TERRE HAUTE, Ind., March 12, 2026 (GLOBE NEWSWIRE) -- Hallador Energy Company (NASDAQ:HNRG) ("Hallador" or the "Company") today reported its financial and operating results for the fourth quarter and full year ended December 31, 2025.
"Hallador delivered strong 2025 financial results with double-digit growth across revenue and operating cash flow, and a 3x improvement in Adjusted EBITDA," said Brent Bilsland, President and Chief Executive Officer. "We have recently received additional competitive offers to acquire our accredited capacity for over a decade in length. We are excited by what we are seeing in the market as Hallador is in a strong, long capacity position that continues to get better with time. We hope to be making more announcements on this topic in the near future."
"In December, we were fortunate to be awarded one of the 50 ERAS application slots, and our application was accepted with our ~$14 million deposit advancing our proposed 515 MW natural gas generator project at the Merom site. With our application now accepted into the ERAS process, we have cleared another important milestone in that review. If successfully executed, the ERAS expansion would represent a nearly 50% increase in power generation capabilities for the company. We believe Merom's existing infrastructure and interconnection position us competitively in a market that continues to show growing demand for accredited capacity, and we are advancing commercial discussions, equipment planning and financing initiatives as we target completion by the third quarter of 2029."
Bilsland added, "Subsequent to year-end, we were excited to add Barbara Sugg, former CEO of Southwest Power Pool, Inc. (SPP) and Daniel Hudson, founder of Woodlands Energy Management, LLC to Hallador's Board of Directors. At SPP, Barbara was responsible for managing the power grid for 14 states and led the expansion of SPP into additional western states. During Dan's career, he has developed 25 power plants and successfully completed over $35.0 billion in asset acquisitions and financings. Both Barbara and Dan will be tremendous resources to help guide Hallador's growth plans moving forward."
Fourth Quarter & Full Year 2025 Highlights
A constructive power pricing environment and continued production optimization at Sunrise Coal supported full-year growth, although fourth quarter results were impacted by power plant availability at Merom.
Total revenue in 2025 increased 16% year-over-year to $469.5 million, driven by electric sales of $310.7 million (+19% year-over-year) and coal sales of $148.7 million (+8% year-over-year).
Net income in 2025 increased to $41.9 million and Adjusted EBITDA for the year increased ~3x year-over-year to $56.0 million, driven by improved electric segment performance and stronger coal segment results following production optimization and cost restructuring.
Full year operating cash flow increased 23% year-over-year to $81.1 million, primarily driven by improved earnings that was supplemented by cash proceeds received under prepaid forward power sales contracts.
Total bank debt declined to $30.0 million at December 31, 2025, compared to $44.0 million at both September 30, 2025 and December 31, 2024.
Total liquidity was $38.8 million at December 31, 2025, consisting of $28.8 million of additional borrowing capacity and cash and cash equivalents, compared to $46.4 million at September 30, 2025, and $37.8 million at December 31, 2024.
Capital expenditures in the fourth quarter were $24.9 million, bringing full-year capital expenditures to $69.2 million, which includes the ~$14 million deposit paid to MISO for the ERAS expansion at Merom.
Hallador's forward sales momentum provides long-term revenue visibility and certainty, lowering the Company's overall risk profile.
As of December 31, 2025, Hallador had approximately $1.3 billion of forward energy, capacity and coal sales commitments through 2029.
As of December 31, 2025, the Company had $866.9 million of contracted third-party revenue through 2029.
Hallador further de-risked its financial profile through the closing of a new $120 million, 3-year senior secured credit facility in March 2026 that matures in 2029.
Financial Summary($ in Millions and Unaudited)
Q1 2025
Q2 2025
Q3 2025
Q4 2025
Electric Sales
$
85.9
$
60.0
$
93.2
$
71.6
Coal Sales- 3rdParty
$
30.2
$
38.1
$
51.3
$
29.1
Other Revenue
$
1.6
$
4.7
$
2.1
$
1.7
Total Operating Revenue
$
117.7
$
102.8
$
146.6
$
102.4
Net Income (Loss)
$
10.0
$
8.2
$
23.9
$
(0.2
)
Operating Cash Flow
$
38.4
$
11.4
$
23.2
$
8.1
Adjusted EBITDA*
$
19.3
$
3.4
$
24.9
$
8.4
* Non-GAAP financial measure, defined as EBITDA plus effects of certain subsidiary and equity method investment activity, less other amortization, plus certain operating activities including stock-based compensation, asset retirement obligations accretion, less gain on disposal or abandonment of assets, plus other reclassifications such as special non-recurring project expenses.
Adjusted EBITDA should not be considered an alternative to net income, income from operations, cash flows from operating activities or any other measure of financial performance presented in accordance with GAAP. Our method of computing Adjusted EBITDA may not be the same method used to compute similar measures reported by other companies. Management believes the non-GAAP financial measure, Adjusted EBITDA, is an important measure in analyzing our liquidity.
Reconciliation of GAAP "Net Income (Loss)" to non-GAAP "Adjusted EBITDA"
(In $ Thousands and Unaudited)
Year Ended
December 31,
2025
2024
NET INCOME (LOSS)
$
41,871
$
(226,138
)
Interest expense
16,896
13,850
Income tax expense (benefit)
1,833
(9,404
)
Depreciation, depletion and amortization
41,222
65,626
EBITDA
101,822
(156,066
)
Stock-based compensation
3,529
4,454
Asset impairment
—
215,136
Asset retirement obligations accretion
1,764
1,628
Other amortization(1)
(48,315
)
(46,310
)
(Gain) loss on disposal or abandonment of assets, net
(2,489
)
(50
)
Loss on extinguishment of debt
608
2,790
Equity method investment loss
450
746
Settlement of litigation
—
2,750
Other reclassifications
(1,417
)
(8,318
)
Adjusted EBITDA
$
55,952
$
16,760
(1) Other amortization relates to the non-cash amortization of the Hoosier PPA entered into in connection with the acquisition of the Merom Power Plant in 2022.
Forward Sales Position (unaudited)
2026
2027
2028
2029
Total
Power
Energy
Contracted MWh (in millions)
4.06
3.06
1.09
0.27
8.48
Average contracted price per MWh
$
43.32
$
46.50
$
52.94
$
51.33
Contracted revenue (in millions)
$
175.88
$
142.29
$
57.70
$
13.86
$
389.73
Accredited Capacity
Average daily contracted accredited capacity MW
733
623
454
100
Average contracted accredited capacity price per MWd
$
230
$
226
$
225
$
230
Contracted accredited capacity revenue (in millions)
$
61.54
$
51.40
$
37.33
$
3.47
$
153.74
Total Energy & Accredited Capacity Revenue
Contracted Power revenue (in millions)
$
237.42
$
193.69
$
95.03
$
17.33
$
543.47
Coal
Priced tons - 3rd party (in millions)
2.73
2.50
0.50
—
5.73
Avg price per ton - 3rd party
$
55.72
$
56.74
$
59.00
$
—
Contracted coal revenue - 3rd party (in millions)
$
152.12
$
141.85
$
29.50
$
—
$
323.47
TOTAL CONTRACTED REVENUE (IN MILLIONS) - CONSOLIDATED
$
389.54
$
335.54
$
124.53
$
17.33
$
866.94
