Solar-project impairment charges of $12 million drove NACCO to a $2.3 million operating loss despite strong core performance.
NACCO Industries reported a 6% year-over-year increase in Q2 revenue to $72.3 million, driven by gains in utility coal mining, contract mining, and minerals and royalties. Adjusted EBITDA surged 72% to $15.9 million, while gross profit more than doubled to $15.2 million from $6.8 million in the prior year.
Despite the strong operating performance, $12 million in impairment charges tied to solar development projects pushed the company to a $2.3 million operating loss and a $1 million net loss. Management expects full-year operating profit and net income to decline from 2025 levels and is evaluating asset sales to curb costs.
NACCO plans to prioritize debt reduction and liquidity, with up to $35 million in investments earmarked for the remainder of 2026. Contract mining is poised for growth as the Palm Beach County project expands to four draglines.