Peabody Reports Results for the Quarter Ended March 31, 2026 | BTU Stock News

Thermal Coal Volumes Exceed Expectations on Continued Strong DemandSeaborne Thermal Results Benefit from Rising PricesCenturion Mine Progressing Toward Full Longwall Production, /PRNewswire/ -- Peabody (NYSE: BTU) today reported net income attributable to common stockholders of $(32.4) million, or $(0.27) per diluted share, for the first quarter of 2026, compared to $34.4 million, or $0.27 per diluted share, in the prior-year quarter. Peabody reported Adjusted EBITDA1 of $82.5 million in the first quarter of 2026 compared to $144.0 million in the prior-year quarter."Amid volatility in global energy markets, our thermal segments benefited from strong demand and higher realized pricing," said President and Chief Executive Officer Jim Grech. "While we have extended the Centurion commissioning period, due to temporary equipment and roof control challenges, we continue to advance toward full longwall production rates. Our first quarter results demonstrate the value of our diverse global platform and reflect the durability of coal's role in providing reliable and affordable power."HighlightsGenerated $82.5 million of Adjusted EBITDA in the first quarter, with two segments exceeding volume expectations.Delivered year-over-year higher price realizations across both seaborne coal segments, while achieving higher volumes and lower costs versus expectations from the seaborne thermal operations responding to increased demand from the Middle East conflict.Working through challenging longwall commissioning conditions at Centurion with continued ramp up in the second quarter. See Centurion Update below for additional information.Benefited from continued strength in U.S. thermal markets, with higher volume year-over-year driven by growing electricity demand.Advanced rare earth element and critical mineral development, highlighted by promising germanium concentrations from expanded drilling and sampling. The company also continued to progress technical and economic studies, advanced commercial partnerships, and pursued multiple federal and state funding pathways to support domestic supply chain development.Declared a quarterly dividend of $0.075 per share on May 5, 2026, payable on June 8, 2026 to stockholders of record on May 19, 2026.First Quarter Segment Performance Seaborne ThermalQuarter EndedMar.Dec.Mar.202620252025Tons sold (in millions)3.03.34.4Export1.92.12.9Domestic1.11.21.5Revenue per Ton$ 66.61$ 62.84$ 60.64Export - Avg. Realized Price per Ton86.2581.8079.39Domestic - Avg. Realized Price per Ton32.6225.9224.95Costs per Ton50.2643.4341.37Adjusted EBITDA Margin per Ton$ 16.35$ 19.41$ 19.27Adjusted EBITDA (in millions)$ 48.5$ 63.5$ 84.2Seaborne Thermal delivered Adjusted EBITDA of $48.5 million in the first quarter, driven by 0.2 million export shipments above guidance and higher realized prices. Results benefited from increased Asian coal demand due to higher prices of competing LNG products in March as a result of the Middle East conflict. Costs per ton of $50.26 were below the low end of guidance due to higher production at both Australian thermal mines, resulting in 25 percent Adjusted EBITDA margins.Seaborne MetallurgicalQuarter EndedMar.Dec.Mar.202620252025Tons sold (in millions)2.02.51.8Revenue per Ton$ 138.28$ 122.84$ 125.15Costs per Ton141.72112.94117.66Adjusted EBITDA Margin per Ton$ (3.44)$ 9.90$ 7.49Adjusted EBITDA (in millions)$ (7.0)$ 24.6$ 13.2Seaborne Metallurgical results were lower than expected due to 0.4 million tons lower volume related to the temporary challenges at Centurion and adverse weather conditions at Coppabella, partially offset by completing an accelerated longwall move at Metropolitan. The segment reported Adjusted EBITDA loss of $7.0 million, including approximately $80 million impact from Centurion, while benefitting from 13 percent higher average realized prices compared to the prior quarter.Powder River BasinQuarter EndedMar.Dec.Mar.202620252025Tons sold (in millions)21.222.319.6Revenue per Ton$ 13.65$ 13.44$ 14.02Costs per Ton12.5311.4412.18Adjusted EBITDA Margin per Ton$ 1.12$ 2.00$ 1.84Adjusted EBITDA (in millions)$ 23.7$ 44.8$ 36.3Powder River Basin generated Adjusted EBITDA of $23.7 million in the first quarter, with sales volumes above guidance. Costs per ton of $12.53 were modestly above target, due to sales mix changes and timing of equipment maintenance and repair costs.Other U.S. ThermalQuarter EndedMar.Dec.Mar.202620252025Tons sold (in millions)3.33.73.1Revenue per Ton$ 55.79$ 51.64$ 54.32Costs per Ton44.3746.7743.71Adjusted EBITDA Margin per Ton$ 11.42$ 4.87$ 10.61Adjusted EBITDA (in millions)$ 37.8$ 18.1$ 32.9Other U.S. Thermal delivered Adjusted EBITDA of $37.8 million in the first quarter. Volumes were in line with expectations, while costs per ton of $44.37 came in below company targets, reflecting disciplined cost control and higher production at underground operations. The segment reported 20 percent Adjusted EBITDA margins.-----------Centurion Update During initial longwall commissioning, electrical and mechanical issues, now resolved, constrained cutting speeds which contributed to temporary challenges to roof conditions. The company implemented a comprehensive response plan focused on proactive strata management, targeted equipment optimization, and deployment of additional technical and operational resources. The Company anticipates completing commissioning and production ramp-up in the second quarter, and running at full longwall production rates throughout the second half of the year.The company expects Centurion to sell approximately 0.3 million tons in the second quarter. The longwall move initially planned for the fourth quarter is now expected in early 2027, leading to full year 2026 volume of 2.5 million tons compared to the original 3.5 million ton expectation."While this was not the start we had anticipated, we quickly mobilized the most experienced engineering and operating personnel to address the challenges," said Mr. Grech. "The team has responded safely and effectively, stabilizing performance and positioning the operation for increased production moving forward."Second Quarter 2026 Outlook Seaborne ThermalVolume is expected to be 3.0 million tons, including 1.9 million export tons. 0.3 million export tons are priced at approximately $64.60 per ton, and 1.0 million tons of Newcastle product and 0.6 million tons of high ash product are unpriced. Costs are anticipated to be $57—$62 per ton.Seaborne MetallurgicalSeaborne met volumes are expected to be 2.3 million tons and are expected to achieve approximately 75 percent of the premium hard coking coal price index. Costs are anticipated to be $145—$150 per ton. U.S. ThermalPRB volume is expected to be 19 million tons at an average price of $13.50 per ton and costs of approximately $13.00—$13.50 per ton.Other U.S. Thermal volume is expected to be 3.4 million tons at an average price of $54.50 per ton and costs of approximately $45—$49 per ton. Today's earnings call is scheduled for 10 a.m. CT and can be accessed via the company's website at PeabodyEnergy.com.Peabody (NYSE: BTU) is a leading coal producer, providing essential products for the production of affordable, reliable energy and steel. Our commitment to sustainability underpins everything we do and shapes our strategy for the future. For further information, visit PeabodyEnergy.com. Contact:Kala FinklangEmail: ir@peabodyenergy.com 1 Adjusted EBITDA is a non-GAAP financial measure. Adjusted EBITDA margin is equal to segment Adjusted EBITDA divided by segment revenue. Revenue per Ton and Adjusted EBITDA Margin per Ton are equal to revenue by segment and Adjusted EBITDA by segment, respectively, divided by segment tons sold. Costs per Ton is equal to Revenue per Ton less Adjusted EBITDA Margin per Ton. Management believes Costs per Ton and Adjusted EBITDA Margin per Ton best reflect controllable costs and operating results at the reportable segment level. We consider all measures reported on a per ton basis, as well as Adjusted EBITDA margin, to be operating/statistical measures. Please refer to the tables and related notes herein for a reconciliation and definition of non-GAAP financial measures.Guidance TargetsSegment Performance2026 Full YearTotal Volume (millions of short tons)Priced Volume (millions of short tons)Priced Volume Pricing per Short TonAverage Cost per Short TonSeaborne Thermal12.0 - 13.06.7$48.93$49.50 - $54.50Seaborne Thermal (Export)7.5 - 8.52.2$82.94N/ASeaborne Thermal (Domestic)4.54.5$32.31N/ASeaborne Metallurgical9.3 - 10.33.0$138.84$123.00 - $133.00PRB U.S. Thermal82.0 - 88.080.5$13.50$11.75 - $12.25Other U.S. Thermal13.2 - 14.2 13.4$55.25$45.00 - $49.00Other Annual Financial Metrics ($ in millions)2026 Full YearSG&A$115Total Capital Expenditures$340ARO Cash Spend$65Supplemental InformationSeaborne Thermal50% of unpriced export volumes are expected to price on average at Globalcoal "NEWC" levels and 50% are expected to have a higher ash content and price at 85-95% of API 5 price levels.Seaborne MetallurgicalOn average, Peabody's metallurgical sales are anticipated to price at ~80% of the premium hard-coking coal index price (FOB Australia).PRB and Other U.S. ThermalPRB and Other U.S. Thermal volumes reflect volumes priced at March 31, 2026. Weighted average quality for the PRB segment 2026 volume is approximately 8,725 BTU.Certain forward-looking measures and metrics presented are non-GAAP financial and operating/statistical measures. Due to the volatility and variability of certain items needed to reconcile these measures to their nearest GAAP measure, no reconciliation can be provided without unreasonable cost or effort.Condensed Consolidated Statements of Operations (Unaudited)For the Quarters Ended Mar. 31, 2026, Dec. 31, 2025 and Mar. 31, 2025(In Millions, Except Per Share Data)Quarter EndedMar.Dec.Mar.202620252025Revenue$ 973.3$ 1,022.3$ 937.0Operating Costs and Expenses (1)864.7878.4770.2Depreciation, Depletion and Amortization109.599.092.1Asset Retirement Obligation Expenses13.6(4.8)13.6Selling and Administrative Expenses31.630.523.6Restructuring Charges1.10.31.7Costs Related to Terminated Acquisition3.03.72.4Net Gain on Disposals(11.7)(2.4)(5.2)Loss from Equity Affiliates5.74.26.7Other Operating Loss—5.6—Operating (Loss) Profit(44.2)7.831.9Interest Expense, Net of Capitalized Interest10.711.311.5Interest Income(13.1)(12.3)(15.4)Net Periodic Benefit Credit, Excluding Service Cost(0.4)(7.4)(7.4)Net Mark-to-Market Adjustment on Actuarially Determined Liabilities—(5.4)—(Loss) Income from Continuing Operations Before Income Taxes(41.4)21.643.2Income Tax (Benefit) Provision (16.0)10.04.9(Loss) Income from Continuing Operations, Net of Income Taxes(25.4)11.638.3(Loss) Income from Discontinued Operations, Net of Income Taxes(0.2)0.8(0.3)Net (Loss) Income(25.6)12.438.0Less: Net Income Attributable to Noncontrolling Interests6.82.03.6Net (Loss) Income Attributable to Common Stockholders$ (32.4)$ 10.4$ 34.4Adjusted EBITDA (2)$ 82.5$ 118.1$ 144.0Diluted EPS - (Loss) Income from Continuing Operations (3)(4)$ (0.26)$ 0.08$ 0.27Diluted EPS - Net (Loss) Income Attributable to Common Stockholders (3)$ (0.27)$ 0.09$ 0.27(1)Excludes items shown separately.(2)Adjusted EBITDA is a non-GAAP financial measure. Refer to the "Reconciliation of Non-GAAP Financial Measures" section in this document for definitions and reconciliations to the most comparable measures under U.S. GAAP.(3)Weighted average diluted shares outstanding were 122.0 million, 123.0 million and 138.7 million during the quarters ended March 31, 2026, December 31, 2025 and March 31, 2025, respectively.(4)Reflects (loss) income from continuing operations, net of income taxes less net income attributable to noncontrolling interests.This information is intended to be reviewed in conjunction with the company's filings with the SEC.Condensed Consolidated Balance SheetsAs of Mar. 31, 2026 and Dec. 31, 2025(Dollars In Millions)(Unaudited)Mar. 31, 2026Dec. 31, 2025Cash and Cash Equivalents$ 492.5$ 575.3Accounts Receivable, Net309.5314.9Inventories, Net405.5383.2Other Current Assets303.8285.4Total Current Assets1,511.31,558.8Property, Plant, Equipment and Mine Development, Net3,129.93,153.3Operating Lease Right-of-Use Assets128.9121.2Restricted Cash and Collateral811.3844.1Investments and Other Assets126.3127.6Deferred Income Taxes2.32.2Total Assets$ 5,710.0$ 5,807.2Current Portion of Long-Term Debt $ 14.3$ 15.2Accounts Payable and Accrued Expenses795.6827.0Total Current Liabilities809.9842.2Long-Term Debt, Less Current Portion320.9321.2Deferred Income Taxes3.526.3Asset Retirement Obligations, Less Current Portion694.4692.8Accrued Postretirement Benefit Costs108.8109.2Operating Lease Liabilities, Less Current Portion94.487.5Other Noncurrent Liabilities138.0145.8Total Liabilities2,169.92,225.0Common Stock1.91.9Additional Paid-in Capital4,010.34,004.8Treasury Stock(1,930.6)(1,927.3)Retained Earnings1,314.21,355.9Accumulated Other Comprehensive Income99.4101.1Peabody Energy Corporation Stockholders' Equity3,495.23,536.4Noncontrolling Interests44.945.8Total Stockholders' Equity3,540.13,582.2Total Liabilities and Stockholders' Equity$ 5,710.0$ 5,807.2This information is intended to be reviewed in conjunction with the company's filings with the SEC.Condensed Consolidated Statements of Cash Flows (Unaudited)For the Quarters Ended Mar. 31, 2026, Dec. 31, 2025 and Mar. 31, 2025(Dollars In Millions)Quarter EndedMar.Dec.Mar.202620252025Cash Flows From Operating ActivitiesNet Cash Provided By Continuing Operations$ 30.6$ 69.2$ 120.5Net Cash Used in Discontinued Operations(0.6)(0.6)(0.6)Net Cash Provided By Operating Activities30.068.6119.9Cash Flows From Investing ActivitiesAdditions to Property, Plant, Equipment and Mine Development(85.4)(130.6)(70.4)Changes in Accrued Expenses Related to Capital Expenditures(37.1)24.6(38.6)Proceeds from Disposal of Assets, Net of Receivables5.415.97.2Contributions to Joint Ventures(165.6)(165.7)(138.3)Distributions from Joint Ventures160.2162.8150.8Other, Net(1.0)(0.8)(0.3)Net Cash Used In Investing Activities(123.5)(93.8)(89.6)Cash Flows From Financing ActivitiesRepayments of Long-Term Debt(2.4)(2.3)(2.8)Payment of Debt Issuance and Other Deferred Financing Costs——(1.7)Repurchase of Employee Common Stock Relinquished for Tax Withholding(3.3)—(0.8)Dividends Paid(9.2)(9.0)(9.1)Distributions to Noncontrolling Interests(7.7)(0.1)(14.7)Net Cash Used In Financing Activities(22.6)(11.4)(29.1)Net Change in Cash, Cash Equivalents and Restricted Cash(116.1)(36.6)1.2Cash, Cash Equivalents and Restricted Cash at Beginning of Period1,284.51,321.11,382.6Cash, Cash Equivalents and Restricted Cash at End of Period$ 1,168.4$ 1,284.5$ 1,383.8This information is intended to be reviewed in conjunction with the company's filings with the SEC.Reconciliation of Non-GAAP Financial Measures (Unaudited)For the Quarters Ended Mar. 31, 2026, Dec. 31, 2025 and Mar. 31, 2025(Dollars In Millions)Note: Management believes that non-GAAP financial measures are used by investors to measure our operating performance. These measures are not intended to serve as alternatives to U.S. GAAP measures of performance and may not be comparable to similarly-titled measures presented by other companies.Quarter EndedMar.Dec.Mar.202620252025(Loss) Income from Continuing Operations, Net of Income Taxes$ (25.4)$ 11.6$ 38.3Depreciation, Depletion and Amortization109.599.092.1Asset Retirement Obligation Expenses13.6(4.8)13.6Restructuring Charges1.10.31.7Costs Related to Terminated Acquisition3.03.72.4Changes in Amortization of Basis Difference Related to Equity Affiliates(0.6)(0.8)(0.6)Other Operating Loss—5.6—Interest Expense, Net of Capitalized Interest10.711.311.5Interest Income(13.1)(12.3)(15.4)Net Mark-to-Market Adjustment on Actuarially Determined Liabilities—(5.4)—Unrealized (Gains) Losses on Foreign Currency Option Contracts(0.3)0.1(4.3)Take-or-Pay Contract-Based Intangible Recognition—(0.2)(0.2)Income Tax (Benefit) Provision (16.0)10.04.9Adjusted EBITDA (1)$ 82.5$ 118.1$ 144.0Operating Costs and Expenses$ 864.7$ 878.4$ 770.2Unrealized Gains (Losses) on Foreign Currency Option Contracts0.3(0.1)4.3Take-or-Pay Contract-Based Intangible Recognition—0.20.2Net Periodic Benefit Credit, Excluding Service Cost(0.4)(7.4)(7.4)Total Segment Costs (2)$ 864.6$ 871.1$ 767.3(1)Adjusted EBITDA is defined as (loss) income from continuing operations before deducting net interest expense, income taxes, asset retirement obligation expenses and depreciation, depletion and amortization. Adjusted EBITDA is also adjusted for the discrete items that management excluded in analyzing the reportable segments' operating performance, as displayed in the reconciliation above. Adjusted EBITDA is used by the chief operating decision maker as the primary financial metric to measure each segment's operating performance against expected results and to allocate resources, including capital investment in mining operations and potential expansions.(2)Total Segment Costs is defined as operating costs and expenses adjusted for the discrete items that management excluded in analyzing each reportable segment's operating performance, as displayed in the reconciliation above. Total Segment Costs is used by management as a component of a metric to measure each segment's operating performance.This information is intended to be reviewed in conjunction with the company's filings with the SEC.Supplemental Financial Data (Unaudited)For the Quarters Ended Mar. 31, 2026, Dec. 31, 2025 and Mar. 31, 2025Quarter EndedMar.Dec.Mar.202620252025Tons Sold (In Millions)29.631.928.9Revenue Summary (In Millions)Seaborne Thermal $ 197.5$ 205.6$ 265.1Seaborne Metallurgical 283.0305.4220.1Powder River Basin 289.5300.3275.6Other U.S. Thermal 184.5191.5168.7Total U.S. Thermal 474.0491.8444.3Corporate and Other18.819.57.5Total$ 973.3$ 1,022.3$ 937.0Total Segment Costs Summary (In Millions) (1)Seaborne Thermal $ 149.0$ 142.1$ 180.9Seaborne Metallurgical 290.0280.8206.9Powder River Basin 265.8255.5239.3Other U.S. Thermal 146.7173.4135.8Total U.S. Thermal 412.5428.9375.1Corporate and Other13.119.34.4Total$ 864.6$ 871.1$ 767.3Other Supplemental Financial Data (In Millions)Adjusted EBITDA - Seaborne Thermal $ 48.5$ 63.5$ 84.2Adjusted EBITDA - Seaborne Metallurgical(7.0)24.613.2Adjusted EBITDA - Powder River Basin 23.744.836.3Adjusted EBITDA - Other U.S. Thermal 37.818.132.9Adjusted EBITDA - Total U.S. Thermal 61.562.969.2Middlemount (5.0)(1.0)(6.9)Resource Management Results (2)14.011.45.5Selling and Administrative Expenses (31.6)(30.5)(23.6)Other Operating Costs, Net (3)2.1(12.8)2.4Adjusted EBITDA (1)$ 82.5$ 118.1$ 144.0(1)Total Segment Costs and Adjusted EBITDA are non-GAAP financial measures. Refer to the "Reconciliation of Non-GAAP Financial Measures" section in this document for definitions and reconciliations to the most comparable measures under U.S. GAAP.(2)Includes gains (losses) on certain surplus coal reserve, coal resource and surface land sales and property management costs and revenue.(3)Includes trading and brokerage activities, costs associated with post-mining activities, gains (losses) on certain asset disposals, minimum charges on certain transportation-related contracts, results from the Company's other equity method investments, costs associated with suspended operations, holding costs associated with the Centurion Mine, the impact of foreign currency remeasurement and expenses related to the Company's other commercial activities.This information is intended to be reviewed in conjunction with the company's filings with the SEC.Forward-Looking StatementsThis press release contains forward-looking statements within the meaning of the securities laws. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words or variation of words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "projects," "forecasts," "targets," "would," "will," "should," "goal," "could" or "may" or other similar expressions. Forward-looking statements provide management's or the Board's current expectations or predictions of future conditions, events, or results. All statements that address operating performance, events, or developments that may occur in the future are forward-looking statements, including statements regarding the shareholder return framework, execution of the Company's operating plans, market conditions for the Company's products, reclamation obligations, financial outlook, potential acquisitions and strategic investments, and liquidity requirements. All forward-looking statements speak only as of the date they are made and reflect Peabody's good faith beliefs, assumptions, and expectations, but they are not guarantees of future performance or events. Furthermore, Peabody disclaims any obligation to publicly update or revise any forward-looking statement, except as required by law. By their nature, forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Factors that might cause such differences include, but are not limited to, a variety of economic, competitive, and regulatory factors, many of which are beyond Peabody's control, that are described in Peabody's periodic reports filed with the SEC including its Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2025, and other factors that Peabody may describe from time to time in other filings with the SEC. You may get such filings for free at Peabody's website at www.peabodyenergy.com. You should understand that it is not possible to predict or identify all such factors and, consequently, you should not consider any such list to be a complete set of all potential risks or uncertainties.SOURCE Peabody