Alliance Resource Partners, L.P. (ARLP) has reported its financial and operating results for the third quarter of 2025, and the figures show significant changes compared to the same period in 2024 and the previous quarter.
In the third quarter of 2025, ARLP reported revenue of $571.4 million, representing a sequential increase of 4.4% from the previous quarter. Net income for the same period surged by 60.1% to $95.1 million, and adjusted EBITDA also saw a substantial increase of 14.8% to $185.8 million compared to the sequential quarter.
However, when comparing the 2025 period to the same period in 2024, total revenues decreased by 10.7% to $1.66 billion, and net income dropped by 33.7% to $228.5 million. Adjusted EBITDA for the 2025 period was $507.7 million, a decrease of 14% from the same period in 2024.
In terms of specific segments, coal sales and production volumes increased to 8.7 million tons sold and 8.4 million tons produced, marking year-over-year and sequential improvements. Appalachia segment adjusted EBITDA expense per ton improved by 11.7% year-over-year and 12.1% sequentially.
CEO Joseph W. Craft III noted that coal production and sales volumes increased across the board, with significant improvements in infrastructure investments paying off. The domestic thermal coal market continues to experience strong fundamentals, with utility coal consumption escalating across various service areas.
ARLP also made growth investments during the quarter, including a $22.1 million investment in a limited partnership that indirectly owns and operates a coal-fired power plant.
The partnership's total debt and finance leases outstanding as of September 30, 2025, were $470.6 million, with total liquidity of $541.8 million, including $94.5 million in cash and cash equivalents and $447.3 million of available borrowings.
Additionally, the board approved a cash distribution of $0.60 per unit for the 2025 quarter, with an annualized rate of $2.40 per unit, payable on November 14, 2025.
Looking ahead, the CEO expects the operating and financial results for the fourth quarter to be in line with the outstanding 2025 quarter results. The company is tightening its guidance ranges for coal sales volumes and per ton expenses, reflecting steady operational execution and continued cost improvements across its mines.
Following these announcements, the company's shares moved -4.16%, and are now trading at a price of $23.05. Check out the company's full 8-K submission here.
