Shares of Warrior Met Coal LLC (HCC) plunged 5.05% in Thursday's trading session following the release of the company's disappointing first-quarter 2025 earnings results and cautious outlook.

The metallurgical coal producer reported a net loss of $8 million, or $0.16 per diluted share, for Q1 2025, compared to a net income of $137 million, or $2.62 per share, in the same quarter last year. The company's adjusted EBITDA also saw a significant decline, coming in at $40 million versus $200 million in Q1 2024.

The weak performance was primarily attributed to a 42% year-over-year drop in realized average net selling prices of metallurgical coal. Warrior Met Coal's CEO, Walter Scheller, noted that weak market conditions persisted through the first quarter as expected, with average premium low-volume index prices dropping by 40% compared to the previous year. The company anticipates these challenging market conditions could continue for a prolonged period, potentially putting further downward pressure on steel-making coal prices.

Despite the bleak near-term outlook, Warrior Met Coal highlighted some positive developments, including progress on its Blue Creek growth project, which remains on budget and on schedule. The company also emphasized its efforts to manage costs tightly and maintain operational efficiency in the face of market headwinds. However, these factors were not enough to offset investor concerns about the company's current financial performance and the uncertain market environment, leading to the significant stock price decline.