NACCO Industries is like Schlumberger or Halliburton for companies mining coal, lithium, and other industrial minerals.

NACCO Industries combines the mineral rights management of a Texas Pacific Land Corp with contract mining services for various solid minerals.

NACCO Industries (NC) provides the following major services:

• Contract Coal Mining: The company operates surface coal mines under long-term contracts for power generation companies and activated carbon producers.
• Contract Mining (Other Minerals): It provides value-added contract mining and other services for producers of aggregates, lithium, and other various minerals.
• Minerals and Royalty Interest Leasing: The company leases its royalty and mineral interests to third-party exploration, production, and other mining companies.

Major Customers of NACCO Industries (NC)

NACCO Industries primarily sells its services and interests to other companies. Based on the provided description, its major customers fall into the following categories:

• Power generation companies: For whom NACCO's Coal Mining segment operates surface coal mines under long-term contracts.
• Activated carbon producers: A specific type of industrial company for whom the Coal Mining segment also operates mines.
• Producers of aggregates, lithium, and other minerals: For whom the North American Mining segment provides value-added contract mining and other services.
• Independently owned mines and quarries: Also serviced by the North American Mining segment for contract mining.
• Third-party exploration and production companies: To whom the Minerals Management segment leases its royalty and mineral interests for gas, oil, and coal exploration and production.
• Other mining companies: Also recipients of leases from the Minerals Management segment for various mining rights.

The provided information does not name specific customer companies, only categories of companies that NACCO Industries serves.

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

J.C. Butler, Jr. has served as President and Chief Executive Officer of NACCO Industries, Inc. since October 2017, and of its operating companies since July 2015. He began his career with NACCO in 1995 and has held various financial, business development, and administrative roles. Prior to joining NACCO, Mr. Butler was an investment banker specializing in mergers and acquisitions with McFarland Dewey & Co. and Drexel Burnham Lambert from 1989 to 1995. He also worked as an investment analyst at the Prudential Agricultural Realty Group. Mr. Butler serves as a director for NACCO Industries, Hyster-Yale Materials Handling, Inc., and Hamilton Beach Brands Holding Company.

J.P. 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. Prior to joining NACCO, he served as Controller of the Luminant Generation Mining, Construction & Development subsidiaries for Energy Future Holdings. He also held senior financial roles in pipeline and refinery companies. Mr. Sullivan previously served as Senior Vice President of Administration and Chief Financial Officer for a Krispy Kreme franchise in Chicago and St. Louis.

Elizabeth I. Loveman Senior Vice President and Controller

Elizabeth I. Loveman was named Senior Vice President and Controller of NACCO Industries, Inc. in June 2023, having previously served as Vice President and Controller since March 2014. She is responsible for the company's financial reporting, internal control, and taxes. Ms. Loveman first joined NACCO from 1999 to 2005 as a senior financial reporting analyst. Before rejoining NACCO in 2012 as Director of Financial Reporting, she worked at OM Group, Inc. as Manager of Financial Reporting from 2005 to 2012. Earlier in her career, she was an auditor at Deloitte and Touche LLP from 1995 to 1999. Ms. Loveman is a Certified Public Accountant.

Carroll L. Dewing Senior Vice President and Chief Operating Officer

Carroll L. Dewing serves as Senior Vice President and Chief Operating Officer for NACCO Industries. He has held various leadership positions within the company, including Vice President of Operations, and Vice President of Northern Operations, Government and Human Relations. Mr. Dewing also served as President of The Coteau Properties Company from 2011 to 2016 and President of The Falkirk Mining Company from 2010 to 2011, both NACCO subsidiaries. He began his career with The Falkirk Mine in 1979, holding roles in engineering, environmental departments, and as a frontline supervisor in production and maintenance. Mr. Dewing is a registered professional engineer in North Dakota.

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

John D. Neumann was appointed Senior Vice President, General Counsel and Secretary of NACCO Industries in June 2023. He joined NACCO subsidiary North American Coal in March 2009 as Assistant General Counsel and Assistant Secretary, becoming Vice President, General Counsel and Secretary of North American Coal in January 2011. In September 2012, Mr. Neumann was named Vice President, General Counsel and Secretary of NACCO, overseeing legal services for the company and its subsidiaries. Prior to joining NACCO, he was a mergers and acquisitions attorney with the law firms of Jones Day in Cleveland, Ohio, and Hunton & Williams in Richmond, Virginia.

Here are the key risks to NACCO Industries (NC):

1. Declining Demand for Coal and Energy Transition: NACCO Industries' core Coal Mining segment operates surface coal mines primarily for power generation companies, an industry facing a secular decline due to the global shift towards renewable energy sources and away from fossil fuels. This ongoing energy transition poses a significant long-term threat to a substantial portion of the company's business model, including its Minerals Management segment which also deals with coal, oil, and gas royalties. NACCO is actively attempting to mitigate this by diversifying into other minerals like lithium and exploring ReGen power development, indicating a strategic response to this major risk.
2. Increasing Environmental Regulations and Policy Scrutiny: As a natural resources company heavily involved in mining, particularly coal, NACCO Industries is highly susceptible to evolving environmental regulations, compliance costs, and policy changes. Stricter federal, state, and local regulations related to mining practices, emissions, environmental reclamation, and land use can increase operational expenses, limit expansion opportunities, or delay projects. The broader focus on Environmental, Social, and Governance (ESG) factors by investors and stakeholders also increases scrutiny and pressure on companies with significant environmental impacts.
3. Concentration Risk in Long-Term Contracts: NACCO Industries generates stable, recurring cash flows through its reliance on long-term contracts with a limited number of customers across its Coal Mining and North American Mining segments. For example, one Utility Coal Mining customer accounted for 31% of consolidated revenue in both 2025 and 2024, and two Contract Mining customers contributed 25% and 10% respectively. While these contracts provide stability, this high customer concentration means that changes in demand, renegotiation challenges, or early termination of significant contracts could materially and adversely impact the company's revenue, operational results, and overall financial performance.

The accelerating global and domestic transition from fossil fuels (particularly coal, oil, and natural gas) to renewable energy sources poses a significant emerging threat to NACCO Industries. This shift directly impacts the demand for coal from power generation companies, which are key clients for NACCO's Coal Mining segment. Furthermore, the decreasing long-term demand for fossil fuels threatens the value and leasing potential of NACCO's royalty and mineral interests in its Minerals Management segment, as exploration and production companies may reduce their activities and investments in these traditional energy sources.

NACCO Industries (symbol: NC) operates in several natural resource sectors, with its main products and services revolving around contract mining and minerals management. The addressable markets for its key offerings in North America are as follows:

• Contract Mining Services (encompassing Coal Mining and North American Mining segments): The overall U.S. market for contract mining services was valued at over USD 3.3 billion in 2024. This market is projected to grow, with the global contract mining services market, of which North America is a significant part, expected to reach approximately USD 33.3 billion by 2034. North America is anticipated to hold around 20.6% share of the contract mining services market by the end of 2035.

• Aggregates (within North American Mining segment): The U.S. aggregates market, which includes crushed stone, sand, and gravel, was valued at USD 164.65 billion in 2024. This market is projected to reach USD 222.24 billion by 2033, growing at a Compound Annual Growth Rate (CAGR) of 3.41% from 2025 to 2033. The U.S. construction aggregates market size is valued to increase by USD 19.58 billion, at a CAGR of 8.8% from 2024 to 2029.

• Lithium (within North American Mining segment): The North America lithium extraction market generated a revenue of USD 144.1 million in 2025. It is expected to reach approximately USD 379.7 million by 2033, with a CAGR of 12.1% from 2026 to 2033. Specifically, the lithium mining market in the U.S. is projected to grow significantly, reaching an estimated value of USD 23.59 million by 2032.

1. Expansion of Contract Mining Services: The North American Mining segment is positioned as a core driver of future growth, with expectations of increasing operating profit and EBITDA from new and extended contracts. The company has secured new multi-year contracts for dragline services in large-scale infrastructure projects, such as an embankment dam construction in Florida starting in Q2 2026, and four long-term contract mining agreements for limestone and sand in Florida and Texas. This expansion leverages contract-mining capabilities in high-growth Southeastern and Southwestern U.S. infrastructure markets.
2. Development and Commercialization of Lithium Mining Projects: NACCO Industries is strategically transforming by expanding into mining services for lithium projects. The company has secured the Thacker Pass contract, tying its growth to electric vehicle (EV) supply chains and decarbonization efforts. Pre-production services at Thacker Pass began in 2025, and this project is forecast to materially lift North American Mining's EBITDA in 2026–2027 by capturing long-term, predictable revenue from the largest known U.S. lithium resource.
3. Increased Profitability and Price Adjustments in the Coal Mining Segment: The Coal Mining segment is anticipated to contribute to higher net income, with improved results expected from operations such as Mississippi Lignite Mining Company, Falkirk, and Coteau. Notably, improvements at Mississippi Lignite Mining Company in 2026 are expected due to an increase in the contractually determined per ton sales price. This segment also quadrupled its adjusted EBITDA in 2024 and expects solid customer demand in 2025, supported by long-term customer contracts.
4. Growth in Minerals Management and Royalties: This segment is projected to grow through strategic investments and acquisitions. Royalty income in the Minerals Management segment increased significantly in fiscal year 2025, benefiting from increased natural gas production and contributions from Catapult acquisitions. The company is actively pursuing additional investment opportunities and has made strategic acquisitions of non-participating royalty interests in basins like the Permian and Appalachian to diversify income via oil and gas production.
5. Expansion and Increasing Profitability of Mitigation Resources: Mitigation Resources of North America is expected to achieve increasing profitability over time from the sale of mitigation credits as its reclamation and restoration services expand. The business is anticipated to generate a profit in the second half of 2026 and move towards more consistent results as it grows, having expanded to 18 active restoration sites across six states by the end of 2025.

Share Repurchases

• NACCO Industries authorized a new stock repurchase program on November 18, 2025, allowing for the buyback of up to $20 million of its Class A Common Stock through December 31, 2027.
• The previous share repurchase program, which expired on December 31, 2025, saw over $12 million in share repurchases completed.
• As of June 30, 2025, approximately $7.8 million remained under the prior $20 million share repurchase program.

Outbound Investments

• In July 2025, the Minerals and Royalties segment, Catapult, acquired mineral interests in the Permian Basin (also referred to as Midland Basin) for $4.2 million, including producing wells and future development opportunities.

Capital Expenditures

• For 2026, NACCO Industries anticipates total capital expenditures of up to $89 million, predominantly for business development opportunities.
• In 2025, capital spending was forecasted to be up to $86 million, with a primary focus on new business development.
• The anticipated capital investments in 2026 are expected to lead to a greater use of cash before financing compared to 2025.