Company: NC
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0000789933-25-000102
Chunk: 102

Company: NACCO INDUSTRIES INC
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 2
Chunk 102
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 This decrease was primarily due to the absence of MLMC's business interruption insurance recoveries for the boiler issue at the Red Hills Power Plant, an increase in gross loss and higher selling, general and administrative expenses. These unfavorable changes were partially offset by an increase in earnings of unconsolidated operations. 

Gross loss was unfavorable at MLMC during the third quarter of 2025 compared with the 2024 period, primarily due to a decrease in the contractual sales price per ton. 

The increase in selling, general and administrative expenses was mainly the result of higher employee-related costs. 

The increase in earnings of unconsolidated operations was primarily due to a higher per ton management fee at Coteau as well as an increase in customer demand and a higher per ton management fee at Falkirk. 

First Nine Months of 2025 Compared with First Nine Months of 2024

Revenues increased 39.9% in the first nine months of 2025 compared with the first nine months of 2024 primarily due to an increase in customer requirements at MLMC. A boiler issue at the customer's Red Hills Power Plant reduced customer requirements in 2024. 

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

 Operating Profit2024$22,288 Increase (decrease) from:Business interruption insurance recoveries in 2024(13,612)Selling, general and administrative expenses(1,086)Amortization of intangibles(201)Gross loss(1)Earnings of unconsolidated operations2,596 Net change on sale of assets16 2025$10,000 

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Operating profit decreased by $12.3 million in the first nine months of 2025 compared with the 2024 period. This decrease was primarily due to the absence of MLMC's business interruption insurance recoveries for the boiler issue at the Red Hills Power Plant and higher selling, general and administrative expenses. These unfavorable changes were partially offset by an increase in earnings of unconsolidated operations. 

The increase in selling, general and administrative expenses was mainly the result of higher employee-related costs. 

The increase in earnings of unconsolidated operations was primarily due to higher per ton management fees, mainly the result of temporary price concessions ending at Falkirk in June 2024, partially offset by lower customer demand at Coteau, Coyote and Falk