Company: NC
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0000789933-25-000041
Chunk: 80

Company: NACCO INDUSTRIES INC
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 8
Chunk 80
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 assets(1)2025$1,010 

Operating profit decreased $2.1 million in the second quarter of 2025 compared with the second quarter of 2024. The change in Operating profit was primarily due to a decrease in gross profit, an increase in selling, general and administrative expenses and a decrease in earnings of unconsolidated operations. The reduction in gross profit was mainly the result of a decrease in tons delivered and higher operating costs, including unexpected equipment repairs and maintenance costs, partially offset by an increase in part sales. The increase in selling, general and administrative expenses was mainly the result of higher employee-related costs. The decrease in earnings of unconsolidated operations was primarily due to a reduction in tons delivered.

 First Six Months of 2025 Compared with First Six Months of 2024

Total revenues increased in the first six months of 2025 compared with the first six months of 2024, primarily due to an increase in reimbursable costs, which have an offsetting amount in cost of sales and have no impact on gross profit. Revenues excluding reimbursable costs increased 3.0% in the first six months of 2025 compared with the 2024 period, as an increase in part sales was partially offset by fewer tons delivered due to reduced customer requirements, in part due to operational delays at several quarries.

24

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

 Operating Profit 2024$5,440 Increase (decrease) from:Gross profit(1,266)Earnings of unconsolidated operations(612)Selling, general and administrative expenses(580)Gain on sale of assets(2)2025$2,980 

Operating profit decreased $2.5 million in the first six months of 2025 compared with the first six months of 2024. The change in Operating profit was primarily due to a decrease in gross profit, a decrease in earnings of unconsolidated operations and an increase in selling, general and administrative expenses. The reduction in gross profit was mainly the result of a decrease in tons delivered and higher operating costs, including unexpected repairs and maintenance costs, partially offset by an increase in part sales. The decrease in earnings of unconsolidated operations was primarily due to a reduction in tons delivered. The increase in selling, general and administrative expenses was mainly the result of higher employee