Peabody Energy Corporation

Peabody reported a net loss attributable to common stockholders of $32.4 million, or $0.27 per diluted share, and adjusted EBITDA of $82.5 million. Seaborne thermal shipped 3 million tons, up 200,000 tons sequentially, with realized export prices of $86.25 per ton, costs of $50.26 per ton, and a 25% adjusted EBITDA margin, producing $48.5 million of adjusted EBITDA. Seaborne metallurgical shipments were 2 million tons and the segment posted a $7 million adjusted EBITDA loss; costs were $142 per ton and were hit by $80 million from the Centurion ramp-up, including $10 million of commissioning costs. U.S. thermal delivered $61.5 million of adjusted EBITDA, with PRB shipments of 21.2 million tons and other U.S. thermal shipping 3.3 million tons. Peabody ended the quarter with just under $500 million in cash and total liquidity above $850 million. Forward guidance: second-quarter seaborne thermal volume is expected to be 3 million tons, seaborne metallurgical volume 2.3 million tons, PRB shipments 19 million tons at $13.25 per ton, and other U.S. thermal shipments 3.4 million tons; full-year Centurion sales are now expected to be 2.5 million tons versus 3.5 million previously, and full-year met segment costs were raised to $123 to $133 per ton.

Jim Grech said the quarter was strong overall but dominated by the Centurion commissioning challenge. He emphasized that the company has now largely put the remediation steps in place, with safety kept first and no carbon monoxide, methane, ignition, or regulatory issues. His tone was constructive and confident on the back half of 2026, saying Centurion should return to full longwall production rates and that the company is also pushing development initiatives like rare earths and West Coast PRB export options.

Mark Spurbeck highlighted the quarter’s financial performance and the main drivers behind guidance changes. He cited $82.5 million of adjusted EBITDA, a $32.4 million net loss, seaborne thermal EBITDA of $48.5 million, met EBITDA of a $7 million loss, and U.S. thermal EBITDA of $61.5 million. He also pointed to higher diesel costs, raising full-year PRB guidance by $0.50 per ton and seaborne thermal by $2 per ton, while noting that Peabody finished with just under $500 million in cash and more than $850 million of liquidity. On capital allocation, he said free cash flow should improve meaningfully in the second half and that management is considering share repurchases and possibly addressing the 2028 convert.

Analysts focused heavily on PRB costs, Centurion timing, diesel hedging, West Coast export economics, and the balance sheet. Management said PRB contract pricing is mostly fixed and does not include fuel pass-through, and they do not hedge diesel because it has not been cost effective; they also explained that the restricted cash decline was just a change in collateralization, with no liability change. On Centurion, Jim Grech said the team expects to complete optimization by the end of May and move into regular production in June, while Malcolm Roberts and Grech characterized the PRB West Coast shipment as a proof of concept with strong market interest but not significant near-term tonnage yet.