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 NACO Industries Third Quarter 2025 Earnings Conference 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. To ask a question, press star 1 on your telephone keypad. To withdraw your question, press star 1 again. Thank you. It is now my pleasure to turn it all over to Christy Cometo with Investor Relations.

Please go ahead. Good morning, everyone, and thank you for joining us for today's third quarter 2025 earnings call. I'm Christina Cometo, 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 third quarter results and filed our 10-Q with the SEC. Both are available on our website for your reference. Before we get into the results, 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, 10-Q, and other findings. We undertake no obligation to update these statements. We'll also be referencing certain non-GAAP metrics to give you a clearer picture of how we think about our business. Reconciliations to GAAP can be found in the materials we posted online. Lastly, as a reminder, during the second quarter, we changed the names of our reportable segments. Coal mining was renamed utility coal mining. North American mining is now contract mining. And minerals management was renamed minerals and royalties. Segment composition and historical reporting are unchanged. With the housekeeping comments complete, I'll turn the call over to JC for his opening remarks. JC.

Thanks, Christy, and good morning, everyone. I'm happy to report that our third quarter operating profit of almost $7 million improved sequentially from very disappointing second quarter break-even results. Our Q3 2025 EBITDA increased to $12.5 million, up from $9.3 million in Q2. This sequential increase was driven by improvements in all segments and demonstrates solid progress in growing our businesses and boosting our profitability. I'm pleased we were able to overcome most of last quarter's temporary operational challenges to deliver these solid third quarter results. Our utility coal mining segment is the foundation of our business, anchored by our long-term mining contracts. We continue to have solid demand at our unconsolidated coal mining operations. However, Mississippi Lignite Mining Company's results continue to be impacted by contractual pricing mechanics that are creating a reduced per-ton sales price. The team is working diligently to run the mine as efficiently as possible to meet demand while keeping costs at a minimum, but they cannot outrun the contract mechanics. We anticipate that this contractual pricing anomaly will begin to rectify itself as we move into 2026. In our contract mining segment, which is operated by North American Mining, tons delivered grew 20% year over year and 3% sequentially. Higher customer demand and improved margins at the mining operations led to substantial improvements in both year over year and sequential results. These improved results stem in part from contracts negotiated in recent years and other growth initiatives for this business. Our contract mining segment is our growth platform for mining, and we continue to add long-term contracts to its expanding portfolio. We provide 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 this positions our contract mining segment as a core driver of future growth. Just last week, North American Mining executed a multi-year contract to provide dragline services for an embankment dam construction project in Palm Beach County, Florida, that is expected to be accretive to earnings beginning in Q2 2026. We are excited about this contract as it advances our growth into large-scale infrastructure projects. It also provides an opportunity to showcase the efficiency and environmental advantages of the new electric drive M-TEC drag lines, a key factor in our selection for the project. These new M-TEC drag lines enhance efficiency and uptime for our customers. We're the exclusive dealer for M-TEC drag lines at all but two U.S. states. Turning to our minerals and royalty segment, Catapult completed a $4.2 million strategic acquisition in July, which expands our mineral interests in the Midland Basin. The acquisition includes a mix of producing wells as well as additional upside opportunities through future development with existing operators in that region. The Catapult team continues to look for additional investment growth opportunities that will be accretive to earnings. Mitigation resources A strong reputation and clear competitive strengths are supporting continued expansion into new markets. Although the business continues to be variable in performance due to permit and project timing, it is expected to achieve full-year profitability in 2026 and more consistent results over time as new projects are secured. Overall, I believe we are well positioned for meaningful growth. Our business model is built on long-term contracts and investments, delivering strong earnings and steady cash flows that will help us deliver compounding annuity-like returns over time. We followed this approach over the last decade and momentum continues to build. That's why I'm confident in these businesses and our ability to deliver solid 2025 fourth quarter operating results with continued progress into 2026 and beyond. Our long-term strategy is laid out in our latest investor presentation. A copy of that presentation is on our website, along with a recording from the end of August when we attended an investor conference in Chicago. In this presentation, we explain how we have built a portfolio of strong businesses focused on compounding growth, and we describe our strategies for achieving our long-term target of $150 million of annual EBITDA in the next five to seven years. If you've not seen that presentation, I encourage you to review it after this call. With that, I'll turn the call over to Liz to provide a more detailed view of our financial results and outlook.