PEABODY ENERGY CORP (BTU): Results of Operations and Financial Condition
PEABODY ENERGY CORP (BTU) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Media Release Peabody Reports Results for the Quarter Ended June 30, 2026 Centurion Mine Advancing Toward Targeted Production Rates Seaborne Thermal Results Benefit from Higher Pricing Multiple Strategic Financial Actions Further Strengthen Capital Structure ST. LOUI
How this was made
The 30-second read
Why it matters
For BTU, the key trade inputs are (1) segment-level adjusted EBITDA deterioration in metallurgical and Powder River Basin, (2) a stated expectation of improved 2H results as Centurion reaches targeted production rates, and (3) balance-sheet moves that reduce restricted cash/collateral and increase revolver capacity, plus convertible issuance/repurchase and a declared dividend.
Market read
The filing provides fresh, decision-relevant details on BTU’s 2H production targets and concrete liquidity/capital-structure changes, alongside segment profitability headwinds.
What to watch
The filing attributes volume shortfalls to weather and rail outages; traders may discount the durability of 2H cash-generation if operational constraints persist beyond the seasonal window.
Peabody Reports Results for the Quarter Ended June 30, 2026
Seaborne Thermal pricing and earnings improved, but Peabody reported a net loss, Adjusted EBITDA declined from the prior-year quarter, and Seaborne Metallurgical and Powder River Basin generated negative Adjusted EBITDA.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net income attributable to common stockholdersGAAP | $(90.6) million | – | – |
| Diluted earnings per shareGAAP | $(0.74) per diluted share | – | – |
| Adjusted EBITDAnon-GAAP | $24.0 million | – | – |
| Seaborne Thermal tons soldother | 3.0 million | – | – |
| Seaborne Thermal Revenue per Tonother | $ 74.85 | – | – |
| Seaborne Thermal Costs per Tonother | 57.93 | – | – |
| Seaborne Thermal Adjusted EBITDA Margin per Tonnon-GAAP | $ 16.92 | – | – |
| Seaborne Thermal Adjusted EBITDAnon-GAAP | $ 52.1 | – | – |
| Seaborne Metallurgical tons soldother | 2.5 million | – | – |
| Seaborne Metallurgical Revenue per Tonother | $ 148.04 | 7.1 percent | – |
| Seaborne Metallurgical Costs per Tonother | 155.08 | – | – |
| Seaborne Metallurgical Adjusted EBITDA Margin per Tonnon-GAAP | $ (7.04) | – | – |
| Seaborne Metallurgical Adjusted EBITDAnon-GAAP | $ (17.0) | – | – |
| Powder River Basin tons soldother | 16.4 million | – | – |
| Powder River Basin Revenue per Tonother | $ 13.63 | – | – |
| Powder River Basin Costs per Tonother | 14.06 | – | – |
| Powder River Basin Adjusted EBITDA Margin per Tonnon-GAAP | $ (0.43) | – | – |
| Powder River Basin Adjusted EBITDAnon-GAAP | $ (7.1) | – | – |
| Other U.S. Thermal tons soldother | 3.0 million | – | – |
| Other U.S. Thermal Revenue per Tonother | $ 55.26 | – | – |
| Other U.S. Thermal Costs per Tonother | 46.13 | – | – |
| Other U.S. Thermal Adjusted EBITDA Margin per Tonnon-GAAP | $ 9.13 | – | – |
| Other U.S. Thermal Adjusted EBITDAnon-GAAP | $ 26.9 | – | – |
Third Quarter 2026 Outlook and 2026 Full Year outlook
- Operating expenses$115
- NoteSeaborne Thermal volume is expected to be 3.0 million tons, including 1.9 million export tons.
- NoteSeaborne Thermal costs are anticipated to be $52—$57 per ton.
- NoteSeaborne Metallurgical volume is expected to be 1.9—2.1 million tons.
- NoteSeaborne Metallurgical sales are anticipated to achieve approximately 70-75 percent of the premium hard coking coal price index.
- NoteSeaborne Metallurgical costs are anticipated to be $130—$140 per ton.
- NotePRB volume is expected to be 22 million tons at an average price of $13.60 per ton and costs of approximately $11.75—$12.25 per ton.
- NoteOther U.S. Thermal volume is expected to be 3.7 million tons at an average price of $58.20 per ton and costs of approximately $45—$49 per ton.
- NoteSeaborne Thermal 2026 Full Year Total Volume: 12.4 - 13.0 million of short tons.
- NoteSeaborne Thermal 2026 Full Year Average Cost per Short Ton: $49.50 - $54.50.
- NoteSeaborne Metallurgical 2026 Full Year Total Volume: 8.8 - 10.3 million of short tons.
- NoteSeaborne Metallurgical 2026 Full Year Average Cost per Short Ton: $130.00 - $145.00.
- NotePRB U.S. Thermal 2026 Full Year Total Volume: 82.0 - 88.0 million of short tons.
- NotePRB U.S. Thermal 2026 Full Year Average Cost per Short Ton: $12.00 - $12.50.
- NoteOther U.S. Thermal 2026 Full Year Total Volume: 13.2 - 14.2 million of short tons.
- NoteOther U.S. Thermal 2026 Full Year Average Cost per Short Ton: $45.00 - $49.00.
- NoteTotal Capital Expenditures: $340.
- NoteARO Cash Spend: $65.
- NoteThe company is now targeting annual Centurion sales of 2.0 to 2.5 million tons, including 0.5 to 0.7 million tons in the third quarter.
Capital returns
- Declared a quarterly dividend of $0.075 per share on July 29, 2026, payable on Sept. 3, 2026, to stockholders of record on Aug. 12, 2026.
- Repurchased $241.2 million of 3.25% 2028 convertible notes for cash consideration of $386.8 million, effectively repurchasing 5.0 million shares.
- The company intends to evaluate additional 2028 convertible note repurchases and share repurchases in accordance with its shareholder return policy and financial strategy.
What drove it
- Seaborne Thermal realized average prices 12.4 percent higher than the first quarter amid strong coal-fueled generation across multiple Asian countries.
- Strong production volumes at Wilpinjong supported Seaborne Thermal costs per ton at the low end of guidance.
- Seaborne Metallurgical sales volume exceeded expectations by 0.2 million tons due to higher volumes at Metropolitan and the CMJV.
- Seaborne Metallurgical realized pricing increased 7.1 percent quarter over quarter, supported by growing supply constraints in China.
- Centurion completed significant longwall commissioning activities and management said operational constraints were significantly reduced.
Concerns
- The company reported net income attributable to common stockholders of $(90.6) million and Adjusted EBITDA of $24.0 million.
- Continued commissioning of Centurion contributed to higher-than-expected Seaborne Metallurgical costs.
- Powder River Basin sales volume fell below targeted levels due to milder weather, an extended spring shoulder season and longer coal generation plant maintenance downtimes.
- Other U.S. Thermal sales volume was 0.4 million tons below expectations, reflecting mild weather and heavy rainfall that resulted in rail outages.
- Seaborne metallurgical costs are expected to increase by approximately $10 per ton, primarily due to lower volumes and elevated contract labor, materials and supply costs at Centurion.
What to watch
- Achievement of targeted Centurion production rates and the target of 1.5 to 2.0 million tons of sales in the second half of 2026.
- Centurion third-quarter sales of 0.5 to 0.7 million tons and annual sales of 2.0 to 2.5 million tons.
- Whether Centurion costs trend more in line with expectations as production volumes increase.
- Third-quarter PRB volume of 22 million tons and anticipated costs of approximately $11.75—$12.25 per ton.
- Third-quarter Seaborne Metallurgical costs of $130—$140 per ton, including the impact of a longwall move at Metropolitan and an expected lock outage at Shoal Creek.
- Further repurchases of 2028 convertible notes and share repurchases.
Balance sheet and cash flow
- At June 30, 2026, the company had $526.3 million cash and total liquidity of $959.1 million.
- Issued $250 million of 2031 convertible notes at a conversion price of $38.32 per share.
- Purchased a capped call with a cap price of $50.61 per share.
- Increased revolving credit facility capacity to $400 million.
- New surety arrangements resulted in a reduction to Restricted Cash and Collateral of approximately $350 million (43 percent).
- Revised U.S. and Australia surety arrangements reducing reclamation cash collateral requirements by approximately $350 million.
Analysis
Peabody reported a second-quarter net loss attributable to common stockholders of $(90.6) million, or $(0.74) per diluted share, compared with $(27.6) million, or $(0.23) per diluted share, in the prior-year quarter. Adjusted EBITDA was $24.0 million, compared with $93.3 million in the prior-year quarter. The results reflected temporarily lower volumes and higher costs, according to management.
Seaborne Thermal was the principal positive contributor among the reported segments. Adjusted EBITDA was $52.1 million, compared with $48.5 million in the first quarter and $33.5 million in the prior-year quarter. Revenue per Ton was $74.85, while Adjusted EBITDA Margin per Ton was $16.92. Management attributed higher average prices to strong coal-fueled generation across multiple Asian countries and cited strong production volumes at Wilpinjong.
Seaborne Metallurgical remained loss-making, reporting Adjusted EBITDA of $(17.0) million and Costs per Ton of 155.08. Centurion commissioning contributed to higher-than-expected costs, although the company reported meaningful progress and said operational constraints were significantly reduced. Powder River Basin also reported negative Adjusted EBITDA of $(7.1) million as sales volume fell below targeted levels amid milder weather, extended seasonal demand softness and longer plant maintenance. Other U.S. Thermal generated $26.9 million of Adjusted EBITDA despite volumes that were 0.4 million tons below expectations.
The company strengthened liquidity and its capital structure during the quarter. Cash was $526.3 million and total liquidity was $959.1 million at June 30, 2026. Peabody issued $250 million of 2031 convertible notes, repurchased $241.2 million of 2028 convertible notes for $386.8 million of cash consideration, and reported surety changes that reduced Restricted Cash and Collateral by approximately $350 million. It also increased revolving credit facility capacity to $400 million and declared a quarterly dividend of $0.075 per share.
Third-quarter guidance calls for higher PRB volume of 22 million tons and Seaborne Thermal volume of 3.0 million tons, while Seaborne Metallurgical volume is expected to be 1.9—2.1 million tons. Full-year Seaborne Thermal volume guidance was increased by 200 thousand tons to 12.7 million tons. The company raised expected Seaborne Metallurgical costs by approximately $10 per ton and Powder River Basin costs by $0.25 per ton. The central operating focus is Centurion, where Peabody is targeting annual sales of 2.0 to 2.5 million tons and expects costs to improve as volumes increase.
Management, verbatim
While second quarter results reflected temporarily lower volumes and higher costs, we are already seeing those impacts mitigate across our operations. We expect improved results in the second half of the year as performance at our flagship Centurion Mine achieves targeted production rates.
Jim Grech, President and Chief Executive Officer
Peabody enhanced its capital structure through a series of strategic financial transactions, including an opportunistic refinancing of convertible notes, revised surety arrangements that reduced restricted cash and collateral by approximately $350 million and increased our revolving credit facility to $400 million.
Mark Spurbeck, Executive Vice President and Chief Financial Officer
Not in the filing
stated, not guessed- Total revenue
- Total revenue prior-year comparison
- Total revenue prior-quarter comparison
- Gross profit and gross margin
- Operating income
- Operating income prior-year and prior-quarter comparisons
- Total segment revenue by segment
- GAAP cash flow from operations
- Free cash flow
- Total debt
- Net debt
- Income tax rate
- Full condensed consolidated statements of operations, which were truncated in the supplied filing text
- Previous-release outlook for comparison with reported actual results
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is an SEC Form 8-K (Item 2.02) with an attached earnings/media release for the quarter ended June 30, 2026, including segment operating metrics and multiple capital-structure actions.
Ticker impact
Peabody reported Q2 2026 results and disclosed Centurion commissioning progress plus refinancing, buybacks, surety/collateral reductions, and a DOE rare-earth grant.
Likely two-sided reaction: initial skepticism from weaker adjusted EBITDA and metallurgical losses, offset by tangible capital-structure improvements and clearer 2H production-rate targets.
All cited items are primary disclosures in the 8-K exhibit: Q2 net income and adjusted EBITDA by segment, Centurion targeted production rates, $250m convertible issuance, $241.2m convertible repurchase, ~$350m surety/collateral reduction, $400m revolver capacity increase, and a DOE grant.
Market effects
Signals ongoing cost and capital-structure management in US coal and seaborne thermal/metallurgical markets, with incremental optionality from Powder River Basin critical-minerals/REE efforts.
Powder River Basin and Wyoming-related REE/CM development support could influence regional permitting and investor attention, though near-term cash impact is likely limited.
Seaborne thermal pricing strength tied to Asian coal-fueled generation highlights sensitivity to global power demand and pricing.
Counterpoint
Centurion commissioning progress may not fully offset near-term cost inflation and metallurgical segment losses if ramp timelines slip, making the capital actions more defensive than growth-oriented.
Key entities
- issuerPeabody Energy Corp
Reported Q2 2026 financial results, Centurion commissioning progress, and multiple capital-structure transactions in an 8-K exhibit.
- assetCenturion Mine
Flagship mine undergoing commissioning; company targets 1.5 to 2.0 million tons of sales in 2H 2026 and annual sales of 2.0 to 2.5 million tons.
- government_agencyU.S. Department of Energy
Awarded a grant to advance rare earth elements and critical minerals development opportunities in the Powder River Basin.
