Seaborne Thermal Results Benefit from Rising Prices
Centurion Mine Progressing Toward Full Longwall Production
ST. LOUIS, May 5, 2026 /PRNewswire/ -- Peabody (NYSE:BTU) today reported net income attributable to common stockholders of $(32.4) million, or $(0.27) per diluted share, for the first quarter of 2026, compared to $34.4 million, or $0.27 per diluted share, in the prior-year quarter. Peabody reported Adjusted EBITDA1 of $82.5 million in the first quarter of 2026 compared to $144.0 million in the prior-year quarter.
"Amid volatility in global energy markets, our thermal segments benefited from strong demand and higher realized pricing," said President and Chief Executive Officer Jim Grech. "While we have extended the Centurion commissioning period, due to temporary equipment and roof control challenges, we continue to advance toward full longwall production rates. Our first quarter results demonstrate the value of our diverse global platform and reflect the durability of coal's role in providing reliable and affordable power."
Highlights
Generated $82.5 million of Adjusted EBITDA in the first quarter, with two segments exceeding volume expectations.
Delivered year-over-year higher price realizations across both seaborne coal segments, while achieving higher volumes and lower costs versus expectations from the seaborne thermal operations responding to increased demand from the Middle East conflict.
Working through challenging longwall commissioning conditions at Centurion with continued ramp up in the second quarter. See Centurion Update below for additional information.
Benefited from continued strength in U.S. thermal markets, with higher volume year-over-year driven by growing electricity demand.
Advanced rare earth element and critical mineral development, highlighted by promising germanium concentrations from expanded drilling and sampling. The company also continued to progress technical and economic studies, advanced commercial partnerships, and pursued multiple federal and state funding pathways to support domestic supply chain development.
Declared a quarterly dividend of $0.075 per share on May 5, 2026, payable on June 8, 2026 to stockholders of record on May 19, 2026.
First Quarter Segment Performance
Seaborne Thermal
Quarter Ended
Mar.
Dec.
Mar.
2026
2025
2025
Tons sold (in millions)
3.0
3.3
4.4
Export
1.9
2.1
2.9
Domestic
1.1
1.2
1.5
Revenue per Ton
$ 66.61
$ 62.84
$ 60.64
Export - Avg. Realized Price per Ton
86.25
81.80
79.39
Domestic - Avg. Realized Price per Ton
32.62
25.92
24.95
Costs per Ton
50.26
43.43
41.37
Adjusted EBITDA Margin per Ton
$ 16.35
$ 19.41
$ 19.27
Adjusted EBITDA (in millions)
$ 48.5
$ 63.5
$ 84.2
Seaborne Thermal delivered Adjusted EBITDA of $48.5 million in the first quarter, driven by 0.2 million export shipments above guidance and higher realized prices. Results benefited from increased Asian coal demand due to higher prices of competing LNG products in March as a result of the Middle East conflict. Costs per ton of $50.26 were below the low end of guidance due to higher production at both Australian thermal mines, resulting in 25 percent Adjusted EBITDA margins.
Seaborne Metallurgical
Quarter Ended
Mar.
Dec.
Mar.
2026
2025
2025
Tons sold (in millions)
2.0
2.5
1.8
Revenue per Ton
$ 138.28
$ 122.84
$ 125.15
Costs per Ton
141.72
112.94
117.66
Adjusted EBITDA Margin per Ton
$ (3.44)
$ 9.90
$ 7.49
Adjusted EBITDA (in millions)
$ (7.0)
$ 24.6
$ 13.2
Seaborne Metallurgical results were lower than expected due to 0.4 million tons lower volume related to the temporary challenges at Centurion and adverse weather conditions at Coppabella, partially offset by completing an accelerated longwall move at Metropolitan. The segment reported Adjusted EBITDA loss of $7.0 million, including approximately $80 million impact from Centurion, while benefitting from 13 percent higher average realized prices compared to the prior quarter.
Powder River Basin
Quarter Ended
Mar.
Dec.
Mar.
2026
2025
2025
Tons sold (in millions)
21.2
22.3
19.6
Revenue per Ton
$ 13.65
$ 13.44
$ 14.02
Costs per Ton
12.53
11.44
12.18
Adjusted EBITDA Margin per Ton
$ 1.12
$ 2.00
$ 1.84
Adjusted EBITDA (in millions)
$ 23.7
$ 44.8
$ 36.3
Powder River Basin generated Adjusted EBITDA of $23.7 million in the first quarter, with sales volumes above guidance. Costs per ton of $12.53 were modestly above target, due to sales mix changes and timing of equipment maintenance and repair costs.
Other U.S. Thermal
Quarter Ended
Mar.
Dec.
Mar.
2026
2025
2025
Tons sold (in millions)
3.3
3.7
3.1
Revenue per Ton
$ 55.79
$ 51.64
$ 54.32
Costs per Ton
44.37
46.77
43.71
Adjusted EBITDA Margin per Ton
$ 11.42
$ 4.87
$ 10.61
Adjusted EBITDA (in millions)
$ 37.8
$ 18.1
$ 32.9
Other U.S. Thermal delivered Adjusted EBITDA of $37.8 million in the first quarter. Volumes were in line with expectations, while costs per ton of $44.37 came in below company targets, reflecting disciplined cost control and higher production at underground operations. The segment reported 20 percent Adjusted EBITDA margins.
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Centurion Update
During initial longwall commissioning, electrical and mechanical issues, now resolved, constrained cutting speeds which contributed to temporary challenges to roof conditions. The company implemented a comprehensive response plan focused on proactive strata management, targeted equipment optimization, and deployment of additional technical and operational resources. The Company anticipates completing commissioning and production ramp-up in the second quarter, and running at full longwall production rates throughout the second half of the year.
The company expects Centurion to sell approximately 0.3 million tons in the second quarter. The longwall move initially planned for the fourth quarter is now expected in early 2027, leading to full year 2026 volume of 2.5 million tons compared to the original 3.5 million ton expectation.
"While this was not the start we had anticipated, we quickly mobilized the most experienced engineering and operating personnel to address the challenges," said Mr. Grech. "The team has responded safely and effectively, stabilizing performance and positioning the operation for increased production moving forward."
Second Quarter 2026 Outlook
Seaborne Thermal
Volume is expected to be 3.0 million tons, including 1.9 million export tons. 0.3 million export tons are priced at approximately $64.60 per ton, and 1.0 million tons of Newcastle product and 0.6 million tons of high ash product are unpriced. Costs are anticipated to be $57—$62 per ton.
Seaborne Metallurgical
Seaborne met volumes are expected to be 2.3 million tons and are expected to achieve approximately 75 percent of the premium hard coking coal price index. Costs are anticipated to be $145—$150 per ton.
U.S. Thermal
PRB volume is expected to be 19 million tons at an average price of $13.50 per ton and costs of approximately $13.00—$13.50 per ton.
Other U.S. Thermal volume is expected to be 3.4 million tons at an average price of $54.50 per ton and costs of approximately $45—$49 per ton.
Today's earnings call is scheduled for 10 a.m. CT and can be accessed via the company's website at PeabodyEnergy.com.
Peabody (NYSE:BTU) is a leading coal producer, providing essential products for the production of affordable, reliable energy and steel. Our commitment to sustainability underpins everything we do and shapes our strategy for the future. For further information, visit PeabodyEnergy.com.
Contact:Kala FinklangEmail: [email protected]
1 Adjusted EBITDA is a non-GAAP financial measure. Adjusted EBITDA margin is equal to segment Adjusted EBITDA divided by segment revenue. Revenue per Ton and Adjusted EBITDA Margin per Ton are equal to revenue by segment and Adjusted EBITDA by segment, respectively, divided by segment tons sold. Costs per Ton is equal to Revenue per Ton less Adjusted EBITDA Margin per Ton. Management believes Costs per Ton and Adjusted EBITDA Margin per Ton best reflect controllable costs and operating results at the reportable segment level. We consider all measures reported on a per ton basis, as well as Adjusted EBITDA margin, to be operating/statistical measures. Please refer to the tables and related notes herein for a reconciliation and definition of non-GAAP financial measures.
Guidance Targets
Segment Performance
2026 Full Year
Total Volume (millions of
short tons)
Priced Volume (millions of short tons)
Priced Volume Pricing per Short Ton
Average Cost per Short Ton
Seaborne Thermal
12.0 - 13.0
6.7
$48.93
$49.50 - $54.50
Seaborne Thermal (Export)
7.5 - 8.5
2.2
$82.94
N/A
Seaborne Thermal (Domestic)
4.5
4.5
$32.31
N/A
Seaborne Metallurgical
9.3 - 10.3
3.0
$138.84
$123.00 - $133.00
PRB U.S. Thermal
82.0 - 88.0
80.5
$13.50
$11.75 - $12.25
Other U.S. Thermal
13.2 - 14.2
13.4
$55.25
$45.00 - $49.00
Other Annual Financial Metrics ($ in millions)
2026 Full Year
SG&A
$115
Total Capital Expenditures
$340
ARO Cash Spend
$65
Supplemental Information
Seaborne Thermal
50% of unpriced export volumes are expected to price on average at Globalcoal "NEWC" levels and 50% are expected to have a higher ash content and price at 85-95% of API 5 price levels.
Seaborne Metallurgical
On average, Peabody's metallurgical sales are anticipated to price at ~80% of the premium hard-coking coal index price (FOB Australia).
PRB and Other U.S. Thermal
PRB and Other U.S. Thermal volumes reflect volumes priced at March 31, 2026. Weighted average quality for the PRB segment 2026 volume is approximately 8,725 BTU.
Certain forward-looking measures and metrics presented are non-GAAP financial and operating/statistical measures. Due to the volatility and variability of certain items needed to reconcile these measures to their nearest GAAP measure, no reconciliation can be provided without unreasonable cost or effort.
Condensed Consolidated Statements of Operations (Unaudited)
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