Peabody(BTU) - 2025 Q2 - Quarterly Results

Q2 2025 Financial and Operational Overview Financial Highlights Peabody reported a net loss of $27.6 million and Adjusted EBITDA of $93.3 million in Q2 2025, a significant decline from the prior year due to lower seaborne coal prices Q2 2025 Key Financial Metrics | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net (Loss) Income Attributable to Common Stockholders (millions) | $(27.6) | $199.4 | Decreased | | Diluted EPS | $(0.23) | $1.42 | Decreased | | Adjusted EBITDA (millions) | $93.3 | $309.7 | Decreased | - The company declared a dividend of $0.075 per share on common stock on July 31, 2025[4] - The prior year's Q2 results included an $80.8 million insurance recovery and benefited from significantly higher seaborne metallurgical (32% higher) and thermal (35% higher) coal prices[1] Operational Highlights Peabody achieved strong cost control in seaborne segments and improved PRB margins, with Centurion Mine development ahead of schedule and anticipated royalty reductions - The Centurion Mine in Australia is ahead of schedule, allowing the company to accelerate the planned start of longwall production to February 2026[4] - Strong U.S. thermal demand drove better-than-expected performance and substantial margin improvements in the Powder River Basin (PRB) segment[4] - Seaborne Metallurgical and Seaborne Thermal segments achieved costs below company targets for the second quarter[4] - The company expects to benefit by $15 to $20 million in H2 2025 from royalty reductions under the new "One Big Beautiful Bill Act," which is also expected to improve the competitiveness of PRB coal[4] Segment Performance Seaborne Thermal The Seaborne Thermal segment generated $33.5 million in Adjusted EBITDA in Q2 2025, with lower volumes due to disruptions partially offset by cost controls, leading to updated full-year guidance Seaborne Thermal Performance (Q2 2025 vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Tons sold (millions) | 3.6 | 4.1 | | Revenue per Ton | $53.22 | $74.43 | | Costs per Ton | $44.10 | $49.14 | | Adjusted EBITDA Margin per Ton | $9.12 | $25.29 | | Adjusted EBITDA (millions) | $33.5 | $104.4 | - Full-year volume guidance was increased by 200,000 tons, and full-year cost guidance was reduced by $3 per ton due to strong July shipments[5] Seaborne Metallurgical The Seaborne Metallurgical segment reported an Adjusted EBITDA loss of $9.2 million in Q2 2025 due to challenging pricing, but achieved increased volumes and lower costs, leading to reduced full-year cost guidance Seaborne Metallurgical Performance (Q2 2025 vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Tons sold (millions) | 2.2 | 2.0 | | Revenue per Ton | $114.79 | $149.29 | | Costs per Ton | $118.97 | $117.47 | | Adjusted EBITDA Margin per Ton | $(4.18) | $31.82 | | Adjusted EBITDA (millions) | $(9.2) | $143.6* | - *Q2 2024 Adjusted EBITDA included an $80.8 million insurance recovery[6] - Due to strong first-half cost performance, full-year cost guidance is being lowered by $7 per ton to approximately $118 per ton[6] Powder River Basin (PRB) The Powder River Basin segment delivered strong Q2 2025 results with $43.0 million in Adjusted EBITDA, exceeding shipment expectations and lowering per-ton costs, leading to increased full-year volume guidance Powder River Basin Performance (Q2 2025 vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Tons sold (millions) | 20.0 | 15.8 | | Revenue per Ton | $13.82 | $14.02 | | Costs per Ton | $11.66 | $12.89 | | Adjusted EBITDA Margin per Ton | $2.16 | $1.13 | | Adjusted EBITDA (millions) | $43.0 | $17.8 | - Based on increased contract volumes, full-year volume guidance is raised by 5 million tons, and cost targets are lowered by $0.63 per ton[7] Other U.S. Thermal The Other U.S. Thermal segment reported $13.5 million in Adjusted EBITDA for Q2 2025, with lower volumes due to operational issues, but anticipates improvement after an August longwall move, maintaining full-year guidance Other U.S. Thermal Performance (Q2 2025 vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Tons sold (millions) | 2.9 | 3.7 | | Revenue per Ton | $54.08 | $55.21 | | Costs per Ton | $49.39 | $45.53 | | Adjusted EBITDA Margin per Ton | $4.69 | $9.68 | | Adjusted EBITDA (millions) | $13.5 | $35.4 | - Performance is expected to improve at Twentymile after an August longwall move to a new panel, with the company maintaining full-year volume and cost guidance for this segment[8] Financial Position and Corporate Updates Balance Sheet and Liquidity As of June 30, 2025, Peabody maintained a strong financial position with total liquidity approaching $1 billion, demonstrating operational resilience and a stable cash position despite investments and shareholder returns Liquidity Position as of June 30, 2025 | Item | Amount (in millions) | | :--- | :--- | | Cash | $585.9 | | Long-Term Debt | $343.8 | | Total Liquidity | Approaching $1,000 | - The company's cash position remained largely unchanged from the prior quarter after accounting for investments in Centurion, shareholder returns, and other working capital items[10] Centurion Mine Project Update The Centurion Mine development is progressing rapidly and is ahead of schedule, with longwall operations now anticipated to start in February 2026, remaining on budget with significant hiring progress - The start of longwall operations is now anticipated in February 2026, earlier than previously guided[11] - The mine has hired 260 of its planned 400 employees and intends to start installing longwall shields in November[11] Moranbah North Acquisition Update Peabody asserts a Material Adverse Change (MAC) regarding the Moranbah North Mine acquisition due to an ignition incident and lack of production timetable, with an update expected after the August 19th cure period expiration - Peabody asserts that a Material Adverse Change (MAC) has occurred under the purchase agreements for the Moranbah North Mine due to an ignition incident and lack of a credible timetable for production resumption[14] - The company has not reached a revised agreement with the seller and will provide a further update after the 90-day MAC cure period expires on August 19th[14] Company Outlook Third Quarter 2025 Outlook For Q3 2025, Peabody anticipates increased volumes in PRB and Other U.S. Thermal segments, providing specific volume, pricing, and cost targets across all four operating segments Q3 2025 Segment Outlook | Segment | Expected Volume | Expected Costs per Ton | Other Details | | :--- | :--- | :--- | :--- | | Seaborne Thermal | 3.9M tons | $45 - $50 | 2.7M tons are for export | | Seaborne Metallurgical | 2.2M tons | $110 - $120 | Expected to achieve 70-75% of premium hard coking coal price index | | PRB U.S. Thermal | 23.0M tons | $11.00 - $11.50 | Average price of $13.45/ton | | Other U.S. Thermal | 3.7M tons | $45 - $49 | Average price of $51.10/ton | Full Year 2025 Guidance Peabody updated its full-year 2025 guidance, raising volume targets for Seaborne Thermal and PRB while lowering cost-per-ton targets for multiple segments, with total capital expenditures projected at $420 million - The company 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[4][15] Full Year 2025 Segment Guidance | Segment | Total Volume (millions of short tons) | Average Cost per Short Ton | | :--- | :--- | :--- | | Seaborne Thermal | 14.6 - 15.2 | $45.00 - $48.00 | | Seaborne Metallurgical | 8.0 - 9.0 | $115.00 - $120.00 | | PRB U.S. Thermal | 80.0 - 84.0 | $11.50 - $12.00 | | Other U.S. Thermal | 13.4 - 14.4 | $43.00 - $47.00 | Full Year 2025 Financial Metrics | Metric | 2025 Full Year ($ in millions) | | :--- | :--- | | SG&A | $95 | | Total Capital Expenditures | $420 | | ARO Cash Spend | $50 | Consolidated Financial Statements (Unaudited) Condensed Consolidated Statements of Operations Peabody reported total revenues of $890.1 million and an operating loss of $38.4 million in Q2 2025, a significant decline from the prior year, resulting in a net loss of $27.6 million attributable to common stockholders Statement of Operations Highlights (in Millions) | Account | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Revenue | $890.1 | $1,042.0 | | Operating (Loss) Profit | $(38.4) | $233.9 | | Net (Loss) Income Attributable to Common Stockholders | $(27.6) | $199.4 | Condensed Consolidated Balance Sheets As of June 30, 2025, Peabody's balance sheet reported total assets of $5,763.4 million, total liabilities of $2,089.3 million, and cash and cash equivalents of $585.9 million Balance Sheet Summary (in Millions) | Account | June 30, 2025 | Dec. 31, 2024 | | :--- | :--- | :--- | | Cash and Cash Equivalents | $585.9 | $700.4 | | Total Current Assets | $1,627.3 | $1,780.7 | | Total Assets | $5,763.4 | $5,953.7 | | Total Current Liabilities | $737.0 | $827.5 | | Total Liabilities | $2,089.3 | $2,244.9 | | Total Stockholders' Equity | $3,674.1 | $3,708.8 | Condensed Consolidated Statements of Cash Flows In Q2 2025, net cash provided by operating activities was $23.2 million, while investing activities used $91.1 million and financing activities used $15.8 million Statement of Cash Flows Highlights (in Millions) | Account | Q2 2025 | Six Months Ended Jun 30, 2025 | | :--- | :--- | :--- | | Net Cash Provided By Operating Activities | $23.2 | $143.1 | | Net Cash Used In Investing Activities | $(91.1) | $(180.7) | | Net Cash Used In Financing Activities | $(15.8) | $(44.9) | Reconciliation of Non-GAAP Financial Measures Adjusted EBITDA Reconciliation The company provides a reconciliation of net income to Adjusted EBITDA, a non-GAAP measure, showing a Q2 2025 Adjusted EBITDA of $93.3 million after adjustments from a $25.6 million net loss from continuing operations Adjusted EBITDA Reconciliation (Q2 2025, in Millions) | Item | Amount | | :--- | :--- | | (Loss) Income from Continuing Operations, Net of Income Taxes | $(25.6) | | Depreciation, Depletion and Amortization | $93.4 | | Interest Expense, Net | $11.1 | | Income Tax (Benefit) | $(2.7) | | Other Adjustments | $17.1 | | Adjusted EBITDA | $93.3 | Supplemental Financial Data This section provides a detailed breakdown of Q2 2025 revenues and Adjusted EBITDA by business segment, with U.S. Thermal segments generating $430.8 million in revenue and Seaborne segments generating $447.3 million Q2 2025 Revenue and Adjusted EBITDA by Segment (in Millions) | Segment | Revenue | Adjusted EBITDA | | :--- | :--- | :--- | | Seaborne Thermal | $195.1 | $33.5 | | Seaborne Metallurgical | $252.2 | $(9.2) | | Powder River Basin | $275.7 | $43.0 | | Other U.S. Thermal | $155.1 | $13.5 | | Total (Excluding Corp/Other) | $878.1 | $80.8 |