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Peabody Reports Results for the Quarter Ended September 30, 2026

 
 
November 4, 2026 - Peabody (NYSE: BTU) today reported net income attributable to common stockholders of $(32.8) million, or $(0.27) per diluted share, for the third quarter of 2026, compared to $(70.1) million, or $(0.58) per diluted share, in the prior-year quarter. Peabody reported Adjusted EBITDA1 of $97.5 million in the third quarter of 2026 compared to $99.5 million in the prior-year quarter.
 
"The third quarter demonstrated improving momentum across the portfolio with all segments reporting positive Adjusted EBITDA while our seaborne operations benefited from higher pricing. During the quarter, we worked through higher-cost faulted conditions at Centurion, which slowed advance rates, although the mine still reached its third quarter sales targets," said Jim Grech, President and Chief Executive Officer. "Looking ahead to the fourth quarter, our priorities remain operating safely, clearing the faulted zone at Centurion, and improving free cash flow as seaborne markets remain strong." 
 
Highlights
  • Centurion shipped 0.58 million tons in the quarter.
  • Adjusted EBITDA increased to $97.5 million, reflecting improved results across thermal operations and higher seaborne pricing.
  • Seaborne Thermal Adjusted EBITDA increased 26 percent quarter over quarter to $65.5 million, while margin per ton increased to $21.05 on higher realized export prices.
  • Seaborne Metallurgical returned to positive Adjusted EBITDA of $5.2 million supported by improved realized pricing; sales of 2.2 million tons exceeded targets.
  • Repurchased $38.9 million of 2028 convertible notes, effectively repurchasing 0.7 million shares, and issued a cash redemption notice for the remaining $39.9 million of outstanding 2028 convertible notes.
  • Recognized by the Office of Surface Mining Reclamation and Enforcement with 2026 Excellence in Surface Coal Mining Reclamation National Award, the highest honor given to coal mining companies for exemplary reclamation in the United States.
  • Declared a quarterly dividend of $0.075 per share on November 4, 2026, payable on December 9, 2026, to stockholders of record on November 19, 2026.
Third Quarter Segment Performance
 
Seaborne Thermal shipments were 0.1 million tons higher than anticipated, while costs per ton of $56.58 were in line with expectations. The segment generated Adjusted EBITDA of $65.5 million in the third quarter, a 26 percent increase from the prior quarter and a 60 percent increase from the prior year period. Revenue per export ton increased to over $100, resulting in significant margin expansion compared to the second quarter and prior year period.
 
Seaborne Metallurgical sales volume of 2.2 million tons were above expectations, driven by strong production at Metropolitan following the successful completion of a longwall move. The segment returned to positive Adjusted EBITDA as realized pricing improved nearly $17 per ton quarter over quarter. Costs per ton of $162.45 were elevated above company expectations due to working through higher-cost faulted conditions at Centurion.
 
Powder River Basin sales volumes of 19.6 million tons were below company targets due to lower-than-anticipated coal burn. Costs per ton improved 8 percent quarter over quarter to $12.94, though higher diesel prices and lower-than-expected shipments continued to impact costs.
 
Other U.S. Thermal delivered 3.4 million tons, which was below expectations and contributed to higher costs per ton of $52.18. Revenue per ton increased 8 percent quarter over quarter to $59.53 resulting in Adjusted EBITDA of $25.5 million.
 
Centurion Update
 
Centurion achieved its targeted third quarter sales volume while working through continued geological challenges. Late in the quarter, the longwall encountered more problematic faulting than anticipated across multiple areas of the panel, which is constraining production and equipment performance as the operation safely works through these conditions. Increased geological complexity impacted longwall performance in October, with production of approximately 45,000 tons for the month, and the company expects fourth quarter sales volume between 0.3 and 0.5 million tons.
 
The company now has a clearer understanding of how the current longwall configuration performs in these conditions and has identified targeted engineering modifications. These include a base-lift power increase, estimated at $1.5 to $2 million, to be completed during scheduled maintenance in the current panel, and a two-stage flipper, estimated at $5 to $10 million, to be installed during the next longwall move, now expected in the third quarter of 2027.
 
Financial Update
 
At September 30, 2026, the company had $434 million cash and liquidity of $887 million.
 
During the third quarter, the company repurchased $38.9 million of 2028 convertible notes for cash consideration of $58.1 million, effectively repurchasing an additional 0.7 million shares. Together with the second quarter repurchase of 2028 convertible notes, the company has effectively repurchased 5.7 million shares in 2026. Peabody also announced the redemption of the remaining $39.9 million of 2028 convertible notes, to be completed in November 2026, and has elected to settle any conversion obligation with cash. 
 
"These opportunistic actions reflect our continued focus on shareholder value," said Mark Spurbeck, Chief Financial Officer. "Eliminating the remaining 2028 convertible notes with cash continues our policy of returning capital to shareholders and reduces shareholder dilution by 4 million shares while preserving financial flexibility as operating performance improves."
 
The repurchase of convertible notes resulted in a $3.3 million charge to third-quarter earnings. The cash-settlement commitment resulted in recognition of a $20.7 million derivative liability and corresponding debt discount. Third-quarter results included approximately $4.4 million of interest expense related to debt discount amortization and a $7.2 million mark-to-market gain on the derivative liability.
 
Fourth Quarter 2026 Outlook  
 
Seaborne Thermal
  • Volume is expected to be 3.6—3.8 million tons, including 2.5—2.7 million export tons. ~1.6 million tons of Newcastle product and ~0.8 million tons of high ash product are unpriced. Costs are anticipated to be $46—$51 per ton.
Seaborne Metallurgical
  • Seaborne met volume is expected to be 2.2—2.4 million tons. Sales are anticipated to achieve approximately 70 percent of the premium hard coking coal price index. Costs are anticipated to be $150—$160 per ton. 
U.S. Thermal
  • PRB volume is expected to be 19.5—21.5 million tons at an average price of $13.75 per ton and costs of approximately $13.00—$13.50 per ton.
  • Other U.S. Thermal volume is expected to be 3.6—4.0 million tons at an average price of $59.00 per ton and costs of approximately $48—$52 per ton. 
2026 Guidance Targets
 
The company updated its full-year guidance to reflect stronger seaborne thermal production, including a 0.2 million ton increase in expected export volume. Seaborne Metallurgical volume was lowered 0.6 million tons and costs are expected to increase by approximately $15 per ton, primarily due to lower Centurion production.
 
Powder River Basin sales volume decreased by approximately 7.5 million tons, resulting in a $1 per ton increase in costs and Other U.S. Thermal volume decreased by 0.2 million tons, both reductions reflecting weaker 2026 US coal burn.
 
Capital expenditure guidance was reduced by $40 million, including approximately $30 million at Centurion, primarily from the deferral of development capital for the Northern panels.
 
Today's earnings call is scheduled for 10 a.m. CT and can be accessed via the company's website at PeabodyEnergy.com. 
 
To see the full results with financial figures included, click here.