Nacco Industries Inc (NC) · Nov 4, 2026 · Earnings
In line — No published consensus; FY operating profit expected comparable, EBITDA expected higher
NACCO’s third-quarter earnings show sharp contract-mining progress and higher EBITDA, but solar curtailment costs and taxes reduce reported EPS.
NACCO is shifting from a coal-heavy base toward a broader natural-resources platform, with Contract Mining as its main growth engine; the Palm Beach dragline project and Arizona quarry are the key newer contracts, while Thacker Pass remains a longer-dated lithium opportunity. The prior quarter had already established this direction, so the new information is execution and timing rather than a surprise strategic pivot.
The operating engine is improving faster than the headline EPS suggests. Third-quarter revenue rose 5% year over year, operating profit increased 37%, and Consolidated Adjusted EBITDA jumped 63% to $20.4 million. Contract Mining was the main driver: revenue excluding reimbursable costs rose 75%, while segment operating profit more than doubled to $4.9 million as the Palm Beach contract ramped. 〔0〕
| Q3 2026 | Q3 2025 | Prior quarter | |
|---|---|---|---|
| Revenue (Financial Highlights) | $80.5M (+5%) | $76.6M | $72.3M |
| Operating profit (Financial Highlights) | $9.3M (+37%) | $6.8M | $(2.3)M |
| Diluted EPS (Financial Highlights) | $1.44 (-19%) | $1.78 | $(0.13) |
| Adjusted EBITDA (Financial Highlights) | $20.4M (+63%) | $12.5M | $15.9M |
| Contract Mining operating profit (Segment results) | $4.9M (+155%) | $1.9M | — |
| Contract Mining revenue excluding reimbursable costs (Segment results) | $22.2M (+75%) | $12.7M | — |
The growth platform is now producing tangible earnings, not just promises. The Arizona limestone quarry began operations in early October, ahead of the prior expectation that it would start during the fourth quarter, and management now expects substantial year-over-year Contract Mining profit and EBITDA growth in both the fourth quarter and full year. That supports the existing expansion thesis, but it was directionally anticipated before this filing rather than being wholly new. 〔1〕
Solar remains the principal drag on the transition. NACCO recorded $3.4 million of third-quarter curtailment costs after taking $12.0 million of solar impairment charges in the second quarter, and it expects additional fourth-quarter costs whose amount and timing remain uncertain. Management therefore expects full-year consolidated operating profit to be roughly comparable with 2025 even as underlying EBITDA rises materially. 〔2〕
Reported earnings were weaker despite better underlying operations. Income before taxes more than doubled, helped partly by a $4.5 million pension-liability settlement gain, but higher taxes reversed that benefit at the net-income line: EPS fell to $1.44 from $1.78. With no reliable published Q3 consensus available, this is best judged against the company’s own standing outlook: the release broadly confirms the expected operating improvement, while making the solar cleanup and tax burden more visible.
Bottom line: This is a modestly better operating quarter, not a wholesale change in the story. Contract Mining is validating NACCO’s growth strategy, but solar exit costs and uneven reported earnings keep the result from being a clean earnings win.
November 5 earnings call
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