Company: NC
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0000789933-25-000023
Chunk: 86

Company: NACCO INDUSTRIES INC
Filing Date: 2025-04-30
Form: 10-Q
Item: Part I, Item 2
Chunk 86
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1,785 2,165 Total Revenues$10,902 $10,401 Total Revenues $10,902 $10,401 Cost of sales2,244 1,364 Gross profit 8,658 9,037 Earnings (loss) from unconsolidated operations554 (65)Selling, general and administrative expenses1,305 1,042 Operating profit $7,907  $7,930 

Revenues increased 4.8% in the first quarter of 2025 compared with the first quarter of 2024, primarily due to an increase in natural gas revenue as a result of higher natural gas prices. These improvements were partially offset by a reduction in oil revenues and other revenues, primarily coal royalty income.

The following table identifies the components of change in Operating profit for the first quarter of 2025 compared with the first quarter of 2024:

 Operating Profit 2024$7,930 Increase (decrease) from:Gross profit(379)Selling, general and administrative expenses(263)Earnings of unconsolidated operations619 2025$7,907 

Operating profit in the first quarter of 2025 was comparable to the first quarter of 2024. A decrease in gross profit and an increase in selling, general and administrative expenses was offset by an increase in earnings of unconsolidated operations. The $0.6 million increase in earnings of unconsolidated operations was primarily related to an additional $15.7 million investment in Eiger, LLC during the fourth quarter of 2024.

UNALLOCATED ITEMS AND ELIMINATIONS

FINANCIAL REVIEW

Unallocated Items and Eliminations were as follows for the three months ended March 31:

THREE MONTHS 2025 2024Operating loss$(5,986)$(5,111)

The operating loss increased in the first quarter of 2025 compared to the first quarter of 2024, primarily due to higher employee-related and outside service costs, partially offset by higher earnings at Mitigation Resources.

NACCO Industries, Inc. Outlook 

NACCO's businesses provide critical inputs for electricity generation, construction and development, and the production of industrial minerals and chemicals. Increasing demand for electricity, on-shoring and current federal policies are creating favorable macroeconomic trends within these industries. We are confident in our trajectory and business prospects in 2025, and we continue to prepare for