Peabody Q3 Loss Narrows to $32.8 Million as Revenue Rises

Peabody reported results for the quarter ended September 30 on November 4, 2026, posting a net loss attributable to common stockholders of $32.8 million, or $0.27 per diluted share, compared with $70.1 million, or $0.58, in the third quarter of 2025. Higher seaborne prices improved margins, although Centurion’s geological problems constrained production and reduced full-year metallurgical volume expectations.

Revenue increased to $1.10 billion from $1.01 billion a year earlier. Adjusted EBITDA, which Peabody defines as loss from continuing operations before net interest, income taxes, asset-retirement obligation expense, depreciation, depletion and amortization and specified discrete adjustments, was $97.5 million. That compared with $99.5 million in the third quarter of 2025 and $24.0 million in the second quarter of 2026.

The quarterly improvement in Adjusted EBITDA did not translate into operating cash generation. Operating activities used $1.4 million of cash, versus $122.0 million provided in the third quarter of 2025, while additions to property, plant, equipment and mine development totaled $59.8 million.

Seaborne Pricing Lifts Segment Margins

In Seaborne Thermal, the average realized export price rose to $100.37 per ton from $95.87 in the second quarter. Adjusted EBITDA increased 26% quarter over quarter to $65.5 million, and Adjusted EBITDA margin per ton climbed to $21.05 from $16.92. Costs of $56.58 per ton were in line with company expectations.

Seaborne Metallurgical sold 2.2 million tons, above expectations, helped by strong Metropolitan production after a completed longwall move. Revenue per ton increased to $164.83 from $148.04, helping the segment return to positive Adjusted EBITDA of $5.2 million from a $17.0 million loss in the second quarter. Costs nevertheless reached $162.45 per ton, above company expectations because of faulted conditions at Centurion, limiting the benefit of higher prices.

Centurion Faulting Reduces Output Guidance

Centurion shipped 0.58 million tons and met its third-quarter sales target despite faulting that slowed advance rates. Late in the quarter, the longwall encountered more problematic faulting than anticipated across multiple areas of the panel, constraining production and equipment performance. October production was approximately 45,000 tons, and Peabody expects fourth-quarter 2026 sales volume of 0.3 million to 0.5 million tons.

Planned engineering changes include a base-lift power increase estimated at $1.5 million to $2 million during scheduled maintenance and a two-stage flipper estimated at $5 million to $10 million during the next longwall move, now expected in the third quarter of 2027.

Full-year Seaborne Metallurgical volume guidance was lowered by 0.6 million tons and expected costs increased by approximately $15 per ton, primarily because of lower Centurion production. Capital-expenditure guidance was reduced by $40 million, including approximately $30 million at Centurion from deferred Northern panels development capital. The spending reduction therefore mainly reflects deferred development rather than an improvement in the mine’s near-term operating conditions.

U.S. thermal operations faced a different constraint. Powder River Basin sales of 19.6 million tons missed company targets because of lower-than-anticipated coal burn. Segment Adjusted EBITDA was $15.0 million, up from a $7.1 million loss in the second quarter but well below $51.7 million in the third quarter of 2025. Costs improved 8% quarter over quarter to $12.94 per ton, although higher diesel prices and lower shipments continued to affect them.

Peabody cut full-year Powder River Basin sales-volume guidance by approximately 7.5 million tons and raised expected costs by $1 per ton. Other U.S. Thermal volume guidance was reduced by 0.2 million tons, with both reductions attributed to weaker 2026 U.S. coal burn.

Peabody held $434 million of cash and $887 million of liquidity at September 30, 2026. During the third quarter, it repurchased $38.9 million of 2028 convertible notes for $58.1 million in cash, effectively repurchasing 0.7 million shares. The remaining $39.9 million is scheduled for redemption in November 2026, with any conversion obligation settled in cash. Chief Financial Officer Mark Spurbeck said eliminating the remaining notes with cash would reduce shareholder dilution by 4 million shares while preserving financial flexibility.

The results make Centurion central to Peabody’s production and cost outlook. Stronger seaborne pricing is lifting margins, but converting that improvement into stronger operating cash flow remains the unresolved financial issue as geological problems persist and U.S. thermal volumes are reduced.