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Retirement Benefit Plans
 12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
Retirement Benefit Plans Retirement Benefit Plans
Defined Benefit Plans: During 2025, we terminated the Combined Plan and settled all future obligations by transferring the remaining benefit obligations to a third-party insurance company. The $8.3 million in excess funds from the Combined Plan will be utilized by the NACCO 401(k) plan, which is a qualified replacement plan. These funds will be used for future profit sharing contributions to eligible 401(k) plan participants. The current portion of $5.2 million is recorded on the line Prepaid profit sharing and the long-term portion of $3.1 million is recorded on the line Other non-current assets on the Consolidated Balance Sheets as of December 31, 2025. Although the Combined Plan was over funded, we recognized a non-cash pension settlement charge of $7.8 million on the Pension settlement charge line within the Consolidated Statements of Operations. The $7.8 million settlement charge accelerated the recognition of the net loss recorded in Accumulated other comprehensive loss that would have otherwise been recognized in subsequent periods.

As of December 31, 2025, we continue to maintain a Supplemental Retirement Benefit Plan (SERP) that provides benefits based on years of service and average compensation during certain periods. In a previous period, the SERP was amended to freeze all pension benefits. The SERP pays monthly benefits to participants directly out of corporate funds.

The assumptions used in accounting for the defined benefit plans were as follows for the years ended December 31:
 20252024
Weighted average discount rates for pension benefit obligation
4.87%
5.39% - 5.49%
Weighted average discount rates for net periodic benefit cost
5.39%
5.02% - 5.04%
Expected long-term rate of return on assets for net periodic benefit costN/A5.00%
Set forth below is detail of the net periodic pension expense for the defined benefit plans for the years ended December 31:
 20252024
Interest cost$1,189 $1,360 
Expected return on plan assets(1,107)(1,641)
Amortization of actuarial loss355 270 
Amortization of prior service cost58 58 
     Settlements7,804 — 
Net periodic pension expense
$8,299 $47 
Set forth below is detail of other changes in plan assets and benefit obligations recognized in other comprehensive (income) loss for the years ended December 31:
 20252024
Current year actuarial (gain) loss
$(2,604)$960 
Amortization of actuarial loss(355)(270)
Amortization of prior service cost(58)(58)
     Settlements(7,804)— 
Total recognized in other comprehensive (income) loss
$(10,821)$632 
The following table sets forth the changes in the benefit obligation and the plan assets during the year and the funded status of the defined benefit plans at December 31:
 20252024
Change in benefit obligation  
Projected benefit obligation at beginning of year$26,680 $28,357 
Interest cost1,189 1,360 
Actuarial gain
(1,645)(427)
Benefits paid(2,519)(2,610)
Settlements(19,936)— 
Projected benefit obligation at end of year$3,769 $26,680 
Accumulated benefit obligation at end of year$3,769 $26,680 
Change in plan assets 
Fair value of plan assets at beginning of year$28,251 $30,128 
Actual return on plan assets2,066 258 
Employer contributions456 475 
Benefits paid(2,519)(2,610)
Settlements(19,936)— 
Plan asset transfer to qualified replacement plan
(8,318)— 
Fair value of plan assets at end of year
$— $28,251 
Funded status at end of year$(3,769)$1,571 
Amounts recognized in the balance sheets consist of: 
Non-current assets$— $5,624 
Current liabilities(510)(515)
Non-current liabilities(3,259)(3,538)
 $(3,769)$1,571 
Components of accumulated other comprehensive loss consist of:
Actuarial loss$1,307 $12,072 
Prior service cost470 528 
Deferred taxes(409)(2,869)
 $1,368 $9,731 
Future SERP payments are expected to be $0.5 million per year through 2027, $0.4 million in 2028 through 2030 and $1.5 million in the five years thereafter.
Postretirement Health Care: We maintain health care plans which provide benefits to grandfathered eligible retired employees. All of our health care plans have a cap on our share of the costs. The health care plans have network provided benefits which result in cost savings for us. These plans have no assets. Plan benefits are funded at the time they are due to participants.
The assumptions used in accounting for the postretirement health care plans are set forth below for the years ended December 31:
 20252024
Weighted average discount rates for benefit obligation4.63 %5.26 %
Weighted average discount rates for net periodic benefit cost5.26 %4.98 %
Health care cost trend rate assumed for next year
6.50% - 7.50%
6.50%
Rate to which the cost trend rate is assumed to decline (ultimate trend rate)
4.75%
4.75%
Year that the rate reaches the ultimate trend rate
2033 - 2037
2033
Set forth below is detail of the net periodic benefit expense for the postretirement health care plans for the years ended December 31:
 20252024
Service cost$8 $8 
Interest cost70 75 
Amortization of actuarial loss92 75 
Amortization of prior service credit— (6)
Net periodic benefit expense$170 $152 
Set forth below is detail of other changes in benefit obligations recognized in other comprehensive loss (income) for the years ended December 31:
 20252024
Current year actuarial loss (gain)
$159 $(49)
Amortization of actuarial loss(92)(75)
Amortization of prior service credit— 6 
Total recognized in other comprehensive loss (income)
$67 $(118)
The following sets forth the changes in benefit obligations during the year and the funded status of the postretirement health care plans at December 31:
 20252024
Change in benefit obligation  
Benefit obligation at beginning of year$1,418 $1,579 
Service cost8 8 
Interest cost70 75 
Actuarial loss (gain)
159 (49)
Benefits paid(159)(195)
Benefit obligation at end of year$1,496 $1,418 
Amounts recognized in the balance sheets consist of: 
Current liabilities$(197)$(169)
Noncurrent liabilities(1,299)(1,249)
 $(1,496)$(1,418)
Components of accumulated other comprehensive loss consist of: 
Actuarial loss$483 $416 
Deferred taxes(110)(95)
 $373 $321 
Future postretirement health care benefit payments are expected to be approximately $0.2 million per year through 2030 and $0.6 million in the five years thereafter.
Defined Contribution Plans: We maintain a defined contribution (401(k)) plan for substantially all employees and provide employer matching contributions based on plan provisions. The plan also provides for a minimum employer contribution. Our matching contributions for these plans were $3.9 million and $3.6 million in 2025 and 2024, respectively.