Investment Thesis
ARLP demonstrates solid operational efficiency with strong cash generation (FCF margin 17.7%, OCF $651M) and exceptional interest coverage (49.7x), indicating financial stability in the coal sector. However, declining revenue (-10.4% YoY) and modest net income contraction (-1.9% YoY) signal headwinds in demand, warranting cautious positioning pending evidence of stabilization.
ARLP Strengths
- Strong free cash flow generation of $387.9M with 17.7% FCF margin demonstrates robust cash conversion despite sector challenges
- Excellent liquidity position with 2.10x current ratio and exceptional 49.7x interest coverage ratio providing financial flexibility
- Healthy operating margin of 17.6% and net margin of 14.2% show disciplined cost management and profitability despite revenue decline
- Modest long-term debt of $427.1M relative to $2.9B in assets indicates conservative capital structure
ARLP Risks
- Revenue declining 10.4% year-over-year reflects structural headwinds in coal demand due to energy transition and regulatory pressures
- Exposure to cyclical commodity (bituminous coal) with limited pricing power and long-term secular decline risks
- Cash equivalents of only $71.2M relative to $427.1M long-term debt provide limited cushion for potential business deterioration
- Net income contraction despite operational efficiency suggests margin compression or higher financing costs ahead
Key Metrics to Watch
- Revenue trend stabilization or reacceleration - critical indicator of demand recovery in coal markets
- Free cash flow sustainability - monitor if declining revenue erodes cash generation capability
- Debt levels and refinancing needs - track long-term debt trajectory given commodity price volatility
- Operating margin expansion/compression - key metric for pricing power and cost control in challenged market
ARLP Financial Metrics
ARLP Profitability Ratios
ARLP Balance Sheet & Liquidity
ARLP 5-Year Financial Trend
5-Year Trend Summary: ALLIANCE RESOURCE PARTNERS LP's revenue has grown significantly by 31% over the 5-year period, indicating strong business expansion.
ARLP Growth Metrics (YoY)
ARLP Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $571.4M | $86.3M | N/A |
| Q2 2025 | $547.5M | $59.4M | N/A |
| Q1 2025 | $540.5M | $74.0M | N/A |
| Q3 2024 | $613.6M | $86.3M | N/A |
| Q2 2024 | $593.4M | $100.2M | N/A |
| Q1 2024 | $651.7M | $158.1M | N/A |
| Q3 2023 | $632.5M | $153.7M | N/A |
| Q2 2023 | $619.9M | $163.5M | N/A |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
ARLP Capital Allocation
ARLP SEC Filings
Access official SEC EDGAR filings for ALLIANCE RESOURCE PARTNERS LP (CIK: 0001086600)