Peabody Reports Results For Quarter Ended June 30, 2025
Second Quarter Results Reflect Strong Seaborne and PRB Cost Performance
Longwall Start at Centurion Mine Accelerated to February 2026
Favorable Changes to Full-Year Volume and Cost Targets
ST. LOUIS, July 31, 2025 /PRNewswire/ -- Peabody (NYSE:BTU) today reported net income attributable to common stockholders of $(27.6) million, or $(0.23) per diluted share, for the second quarter of 2025, compared to $199.4 million, or $1.42 per diluted share in the prior year quarter. Peabody had Adjusted EBITDA1 of $93.3 million in the second quarter of 2025 compared to $309.7 million in the prior year quarter (included $80.8 million of insurance recovery and reflected seaborne benchmark prices that were 32 percent higher for metallurgical coal and 35 percent higher for thermal coal than the current year).
According to Peabody President and CEO Jim Grech, "Peabody closed out the first half of the year with strong execution and a resilient performance. Effective cost management in the seaborne platforms allowed us to work through a period of lower pricing, while robust Powder River Basin (PRB) demand demonstrated the benefit of our leading U.S. thermal coal business. In addition to Peabody benefiting from higher U.S. coal demand in the first half based on favorable market fundamentals, newly enacted federal legislation is expected to reduce costs moving forward."
Highlights
Peabody reported second quarter Adjusted EBITDA of $93 million.
The Centurion Mine in Australia's Bowen Basin remains on budget and ahead of schedule in development meters, allowing the company to accelerate the planned start of longwall production.
Strong U.S. thermal demand led the PRB segment to better-than-expected performance, driving substantial margin improvements.
Both Seaborne Metallurgical and Seaborne Thermal segments continued to "control the controllables" with second quarter costs below company targets.
Peabody estimates benefits of $15 to $20 million in the second half of 2025 related to federal royalty reduction provisions from the "One Big Beautiful Bill Act" signed into law in July, which is also expected to strengthen the competitiveness of PRB coal.
Peabody is raising full-year 2025 guidance for Seaborne Thermal and PRB volumes and lowering cost-per-ton targets for Seaborne Thermal, Seaborne Met and PRB segments.
The company declared a $0.075 per share dividend on common stock on July 31, 2025.
Second Quarter Segment Performance
Seaborne Thermal
Quarter Ended
Six Months Ended
Jun.
Mar.
Jun.
Jun.
Jun.
2025
2025
2024
2025
2024
Tons sold (in millions)
3.6
4.4
4.1
8.0
8.1
Export
2.1
2.9
2.7
5.0
5.2
Domestic
1.5
1.5
1.4
3.0
2.9
Revenue per Ton
$ 53.22
$ 60.64
$ 74.43
$ 57.25
$ 72.86
Export - Avg. Realized Price per Ton
72.86
79.39
98.43
76.56
98.97
Domestic - Avg. Realized Price per Ton
24.19
24.95
26.69
24.57
26.50
Costs per Ton
44.10
41.37
49.14
42.61
48.44
Adjusted EBITDA Margin per Ton
$ 9.12
$ 19.27
$ 25.29
$ 14.64
$ 24.42
Adjusted EBITDA (in millions)
$ 33.5
$ 84.2
$ 104.4
$ 117.7
$ 198.2
Seaborne Thermal Adjusted EBITDA totaled $33.5 million. Second quarter performance was impacted by lower shipments due to weather-related port disruption, partly offset by costs that were below company targets. Despite pricing pressure, the segment delivered Adjusted EBITDA margins of 17 percent. The company's July shipments were above target, leading to a 200,000 ton increase in full year volume guidance and $3 per ton reduction in full-year cost guidance.
Seaborne Metallurgical
Quarter Ended
Six Months Ended
Jun.
Mar.
Jun.
Jun.
Jun.
2025
2025
2024
2025
2024
Tons sold (in millions)
2.2
1.8
2.0
4.0
3.4
Revenue per Ton
$ 114.79
$ 125.15
$ 149.29
$ 119.40
$ 159.10
Costs per Ton
118.97
117.66
117.47
118.39
126.46
Adjusted EBITDA Margin per Ton
$ (4.18)
$ 7.49
$ 31.82
$ 1.01
$ 32.64
Adjusted EBITDA, Excluding Insurance Recovery (in millions)
$ (9.2)
$ 13.2
$ 62.8
$ 4.0
$ 111.1
Shoal Creek Insurance Recovery (in millions)
$ ,
$ ,
$ 80.8
$ ,
$ 80.8
Adjusted EBITDA (in millions)
$ (9.2)
$ 13.2
$ 143.6
$ 4.0
$ 191.9
Seaborne Metallurgical volumes increased 400,000 tons over prior quarter while costs were $6 per ton lower than target. The company mitigated a challenging pricing environment and reported Adjusted EBITDA loss of $9.2 million. As a result of the strong first-half cost performance, Peabody is lowering its full year cost guidance by $7 per ton to approximately $118 per ton.
Powder River Basin
Quarter Ended
Six Months Ended
Jun.
Mar.
Jun.
Jun.
Jun.
2025
2025
2024
2025
2024
Tons sold (in millions)
20.0
19.6
15.8
39.6
34.5
Revenue per Ton
$ 13.82
$ 14.02
$ 14.02
$ 13.92
$ 13.80
Costs per Ton
11.66
12.18
12.89
11.92
12.81
Adjusted EBITDA Margin per Ton
$ 2.16
$ 1.84
$ 1.13
$ 2.00
$ 0.99
Adjusted EBITDA (in millions)
$ 43.0
$ 36.3
$ 17.8
$ 79.3
$ 34.2
Powder River Basin Adjusted EBITDA totaled $43.0 million, an increase of more than a dollar per ton in margin compared to prior-year performance. Second quarter shipments exceeded expectations, which also led to per-ton costs well below company targets. Based on increased contract volumes, the company is raising full-year volume guidance by 5 million tons and lowering cost targets by $0.63 per ton.
Other U.S. Thermal
Quarter Ended
Six Months Ended
Jun.
Mar.
Jun.
Jun.
Jun.
2025
2025
2024
2025
2024
Tons sold (in millions)
2.9
3.1
3.7
6.0
6.9
Revenue per Ton
$ 54.08
$ 54.32
$ 55.21
$ 54.20
$ 57.33
Costs per Ton
49.39
43.71
45.53
46.43
45.40
Adjusted EBITDA Margin per Ton
$ 4.69
$ 10.61
$ 9.68
$ 7.77
$ 11.93
Adjusted EBITDA (in millions)
$ 13.5
$ 32.9
$ 35.4
$ 46.4
$ 81.9
Other U.S. Thermal Adjusted EBITDA totaled $13.5 million for the quarter, with rail issues at Bear Run and challenging mining conditions in the current panel at Twentymile leading to lower volumes. The company is seeing improved rail performance at Bear Run and expects significantly improved performance at Twentymile after an August longwall move to a new panel is completed. The company is maintaining full year volume and cost guidance for the segment.
Balance Sheet/Liquidity
Peabody continued to generate positive operating cash flow in a challenging price environment. At June 30, 2025 the company had $585.9 million of cash, $847.1 million in pre-funded reclamation and other liabilities, long term debt of $343.8 million, and total liquidity approaching $1 billion.
"Peabody's cash position was largely unchanged from the prior quarter after netting investment in Centurion, shareholder returns, transaction costs and other working capital items, reflecting the resilience of our operations and the tremendous value of a balanced, diversified asset base," said Executive Vice President and Chief Financial Officer Mark Spurbeck. "Peabody's balance sheet provides substantial financial strength designed to sustain the company during challenging times and deliver extraordinary value during stronger points of the price cycle."
Centurion Update
Due to rapid continued progress at the Centurion Mine, the company now expects longwall operations to commence earlier than previously guided, with startup anticipated in February 2026. This accelerated timeline reflects effective execution and may have favorable implications for the mine's sales targets. The mine has hired 260 employees of its planned headcount of 400, and intends to start installing longwall shields in November.
Acquisition Update
Four full months have passed since the ignition incident at Anglo American's Moranbah North Mine, with still no credible timetable on resumption of sustainable longwall production. Peabody's understanding of conditions underground, along with the continued passage of time, has further confirmed that a Material Adverse Change (MAC) has occurred under the related purchase agreements. Peabody has not reached a revised agreement with the seller and intends to provide a further update on August 19th, after the 90-day MAC cure period has expired.
Outlook
"Looking ahead, we are pleased to increase our full-year volume guidance for Powder River Basin and Seaborne Thermal coal while reducing our full-year cost targets for three of the four segments," said Mr. Grech.
Third Quarter 2025
Seaborne Thermal
Volume is expected to be 3.9 million tons, including 2.7 million export tons. 0.6 million export tons are priced at approximately $82 per ton, and 1.0 million tons of Newcastle product and 1.1 million tons of high ash product are unpriced. Costs are anticipated to be $45-$50 per ton.
Seaborne Metallurgical
Volume is anticipated to be 2.2 million tons and is expected to achieve 70 to 75 percent of the premium hard coking coal price index. Costs are anticipated to be $110-$120 per ton.
U.S. Thermal
PRB volume is expected to be 23 million tons at an average price of $13.45 per ton and costs of approximately $11.00-$11.50 per ton.
Other U.S. Thermal volume is expected to be 3.7 million tons at an average price of $51.10 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:
Vic Svec / Kala Finklang
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1 Adjusted EBITDA is a non-GAAP financial measure. Adjusted EBITDA margin is equal to segment Adjusted EBITDA (excluding insurance recoveries) divided by segment revenue. Revenue per Ton and Adjusted EBITDA Margin per Ton are equal to revenue by segment and Adjusted EBITDA by segment (excluding insurance recoveries), 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 reporting 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 of non-GAAP financial measures.
Guidance Targets
Segment Performance
2025 Full Year
Total Volume (millions of
short tons)
Priced Volume (millions of short tons)
Priced Volume Pricing per Short Ton
Average Cost per Short Ton
Seaborne Thermal
14.6 - 15.2
11.1
$52.25
$45.00 - $48.00
Seaborne Thermal (Export)
9.2 - 9.8
5.7
$77.12
NA
Seaborne Thermal (Domestic)
5.4
5.4
$26.00
NA
Seaborne Metallurgical
8.0 - 9.0
4.4
$121.00
$115.00 - 120.00
PRB U.S. Thermal
80.0 - 84.0
83.0
$13.65
$11.50 - $12.00
Other U.S. Thermal
13.4 -14.4
13.8
$52.20
$43.00 - $47.00
Other Annual Financial Metrics ($ in millions)
2025 Full Year
SG&A
$95
Total Capital Expenditures
$420
Major Project Capital Expenditures
$280
Sustaining Capital Expenditures
$140
ARO Cash Spend
$50
Supplemental Information
Seaborne Thermal
~48% of unpriced export volumes are expected to price on average at Globalcoal "NEWC" levels and ~52% are expected to have a higher ash content and price at 80-95% of API 5 price levels.
Seaborne Metallurgical
On average, Peabody's metallurgical sales are anticipated to price at 70-75% of the premium hard-coking coal index price (FOB Australia).
PRB and Other U.S. Thermal
PRB and Other U.S. Thermal volumes reflect volumes priced at June 30, 2025. Weighted average quality for the PRB segment 2025 volume is approximately 8,700 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 Jun. 30, 2025, Mar. 31, 2025 and Jun. 30, 2024 and the Six Months Ended Jun. 30, 2025 and 2024
(In Millions, Except Per Share Data)
Quarter Ended
Six Months Ended
