Company: NC
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0000789933-25-000041
Chunk: 72

Company: NACCO INDUSTRIES INC
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 8
Chunk 72
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)(1,635)(2,165)   Closed mine obligations503 471 976 926    (Gain) loss on equity securities(349)264 521 (777) Gain on settlement of excess funding liability(3,590)— (3,590)—    Other, net 217 130 520 (84)Other (income) expense, net(2,045) 1,138 510 322 Income before income tax (benefit) provision1,994 6,228 7,121 11,801 Income tax (benefit) provision(1,266)256 (1,039)1,259 Net income$3,260 $5,972 $8,160 $10,542 Effective income tax rate(63.5)% 4.1 %(14.6)% 10.7 %

The components of the change in revenues and operating profit are discussed below in Segment Results.

Second Quarter of 2025 Compared with Second Quarter of 2024, and First Six Months Ended June 30, 2025 Compared with First Six Months Ended June 30, 2024

Other (income) expense, net

Interest expense increased in the second quarter of 2025 and the first six months of 2025 compared with the respective 2024 periods due to higher average borrowings, partially offset by lower average interest rates.

Interest income decreased in the second quarter of 2025 and the first six months of 2025 compared with the respective 2024 periods due to lower earnings on reduced invested cash balances.

(Gain) loss on equity securities represents changes in the market price of invested assets reported at fair value. The change in the second quarter of 2025 and the first six months of 2025 compared with the respective 2024 periods was due to fluctuations in the market prices of the exchange-traded equity securities. See Note 5 to the Unaudited Condensed Consolidated Financial Statements for further discussion of equity securities. 

During the first quarter of 2025, $14.5 million of excess funds from the terminated Falkirk pension plan were directly transferred to the NACCO 401(k) plan. The NACCO 401(k) plan is a qualified replacement plan; therefore, these funds will be utilized to offset future profit sharing contributions to 401(k) plan participants. During the second quarter of 2025, NACCO and