Peabody(US:BTU)2026-02-05 12:47Financial Performance - Peabody reported fourth quarter net income of $10.4 million, or $0.09 per diluted share, down from $30.6 million, or $0.25 per diluted share, in the prior year quarter [2]. - Full-year 2025 revenue totaled $3,861.5 million, a decrease from $4,236.7 million in the prior year, with a full-year net income of $(52.9) million, or $(0.43) per diluted share [2]. - Adjusted EBITDA for 2025 was $454.9 million, significantly lower than $871.7 million in the prior year [2]. - Total revenue for Q4 2025 was $1,022.3 million, a decrease of 9.0% compared to $1,123.1 million in Q4 2024 [43]. - Seaborne Thermal revenue decreased to $205.6 million in Q4 2025 from $309.3 million in Q4 2024, representing a decline of 33.5% [43]. - The total U.S. Thermal revenue for the year ended December 31, 2025, was $1,860.3 million, down from $1,921.4 million in 2024, a decrease of 3.2% [43]. - Adjusted EBITDA for the year ended December 31, 2025, was $454.9 million, compared to $871.7 million in 2024, a decline of 47.9% [43]. - Adjusted EBITDA for Q4 2025 was $118.1 million, up from $99.5 million in Q3 2025, representing an increase of approximately 18.3% [40]. - Income from continuing operations for Q4 2025 was $11.6 million, a significant recovery from a loss of $66.6 million in Q3 2025 [40]. Production and Sales - Seaborne Thermal volumes reached 3.3 million tons in Q4 2025, with an average export price per ton of $81.80, a 7% increase from the prior quarter [8]. - Peabody's Powder River Basin shipped 22.3 million tons in Q4 2025, achieving an Adjusted EBITDA of $44.8 million for the quarter, a 27% increase over 2024 [11]. - Total tons sold in Q4 2025 was 31.9 million, down from 33.1 million in Q4 2024, a decrease of 3.6% [43]. - Seaborne metallurgical volumes are expected to be 2.4 million tons, achieving approximately 75% of the premium hard coking coal price index, with costs anticipated at $117-$122 per ton [24]. - PRB volume is expected to be approximately 21 million tons at an average price of $13.40 per ton, with costs of approximately $11.75-$12.25 per ton [27]. - For Q1 2026, Seaborne Thermal volumes are expected to be 2.8 million tons, with export tons priced at $101.05 per ton and segment costs anticipated to be $51-$56 per ton [23]. Cash Flow and Assets - Peabody's cash and cash equivalents stood at $575 million at the end of 2025, supported by $336 million of operating cash flow from continuing operations [13]. - Cash, cash equivalents, and restricted cash at the end of Q4 2025 were $1,284.5 million, down from $1,382.6 million at the end of Q4 2024, a decrease of approximately 7.1% [37]. - Net cash provided by operating activities for Q4 2025 was $68.6 million, compared to $119.8 million in Q4 2024, reflecting a decrease of approximately 42.6% [37]. - The company reported a net cash used in financing activities of $11.4 million for Q4 2025, compared to $28.9 million in Q3 2025, indicating a decrease of about 60.6% [37]. - The company experienced a net change in cash of $(36.6) million in Q4 2025, contrasting with a positive change of $21.0 million in Q3 2025 [37]. Capital Expenditures and Expenses - Total capital expenditures for 2026 are projected to be $340 million, with SG&A expenses estimated at $115 million [30]. - Total segment costs for the year ended December 31, 2025, were $3,312.2 million, a decrease from $3,374.3 million in 2024, reflecting a reduction of about 1.8% [41]. - Total segment costs for Q4 2025 were $871.1 million, a decrease of 7.1% from $938.1 million in Q4 2024 [43]. Strategic Initiatives - The company is advancing projects related to rare earth elements and critical minerals, with significant testing ongoing at its Powder River Basin operations [19]. - Peabody's metallurgical coal realizations are expected to improve from approximately 70% of benchmark pricing in 2025 to 80% in 2026 [18]. - Peabody has been recommended for $6.25 million funding by the Wyoming Energy Authority for a pilot plant using PRB coal for REE/CM processing [21]. - The company expects to continue focusing on market expansion and strategic investments in rare earth elements and critical minerals [48]. Dividends and Shareholder Returns - The company declared a dividend of $0.075 per share, payable on March 10, 2026 [9]. - The company reported dividends paid of $9.0 million in Q4 2025, slightly down from $9.2 million in Q3 2025 [37]. - The company aims to preserve balance sheet strength and increase free cash flow to support shareholder returns [26]. Restructuring and Charges - The company incurred restructuring charges of $0.3 million in Q4 2025, down from $4.0 million in Q3 2025, showing a decline of approximately 92.5% [40].