NACCO Industries IncNC
▼ NegativeCapitalrelevance
Solar impairments caused net loss and lowered full-year outlook
Impact on stocks 1
Energy
NACCO Industries IncNACCO Industries Q2 Revenue Rises 6% but Solar Impairments Drive Net Loss
Earnings
NACCO Industries reported a 6% increase in second-quarter revenue to $72.3 million and a 72% jump in adjusted EBITDA to $15.9 million, but $12 million in solar-project impairment charges pushed the company to a net loss of $1 million, or $0.13 per diluted share. The impairments, tied to two ReGen Resources solar developments, followed a reassessment of project economics amid rising costs, grid-connection delays, and tax-law changes. President and CEO J.C. Butler said the company is evaluating asset sales and other measures to limit further costs, and expects full-year operating profit and net income to decline from 2025. Utility coal mining operating profit rose to $6.3 million, contract mining operating profit increased to $3.8 million, and minerals and royalties operating profit grew to $6.7 million. NACCO plans to prioritize free cash flow toward debt reduction and liquidity, with up to $35 million in investments planned for the remainder of 2026.
NACCO Industries IncSolar impairments caused net loss and lowered full-year outlook