NACCO INDUSTRIES INCNC
NACCO INDUSTRIES INC Debt Disclosure
Current and Long-Term Financing
Financing arrangements are obtained and maintained at the subsidiary level. NACCO has not guaranteed any borrowings of our subsidiaries. The following table summarizes our available and outstanding borrowings:
| December 31 | |||||||||||
| 2025 | 2024 | ||||||||||
| Total outstanding borrowings: | |||||||||||
| Revolving credit agreement | $ | 75,000 | $ | 70,000 | |||||||
| Other debt | 25,895 | 29,514 | |||||||||
| Total debt outstanding | $ | 100,895 | $ | 99,514 | |||||||
| Current portion of borrowings outstanding | $ | 9,080 | $ | 4,179 | |||||||
| Long-term portion of borrowings outstanding | 91,815 | 95,335 | |||||||||
| $ | 100,895 | $ | 99,514 | ||||||||
| Total available borrowings, net of limitations, under revolving credit agreement | $ | 149,462 | $ | 169,102 | |||||||
| Unused revolving credit agreement | $ | 74,462 | $ | 99,102 | |||||||
| Weighted average stated interest rate on total borrowings | 6.1 | % | 6.4 | % | |||||||
Annual maturities of total debt, excluding leases, are as follows:
| 2026 | 9,051 | ||||
| 2027 | 3,685 | ||||
| 2028 | 77,925 | ||||
| 2029 | 1,696 | ||||
| 2030 | 1,154 | ||||
| Thereafter | 7,327 | ||||
| $ | 100,838 | ||||
Interest paid on total debt was $7.0 million and $5.3 million during 2025 and 2024, respectively. Interest capitalized was $1.5 million during 2025.
In September 2024, NACCO Natural Resources amended its secured revolving line of credit (Facility) to increase the revolving credit commitments to $200.0 million and extend the maturity to September 2028. Borrowings outstanding under the Facility were $75.0 million at December 31, 2025. At December 31, 2025, the excess availability under the Facility was $74.5 million, which reflects a reduction for outstanding letters of credit of $50.5 million.
The Facility has performance-based pricing, which sets interest rates based upon NACCO Natural Resources achieving various levels of debt to EBITDA ratios, as defined in the Facility. Borrowings bear interest at a floating rate plus a margin based on the level of debt to EBITDA ratio achieved. The applicable margins, effective December 31, 2025, for base rate and Term Secured Overnight Financing Rate loans were 1.50% and 2.50%, respectively. The Facility has a commitment fee which is based upon achieving various levels of net debt to EBITDA ratios. The commitment fee was 0.40% on the unused commitment at December 31, 2025. During the year ended December 31, 2025 and December 31, 2024, the average borrowing under the Facility was $57.3 million and $27.2 million, respectively, and the weighted-average annual interest rate, including the floating rate margin, was 7.21% and 8.83%, respectively.
The Facility contains restrictive covenants, which require, among other things, NACCO Natural Resources to maintain a maximum net debt to EBITDA ratio of 2.75 to 1.00 and an interest coverage ratio of not less than 4.00 to 1.00. The Facility provides the ability to make loans, dividends and advances to NACCO, with some restrictions based on maintaining a maximum debt to EBITDA ratio of 1.50 to 1.00, or if greater than 1.50 to 1.00, a Fixed Charge Coverage Ratio of 1.10 to 1.00. At December 31, 2025, NACCO Natural Resources was in compliance with all financial covenants in the Facility.
The obligations under the Facility are guaranteed by certain of NACCO Natural Resources' direct and indirect, existing and future domestic subsidiaries, and is secured by certain assets of NACCO Natural Resources and the guarantors, subject to customary exceptions and limitations.
We have a demand note payable to Coteau, one of the unconsolidated subsidiaries, which bears interest based on the applicable quarterly federal short-term interest rate as announced from time to time by the IRS. At December 31, 2025 and 2024, the balance of the note was $7.3 million and $7.7 million and the interest rate was 3.75% and 4.15%, respectively.
We have ten notes payable that are secured by twelve specified units of equipment, bear interest at a weighted average rate of 5.48%, and expire at various dates through 2030. One note includes a principal payment of $4.4 million at the end of the term on December 15, 2026. At December 31, 2025 and 2024, the outstanding balances of the notes payable were $18.5 million and $21.8 million, respectively.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 4, 2026 | Showing above |
| 2024 | Mar 5, 2025 | |
| 2023 | Mar 6, 2024 | |
| 2022 | Mar 15, 2023 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.