Hallador Energy Sets Sights on Continued Growth Amid Tightening MISO Market Conditions
In a recent conference call, Hallador Energy's leadership team shared the company's strong financial performance in 2025, with total revenue increasing 16% year-over-year to $469.5 million and net income improving to $41.9 million.
Adjusted EBITDA increased approximately threefold to $56 million, while operating cash flow rose 23% to $81.1 million. These results reflect both improving power market conditions and the operating leverage embedded in Hallador's business model.
The company's electric sales were a primary driver of revenue growth during the year, increasing approximately 19% to $310.7 million compared to 2024. Coal sales also increased 8% year-over-year to $148.7 million as Sunrise Coal continued to support both internal fuel needs at Merom and third-party customers.
Operationally, Hallador's Merom power plant performed well through most of the year, but experienced operational challenges in the fourth quarter that reduced availability. The company now expects consolidated first-quarter 2026 results to be similar to the fourth quarter of 2025.
The generating units in question will receive a major maintenance outage beginning in May, which should significantly improve performance and maintain high levels of reliability. As MISO increasingly depends on dispatchable resources during periods of peak demand, this is particularly important.
Sunrise Coal also delivered consistent performance throughout the year, with production optimization initiatives and disciplined cost management improving performance across the mining complex.
Against a backdrop of strong demand for reliable dispatchable generation across the MISO region, Hallador Energy has made progress towards selling energy and capacity at elevated prices. The company is in a strong, long-accredited capacity position, which appears to be getting better with time.
"We are excited by what we are seeing in the market," said Brent Bilsland, President and CEO of Hallador Energy. "The company is well-positioned to take advantage of tightening supply conditions across the MISO region."
