With $14 million invested in the stock by hedge funds as of Q1 2026, NACCO Industries, Inc. (NYSE:NC) is among the best coal stocks to invest in. The company’s current growth reflects a management team that appears to be strategically expanding beyond its coal mining roots.
Speaking on the May 6, 2026, earnings call, CEO J.C. Butler described a company executing on multiple growth fronts simultaneously.
NACCO Industries, Inc. (NYSE:NC)’s headline numbers were solid: first quarter operating profit rose 43% year-over-year to $11 million, net income climbed 80% to $8.8 million, or $1.17 per share, and adjusted EBITDA grew 28% to $16.4 million.
However, the more compelling story is where that growth is coming from and where management is pointing next.
Contract Mining has become NACCO Industries, Inc. (NYSE:NC)’s clearest growth platform, leading the company’s sequential growth during the quarter. NACCO commenced work on a multi-year dragline services contract for a U.S. Army Corps of Engineers construction project in Palm Beach County, Florida, during the first quarter, deploying two MTech electric drive draglines with a third to be added later in 2026. A second new contract, a limestone quarry operation in Arizona, is set to begin in the second half of the year.
Butler said he expects a substantial year-over-year increase in both operating profit and segment adjusted EBITDA in the Contract Mining segment.
Meanwhile, Mitigation Resources, a subsidiary of NACCO Industries, Inc. (NYSE:NC), is building toward longer-term profitability.
In mid-April, the company’s subsidiary acquired 958 acres in Wilson County, Tennessee, east of Nashville, with wetland and stream mitigation credits anticipated to be available in 2029. Butler framed the acquisition as an expansion into a region experiencing steady economic growth. NACCO Industries, Inc. (NYSE:NC) also has a contract mining position tied to the Thacker Pass lithium project, with first deliveries expected in late 2027. Butler said the project is progressing on schedule.
NACCO Industries, Inc. (NYSE:NC) had $53.2 million in cash and $49.5 million in revolver availability at March 31, 2026.
NACCO Industries, Inc. (NYSE:NC) is a holding company focused on natural resources, primarily operating surface coal mines under long-term contracts for power generation companies. Through its subsidiaries—notably The North American Coal Corporation—it manages coal mining, provides contract mining services for aggregates, lithium, and other minerals, and manages mineral interests.
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