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Shares of Natural Resource Partners L.P. NRP have declined 6.1% since reporting results for the first quarter of 2025. This compares unfavorably with the S&P 500 index’s 4.2% growth in the same period. Over the past month, NRP shares have dropped 9.2%, underperforming the S&P 500’s 11.5% rally.
Revenue & Earnings Slide on Commodity Weakness
NRP reported first-quarter 2025 net income of $40.3 million and a free cash flow of $35.1 million, both representing steep year-over-year declines. Net income fell 28.4% from $56.2 million a year earlier, whereas the free cash flow plunged more than 51% from $72.1 million.
The company’s revenues dropped 20.9% to $60.5 million from $76.4 million in the prior-year period, primarily led by lower coal and soda ash pricing. Earnings per common unit came in at $3.01 (basic), down from $4.13 in the year-ago quarter.
Natural Resource Partners LP Price, Consensus and EPS Surprise
Natural Resource Partners LP price-consensus-eps-surprise-chart | Natural Resource Partners LP Quote
Segment Performance & Key Metrics
Mineral Rights Under Pressure
NRP’s Mineral Rights segment generated $45.2 million in net income in the quarter, reflecting a $15.4-million (25.4%) drop from $60.6 million a year earlier. Segment free cash flow fell $26.5 million from $70.4 million to $43.9 million. The combined average coal royalty revenue per ton was $4.36, representing a 28.8% decrease from $6.12 per ton in the prior-year period. Coal royalty revenues declined 24.3% year over year to $35.5 million, with a sharp drop in Central Appalachia volumes and pricing contributing to the decline.
Soda Ash Struggles Continue
The Soda Ash segment also faced headwinds. NRP’s 49% equity interest in Sisecam Wyoming generated $4.6 million in equity earnings, down 15.4% from $5.5 million a year earlier. Distributions received were $3 million, representing an 80% year-over-year decrease. This led to an $11.3-million decline in the segment free cash flow to $2.9 million from $14.1 million. Management attributed the weakness to an unfavorable shift in the international sales mix and a global oversupply environment.
Management Commentary
Executives acknowledged the sustained pressure on key commodity prices, citing weak demand for steel and elevated coal inventories as persistent headwinds. CFO Chris Zolas emphasized that the operating cash flow and the free cash flow were affected by lower metallurgical coal pricing and volumes. Despite these setbacks, management remained optimistic about NRP’s underlying financial health. President and COO Craig Nunez noted that the company’s capital structure remains solid and projected higher distributions once debt is fully repaid in 2026.