Alliance Resource Partners, L.P. (ARLP) has reported its third-quarter 2025 financial and operating results and provided updates on its 2025 guidance. The company's third-quarter revenue was $571.4 million, representing a 4.4% sequential increase. Net income for the quarter was $95.1 million, up 60.1% sequentially, and adjusted EBITDA stood at $185.8 million, reflecting a 14.8% increase from the previous quarter.
In terms of coal sales and production volumes, ARLP saw an increase to 8.7 million tons sold and 8.4 million tons produced, which represents year-over-year and sequential improvements. The Appalachia segment adjusted EBITDA expense per ton improved 11.7% year-over-year and 12.1% sequentially.
The company declared a quarterly cash distribution of $0.60 per unit, or $2.40 per unit annualized.
Compared to the same period in 2024, ARLP's net income increased by 10.2% to $95.1 million, while total revenues decreased by 6.9% to $571.4 million, primarily due to lower coal sales prices and reduced transportation revenues. However, adjusted EBITDA increased by 9.0% to $185.8 million in the 2025 quarter compared to the same period in 2024.
For the 2025 period, total revenues decreased by 10.7% to $1.66 billion compared to the same period in 2024, with net income at $228.5 million, down from $344.5 million in the 2024 period.
ARLP's CEO, Joseph W. Craft III, noted the company's strong operational and financial performance in the third quarter. He highlighted the increase in coal production and sales volumes, as well as the significant infrastructure investments the company has made over the past three years.
In the segment results and analysis, the company reported that tons sold in the Illinois Basin increased by 10.8% compared to the 2024 quarter, while in Appalachia, sales volumes decreased by 13.3% in the 2025 quarter compared to the 2024 quarter. However, compared to the sequential quarter, tons sold in Appalachia increased by 21.8%.
ARLP also provided insights into its growth investments, balance sheet, liquidity, and distributions. The company invested $22.1 million in a limited partnership that indirectly owns and operates a coal-fired power plant during the 2025 quarter. As of September 30, 2025, the company's total debt and finance leases outstanding amounted to $470.6 million, with total liquidity at $541.8 million.
Looking ahead, ARLP expects its operating and financial results for the fourth quarter to match its outstanding 2025 quarter results, tightening its guidance ranges for coal sales volumes and per ton expenses.
As a result of these announcements, the company's shares have moved -4.16% on the market, and are now trading at a price of $23.05. If you want to know more, read the company's complete 8-K report here.
