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Here are 1-3 brief analogies to describe NACCO Industries (NC):

• Imagine them as the Caterpillar of lift trucks and material handling equipment.
• They are often described as the John Deere for warehouse and industrial logistics equipment.

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• Contract Mining Services: Provides comprehensive contract mining and reclamation services, primarily for coal to power generation companies, and also operates a limestone mine.
• Small Electric Kitchen Appliances: Designs, markets, and distributes a broad portfolio of small electric kitchen appliances and other housewares under various brand names like Hamilton Beach and Proctor Silex.

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NACCO Industries (NYSE: NC) is a holding company whose primary operating subsidiary is Hyster-Yale Materials Handling, Inc. (NYSE: HY). Hyster-Yale manufactures and sells a full line of lift trucks and aftermarket parts globally.

NACCO Industries sells primarily to other companies. Its major customers are a global network of **independent dealers**. These dealers purchase lift trucks and aftermarket parts directly from Hyster-Yale and then sell them to various end-user businesses across a wide range of industries (e.g., manufacturing, warehousing, logistics, retail, construction, port operations) that require material handling equipment.

Due to the diversified nature of this independent dealer network, NACCO Industries (through Hyster-Yale) does not typically have a small number of individually named "major customers" that account for a significant portion of its consolidated revenue, as would be the case if it sold directly to a few large corporate entities. Therefore, its major "customers" are best described as these independent dealers themselves, which form its global distribution channel.

Specific names of individual dealer companies are generally not publicly disclosed as major customers by NACCO or Hyster-Yale due to the structure of their distribution channel and the typical private ownership of these dealer entities. As such, they do not have public stock symbols.

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J.C. Butler, Jr. President and Chief Executive Officer

J.C. Butler, Jr. has served as President and Chief Executive Officer of NACCO Industries since October 2017, and of the operating companies since July 2015. He joined the company in 1995 and has held various financial, business development, and administrative roles. Before 1995, he worked as an investment banker in New York City, specializing in mergers and acquisitions with McFarland Dewey & Co. and Drexel Burnham Lambert. Mr. Butler also serves as a director for Hyster-Yale Materials Handling, Inc. and Hamilton Beach Brands Holding Company.

J.P. "Pat" Sullivan, Jr. Senior Vice President and Chief Financial Officer

J.P. "Pat" Sullivan, Jr. joined NACCO's operating companies in 2013 as Vice President and Chief Financial Officer. He has prior experience in the mining industry, including serving as Controller for the Luminant Generation Mining, Construction & Development subsidiaries of Energy Future Holdings. Mr. Sullivan has also held senior financial roles in pipeline and refinery companies, overseeing areas such as finance, accounting, audit, tax, insurance, regulatory affairs, information systems, and human resources. Earlier in his career, he was the Senior Vice President of Administration and Chief Financial Officer of the Krispy Kreme franchise in Chicago and St. Louis.

Elizabeth I. Loveman Senior Vice President and Controller

Elizabeth I. Loveman has been the Vice President and Controller of NACCO Industries, Inc. since March 5, 2014. She previously held positions as VP/Controller and Director of Financial Reporting at NACCO INDUSTRIES INC.

Thomas A. Maxwell Senior Vice President, Finance and Treasurer

Thomas A. Maxwell joined NACCO Industries in 2005 and has held various supervisory positions in finance and treasury. He was appointed Director of Financial Planning and Analysis and Assistant Treasurer in September 2015, and subsequently Vice President and Treasurer in September 2017. Mr. Maxwell is responsible for overseeing planning, forecasting, and treasury activities, supporting corporate development, and managing various corporate and administrative functions. Before his time at NACCO, he managed accounting and financial reporting at STERIS Corporation and worked in finance and accounting roles at other publicly traded companies.

John D. Neumann Senior Vice President, General Counsel and Secretary

John D. Neumann has served as the Vice President, Secretary, and General Counsel of NACCO Industries, Inc. since September.

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Key Risks to NACCO Industries (NC)

1. Declining Coal Demand and Transition to Cleaner Energy: NACCO Industries is primarily involved in lignite coal mining, a sector facing significant long-term headwinds due to declining coal demand. Stricter environmental regulations, coupled with increasing competition from natural gas, wind, and solar, are driving a global shift towards cleaner energy sources. This trend poses an existential threat to NACCO's core revenue streams, despite the company's efforts to diversify into other minerals, contract mining, and renewable energy projects. The financial impacts of this transition and the potential for a "terminal decline" in coal usage present a substantial challenge to the company's future profitability.
2. Operational Inefficiencies and Customer Dependence: The company has experienced ongoing operational challenges, including inefficiencies at customer power plants affecting coal deliveries and mining costs, temporary mechanical issues within its contract mining segment, and unexpected repair and maintenance expenses. These disruptions directly impact profitability. Furthermore, NACCO's coal mining segment relies heavily on a limited number of customers, with two customers accounting for over 60% of its revenue. This high customer concentration introduces significant risk, as the loss or operational difficulties of a major customer could materially and adversely affect the company's financial performance.
3. Macroeconomic Uncertainty and Energy Industry Volatility: NACCO Industries is exposed to broader macroeconomic uncertainties, including unfavorable pricing, rising operational costs, and the potential impacts of trade disputes. The inherent volatility within the energy industry, combined with perceived credit risks associated with companies involved in coal, oil, and gas, can make it challenging to secure or refinance bank financing on favorable terms. While NACCO has demonstrated a strong liquidity position, these external factors can exert pressure on earnings and future investment plans.

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The accelerating retirement of coal-fired power plants, driven by the increasing cost-competitiveness and widespread adoption of renewable energy sources (primarily solar and wind) coupled with advancements in battery storage technology. This trend is amplified by significant government incentives (such as those in the Inflation Reduction Act) and growing regulatory and investor pressure for utilities to achieve decarbonization targets, leading to a rapid reduction in demand for lignite coal mining services which constitutes NACCO Industries' primary business.

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• Coal Mining: The U.S. coal market size was valued at USD 68.30 billion in 2024, with a projected growth to USD 74.10 billion by 2033, exhibiting a compound annual growth rate (CAGR) of 0.80% during 2025-2033. Another estimate indicates the market size of the Coal Mining industry in the United States is $30.4 billion in 2025.
• North American Mining (Aggregates): The U.S. aggregates market generated a revenue of USD 27.47 billion in 2019 and is expected to reach USD 32.83 billion by 2027, growing at a CAGR of 2.3% from 2020 to 2027.

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NACCO Industries (NC) is expected to drive future revenue growth over the next 2-3 years through several key initiatives and market trends:

1. Increased Customer Demand and Improved Pricing: The company anticipates higher demand and improved pricing to contribute to increased operating profit and adjusted EBITDA in the fourth quarter of 2024, with strong customer demand expected to continue into 2025, particularly in the Coal Mining segment. The Contract Mining segment also experienced increased customer demand.
2. Strategic Expansion and Diversification: NACCO Industries is aggressively expanding into new states and leveraging relationships with major aggregate producers. The company is also strategically diversifying beyond its traditional coal mining operations, with new businesses investing for growth, and 2025 is viewed as a pivotal year in this journey.
3. Growth in Minerals Management: This segment has shown significant improvements, driven by higher production volumes from newly acquired mineral assets. A strategic acquisition in the Midland Basin in Q3 2025 further expanded the company's mineral interests, aiming to acquire and promote the development of mineral interests.
4. Expansion of Contract Mining Services: The Contract Mining segment demonstrated strong year-over-year growth in Q3 2025, fueled by higher customer demand and increased part sales. A multi-year contract for dragline services in Florida is expected to begin contributing to earnings starting in the second quarter of 2026.

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Share Repurchases

• As of September 30, 2025, NACCO had $7.8 million remaining under its $20 million share repurchase program, which is set to expire at the end of 2025.
• In the first quarter of 2025, the company repurchased approximately 22,000 shares of its Class A common stock for a total of $700,000.

Share Issuance

• On October 1, 2025, directors Robert S. Shapard, Dennis W. LaBarre, and Taplin Britton T each received 707 shares of Class A common stock as "Required Shares" under the company's Non-Employee Directors' Equity Compensation Plan.

Outbound Investments

• In July 2025, Catapult, a business within NACCO's Minerals and Royalties segment, completed a $4.2 million strategic acquisition of mineral interests in the Midland Basin, encompassing 10,500 gross acres and approximately 400 net royalty acres.
• During the fourth quarter of 2024, the Minerals Management segment increased its investment in a company holding non-operated working interests in oil and natural gas assets in the Hugoton basin.

Capital Expenditures

• Consolidated capital expenditures are expected to total approximately $58 million in 2025, with allocated amounts including $13 million for Coal Mining, $17 million for North American Mining, $20 million for Minerals Management, and $8 million for ReGen Resources and other growth businesses.
• NACCO is forecasting up to $44 million in capital spending for the remainder of 2025 and up to $70 million in 2026, primarily for new business development.
• Earlier in 2025, the company anticipated capital expenditures of up to $86 million for the year, largely for new business development.