Hallador Energy Company Reports Fourth Quarter and Full Year 2025 Financial and Operating Results
- FY’25 Total Revenue Up 16% YoY to $469.5 Million -
- FY’25 Operating Cash Flow Up 23% YoY to $81.1 Million -
- FY ‘25 Net Income Increased to $41.9 Million, with Adj. EBITDA up 3x to $56.0 Million -
- MISO Accepted ERAS Application for 515MW Gas Generation Expansion -
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.
- 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).
- 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 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.
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- 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.
- 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.
- Hallador’s forward sales momentum provides long-term revenue visibility and certainty, lowering the Company’s overall risk profile.
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- 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.
- As of December 31, 2025, Hallador had approximately $1.3 billion of forward energy, capacity and coal sales commitments 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 | |||||
| Priced tons - Intercompany (in millions) | 2.30 | 2.30 | 3.17 | — | 7.77 | ||||||||||
| Avg price per ton - Intercompany | $ | 51.00 | $ | 51.00 | $ | 51.00 | $ | — | |||||||
| Contracted coal revenue - Intercompany (in millions) | $ | 117.30 | $ | 117.30 | $ | 161.67 | $ | — | $ | 396.27 | |||||
| TOTAL CONTRACTED REVENUE (IN MILLIONS) - SEGMENT | $ | 506.84 | $ | 452.84 | $ | 286.20 | $ | 17.33 | $ | 1,263.21 | |||||
Forward-Looking Statements
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Statements that are not strictly historical statements constitute forward-looking statements and may often, but not always, be identified by the use of such words such as "expects," "believes," "intends," "anticipates," "plans," "estimates," "guidance," "target," "potential," "possible," or "probable" or statements that certain actions, events or results "may," "will," "should," or "could" be taken, occur or be achieved. Forward-looking statements include, without limitation, those relating to our ability to participate in the ERAS program (which ultimately requires the approval of MISO of our application and is a capital intensive project subject to construction, operational, financial, regulatory and legal risks that could impact the project’s viability and/or timeline) and achieve the expected benefits thereof, our ability to secure agreements in support of the development and construction of planned projects, including the expansion of our Merom Generating Station and our expectations with respect to potential accelerating demand for accredited capacity. Forward-looking statements are based on current expectations and assumptions and analyses made by Hallador and its management in light of experience and perception of historical trends, current conditions and expected future developments, as well as other factors appropriate under the circumstances that involve various risks and uncertainties that could cause actual results to differ materially from those reflected in the statements. These risks include, but are not limited to, those set forth in Hallador’s annual report on Form 10-K for the year ended December 31, 2025, and other Securities and Exchange Commission filings. Hallador undertakes no obligation to revise or update publicly any forward-looking statements except as required by law.
Conference Call and Webcast
Hallador management will host a conference call today, March 12, 2026 at 5:00 p.m. Eastern time to discuss its financial and operational results, followed by a question-and-answer period.
Date: Thursday, March 12, 2026
Time: 5:00 p.m. Eastern time
Dial-in registration link:
Live webcast registration link:
The conference call will also be broadcast live and available for replay in the investor relations section of the Company’s website at .
About Hallador Energy Company
Hallador Energy Company (Nasdaq: HNRG) is a vertically-integrated Independent Power Producer (IPP) based in Terre Haute, Indiana. The Company has two core businesses: Hallador Power Company, LLC, which produces electricity and capacity at its one Gigawatt (GW) Merom Generating Station, and Sunrise Coal, LLC, which produces and supplies fuel to the Merom Generating Station and other companies. To learn more about Hallador, visit the Company’s website at .
Company Contact
Todd E. Telesz
Chief Financial Officer
Investor Relations Contact
Sean Mansouri, CFA
Elevate IR
(720) 330-2829
| Hallador Energy Company | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| (in thousands, except per share data) | ||||||||
| (unaudited) | ||||||||
| 2025 | 2024 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 10,070 | $ | 7,232 | ||||
| Restricted cash | 5,302 | 4,921 | ||||||
| Accounts receivable | 13,989 | 15,438 | ||||||
| Inventory | 42,534 | 36,685 | ||||||
| Parts and supplies | 45,854 | 39,104 | ||||||
| Prepaid expenses | 5,638 | 1,478 | ||||||
| Total current assets | 123,387 | 104,858 | ||||||
| Property, plant and equipment: | ||||||||
| Land and mineral rights | 69,952 | 70,307 | ||||||
| Buildings and equipment | 421,037 | 402,649 | ||||||
| Mine development | 102,302 | 92,458 | ||||||
| Construction work in process | 39,671 | 27,208 | ||||||
| Finance lease right-of-use assets | 12,591 | 13,034 | ||||||
| Total property, plant and equipment | 645,553 | 605,656 | ||||||
| Less - accumulated depreciation, depletion and amortization | (367,775 | ) | (347,952 | ) | ||||
| Total property, plant and equipment, net | 277,778 | 257,704 | ||||||
| Equity method investments | 2,647 | 2,607 | ||||||
| Other assets | 4,241 | 3,951 | ||||||
| Total assets | $ | 408,053 | $ | 369,120 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Current portion of bank debt, net | $ | — | $ | 4,095 | ||||
| Accounts payable and accrued liabilities | 41,848 | 44,298 | ||||||
| Current portion of lease financing | 7,411 | 6,912 | ||||||
| Contract liabilities - current | 103,343 | 97,598 | ||||||
| Total current liabilities | 152,602 | 152,903 | ||||||
| Long-term liabilities: | ||||||||
| Bank debt, net | 29,678 | 37,394 | ||||||
| Long-term lease financing | 1,338 | 8,749 | ||||||
| Deferred income taxes | 1,833 | — | ||||||
| Asset retirement obligations | 15,241 | 14,957 | ||||||
| Contract liabilities - long-term | 45,714 | 49,121 | ||||||
| Other | 1,814 | 1,711 | ||||||
| Total long-term liabilities | 95,618 | 111,932 | ||||||
| Total liabilities | 248,220 | 264,835 | ||||||
| Commitments and contingencies (Note 22) | ||||||||
| Stockholders' equity: | ||||||||
| Preferred stock, $.10 par value, 10,000 shares authorized; none issued | — | — | ||||||
| Common stock, $.01 par value, 100,000 shares authorized; 43,817 and 42,621 issued and outstanding, as of December 31, 2025 and December 31, 2024, respectively | 438 | 426 | ||||||
| Additional paid-in capital | 202,963 | 189,298 | ||||||
| Retained deficit | (43,568 | ) | (85,439 | ) | ||||
| Total stockholders’ equity | 159,833 | 104,285 | ||||||
| Total liabilities and stockholders’ equity | $ | 408,053 | $ | 369,120 | ||||
| Hallador Energy Company | ||||||||
| Condensed Consolidated Statements of Operations | ||||||||
| (in thousands, except per share data) | ||||||||
| 2025 | 2024 | |||||||
| SALES AND OPERATING REVENUES: | ||||||||
| Electric sales | $ | 310,737 | $ | 261,527 | ||||
| Coal sales | 148,655 | 137,448 | ||||||
| Other revenues | 10,074 | 5,184 | ||||||
| Total sales and operating revenues | 469,466 | 404,159 | ||||||
| EXPENSES: | ||||||||
| Fuel | 63,854 | 49,343 | ||||||
| Other operating and maintenance costs | 129,246 | 118,364 | ||||||
| Cost of purchased power | 20,892 | 10,888 | ||||||
| Utilities | 16,801 | 15,914 | ||||||
| Labor | 110,678 | 116,164 | ||||||
| Depreciation, depletion and amortization | 41,222 | 65,626 | ||||||
| Asset retirement obligations accretion | 1,764 | 1,628 | ||||||
| Exploration costs | 216 | 260 | ||||||
| General and administrative | 26,226 | 26,527 | ||||||
| Gain on disposal or abandonment of assets, net | (2,489 | ) | (50 | ) | ||||
| Asset impairment | — | 215,136 | ||||||
| Settlement of litigation | — | 2,750 | ||||||
| Total operating expenses | 408,410 | 622,550 | ||||||
| INCOME (LOSS) FROM OPERATIONS | 61,056 | (218,391 | ) | |||||
| Interest income | 602 | 235 | ||||||
| Interest expense (1) | (16,896 | ) | (13,850 | ) | ||||
| Loss on extinguishment of debt | (608 | ) | (2,790 | ) | ||||
| Equity method investment (loss) | (450 | ) | (746 | ) | ||||
| NET INCOME (LOSS) BEFORE INCOME TAXES | 43,704 | (235,542 | ) | |||||
| INCOME TAX EXPENSE (BENEFIT): | ||||||||
| Current | — | (169 | ) | |||||
| Deferred | 1,833 | (9,235 | ) | |||||
| Total income tax expense (benefit) | 1,833 | (9,404 | ) | |||||
| NET INCOME (LOSS) | $ | 41,871 | $ | (226,138 | ) | |||
| NET INCOME (LOSS) PER SHARE: | ||||||||
| Basic | $ | 0.98 | $ | (5.72 | ) | |||
| Diluted | $ | 0.96 | $ | (5.72 | ) | |||
| WEIGHTED AVERAGE SHARES OUTSTANDING | ||||||||
| Basic | 42,932 | 39,504 | ||||||
| Diluted | 43,432 | 39,504 | ||||||
| (1) Interest Expense: | ||||||||
| Interest on bank debt | $ | 5,806 | $ | 9,286 | ||||
| Other interest | 9,097 | 2,817 | ||||||
| Amortization of debt issuance costs | 1,993 | 1,747 | ||||||
| Total interest expense | $ | 16,896 | $ | 13,850 | ||||
| Hallador Energy Company | ||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||
| (in thousands) | ||||||||
| 2025 | 2024 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net income (loss) | $ | 41,871 | $ | (226,138 | ) | |||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
| Deferred income tax (benefit) | 1,833 | (9,235 | ) | |||||
| Equity method investment loss | 450 | 746 | ||||||
| Depreciation, depletion and amortization | 41,222 | 65,626 | ||||||
| Asset impairment | — | 215,136 | ||||||
| Loss on extinguishment of debt | 608 | 2,790 | ||||||
| (Gain) loss on disposal or abandonment of assets, net | (2,489 | ) | (50 | ) | ||||
| Amortization of debt issuance costs | 1,993 | 1,747 | ||||||
| Asset retirement obligations accretion | 1,764 | 1,628 | ||||||
| Cash paid on asset retirement obligation reclamation | (727 | ) | (1,407 | ) | ||||
| Stock-based compensation | 3,529 | 4,454 | ||||||
| Accretion on contract liabilities | 8,408 | 1,170 | ||||||
| Amortization of contract liabilities | (99,683 | ) | (70,203 | ) | ||||
| Director fees paid in stock | 192 | 150 | ||||||
| Change in current assets and liabilities: | ||||||||
| Accounts receivable | 1,449 | 4,499 | ||||||
| Inventory | (5,849 | ) | (13,610 | ) | ||||
| Parts and supplies | (6,750 | ) | (227 | ) | ||||
| Prepaid expenses | 1,910 | 784 | ||||||
| Accounts payable and accrued liabilities | (2,154 | ) | (14,580 | ) | ||||
| Contract liabilities | 93,613 | 102,011 | ||||||
| Other | (56 | ) | 643 | |||||
| Net cash provided by operating activities | $ | 81,134 | $ | 65,934 | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Capital expenditures | $ | (69,215 | ) | $ | (53,367 | ) | ||
| Proceeds from sale of equipment | 3,158 | 4,239 | ||||||
| Proceeds from held-for-sale assets | — | 3,200 | ||||||
| Investment in equity method investments | (490 | ) | (542 | ) | ||||
| Net cash used in investing activities | $ | (66,547 | ) | $ | (46,470 | ) | ||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Payments on bank debt | $ | (106,000 | ) | $ | (147,000 | ) | ||
| Borrowings of bank debt | 92,000 | 99,500 | ||||||
| Payments on lease financing | (6,994 | ) | (5,633 | ) | ||||
| Proceeds from sale and leaseback arrangement | — | 5,134 | ||||||
| Issuance of related party notes payable | — | 5,000 | ||||||
| Payments on related party notes payable | — | (5,000 | ) | |||||
| Debt issuance costs | (330 | ) | (673 | ) | ||||
| ATM offering | 13,510 | 34,515 | ||||||
| Taxes paid on vesting of RSUs | (3,554 | ) | (277 | ) | ||||
| Net cash used in financing activities | $ | (11,368 | ) | $ | (14,434 | ) | ||
| Increase in cash, cash equivalents, and restricted cash | 3,219 | 5,030 | ||||||
| Cash, cash equivalents, and restricted cash, beginning of year | 12,153 | 7,123 | ||||||
| Cash, cash equivalents, and restricted cash, end of year | $ | 15,372 | $ | 12,153 | ||||
| CASH, CASH EQUIVALENTS, AND RESTRICTED CASH: | ||||||||
| Cash and cash equivalents | $ | 10,070 | $ | 7,232 | ||||
| Restricted cash | 5,302 | 4,921 | ||||||
| $ | 15,372 | $ | 12,153 | |||||
| SUPPLEMENTAL CASH FLOW DISCLOSURES: | ||||||||
| Cash paid for interest | $ | 6,705 | $ | 10,511 | ||||
| Non-cash change in capital expenditures related to accounts payable and prepaid expenses | $ | 7,232 | $ | 356 | ||||
| Stock issued on redemption of convertible notes and interest | $ | — | $ | 22,993 | ||||
