Peabody Reports Results for the Quarter and Year Ended December 31, 2025

Core Insights - Peabody reported a fourth quarter net income of $10.4 million, down from $30.6 million year-over-year, with Adjusted EBITDA of $118.1 million compared to $176.7 million in the previous year [1][2][29] - Full-year 2025 revenue was $3,861.5 million, a decrease from $4,236.7 million in 2024, with a net loss attributable to common stockholders of $(52.9) million, compared to a profit of $370.9 million in the prior year [2][29] - The company achieved record safety and environmental results, with a global Total Recordable Incident Frequency Rate (TRIFR) of 0.71, the lowest in its history [6][12] Financial Performance - Fourth quarter revenue was $1,022.3 million, with operating costs of $878.4 million, leading to an operating profit of $7.8 million [29] - Full-year Adjusted EBITDA was $454.9 million, significantly lower than $871.7 million in 2024 [2][29] - Operating cash flow from continuing operations was $336 million, with cash and cash equivalents totaling $575 million at year-end [12][29] Operational Highlights - Peabody's Centurion longwall mining operations commenced two months ahead of schedule, expected to produce 3.5 million tons in 2026 and ramping up to 4.7 million tons by 2028 [14][15] - The company reported strong performance in the Powder River Basin, shipping 22.3 million tons in the fourth quarter, a 4.9 million ton increase from 2024 [10][12] - Seaborne thermal coal volumes totaled 3.3 million tons in the fourth quarter, with an average export price per ton of $81.80, a 7% increase from the previous quarter [7][8] Market Conditions - U.S. market conditions are favorable for thermal coal, driven by higher natural gas prices and increased coal generation demand [3][6] - Peabody is advancing projects related to rare earth elements and critical minerals, with potential funding of $6.25 million for a pilot plant [17][22] Strategic Focus - The company aims to ramp up metallurgical coal production while maintaining its leadership in U.S. energy coal [19] - Peabody's 2026 guidance includes expected seaborne thermal volumes of 12.0 - 13.0 million tons and seaborne metallurgical volumes of 10.3 - 11.3 million tons [26][27]