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NACCO Industries (NC) AI Stock Analysis

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NC

NACCO Industries

(NYSE:NC)

Select Model
Rating:53Neutral
Price Target:$36.00â–²(2.74% Upside)
Action:reiterated
Date:08/19/26

The overall score reflects a company with improving underlying operations but facing significant financial and market headwinds. The most impactful factor is the mixed financial performance, where strong revenue and cash flow from operations are undermined by negative free cash flow and volatile profitability. Technicals are a major drag, with the stock in a clear downtrend. The valuation is fair, and the earnings call confirmed operational progress but also highlighted substantial risks from solar impairments and customer credit issues that weigh on the outlook.

Positive Factors
Contract Mining GrowthContract Mining is showing meaningful operating momentum, with higher revenue and profit supported by Palm Beach dragline ramp-up and new quarry projects. If these projects continue scaling, they can strengthen recurring service earnings and improve the company’s longer-term growth platform.
Negative Factors
Solar Impairment ExposureThe solar investments have already produced a material impairment and may create further curtailment or impairment charges. Continued exposure to delayed grid connections, higher costs, and uncertain monetization can dilute otherwise improving operating results and make reported profitability less durable.

NACCO Industries (NC) vs. SPDR S&P 500 ETF (SPY)

-30%-20%-10%0%10%20%30%40%50%NC-15.17%SPY+11.79%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
$264.22M
Dividend Yield
2.94%
Average Volume (3M)
21.77K
Price to Earnings (P/E)
15.2
Beta (1Y)
0.51
Revenue Growth
4.74%
EPS Growth
-45.86%
Country
US
Employees
600
Sector
Energy
Sector Strength
65
Industry
Coal

NACCO Industries Business Overview & Revenue Model

Company Description

NACCO Industries, Inc. (NC) primarily operates within the natural resources sector, structured into three core business units. Its Coal Mining division manages surface coal extraction activities through multi-year agreements, serving electricity prod...

How the Company Makes Money

NACCO Industries makes money through a portfolio of operating subsidiaries whose earnings and cash flows ultimately flow to the holding company. 1) Mining segment (North American Coal / mining services) - Primary model: NACCO, through its mining subs...

NACCO Industries Earnings Call Summary

Earnings Call Date:Aug 04, 2026(Q2-2026)|% Change Since:-25.32%|Next Earnings Date:Nov 03, 2026
Earnings Call SentimentNeutral

The call conveyed a mixed but constructive picture: underlying operating businesses produced substantial year-over-year improvements in gross profit and adjusted EBITDA, with notable growth in Contract Mining and strong segment profitability in Utility Coal Mining and Minerals and Royalties. However, a $12 million solar impairment, the resulting GAAP net loss, customer payment and demand risks at Mississippi Lignite, and the potential for additional charges moderate the positive operating trends. Management emphasized disciplined capital allocation, balance sheet focus and alternatives to monetize troubled solar investments.

Positive Updates

Consolidated Revenue Growth
Consolidated revenues were $72.3 million, up 6% from $68.2 million in the prior year quarter, indicating top-line expansion across segments.

Negative Updates

Solar-Related Impairment and GAAP Loss
Management recorded $12 million of impairment charges on two ReGen Resources solar development projects due to increased costs, grid connection delays and tax/timing issues, which more than offset operating gains and produced a consolidated operating loss of $2.3 million and a net loss of $1.0 million ($0.13 per diluted share) versus prior year net income of $3.3 million ($0.44 per diluted share).

Company Guidance

Management guided that, after taking the $12.0 million of Q2 solar-related impairment (and excluding the prior‑year $7.8 million pretax pension settlement), consolidated adjusted EBITDA for full‑year 2026 is expected to improve year‑over‑year; Q2 consolidated adjusted EBITDA was $15.9 million, up 72% from $9.3 million, on revenues of $72.3 million (up 6% from $68.2 million) and gross profit of $15.2 million (up 123% from $6.8 million), although GAAP results showed a consolidated operating loss of $2.3 million and a net loss of $1.0 million ($0.13 per diluted share) versus prior‑year net income of $3.3 million ($0.44). Segment guidance: Utility Coal Mining expects full‑year operating profit to increase year‑over‑year but MLMC results to decline in H2 2026 (lower customer demand, higher diesel costs and an anticipated inventory impairment, plus ongoing receivable monitoring); Contract Mining expects substantial year‑over‑year growth in H2 and full‑year 2026 operating profit and segment adjusted EBITDA (H2 moderating from a strong H1), with 2027 to benefit from a full year of Palm Beach dragline contributions; Minerals & Royalties expects H2 and full‑year declines versus H1 2026 and 2025 driven by normal production declines despite higher oil‑price‑driven royalty gains in Q2 (royalty revenues up 46% in the quarter). From a liquidity and capital standpoint, at June 30, 2026 debt was $120.1 million, total liquidity was $114.6 million (cash $45.5 million and $69.1 million revolver availability), cash flow before financing is expected to remain a use of cash in 2026 but to improve modestly versus 2025 and into 2027, and management may invest up to $35 million in the remainder of 2026 only for opportunities meeting its capital criteria.

NACCO Industries Financial Statement Overview

Summary

Revenue growth is positive, but profitability is volatile with weak net margins and recent EBIT losses. The balance sheet is reasonably strong with manageable leverage, though ROE has declined. Robust operating cash flow is offset by heavy capex leading to negative free cash flow. Overall, financial health is moderate with margin instability and cash consumption as key concerns.

Income Statement

48Neutral

Balance Sheet

62Positive

Cash Flow

52Neutral
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue278.48M277.20M237.71M214.79M241.72M191.85M
Gross Profit51.00M37.72M29.76M14.59M67.84M43.45M
EBITDA41.21M44.17M63.86M-32.31M116.57M81.65M
Net Income17.29M17.57M33.74M-39.59M74.16M48.13M
Balance Sheet
Total Assets677.49M661.23M631.69M539.71M568.07M507.22M
Cash, Cash Equivalents and Short-Term Investments45.52M49.71M72.83M85.11M110.75M86.00M
Total Debt127.08M108.84M110.53M44.74M27.20M30.44M
Total Liabilities241.35M231.99M226.74M157.37M141.11M155.10M
Stockholders Equity436.14M429.24M404.95M382.34M426.97M352.12M
Cash Flow
Free Cash Flow-8.92M2.28M-32.42M9.08M25.21M35.65M
Operating Cash Flow74.33M50.91M22.29M54.49M67.73M74.88M
Investing Cash Flow-93.34M-64.18M-71.29M-81.60M-33.15M-44.15M
Financing Cash Flow15.13M-9.86M36.73M1.47M-9.84M-33.17M

NACCO Industries Technical Analysis

Technical Analysis SentimentNeutral
Last Price35.04

Price Trends

50DMA37.49Negative
100DMA42.26Negative
200DMA46.44Negative

Market Momentum

MACD-0.77Negative
RSI46.86Neutral
STOCH86.69Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NC, the sentiment is Neutral. The current price of 35.04 is above the 20-day moving average (MA) of 34.70, below the 50-day MA of 37.49, and below the 200-day MA of 46.44, indicating a neutral trend. The MACD of -0.77 indicates Negative momentum. The RSI at 46.86 is Neutral, neither overbought nor oversold. The STOCH value of 86.69 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NC.

NACCO Industries Risk Analysis

NACCO Industries disclosed 33 risk factors in its most recent earnings report. NACCO Industries reported the most risks in the "Finance & Corporate" category.

  • Finance & Corporate13
  • Tech & Innovation2
  • Legal & Regulatory4
  • Production8
  • Ability to Sell4
  • Macro & Political2
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

0 New Risks

NACCO Industries Peers Comparison

Overall Rating

UnderperformOutperform
Sector (65)

Financial Indicators

NC against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
NRPNRP72Outperform$1.53B14.5616.78%2.70%-8.90%-26.60%
Sector *65Neutral$15.17B7.614.09%5.20%3.87%-62.32%
SXCSXC62Neutral$961.63M-17.39-9.33%4.24%2.90%-184.56%
HNRGHNRG56Neutral$528.95M326.16-0.52%―8.47%―
NCNC53Neutral$264.44M15.174.00%2.94%4.74%-45.86%
ARECAREC42Neutral$130.50M1.72-214.90%3.44%――
METCMETC37Underperform$415.71M-5.97-13.54%―-17.65%-157.95%

* Energy Sector Average

Performance Comparison

-75%-50%-25%0%25%NCHNRGNRPSXCMETCARECDec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
NC and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
NCNacco Industries, Inc.35.04-6.35-15.35%
HNRGHallador Energy11.22-10.74-48.91%
NRPNatural Resource Partners115.6213.7013.45%
SXCSuncoke Energy11.333.5846.19%
METCRamaco Resources7.05-20.82-74.70%
ARECAmerican Resources Corp1.22-2.72-69.02%

NACCO Industries Corporate Events

Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance

NACCO Industries Updates Investor Presentation and Disclosure

Neutral
Aug 31, 2026

On August 31, 2026, NACCO Industries, Inc. posted an updated investor presentation on its website, providing historical information about the company’s results of operations. The materials were furnished under specific securities law provisions...

Business Operations and StrategyExecutive/Board Changes

NACCO Industries Adds Experienced Independent Director to Board

Positive
Aug 19, 2026

On August 19, 2026, NACCO Industries announced that Patrick J. Burns was appointed as an independent director to its Board of Directors, expanding the Board from 11 to 12 members. Burns brings more than three decades of executive experience, includin...

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 19, 2026