings, and regulatory dependence because much of its revenue comes from long-term contracts and royalty-linked production. Its growth projects also face permitting, construction, weather, and policy risk, while coal demand remains vulnerable to natural gas competition and energy-transition pressures. The company also carries execution risk in new businesses and cyber/IT risk across its operating platform.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Coal demand displacement1Customer concentration2Commodity price volatility3Regulatory and permitting risk4Cybersecurity and IT disruption5
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Coal demand displacementImpact: HighLikelihood: High

    Natural gas-fired generation and renewables can reduce coal dispatch and customer demand.

    Exposure: Utility Coal Mining

  2. Customer concentrationImpact: HighLikelihood: Medium

    A few customers account for a large share of consolidated revenue, so contract loss would materially hurt segment results.

    Exposure: Utility Coal Mining and Contract Mining

  3. Commodity price volatilityImpact: MediumLikelihood: Medium

    Royalty income depends on oil, gas, and coal production economics and market prices.

    Exposure: Minerals and Royalties

  4. Regulatory and permitting riskImpact: MediumLikelihood: Medium

    Mitigation, reclamation, and new energy projects require approvals that can delay or block returns.

    Exposure: Mitigation Resources and ReGen Resources

  5. Cybersecurity and IT disruptionImpact: MediumLikelihood: Low

    Operational systems and customer/vendor data could be compromised, interrupting business processes.

    Exposure: Enterprise-wide

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Accounting

Judgemental items
Royalty revenue recognition and commodity linkage

Income depends on third-party production and market prices, so reported revenue can move with volumes and pricing rather than NACCO-controlled activity.

Impact: Minerals and Royalties earnings

Project and contract timing

Contract mining and mitigation work are project-based, so revenue and margin recognition can be lumpy across quarters.

Impact: Quarterly comparability

Asset sale gains

Non-operating gains from land or asset sales can temporarily inflate operating profit.

Impact: Operating profit trend

Fair value measurements

Exchange-traded equity securities are marked to market, creating volatility in other income/expense.

Impact: Net income volatility

Pension and legacy liability settlements

Transfers from terminated pension plans and settlement accounting can create one-time gains and future contribution offsets.

Impact: Other income and cash flow

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Last updated: 24/09/2026