NACCO Industries, Inc. (NC): Business Model Canvas [Dec-2025 Updated]

You're digging into the mechanics of a company that's quietly navigating the energy transition, and honestly, NACCO Industries, Inc.'s business model is more complex than just mining. Having spent years mapping out complex industrial plays, I can tell you their Q3 2025 revenue jump of 24% to $76.6 million shows the diversification is working, balancing long-term coal commitments with a growing royalty stream-which saw a 4.8% bump in Q1 2025. It's a tightrope walk between legacy contracts and new resource plays, all while managing significant liabilities, but with liquidity at $139.9 million as of Q2 2025, they have the capital to keep moving. So, if you want the full, precise breakdown of how NACCO Industries, Inc. is structuring its value across nine key blocks, look no further.

NACCO Industries, Inc. (NC) - Canvas Business Model: Key Partnerships

The foundation of NACCO Industries, Inc.'s business model rests on securing long-term, stable relationships across its natural resources portfolio, which provides critical inputs for electricity generation, construction, and industrial minerals.

Long-term contracts with major power generation companies for coal supply

The Utility Coal Mining segment, operated by North American Coal®, is anchored by a stable portfolio of long-term mining contracts with power generation companies. These multi-year agreements create a compounding 'layering' effect for dependable recurring cash flows. For instance, the contract at Mississippi Lignite Mining Company includes a take or pay provision, though other coal supply contracts are requirements contracts where earnings can fluctuate. For 2025, the segment anticipates solid customer demand, with deliveries expected to increase modestly from 2024. The segment expects to benefit from the expiration of temporary price concessions at Falkirk in 2025.

Equity investment in Eiger for non-operated oil and gas working interests

The Minerals and Royalties segment, through its Catapult Mineral Partners business, actively invests in oil and gas mineral and royalty interests. In late 2024, Minerals Management invested an additional $15.7 million in Eiger, which holds non-operated working interests in the Hugoton basin. This investment, accounted for under the equity method, was expected to be accretive to 2025 operating profit. The improvement in Segment Adjusted EBITDA in Q1 2025 was primarily due to additional income from this increased equity investment in Eiger. Furthermore, in July 2025, Catapult completed a $4.2 million acquisition of mineral interests in the Midland Basin.

Strategic alliances with producers of aggregates, lithium, and industrial minerals

The Contract Mining segment, operated by North American Mining®, engages in strategic alliances for growth. Sawtooth Mining, a subsidiary, is the exclusive provider of comprehensive mining services at Thacker Pass. This project is owned through a joint venture between Lithium Americas Corp. and General Motors Holdings LLC. Sawtooth will supply all of the lithium-bearing ore requirements for the Thacker Pass operation.

Joint ventures in unconsolidated mining operations (e.g., Falkirk)

NACCO Industries, Inc. benefits from earnings generated by unconsolidated mining operations. Year-over-year improvements in Q1 2025 operating profit were partly attributed to an increase in earnings at these unconsolidated operations. For the remainder of 2025 and into 2026, steady customer demand is anticipated at the unconsolidated mining operations.

Regulators and government agencies for environmental mitigation projects

The Mitigation Resources of North America® business saw improved results in Q1 2025. The Contract Mining segment secured a new multi-year contract in Palm Beach County, Florida, to provide dragline excavation services for a U.S. Army Corps of Engineers project.

Here's a quick look at the recent financial context surrounding these strategic capital allocations as of mid-2025:

The company continues to budget up to $20 million annually to expand its portfolio, maintaining flexibility on the cadence and type of investments based on opportunities.

Key partnerships and contractual structures involve:

• Long-term coal supply contracts with power generation companies.
• Equity method investment in Eiger for oil and gas assets.
• Exclusive mining services agreement at Thacker Pass lithium project.
• Contracts with government agencies like the U.S. Army Corps of Engineers.
• Earnings derived from unconsolidated mining operations.

NACCO Industries, Inc. (NC) - Canvas Business Model: Key Activities

Operating surface mines for utility coal under long-term contracts

The Utility Coal Mining segment operates surface mines fully integrated with adjacent power generation facilities, supplying 100% of their fuel requirements under exclusive, long-term contracts. For the three months ended September 30, 2025, Utility Coal Mining revenues rose 11% year-over-year, driven by an increase in tons delivered at Mississippi Lignite Mining Company after the power plant resolved operational constraints that limited it to one boiler from mid-December 2023 through July 2024. Total coal deliveries for the first quarter of 2025 reached 6,207 thousand tons. Unconsolidated operations delivered 5.6 million tons in Q1 2025, while consolidated operations contributed 591,000 tons. The segment expects momentum from a new contract signed in October 2025 to accelerate in 2026.

Providing contract mining services for diverse industrial minerals

The Contract Mining segment, formerly North American Mining, serves producers of aggregates, coal, lithium, and other industrial minerals. This segment is positioned as the growth platform for mining activities. In the third quarter of 2025, tons delivered grew 20% year-over-year, and revenues, net of reimbursed costs, grew 22% year-over-year. This growth was supported by higher customer demand and an increase in parts sales. NACCO Industries announced a new multiyear contract for dragline services in Florida, expected to become accretive to earnings starting in Q2 2026. North American Mining revenues had previously grown 28.8% in Q1 2025.

Acquiring and developing oil and gas mineral and royalty interests

The Minerals and Royalties segment, through Catapult Mineral Partners, focuses on acquiring and developing mineral interests, providing income primarily from royalty-based lease payments without the obligation to fund drilling or development costs. The segment saw a 30% increase in revenues in Q2 2025, principally due to higher natural gas prices, leading to year-over-year operating profit and Segment Adjusted EBITDA increases (excluding a 2024 gain on sale). In July 2025, Catapult completed a $4.2 million acquisition of mineral interests in the Midland Basin, which included 10,500 gross acres and approximately 400 net royalty acres.

Executing stream and wetland mitigation and reclamation construction services

Mitigation Resources of North America provides stream and wetland mitigation solutions, along with comprehensive reclamation and restoration construction services. The Smoky Run mitigation project restored 13,000 feet of streams in Roane County, Tennessee. The financial results of Mitigation Resources are generally excluded from the operating segment results.

Managing long-term liabilities from former Eastern U.S. underground mining

Bellaire Corporation manages the Company's long-term liabilities associated with former Eastern U.S. underground mining activities. The company intends to terminate its defined benefit pension plan in the fourth quarter of 2025. Although the plan is currently over funded, a significant non-cash settlement charge is anticipated upon termination.

Here's a quick look at the latest reported financial snapshot as of late 2025:

The Contract Mining segment's tons delivered grew 20% year-over-year in Q3 2025. Also, the Minerals and Royalties segment completed a $4.2 million acquisition in July 2025. The company had $7.8 million remaining under its $20 million share repurchase program as of March 31, 2025, expiring at the end of 2025.

NACCO Industries, Inc. (NC) - Canvas Business Model: Key Resources

You're looking at the core assets that keep NACCO Industries, Inc. running and growing, which is key for any financial model you're building. Honestly, the stability here comes from locking in long-term work and owning the ground underneath the operations.

Long-term, take-or-pay mining contracts providing stable cash flow

The foundation of NACCO Industries, Inc.'s Utility Coal Mining segment is its portfolio of long-term mining contracts, which are designed to generate dependable, recurring cash flows. This 'layering' effect from new multi-year agreements compounds over time. For instance, the Contract Mining segment, which management calls their growth platform, secured a new multi-year contract in November 2025 to provide dragline excavation services for a U.S. Army Corps of Engineers project in the Florida Everglades, requiring the movement of more than 25 million tons of material. Also, in September 2025, North American Mining secured a new 10-year limestone mining contract in Ft. Myers, Florida, expanding its presence to 19 mining operations statewide for that customer. Furthermore, the Sawtooth Mining subsidiary has a contract at Thacker Pass, which is currently providing stable income during construction, with Phase 1 lithium production estimated to start in late 2027.

Specialized mining equipment and proprietary operational expertise

NACCO Natural Resources®, which includes North American Mining, operates what it claims is the largest dragline fleet in the United States. This fleet is being enhanced with new, fully AC-electric-drive MTECK draglines, showcasing a commitment to innovation and operational excellence. The company's expertise allows it to become fully integrated in customer operations, providing comprehensive services like strategic mine planning, operations, and parts supply, which is a competitive edge in securing long-term deals.

Diversified portfolio of U.S. oil and gas mineral and royalty interests

The Minerals and Royalties segment, managed by Catapult Minerals Partners, is built on a high-quality, diversified portfolio of U.S. oil and gas mineral and royalty interests. This diversification across basins helps mitigate risk. In July 2025, Catapult completed a strategic acquisition in the Midland Basin for $4.2 million. This purchase added approximately 10,500 gross acres and about 400 net royalty acres, including a mix of producing wells and future development upside. This segment also includes an investment in a private upstream production company holding non-operated working interests in oil and natural gas assets.

Consolidated cash of $49.4 million and total liquidity of $139.9 million (Q2 2025)

At the end of the second quarter of 2025, specifically as of June 30, 2025, NACCO Industries, Inc. reported a solid balance sheet position. The company held $49.4 million in cash, contributing to total liquidity of $139.9 million. This total liquidity figure included $90.5 million of availability under its revolving credit facility. Total debt outstanding at that date was $95.5 million. It's worth noting that by the end of the third quarter of 2025, total liquidity had improved to $152 million, while total debt outstanding had decreased to $80.2 million.

Here's a quick look at the financial position around the mid-year point:

Extensive land holdings and mineral rights in the U.S.

The mineral rights portfolio owned by Catapult Minerals Partners is spread across several basins, including Appalachia, Gulf Coast, Permian, Rockies, and Williston. As of the beginning of 2025, the portfolio encompassed approximately 198,000 gross acres and about 64,000 net royalty acres. The July 2025 Midland Basin acquisition further bolstered these holdings with an additional 10,500 gross acres. These assets entitle NACCO Industries, Inc. to a portion of revenues from oil, gas, and associated natural gas liquids production, without the obligation to fund drilling or completion costs.

The mineral interests provide a strong base, which is complemented by the operational contracts. You can see the scale of the business in the table below:

• Utility Coal Mining segment anchored by stable, long-term contracts.
• Contract Mining segment is the primary growth platform for mining services.
• Minerals and Royalties segment provides diversification and upside from energy prices.
• North American Mining operates the largest dragline fleet in the U.S.
• The company is pursuing opportunities through ReGen Resources to develop new power generation resources.

Finance: draft 13-week cash view by Friday.

NACCO Industries, Inc. (NC) - Canvas Business Model: Value Propositions

You're looking at the core promises NACCO Industries, Inc. makes to its customers and stakeholders as of late 2025. This is where the rubber meets the road for their diversified natural resources strategy.

Reliable Fuels: Secure, long-term, low-cost coal supply for power plants

The Utility Coal Mining segment, anchored by long-term mining contracts, provides the foundation. For the first nine months of 2025, NACCO Industries reported consolidated revenues of $210.4 million. In the third quarter of 2025 specifically, Utility Coal Mining revenues rose 11% year-over-year due to an increase in tons delivered at Mississippi Lignite Mining Company, as that power plant returned to running both of its boilers after mid-July 2024. The value proposition here is stability, evidenced by the anticipation of steady customer demand continuing through the remainder of 2025 and into 2026.

Contract Mining: Operational efficiency and expertise for diverse minerals (e.g., lithium, aggregates)

The Contract Mining segment is showing clear growth momentum. For Q3 2025, revenues, net of reimbursed costs, grew 22%, driven by an increase in tons delivered and parts sales. This segment is expanding its scope beyond traditional services; for instance, Phase 1 lithium production from a key project is estimated to start in late 2027. Furthermore, North American Mining secured a new multi-year contract in October 2025 for U.S. Army Corps of Engineers work in Palm Beach County, Florida. The segment's strong performance contributed to the overall consolidated gross profit improving 38% over Q3 2024, reaching $10.0 million in Q3 2025.

Financial Diversification: Royalty income stream from oil and gas assets

The Minerals and Royalties segment provides a hedge and income diversification. This segment demonstrated substantial year-over-year operating profit improvement in Q3 2025. While Q4 2025 operating profit is expected to decrease compared to 2024 based on current market expectations for natural gas and oil prices, the full-year operating profit is still projected to increase over 2024, excluding a $4.5 million gain on sale recognized in Q2 2024. This segment's performance is partly due to recent investments made by Catapult.

Environmental Solutions: Comprehensive stream/wetland mitigation and reclamation services

The environmental solutions arm, Mitigation Resources of North America, is moving toward profitability. While profitability was previously expected for full-year 2025, temporary delays in federal permitting have pushed that milestone to 2026. This shows a commitment to long-term environmental projects, even with near-term scheduling shifts.

Risk Mitigation: Contract structure shifts capital and reclamation risk to the customer

The structure of NACCO Industries, Inc.'s business model is designed to transfer significant risk. This is most evident when comparing year-over-year operating profit figures. For example, Q3 2024 operating profit of $19.7 million included a $13.6 million business interruption insurance recovery related to a power plant issue, which did not recur in Q3 2025, resulting in a Q3 2025 operating profit of $6.8 million. This highlights how contract terms dictate the flow of non-operational income. Financially, the company maintained a strong liquidity position at September 30, 2025, with $152.0 million total liquidity, consisting of $52.7 million in cash and $99.3 million in revolving credit facility availability. The company also declared a regular quarterly cash dividend of 25.25 cents per share, payable on December 15, 2025.

Here's a quick look at key financial metrics around the time of the Q3 2025 report:

The company also has a new stock repurchase program approved for up to $20 million of Class A common stock through December 31, 2027.

Finance: draft 13-week cash view by Friday.

NACCO Industries, Inc. (NC) - Canvas Business Model: Customer Relationships

You're looking at how NACCO Industries, Inc. locks in its business, and honestly, the customer relationship side is all about duration and deep integration, especially in the Utility Coal Mining segment. These aren't quick gigs; they're foundational partnerships.

Dedicated, long-term contractual relationships, often spanning decades

The bedrock of NACCO Industries' stability comes from its Utility Coal Mining segment, which operates under service agreements measured in decades with power generation companies. This structure is key because it completely removes exposure to the volatility of the spot coal market. For example, the annuity-like earnings from operations like Coteau, Falkirk, and Coyote Creek provide steady profit and cash flow over the long-term, with MLMC expected to contribute significant cash flow over the remaining seven years of its current contract. This long-term view is what management believes creates a robust foundation for cash flow growth.

Embedded operational teams at customer sites for utility coal mining

The integration goes deep here. In the Utility Coal Mining segment, the operation is designed to supply 100% of the fuel needed to run the adjacent power plant. This level of commitment means your operational teams are essentially an extension of the utility's fuel supply chain. While I don't have a hard count of embedded personnel as of late 2025, the nature of these contracts requires full operational control and presence to ensure that unwavering supply.

Direct B2B sales and service for specialized contract mining projects

For the Contract Mining segment, relationships are built on direct business-to-business service delivery for aggregates and other industrial minerals. You see this commitment in action with recent wins. Just in September 2025, North American Mining secured a new 10-year limestone mining contract in Ft. Myers, Florida, which was the third quarry for that same customer. Furthermore, contracts executed in 2024 are projected to deliver net present value after-tax cash flows of approximately $20 million over contract terms that range from 6 to 20 years. This shows you're selling deep expertise, not just tonnage.

Here's a quick look at how the business performed in Q3 2025, which reflects the strength of these relationships:

Transactional relationship for parts sales and certain services

Not every interaction is a multi-decade commitment. For parts sales and certain maintenance services across the mining operations, the relationship leans more transactional, though still B2B focused. The importance of this revenue stream is clear: improved margins and increased parts sales in the Contract Mining segment led to significant increases in both operating profit and Segment Adjusted EBITDA for Q3 2025. NACCO Natural Resources, through Strata Equipment Solutions, stocks a large parts inventory to support these needs.

Ongoing regulatory compliance and reporting for environmental services

The environmental services arm, Mitigation Resources of North America, builds relationships based on solving complex regulatory and restoration needs. This involves stream and wetland mitigation, plus reclamation construction. The trust here is built on successful execution of compliance-driven work. For instance, after being named a designated provider for abandoned mine land restoration by the State of Texas, the business secured a restoration project in Kentucky in January 2025 that is expected to start adding to earnings beginning in 2026. This shows a clear path from regulatory need to contracted, future-dated revenue.

• Utility Coal Mining contracts eliminate exposure to spot coal market price volatility.
• Contract Mining segment saw revenue growth partly due to an increase in parts sales.
• Mitigation Resources reported its second consecutive quarter of profitability in Q1 2025.
• The company is pursuing growth by leveraging core natural resources management skills.

Finance: draft 13-week cash view by Friday.

NACCO Industries, Inc. (NC) - Canvas Business Model: Channels

You're looking at how NACCO Industries, Inc. gets its value propositions to the market, which is a mix of direct engagement and strategic partnerships across its natural resource segments. Here's the breakdown of those channels as of late 2025, grounded in their Q3 2025 performance.

Direct sales force for securing and managing long-term mining contracts

The Contract Mining segment relies heavily on direct sales and relationship management to secure and maintain long-term contracts. This channel is crucial for volume stability, as evidenced by the segment's revenue growth. Revenues for the Contract Mining segment, net of reimbursed costs, grew 22% year-over-year in Q3 2025, driven by an increase in tons delivered due to higher customer demand. This segment also utilizes its direct sales channel to push equipment parts.

North American Mining, a key part of this channel, recently expanded its direct service reach into large-scale civil infrastructure. They secured a new multi-year contract in Palm Beach County, Florida, for a U.S. Army Corps of Engineers project, where they will provide excavation services to move more than 25 million tons of material. Furthermore, North American Mining acts as the exclusive MTECK dragline distributor in 48 U.S. states via its subsidiary, Strata Equipment Solutions, which is a direct equipment sales component tied to their mining services.

Catapult Mineral Partners for acquiring and managing mineral interests

The Minerals and Royalties segment, led by Catapult Mineral Partners, uses a direct acquisition and management channel for its oil and gas mineral and royalty interests portfolio. This team employs a data-driven approach to capital deployment. A concrete example of this channel in action is the July 2025 completion of a $4.2 million acquisition of mineral interests in the Midland Basin. This specific transaction added 10,500 gross acres and approximately 400 net royalty acres to their holdings. The segment's full-year operating profit is expected to increase over 2024, partly due to these recent Catapult investments.

Mitigation Resources of North America direct project bids and execution

Mitigation Resources of North America uses a direct bidding and execution channel for its stream and wetland mitigation and ecological restoration services. This business is structured to layer new projects on top of existing ones for more consistent results, with expectations for full-year profitability beginning in 2025. As of March 31, 2025, the company had projects spanning seven states: Alabama, Florida, Georgia, Mississippi, Pennsylvania, Tennessee, and Texas. They also secured a restoration project in Kentucky in January 2025, which is expected to start contributing to earnings in 2026. Their execution channel involves detailed site work, such as replacing topsoil at a minimum depth of six inches on awarded reclamation projects.

Direct sales of equipment parts to contract mining customers

The direct sale of equipment parts is an integrated channel within the Contract Mining segment, directly supporting existing contract mining customers. This is a measurable revenue driver. The increase in parts sales was a key factor contributing to the 22% year-over-year growth in Contract Mining revenues (net of reimbursed costs) for the third quarter of 2025. This channel helps bolster profitability alongside the core mining tonnage delivery.

Investor Relations website for public company communication

NACCO Industries, Inc. uses its Investor Relations website, ir.nacco.com, as the primary digital channel for official public company communication, especially around financial events. For instance, the Q3 2025 earnings conference call was webcast live on this site on November 6, 2025. The company also uses this platform to host archives of webcasts and provide access to SEC filings. This channel supports the company's overall financial structure, which, as of September 30, 2025, included total liquidity of $152.0 million.

Here's a quick look at the scale of operations supporting these channels as of late 2025:

The direct sales force for contract mining is clearly driving volume, while Catapult's direct investment channel is adding tangible assets. It's all about direct engagement where the resources are.

• Direct sales force secures long-term contracts for industrial minerals.
• Catapult Mineral Partners uses a data-driven approach for asset deployment.
• Mitigation Resources executes direct bids for environmental restoration services.
• Parts sales directly support contract mining customers for revenue uplift.
• The Investor Relations website serves as the official digital communication hub.

Finance: review the cash flow impact of the $4.2 million Catapult acquisition against the $1.9 million dividend paid in Q3 2025 by end of day.

NACCO Industries, Inc. (NC) - Canvas Business Model: Customer Segments

You're looking at the customer base for NACCO Industries, Inc. as of late 2025. It's a diversified natural resource company, and its customer segments reflect that mix, moving beyond just the legacy coal business.

The Utility Coal Mining segment, operated by North American Coal®, remains the foundation, anchored by long-term mining contracts. Its primary customers are the entities powering the grid.

• U.S. electric utility companies.
• An independent power provider.
• The customer at Mississippi Lignite Mining Company (MLMC) is a power plant served by the mine.

For the third quarter of 2025, this segment saw its revenues rise by 11%, driven by an increase in tons delivered at MLMC, as the customer's power plant resolved prior operational constraints. You should note that the prior year's Q3 results included a $13.6 million business interruption insurance recovery, which makes direct year-over-year operating profit comparisons tricky. Still, management anticipates steady customer demand for the remainder of 2025 and into 2026 at the unconsolidated mining operations.

The growth engine is shifting, and the Contract Mining segment serves a different set of industrial customers. This segment is a trusted mining partner for producers needing specific materials.

The Minerals and Royalties segment deals with customers who pay to extract resources from NACCO Industries, Inc.'s owned mineral interests. This group is heavily influenced by commodity prices.

• Oil and gas exploration and production (E&P) companies paying royalties.
• Coal producers paying royalties (to a lesser extent).

Royalty revenues saw an increase, mainly driven by higher natural gas prices. For instance, in Q3 2025, the segment benefited from strategic acquisitions, including $4.2 million in the Midland Basin. Furthermore, this segment includes Mitigation Resources of North America®, which targets developers and construction firms.

• Developers and construction firms needing environmental mitigation credits.
• Services include stream and wetland mitigation banking and reclamation construction.

Finally, you, as a financial observer or investor, are a critical segment. NACCO Industries, Inc. actively manages capital allocation to this group through direct returns.

Here's the quick math on shareholder returns announced in November 2025:

The company reported consolidated revenues of $76.6 million for the third quarter of 2025, with net income at $13.3 million for that same period. As of September 30, 2025, total debt stood at $80.2 million, balanced by total liquidity of $152 million, which included $52.7 million in cash. This financial posture supports the continued commitment to dividends and opportunistic share retirement.

Finance: draft 13-week cash view by Friday.

NACCO Industries, Inc. (NC) - Canvas Business Model: Cost Structure

You're looking at the cost base for NACCO Industries, Inc. (NC) as of late 2025, and it's clear that capital intensity drives a large part of the expense profile. The heavy nature of mining operations means significant, unavoidable fixed costs tied to the asset base.

High fixed costs related to heavy mining equipment and depreciation/depletion are a structural reality for NACCO Industries, Inc. While the specific depreciation and depletion expense for the full year 2025 isn't itemized in the latest reports, the planned investment level gives you a sense of the asset base supporting these costs. The company guided consolidated capital expenditures for 2025 to total approximately $58 million. This spending is allocated across segments:

• Minerals Management: $20 million
• NAMining (North American Mining): $17 million
• Coal Mining: approximately $13 million
• ReGen Resources and other growth businesses: $8 million

The cost structure is also heavily influenced by the planned exit from a defined benefit plan. NACCO Industries, Inc. plans to terminate its pension plan in the fourth quarter of 2025, which will trigger a significant non-cash settlement charge. This charge is anticipated to lead to a substantial year-over-year decrease in both net income and EBITDA for the full year 2025 compared to 2024.

Variable costs, though not explicitly detailed as a single line item for fuel or repairs, are embedded within the Cost of Goods Sold (COGS) and operational expenses. For the third quarter of 2025, the consolidated gross profit was $10.0 million on revenues of $76.6 million. This implies that the direct costs of service delivery-which include fuel, consumables, and routine repairs-were substantial, even with improved margins in Contract Mining and Minerals & Royalties segments. The Contract Mining segment noted improved margins and higher parts sales as drivers of its operating profit increase.

Employee-related costs, including wages and benefits, are reflected in both segment operating expenses and the unallocated corporate overhead. The unallocated expense line specifically increased due to higher medical costs and share-based compensation tied to the share price. These costs weigh on the consolidated operating profit, which was $6.8 million in Q3 2025, down from $19.7 million in Q3 2024 (which included a $13.6 million insurance recovery).

Selling, general, and administrative (SG&A) expenses for corporate overhead are captured within the unallocated expenses. Beyond medical costs, this category also includes business development spending. This corporate layer is essential for managing the diversified portfolio but adds to the fixed cost base that must be covered by operating segment performance. The Q3 2025 operating profit of $6.8 million was sequentially better than the Q2 2025 breakeven result, showing sequential operational leverage, but the year-over-year comparison is skewed by the 2024 insurance benefit.

Here's a snapshot of the key financial metrics that frame the cost structure as of the third quarter of 2025:

The cost structure is clearly one where operational efficiency in the segments must consistently overcome fixed overhead and the eventual non-cash impact of the pension settlement. Finance: draft 13-week cash view by Friday.

NACCO Industries, Inc. (NC) - Canvas Business Model: Revenue Streams

You're looking at the revenue generation engine for NACCO Industries, Inc. as of late 2025. It's a mix of long-term contracts and natural resource pricing exposure. Here's the quick math on where the money is coming from across the operating segments, based on the latest reported figures.

Consolidated Q3 2025 revenues hit $76.6 million, marking a strong 24% increase year-over-year. This growth shows momentum building across the core businesses.

The revenue streams are detailed by segment below. Note that the segment names were updated in 2025 to better reflect the business activities.

You'll see that the Minerals and Royalties segment showed a specific increase in its earlier reporting period; its revenues increased by 4.8% in Q1 2025, directly tied to higher natural gas prices. This segment's revenue stream is sensitive to those commodity markets.

For the environmental solutions business, Mitigation Resources of North America revenue comes from environmental project fees, specifically stream and wetland mitigation solutions and reclamation construction services. While performance is variable based on permit and project timing, management indicated an expectation to achieve full-year profitability in 2025, a key milestone following years of investment.

Here's a summary of the revenue component drivers you need to track:

• Utility Coal Mining: Revenue tied directly to the contractually determined per-ton sales price.
• Contract Mining: Revenue derived from fees for services rendered, supplemented by increased parts sales.
• Minerals and Royalties: Income stream highly influenced by market prices for natural gas and oil.
• Mitigation Resources: Revenue stream generated from environmental project fees.

The Contract Mining segment, in particular, is expanding its revenue base through new long-term contracts, like the new multi-year Everglades civil project and a 10-year limestone contract.

Finance: draft 13-week cash view by Friday.