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Our estimated total black lung liabilities as of December 31, 2025 were $36.1 million (net of the black lung trust). In future years, the DOL could require us to increase the amount of the collateral which could negatively impact our cash flows.
Operating margin is thin at 3.49%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue declined 14.1% YoY. Margins deteriorated 13.2pp alongside, both lines moving the wrong way.
ROIC dropped from 10.29% to 1.56%, capital efficiency is deteriorating. Negative free cash flow of -$91M. The business is consuming cash, not generating it.
Profitability & Returns
Revenue (TTM)
$1.31B
▼ -14.1% YoY
Net Income (TTM)
$57M
▼ -77.3% YoY
Op. Margin
3.49%
▼ -13.2pp YoY
ROIC
1.56%
▼ -8.7pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
-$91M
▼ -1.4% YoY
Op. Cash Flow (TTM)
$229M
▼ -37.6% YoY
Net Debt
-$115M
Net Cash Position
Cash & Equiv.
$353M
5Y CAGR: +10.8%
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