Hallador Energy (HNRG) Reports 16% Revenue Increase

By Chris Stiles • Friday, March 13 11:28 • Permanent Link

Hallador Energy Company (NASDAQ: HNRG) has reported its financial and operating results for the fourth quarter and full year ended December 31, 2025. The company's total revenue for the full year 2025 increased by 16% year-over-year to $469.5 million. Additionally, operating cash flow for the full year 2025 surged by 23% year-over-year to $81.1 million.

The net income for the full year 2025 increased to $41.9 million, with adjusted EBITDA experiencing a significant threefold increase to $56.0 million. Moreover, Hallador's total bank debt declined to $30.0 million at December 31, 2025, compared to $44.0 million at both September 30, 2025, and December 31, 2024. The company's total liquidity at December 31, 2025, stood at $38.8 million, consisting of $28.8 million of additional borrowing capacity and cash and cash equivalents, compared to $46.4 million at September 30, 2025, and $37.8 million at December 31, 2024.

Hallador's forward sales position provides long-term revenue visibility and certainty, with approximately $1.3 billion of forward energy, capacity, and coal sales commitments through 2029. Additionally, the company had $866.9 million of contracted third-party revenue through 2029 as of December 31, 2025.

In terms of financial performance, the company's total revenue in 2025 was driven by electric sales of $310.7 million (up 19% year-over-year) and coal sales of $148.7 million (up 8% year-over-year). The full-year operating cash flow increased by 23% year-over-year to $81.1 million, primarily driven by improved earnings supplemented by cash proceeds received under prepaid forward power sales contracts.

Furthermore, Hallador's full-year capital expenditures amounted to $69.2 million, which included the approximately $14 million deposit paid to MISO for the ERAs expansion at Merom.

Looking ahead, Hallador has strengthened its financial profile by closing a new $120 million 3-year senior secured credit facility in March 2026, maturing in 2029.

The company also provided a forward sales position for the years 2026 through 2029, detailing contracted MWh, average contracted price per MWh, contracted accredited capacity revenue, and contracted coal revenue.

The market has reacted to these announcements by moving the company's shares 4.01% to a price of $20.21. Check out the company's full 8-K submission here.

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