Daniel Bore's questions to NACCO Industries Inc (NC) leadership • Q2 2025
Question
Daniel Bore from AWCL questioned the company's leverage philosophy following the shift from a net cash to a net debt position. He also sought clarity on the evolution of the parts business within the Contract Mining segment, asking if it was a new model. Additionally, he inquired about the sourcing of draglines for new quarry projects and asked for details on the investment in Eiger, including its business model and capital allocation plans.
Answer
President & CEO J.C. Butler reiterated the company's core philosophy of maintaining a 'bulletproof balance sheet' with low leverage to ensure long-term stability for its partners, stating the goal is to reduce leverage over time. He described the parts business as an 'evolution' of its service model to better support customers with hard-to-find components, functioning as a parts distributor. Butler clarified that draglines for contract mining are sourced independently of the coal business, utilizing a mix of their existing fleet, market sourcing, and new electric draglines from their partner MTech. Regarding Eiger, he described it as a non-operational investment in a company with a complementary model focused on enhancing well productivity, which NACCO views as an attractive long-term investment.