Operating margins have compressed significantly to 4.2% in 2026Q1 from a 24.6% peak in 2024Q1, reflecting the partnership's inability to effectively absorb overhead costs amid a 4.5% year-over-year revenue decline.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 |
|---|
| Sales/Revenue | 2.17B | 2.19B | 2.45B | 2.57B | 2.42B | 1.57B | 1.33B | 1.96B | 2B | 1.8B | 1.93B | 2.27B | 2.3B | 2.21B | 2.03B | 1.84B | 1.61B | 1.23B | 1.16B | 1.03B | 967.56M | 838.72M | 653.29M | 542.75M | 517.74M | 446.3M | 363.47M | 346.83M | 403.3M |
| Revenue Growth % | -7.15% | -10.37% | -4.6% | 6.06% | 54.14% | 18.21% | -32.3% | -2.05% | 11.5% | -7% | -15.05% | -1.17% | 4.31% | 8.42% | 10.35% | 14.5% | 30.79% | 6.44% | 11.92% | 6.8% | 15.36% | 28.38% | 20.37% | 4.83% | 16.01% | 22.79% | 4.8% | -14% | - |
| Cost of Goods Sold | 1.65B | 1.73B | 1.94B | 1.82B | 1.68B | 1.28B | 1.19B | 1.61B | 1.6B | 1.4B | 1.49B | 1.74B | 1.68B | 1.7B | 1.58B | 1.38B | 1.21B | 968.31M | 975.66M | 85.31M | 753.34M | 631.31M | 529.87M | 396.9M | 398.84M | 326.07M | 287.75M | 242.01M | 370.2M |
| COGS % of Revenue | - | 78.66% | 79.28% | 70.72% | 69.37% | 81.57% | 89.91% | 82.28% | 79.98% | 78.08% | 77.3% | 76.73% | 73.19% | 77% | 77.77% | 74.76% | 75% | 78.66% | 84.36% | 8.26% | 77.86% | 75.27% | 81.11% | 73.13% | 77.03% | 73.06% | 79.17% | 69.78% | 91.79% |
| Gross Profit | 519.62M | 468.42M | 507.48M | 751.49M | 741.2M | 289.36M | 133.96M | 347.69M | 401.07M | 393.68M | 438.47M | 529.04M | 616.76M | 507.21M | 452.25M | 465.26M | 402.59M | 262.72M | 180.89M | 948.02M | 214.22M | 207.41M | 123.42M | 145.85M | 118.9M | 120.23M | 75.72M | 104.82M | 33.1M |
| Gross Margin % | 23.94% | 21.34% | 20.72% | 29.28% | 30.63% | 18.43% | 10.09% | 17.72% | 20.02% | 21.92% | 22.7% | 23.27% | 26.81% | 23% | 22.23% | 25.24% | 25% | 21.34% | 15.64% | 91.74% | 22.14% | 24.73% | 18.89% | 26.87% | 22.97% | 26.94% | 20.83% | 30.22% | 8.21% |
| Gross Profit Growth % | - | -7.7% | -32.47% | 1.39% | 156.15% | 116.01% | -61.47% | -13.31% | 1.88% | -10.21% | -17.12% | -14.22% | 21.6% | 12.15% | -2.8% | 15.57% | 53.24% | 45.24% | -80.92% | 342.55% | 3.28% | 68.05% | -15.38% | 22.67% | -1.11% | 58.79% | -27.76% | 216.67% | - |
| Operating Expenses | 206.73M | 83.12M | 82.22M | 79.1M | 80.42M | 70.16M | 59.81M | 73M | 68.3M | 61.76M | 72.53M | 67.48M | 72.55M | 63.7M | 58.74M | 52.33M | 50.82M | 41.12M | 37.18M | 779.22M | 30.88M | 33.48M | 45.4M | 96.75M | 82.96M | 111.82M | 70.88M | 79.03M | 20.5M |
| OpEx % of Revenue | - | 3.79% | 3.36% | 3.08% | 3.32% | 4.47% | 4.5% | 3.72% | 3.41% | 3.44% | 3.76% | 2.97% | 3.15% | 2.89% | 2.89% | 2.84% | 3.16% | 3.34% | 3.21% | 75.41% | 3.19% | 3.99% | 6.95% | 17.83% | 16.02% | 25.06% | 19.5% | 22.79% | 5.08% |
| Selling, General & Admin | 20.85B | 83.12B | 82.22M | 79.1M | 80.42M | 70.16M | 59.81M | 73M | 68.3M | 61.76M | 72.53M | 67.48M | 72.55M | 63.7M | 58.74M | 52.33M | 50.82M | 41.12M | 37.18M | 34.48M | 30.88M | 33.48M | 45.4M | 28.27M | 19.41M | 49.57M | 15.18M | 15.16M | 15.3M |
| SG&A % of Revenue | - | 3787.07% | 3.36% | 3.08% | 3.32% | 4.47% | 4.5% | 3.72% | 3.41% | 3.44% | 3.76% | 2.97% | 3.15% | 2.89% | 2.89% | 2.84% | 3.16% | 3.34% | 3.21% | 3.34% | 3.19% | 3.99% | 6.95% | 5.21% | 3.75% | 11.11% | 4.18% | 4.37% | 3.79% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | -83.04B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 744.74M | 0 | 0 | 0 | 68.48M | 63.56M | 62.26M | 55.7M | 63.87M | 5.2M |
| Operating Income | 312.89M | 385.3M | 425.26M | 672.4M | 660.78M | 219.2M | 74.15M | 274.69M | 332.77M | 331.92M | 365.94M | 461.56M | 544.21M | 443.52M | 393.51M | 412.92M | 351.77M | 221.61M | 143.71M | 168.8M | 183.34M | 173.93M | 78.02M | 49.1M | 35.94M | 8.41M | 14.3M | 25.79M | 12.6M |
| Operating Margin % | 14.42% | 17.56% | 17.37% | 26.2% | 27.31% | 13.96% | 5.58% | 14% | 16.61% | 18.48% | 18.95% | 20.3% | 23.65% | 20.11% | 19.34% | 22.4% | 21.85% | 18% | 12.43% | 16.34% | 18.95% | 20.74% | 11.94% | 9.05% | 6.94% | 1.88% | 3.94% | 7.44% | 3.12% |
| Operating Income Growth % | - | -9.4% | -36.75% | 1.76% | 201.45% | 195.62% | -73.01% | -17.45% | 0.25% | -9.3% | -20.72% | -15.19% | 22.7% | 12.71% | -4.7% | 17.38% | 58.74% | 54.2% | -14.87% | -7.93% | 5.41% | 122.91% | 58.89% | 36.65% | 327.35% | -41.22% | -44.53% | 104.68% | - |
| EBITDA | 626.03M | 684.74M | 710.71M | 940.38M | 937.45M | 484.27M | 391.57M | 587.85M | 613M | 600.9M | 688.45M | 795.27M | 818.77M | 708.43M | 611.63M | 573.26M | 498.65M | 339.13M | 248.99M | 254.11M | 249.82M | 229.56M | 131.69M | 101.6M | 83.15M | 53.86M | 53.45M | 65.49M | 52.4M |
| EBITDA Margin % | 28.84% | 31.2% | 29.02% | 36.64% | 38.74% | 30.85% | 29.48% | 29.97% | 30.61% | 33.45% | 35.64% | 34.98% | 35.59% | 32.12% | 30.07% | 31.1% | 30.97% | 27.55% | 21.53% | 24.59% | 25.82% | 27.37% | 20.16% | 18.72% | 16.06% | 12.07% | 14.7% | 18.88% | 12.99% |
| EBITDA Growth % | 1.52% | -3.65% | -24.42% | 0.31% | 93.58% | 23.67% | -33.39% | -4.1% | 2.01% | -12.72% | -13.43% | -2.87% | 15.58% | 15.83% | 6.69% | 14.96% | 47.04% | 36.2% | -2.02% | 1.72% | 8.83% | 74.32% | 29.61% | 22.18% | 54.39% | 0.77% | -18.39% | 24.99% | - |
| D&A (Non-Cash Add-back) | 313.14M | 299.44M | 285.45M | 267.98M | 276.67M | 265.06M | 317.42M | 313.16M | 280.23M | 268.98M | 322.51M | 333.71M | 274.57M | 264.91M | 218.12M | 160.34M | 146.88M | 117.52M | 105.28M | 85.31M | 66.49M | 55.64M | 53.66M | 52.49M | 47.22M | 45.45M | 39.14M | 39.7M | 39.8M |
| EBIT | 309.44M | 375.75M | 416.72M | 680.54M | 679.47M | 218.4M | -83.4M | 452.59M | 407.71M | 343.8M | 370.22M | 337.35M | 530.8M | 421.93M | 363.17M | 410.88M | 352.82M | 223.9M | 156.26M | 183.38M | 187.27M | 177.88M | 95.08M | 49.1M | 33.15M | 7M | 4.84M | 6.4M | 12.6M |
| Net Interest Income | -40.84M | -36.98M | -28.01M | -26.7M | -35.3M | -39.14M | -45.48M | -45.5M | -40.06M | -39.29M | -30.66M | -29.69M | -31.91M | -26.08M | -28.45M | -21.58M | -29.86M | -29.8M | -18.42M | -9.95M | -9.18M | -11.82M | -14.96M | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 2.2M | 2.75M | 7.22M | 9.39M | 2.04M | 88K | 135K | 379K | 159K | 94K | 10K | 1.46M | 1.67M | 962K | 229K | 375K | 200K | 1.05M | 3.73M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 43.05M | 39.73M | 35.23M | 36.09M | 37.33M | 39.23M | 45.61M | 45.88M | 40.22M | 39.38M | 30.67M | 31.15M | 33.58M | 27.04M | 28.68M | 21.95M | 30.06M | 30.85M | 22.14M | 11.66M | 12.18M | 15.18M | 15.81M | 0 | 0 | 17.1M | 1.28M | 0 | 0 |
| Other Income/Expense | -43.18M | -49.29M | -43.77M | -27.95M | -18.64M | -35.42M | -203.17M | 132.03M | 34.72M | -27.51M | -26.39M | -155.37M | -46.99M | -48.63M | -59.02M | -24M | -29.01M | -28.55M | -9.59M | 2.92M | -8.24M | -11.23M | 1.24M | 1.37M | -2.25M | -639K | 0 | 1.2M | -100K |
| Pretax Income | 269.7M | 336.01M | 381.49M | 644.45M | 642.14M | 183.79M | -129.02M | 406.71M | 367.49M | 304.41M | 339.55M | 306.19M | 497.21M | 394.89M | 334.49M | 388.92M | 322.76M | 193.06M | 134.12M | 171.73M | 175.1M | 162.69M | 79.26M | 50.48M | 36.46M | 17.1M | 14.3M | 20.98M | 12.5M |
| Pretax Margin % | 12.43% | 15.31% | 15.58% | 25.11% | 26.53% | 11.71% | -9.71% | 20.73% | 18.35% | 16.95% | 17.58% | 13.47% | 21.61% | 17.9% | 16.44% | 21.1% | 20.05% | 15.68% | 11.6% | 16.62% | 18.1% | 19.4% | 12.13% | 9.3% | 7.04% | 3.83% | 3.94% | 6.05% | 3.1% |
| Income Tax | 17.27M | 18.77M | 15.94M | 8.28M | 53.98M | 417K | 35K | -211K | 22K | 210K | 13K | 21K | -16K | 1.4M | -1.08M | -431K | 1.74M | 708K | -480K | 1.67M | 2.44M | 2.68M | 2.64M | 2.58M | 175K | -17.1M | -1.28M | 4.5M | 3.8M |
| Effective Tax Rate % | 6.4% | 5.58% | 4.18% | 1.28% | 8.41% | 0.23% | -0.03% | -0.05% | 0.01% | 0.07% | 0% | 0.01% | -0% | 0.35% | -0.32% | -0.11% | 0.54% | 0.37% | -0.36% | 0.97% | 1.4% | 1.65% | 3.33% | 5.11% | 0.48% | -100% | -8.92% | 21.44% | 30.4% |
| Net Income | 246.27M | 311.16M | 360.86M | 630.12M | 586.2M | 182.77M | -129.05M | 399.41M | 366.6M | 303.64M | 251.81M | 156.37M | 353.33M | 268.43M | 225.72M | 389.35M | 247.84M | 192.16M | 134.18M | 170.39M | 172.93M | 160.01M | 76.62M | 47.9M | 34.78M | 16.55M | 15.58M | 16.48M | 8.7M |
| Net Margin % | 11.35% | 14.18% | 14.74% | 24.55% | 24.22% | 11.64% | -9.72% | 20.36% | 18.3% | 16.9% | 13.04% | 6.88% | 15.36% | 12.17% | 11.1% | 21.12% | 15.39% | 15.61% | 11.6% | 16.49% | 17.87% | 19.08% | 11.73% | 8.83% | 6.72% | 3.71% | 4.29% | 4.75% | 2.16% |
| Net Income Growth % | -11.02% | -13.77% | -42.73% | 7.49% | 220.73% | 241.63% | -132.31% | 8.95% | 20.74% | 20.58% | 61.04% | -55.74% | 31.63% | 18.92% | -42.03% | 57.1% | 28.98% | 43.21% | -21.25% | -1.47% | 8.07% | 108.83% | 59.95% | 37.71% | 110.24% | 6.19% | -5.44% | 89.39% | - |
| Net Income (Continuing) | 252.44M | 317.25M | 365.56M | 636.17M | 588.16M | 183.37M | -129.05M | 406.93M | 367.47M | 304.2M | 339.54M | 306.17M | 497.21M | 393.49M | 335.57M | 389.35M | 321.02M | 192.35M | 134.6M | 170.39M | 172.81M | 160.01M | 76.62M | 47.9M | 34.78M | 8.61M | 15.58M | 7.6M | 8.7M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 17.44M | 17.62M | 20.79M | 24.09M | 93.06M | 11.12M | 11.38M | 11.94M | 5.29M | 5.35M | 5.55M | 2.58M | 465K | 0 | 0 | -279.11M | -287.37M | -292.04M | -294.91M | -290.16M | -292.73M | -298.27M | -303.3M | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.92 | 2.42 | 2.77 | 4.81 | 4.39 | 1.36 | -1.01 | 3.07 | 2.80 | 2.80 | 3.39 | 2.11 | 4.77 | 3.63 | 3.06 | 5.29 | 4.37 | 2.62 | 1.82 | 2.32 | 2.35 | 2.16 | 1.04 | 0.65 | 0.56 | 0.13 | 0.12 | 0.27 | 0.14 |
| EPS Growth % | -10.33% | -12.64% | -42.41% | 9.57% | 222.79% | 234.65% | -132.9% | 9.64% | 0% | -17.4% | 60.66% | -55.77% | 31.41% | 18.63% | -42.16% | 21.05% | 66.79% | 43.96% | -21.55% | -1.28% | 8.8% | 107.69% | 60% | 16.07% | 330.77% | 8.33% | -55.56% | 92.86% | - |
| EPS (Basic) | - | 2.42 | 2.77 | 4.81 | 4.39 | 1.36 | -1.01 | 3.07 | 2.80 | 2.80 | 3.39 | 2.11 | 4.77 | 3.63 | 3.06 | 5.29 | 4.37 | 2.62 | 1.83 | 2.33 | 2.37 | 2.20 | 1.07 | 0.67 | 0.58 | 0.14 | 0.13 | 0.27 | 0.14 |
| Diluted Shares Outstanding | 128.54M | 128.39M | 127.96M | 127.18M | 127.2M | 127.2M | 127.16M | 128.12M | 130.76M | 98.71M | 74.35M | 74.17M | 74.04M | 73.9M | 73.73M | 73.54M | 73.42M | 73.31M | 73.54M | 73.6M | 73.62M | 73.95M | 73.75M | 73.85M | 63.37M | 125.57M | 125.57M | 61.62M | 61.62M |
| Basic Shares Outstanding | 128.54M | 128.39M | 127.96M | 127.18M | 127.2M | 127.2M | 127.16M | 128.12M | 130.76M | 98.71M | 74.35M | 74.17M | 74.04M | 73.9M | 73.73M | 73.54M | 73.42M | 73.31M | 73.21M | 73.1M | 72.85M | 72.58M | 71.76M | 71.62M | 61.62M | 123.24M | 123.24M | 61.62M | 61.62M |
| Dividend Payout Ratio | - | 108.36% | 100.71% | 57.86% | 33.49% | 28.54% | - | 69.71% | 75.26% | 79.31% | 98.45% | 221.79% | 89.89% | 107.45% | 114.27% | 55.95% | 75.19% | 86.98% | 101.31% | 65.33% | 52.51% | 40.44% | 60.54% | - | - | - | 201.78% | 21.94% | - |
Structural coal demand decline
According to the latest financial disclosures, ARLP has experienced a consistent decline in top-line performance, with revenue growth rates remaining negative for ten consecutive quarters, culminating in a 4.5% year-over-year contraction in 2026Q1 as domestic utility demand for thermal coal continues to soften.
The persistent negative growth trajectory suggests that the partnership is struggling to offset the secular decline in coal-fired power generation through its existing contract base. Investors should monitor whether the current revenue erosion reflects a permanent loss of market share or merely a cyclical adjustment to inventory levels at key utility customers.
As reported in the quarterly income statements, ARLP's gross margin has exhibited significant volatility, fluctuating from a high of 32.2% in 2026Q1 to a low of 10.9% in 2024Q4, indicating that the partnership's cost structure remains highly sensitive to production volume and realized pricing shifts.
The wide variance in gross margins suggests that the partnership lacks the pricing power to fully insulate its profitability from inflationary pressures on mining inputs. This instability warrants further investigation into whether the recent margin expansion in 2026Q1 is sustainable or if it represents a temporary anomaly driven by accounting timing rather than operational efficiency.
Based on the provided income statement data, ARLP's operating income has failed to scale proportionally with gross profit, as evidenced by the sharp compression in operating margins to 4.2% in 2026Q1, down from the 24.6% peak observed in 2024Q1, signaling a lack of effective overhead absorption.
The inability to maintain operating margins during periods of revenue contraction suggests that the partnership's fixed-cost base is becoming an increasing burden on profitability. This trend may indicate that management is facing difficulty in rightsizing SG&A expenses to match the current, lower-volume operational reality.
Financial filings reveal that ARLP's net income has experienced extreme quarterly fluctuations, with EPS dropping from $1.21 in 2024Q1 to $0.07 in 2026Q1, raising questions about the quality of earnings and the partnership's ability to maintain its historical distribution levels in a declining revenue environment.
Short-sellers would likely focus on the sharp divergence between the partnership's cash-generating potential and its reported net income, which appears heavily influenced by non-cash charges and volatile segment contributions. The significant drop in EPS suggests that the core coal business may be approaching a point where it can no longer support the current capital allocation strategy without further asset divestitures or royalty growth.
Quick answers to the most common questions about buying ARLP stock.
For fiscal year 2025, Alliance Resource Partners, L.P. (ARLP) reported total revenue of $2.19B. This represents a 444.2% increase compared to $403.3M in 1998.
Alliance Resource Partners, L.P. (ARLP) is profitable, generating $311.2M in net income for the fiscal year ending 2025 with a net profit margin of 14.2%.
Alliance Resource Partners, L.P. (ARLP) reported an operating income of $385.3M, resulting in an operating profit margin of 17.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Alliance Resource Partners, L.P. (ARLP) generated $468.4M in gross profit for the year, representing a gross profit margin of 21.3%. This demonstrates the company's core pricing power and production efficiency.