NACCO Industries, Inc.

Thank you for standing by. My name is Tina and I will be your conference operator today. At this time, I would like to welcome everyone to the Global Indemnity Group second quarter 2025 earnings call. I'm sorry, NACO industry second quarter 2025 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. It is now my pleasure to turn the call over to Christina Kempko, Investor Relations. Please go ahead.

Good morning, everyone, and thank you for joining us on today's second quarter of 2025 earnings call. I'm Christina Kometko, and I oversee investor relations here at NACO. I'm joined by our president and CEO, J.C. Butler, and our senior vice president and controller, Elizabeth Lovman. Yesterday evening, we released our second quarter results and filed our 10-Q with the SEC. Both are available on the website if you haven't had a chance to review them. Before we dive in, let me remind you that today's discussion will include forward-looking statements. As always, actual outcomes could differ materially due to various risks and uncertainties, which are outlined in our earnings release, 10Q, and other filings. We don't plan to update these statements until our next call. We'll also be referencing some non-GAAP metrics to give you a clearer picture of how we think about our businesses. Reconciliations to GAAP can be found in the materials we posted online. We mentioned in our earnings release during the quarter we changed our reportable segment names to make it easier for our stakeholders to associate the business activities with each segment. Coal mining was renamed utility coal mining. North American mining is now referred to as contract mining. And minerals management was renamed minerals and royalties. The composition and historical reporting of each segment remained the same. With the housekeeping out of the way, I'll hand things over to JC for his opening comments. JC.

Thank you, Christy, and good morning, everyone. I want to open today by giving you a sense of how we see our business developing, where our momentum is most visible, and how we're navigating what we believe are temporary challenges. The operational challenges we mentioned occurred primarily at our utility coal mining and contract mining segments. These temporary disruptions affected our second quarter results, but my confidence in our business remains strong. We're also comparing these results against a particularly strong prior year quarter, where earnings a year ago were boosted by a sizable gain on the sale of legacy land. We experienced strong revenue growth, specifically in the utility coal mining segment, but it wasn't enough to overcome operational disruptions in the utility coal and contract mining segments, as well as higher unallocated costs. Within the utility coal mining segment, challenges at Mississippi Lignite Mining Company primarily drove the lower segment results. MLMC's customer has and continues to experience inefficiencies at its power plant. This in turn affects our ability to efficiently mine coal. Our team continues to respond to these unfavorable conditions with agility, but the operating inefficiencies tied to the power plant and lower pricing did weigh on our results. Disruptions at the contract mining segment due to temporary mechanical issues at certain quarries resulted in fewer trends delivered and higher operating costs. That said, parts sales helped offset some of this, and we expect stronger results in the back half of the year as benefits from additional part sales and several new and extended contracts kick in. The second new M-TECH drag line was commissioned early in the third quarter in an existing customer quarry, joining one commissioned at the end of the first quarter at a different quarry. These new M-TECH drag lines are great additions to the fleet. Their design simplifies maintenance, which allows increased uptime and greater efficiency. Amid these temporary bumps, our underlying growth drivers are performing well. Within contract mining, Saw Truth Mining is continuing to provide support for the Thacker Press project in Nevada, which is now under construction. This operation generates stable income today and is expected to provide enhanced income and lasting cash flow as the project transitions to full-scale lithium production in late 2027. We are now providing contract mining services for several of the top 10 US producers of aggregates and our expanding pipeline of potential new deals is strong. We believe that our continued engagement with current and potential customers positions North American mining and the contract mining segment is a key pillar for future growth. Turning to our minerals and royalties segment, In July, Catapult completed a $4.2 million strategic acquisition that expanded our minerals interest within the Midland Basin. This deal included 10,500 gross acres and approximately 400 net royalty acres and includes a mix of producing wells as well as additional upside opportunities through future development with existing operators in the area. Switching gears, We're also seeing growth at mitigation resources. We had expected mitigation resources to achieve full year profitability in 2025. However, temporary delays in federal permitting have pushed out that expectation. Mitigation resources is now expected to achieve full year profitability in 2026 and move toward more consistent results over time. The pace of growth at mitigation resources is building as this key team continues to secure new projects, which build on results from projects that are currently underway. Despite the current quarter challenges, we're well positioned to achieve meaningful growth going forward. Our fundamental business model is built on a strong collection of long-term contracts and investments that produce relatively strong and steady earnings and cash flows over time. Each year, we add to this business model by securing more long-term projects and making investments that will contribute to future results, creating a compounding effect. Many of these opportunities are built on a fee-for-service model where we have little or no capital exposure, while others might require us to invest capital up front. Regardless of the model, very few of our businesses require significant amounts of maintenance capex. Our goal is to keep adding layers that will provide something approaching annuity like returns and cash generation over time. All of this is underpinned by a business model purposefully built for durability and compounding growth. We've been pursuing this approach for 10 years and it's really gaining momentum. This is why I remain confident in our ability to deliver what we believe will be improving results in the second half of the year and continuing into future years. Before wrapping up my comments, I'd like to note that I believe our new segment names do a much better job of describing what we do in each of our businesses. We made this change as part of a larger effort to enhance our communications with shareholders and others who might be interested in our company. With that, I'll turn the call over to Liz for a closer look at the financials. Liz?