NACCO Swings to Q2 Loss on $12M Solar Impairment; Flags Customer Payment Delays
NC sits 33% above its 52-week low of $35.43.
Summary
NACCO Industries swung to a Q2 loss after a $12M solar impairment and warned of customer payment delays, with full-year profit expected to drop sharply.
Key Events · Earnings and Guidance · NC
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Q2 Net Loss of $0.96M
NACCO reported a Q2 2026 net loss of $0.96 million, or $0.13 per share, compared to net income of $3.26 million, or $0.44 per share, in Q2 2025. Revenue rose 6% to $72.3 million, but a $12 million solar impairment charge and higher operating expenses drove the loss.
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$12M Solar Project Impairment
The company recorded a $12 million non-cash impairment charge on certain solar development projects within its ReGen Resources business, citing changing market conditions, lower expected monetization values, and increased execution risks. Only $4.2 million in capitalized solar assets remain.
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MLMC Customer Payment Delays
MLMC, NACCO's consolidated coal mining subsidiary, disclosed that its customer is delaying payments due to operational issues at the Red Hills Power Plant. As of June 30, 2026, $7.2 million of MLMC's $12.5 million in trade receivables were past due, with no timeline for payment.
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Potential $7M Additional Solar Curtailment Costs
Subsequent to quarter-end, management began evaluating strategic alternatives for the solar projects, including asset sales. If unsuccessful, curtailment costs could reach approximately $7 million, adding to the already recognized impairment.
Analysis · NC · Energy & Transportation
A $12 million impairment on solar development projects pushed NACCO to a Q2 net loss of $0.96 million, reversing a $3.26 million profit a year ago. Adding to the strain, its largest coal mining customer, MLMC, is delaying payments due to operational issues, leaving $7.2 million in receivables past due. Management warned that additional solar curtailment costs could reach $7 million and expects full-year operating profit and net income to fall significantly below 2025 levels. These developments introduce new credit risk and project write-down concerns that materially alter the near-term earnings outlook.
At the time of this filing, NC was trading at $47.21 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $356M. The 52-week trading range was $35.43 to $59.42. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.