Peabody Energy Corporation

What they do

Peabody produces metallurgical and thermal coal from mines in the United States and Australia. At December 31, 2025 it owned interests in 16 active coal mining operations, including a 50% equity interest in Middlemount Coal Pty Ltd. The company reports through four segments: Seaborne Thermal, Seaborne Metallurgical, Powder River Basin and Other U.S. Thermal, and is headquartered in St. Louis, Missouri.

Revenue drivers

• Seaborne Thermal — Australian mines Wilpinjong and Wambo sold 3.0 million tons in Q2 2026 at $74.85 revenue per ton, generating $52.1 million of Adjusted EBITDA.
• Seaborne Metallurgical — Mines including Coppabella, Shoal Creek, Metropolitan, Moorvale and Centurion; sold 2.5 million tons in Q2 2026 at $148.04 revenue per ton, the highest realized price of the seaborne segments.
• Powder River Basin — Wyoming surface mines North Antelope Rochelle, Caballo and Rawhide; North Antelope Rochelle produced 65.0 million tons in 2025, the largest single mine in the portfolio.
• Other U.S. Thermal — U.S. mines including Bear Run, Wild Boar, Gateway North and El Segundo/Lee Ranch, producing thermal coal for domestic and export markets.

Recent performance

For the quarter ended June 30, 2026, Peabody reported net loss attributable to common stockholders of $90.6 million, or $0.74 per diluted share, versus a $27.6 million loss in the prior-year quarter. Revenue was $1,003.2 million and operating loss was $105.4 million. Adjusted EBITDA fell to $24.0 million from $93.3 million a year earlier. First-half 2026 net loss attributable to common stockholders was $123.0 million on revenue of $1,976.5 million, compared with $6.8 million of income on $1,827.1 million in the first half of 2025. Full-year 2025 revenue was $3.86 billion with a net loss of $42.5 million.

Strategy

Peabody is advancing the Centurion underground longwall metallurgical coal mine in Queensland, where full-scale longwall production began in February 2026, targeting 1.5 to 2.0 million tons of sales in the second half of 2026. The company completed financial actions in July 2026: issuing $250 million of 0.5% 2031 convertible notes and repurchasing $241.2 million of 3.25% 2028 convertible notes for $386.8 million in cash, effectively repurchasing 5.0 million shares. It revised U.S. and Australian surety arrangements to reduce reclamation cash collateral requirements by about $350 million and increased revolving credit facility capacity to $400 million. An asset optimization program is evaluating rare earth element and critical mineral potential, coal mine gas power generation, and renewable energy on reclaimed mining lands.

Risks

• Commodity price exposure — Revenue and margins depend on seaborne thermal and metallurgical coal prices; Seaborne Thermal export prices rose 12.4% sequentially in Q2 2026, showing sensitivity to market swings.
• Centurion ramp execution — Centurion is still commissioning, with Q2 2026 results reflecting temporarily lower volumes and higher costs; failure to reach targeted production rates would delay expected second-half cash generation.
• Elevated costs and losses — Peabody posted an operating loss of $105.4 million in Q2 2026 and Adjusted EBITDA of $24.0 million, down from $93.3 million a year earlier.
• Reclamation and surety obligations — The company carries asset retirement obligation expenses ($13.8 million in Q2 2026) and relies on surety arrangements, which it revised in July 2026 to reduce cash collateral by roughly $350 million.

Outlook

Management expects improved results in the second half of 2026 as Centurion achieves targeted production rates and targets strong cash generation from the seaborne metallurgical and thermal segments. Peabody is targeting 1.5 to 2.0 million tons of Centurion sales in the second half of 2026. The company declared a quarterly dividend of $0.075 per share payable September 3, 2026.