What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-08-07 compared with 2025-05-08 · 235 added, 176 removed, 465 unchanged (47% of the section changed)

11 unchanged sentences

When considering these forward-looking statements, you should keep in mind the cautionary statements in this document and in the Company’s other Securities and Exchange Commission (SEC) filings, including, but not limited to, the more detailed discussion of these factors and other factors that could affect its results contained in Item 1A.

“Risk Factors” of Part II of this Quarterly Report on Form 10-Q and Item 1A.

“Risk Factors” of Part II of this Quarterly Report on Form 10-Q, Item 1A.

“Risk Factors” of Part II of its Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2025 filed with the SEC on May 8, 2025 and Item 1A.

“Risk Factors” and Item 3.

17 unchanged sentences

In 2024, Peabody produced and sold 118.1 million and 118.0 million tons of coal, respectively, from continuing operations.

At March 31, 2025, the Company owned interests in 17 active coal mining operations located in the United States (U.S.) and Australia.

At June 30, 2025, the Company owned interests in 17 active coal mining operations located in the United States (U.S.) and Australia.

Included in that count is Peabody’s 50% equity interest in Middlemount Coal Pty Ltd (Middlemount), which owns the Middlemount Mine in Queensland, Australia.

4 unchanged sentences

“Segment Information” to the accompanying unaudited condensed consolidated financial statements for further information regarding those segments and the components of the Company’s Corporate and Other segment.

Spot pricing for premium low-vol hard coking coal (Premium HCC), premium low-vol pulverized coal injection (Premium PCI) coal, Newcastle index thermal coal and API 5 index thermal coal, and prompt month pricing for PRB 8,880 Btu/Lb coal and Illinois Basin 11,500 Btu/Lb coal during the three months ended March 31, 2025 is set forth in the table below.

The seaborne pricing included in the table below is not necessarily indicative of the pricing the Company realized during the three months ended March 31, 2025 due to quality differentials and a portion of its seaborne sales being executed through annual and multi-year international coal supply agreements that contain provisions requiring both parties to renegotiate pricing periodically, with spot, index and quarterly sales arrangements also utilized.

The Company’s typical practice is to negotiate pricing for seaborne metallurgical coal contracts on a quarterly, spot or index basis and seaborne thermal coal contracts on an annual, spot or index basis.

In the U.S., the pricing included in the table below is also not necessarily indicative of the pricing the Company realized during the three months ended March 31, 2025 since the Company generally sells coal under long-term contracts where pricing is determined based on various factors.

Such long-term contracts in the U.S.

may vary significantly in many respects, including price adjustment features, price reopener terms, coal quality requirements, quantity parameters, permitted sources of supply, treatment of environmental constraints, extension options, force majeure and termination and assignment provisions.

Competition from alternative fuels such as natural gas and other fuel sources may also impact the Company’s realized pricing.

High Low Average March 31, 2025 May 2, 2025

Premium HCC (1)

Pricing during the three months ended June 30, 2025 is set forth in the table below.

High Low Average June 30, 2025 August 1, 2025

Premium low-vol hard coking coal (Premium HCC) (1)

$ 195.80 $ 169.00 $ 184.22 $ 173.50 $ 183.20

Premium PCI coal (1)

Premium low-vol pulverized coal injection (Premium PCI) coal (1)

141.00 129.00 137.77 137.75 145.60

7 unchanged sentences

48.25 45.00 46.52 48.25 48.50

(1) Prices expressed per metric tonne.

(2) Prices expressed per short ton.

(1) Spot pricing expressed per metric tonne.

(2) Prompt month pricing expressed per short ton.

The seaborne pricing included in the table above is not necessarily indicative of the pricing the Company realized during the three months ended June 30, 2025 due to quality differentials and a portion of its seaborne sales being executed through annual and multi-year international coal supply agreements that contain provisions requiring both parties to renegotiate pricing periodically, with spot, index and quarterly sales arrangements also utilized.

In the U.S., the pricing included in the table above is also not necessarily indicative of the pricing the Company realized during the three months ended June 30, 2025 since the Company generally sells coal under long-term contracts where pricing is determined based on various factors.

Such long-term contracts in the U.S.

Competition from alternative fuels such as natural gas and other fuel sources may also impact the Company’s realized pricing.

Within the global coal industry, supply and demand for its products and the supplies used for mining are being impacted by recent changes to trade policy, including tariff and customs regulations.

As future developments related to trade policy, including additional or retaliatory tariffs, delays in implementing previously announced changes or ongoing negotiations between countries, are unknown, the global coal industry data for the three months ended March 31, 2025 presented herein may not be indicative of their ultimate impacts.

Within the seaborne metallurgical coal market, metallurgical coal prices softened during the three months ended March 31, 2025.

Seasonal steelmaking weakness in China and mixed steelmaking profit margins in other regions generally weighed on metallurgical coal demand.

In China, ongoing challenges in the property sector contributed to softer domestic steel demand and to strong rates of steel exports.

During the period, Chinese metallurgical coal stocks were reported to be relatively high and Chinese domestic coal prices generally remained below international seaborne prices.

Outside of China, Japan experienced falling steel production and metallurgical coal imports due to sluggish domestic demand and weakening exports, while in contrast India’s increased steelmaking capacity supported higher metallurgical coal imports relative to the same period in 2024.

Meanwhile, metallurgical coal supply was generally ample to meet spot demand during the period, despite notable wet season disruptions to Australian mining and logistics, as well as lower rates of U.S.

and Russian seaborne exports.

PCI relativity to coking coal was fairly stable during the three months ended March 31, 2025.

Looking forward, the end of the typical Australian wet season may support additional coal supply to global markets, although this effect may be softened by a number of ongoing operational disruptions at prominent metallurgical coal mines globally.

Meanwhile, metallurgical coal buyers may take a cautious approach to procurement in the near-term given an increasingly complex international trade environment.

Overall, the market for metallurgical coal remains finely balanced and exposed to volatility, influenced by the rate of exports from Australia and Canada, evolving bilateral trade policies and the economic performance in China, India and elsewhere.

Within the seaborne thermal coal market, global thermal coal prices softened during the three months ended March 31, 2025, driven by weakening demand conditions and oversupply as seen by higher stockpiles in Asian markets.

In China, overall total generation demand has remained relatively flat to start the year, while domestic coal production has been stronger.

Combining stronger domestic coal production and relatively stable coal import demand against weaker demand has led to an increase in coal stockpiles in China through the three months ended March 31, 2025.

In India, elevated domestic coal production, lower import demand and relatively flat coal generation has led to elevated coal stockpiles.

Looking ahead, global thermal coal markets should begin to see stronger demand as summer restocking requirements in the Northern Hemisphere start;

As future developments related to trade policy, including additional or retaliatory tariffs, delays in implementing previously announced changes or ongoing negotiations between countries, are unknown, the global coal industry data for the six months ended June 30, 2025 presented herein may not be indicative of their ultimate impacts.

Within the seaborne metallurgical coal market, several unplanned outages at non-Peabody mines and wet weather created a spot supply shortage of key grades during the early part of the quarter, with the market trading higher as a result.

However, metallurgical coal spot demand slowed toward the end of the quarter, resulting in softened prices.

Volatility in global trade policies continued to weigh on steel exports in some Asian markets, while the early onset of monsoonal weather affected coal procurement in India.

In China, steel production was adversely impacted by continued softness in the property sector, which saw a decline in floor space under construction in April and May.

As a result, lower metallurgical coal import demand in China created a redistribution of coal originally bound for China to other destinations, placing further pressure on metallurgical coal index prices.

Emerging evidence of supply curtailment in some regions points to prices intersecting the global cost curve.

Looking forward, the seaborne metallurgical coal price may remain volatile based on the pace of growth of the Indian steel industry, changing global trade policies and global supply curtailment actions.

Within the seaborne thermal coal market, global thermal coal prices continued to soften during the six months ended June 30, 2025, driven by weakening demand conditions and oversupply as seen by higher stockpiles in Asian markets.

In China, overall total electricity demand has increased slightly year-over-year through June 30, 2025, however the share of renewables in the generation mix continues to grow, pressuring coal generation.

In addition, domestic coal production has been stronger year-over-year, all of which has led to an increase in coal stockpiles in China and weaker coal import demand through the six months ended June 30, 2025.

In India, elevated domestic coal production, lower import demand and declining coal generation has led to elevated coal stockpiles.

Looking ahead, global thermal coal markets should continue to remain under pressure as elevated stockpiles limit import demand over the next few months.

In addition, volatile global natural gas markets can impact global thermal coal markets.

In the U.S., overall electricity demand increased over 2% year-over-year.

Through the three months ended March 31, 2025, electricity generation from thermal coal has increased year-over-year, driven by higher natural gas prices and stronger total generation.

Coal’s share of electricity generation has increased to approximately 17% for the three months ended March 31, 2025, while wind and solar’s combined generation share is at 19% and the share of natural gas generation has declined to approximately 38%.

coal inventories have declined through March 31, 2025, resulting in stockpiles declining more than 15 million tons below levels seen at the end of 2024.

Through the six months ended June 30, 2025, electricity generation from thermal coal has increased year-over-year, driven by higher natural gas prices and stronger total generation.

Coal’s share of electricity generation has increased to approximately 16% for the six months ended June 30, 2025, while wind and solar’s combined generation share is at 20% and the share of natural gas generation has declined to approximately 38%.

coal inventories have declined through June 30, 2025, resulting in stockpiles declining almost 8 million tons below levels seen at the end of 2024.

Centurion Mine

Peabody’s development of the Centurion Mine, an underground longwall metallurgical coal mine in Queensland, Australia, continues to advance as planned.

Centurion continues to make progress toward full-scale longwall production in the first quarter of 2026.

At March 31, 2025, the mine had four continuous miner units in coal production and had shipped its second delivery of development coal.

Peabody expects to begin producing continuous miner coal from Centurion North early in the third quarter of 2025, and targets combined production of 500 thousand tons for 2025.

Peabody’s development of the Centurion Mine, an underground longwall metallurgical coal mine in Queensland, Australia, continues to advance as planned, making progress toward full-scale longwall production in February 2026.

With over half of the planned headcount hired to-date, the Company intends to start installing longwall shields in the fourth quarter of 2025.

Labor Relations

Formal negotiations for a new labor agreement at the Metropolitan Mine have now been concluded with an in-principle agreement between the Company, the Mining and Energy Union and employees.

After recent industrial action, employees returned to work on August 1, 2025.

Employees will officially vote on the new labor agreement with the voting process opening on August 10, 2025 and concluding on August 13, 2025.

Planned Acquisition

5 unchanged sentences

The Company intends to replace the bridge facility with permanent financing, including debt capacity, additional investment by existing joint venture partners and other financing to supplement as warranted.

On May 5, 2025, Peabody announced that it had notified Anglo and BUMA of a Material Adverse Change (MAC) impacting Peabody’s planned acquisition.

The MAC relates to issues involving the Moranbah North Mine, which remains inactive following what was described as a gas ignition event on March 31, 2025.

If the MAC is not resolved to Peabody’s satisfaction in the limited timeframe specified under the Purchase Agreements, Peabody may elect to terminate the Purchase Agreements.

On May 5, 2025, Peabody announced that it had notified Anglo and BUMA of a Material Adverse Change (MAC) impacting Peabody’s planned acquisition, due to issues involving the Moranbah North Mine, which remains inactive following what was described as a gas ignition event on March 31, 2025.

As of July 31, 2025, no credible timetable has been given regarding resumption of sustainable longwall production.

Peabody’s understanding of the conditions underground, along with the continued passage of time, has further confirmed that a MAC has occurred under the Purchase Agreements.

Peabody has not reached a revised agreement with the seller and intends to provide a further update after the 90-day MAC cure period has expired.

“Long-term Debt” and Note 11.

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Results of Operations

Three Months Ended March 31, 2025 Compared to the Three Months Ended March 31, 2024

The decrease in income from continuing operations, net of income taxes for the three months ended March 31, 2025 compared to the same period in the prior year ($7.4 million) was driven by lower revenue primarily due to lower seaborne coal pricing ($46.6 million) and higher depreciation, depletion and amortization expense ($12.3 million).

This unfavorable variance was partially offset by lower operating costs and expenses ($44.0 million) and a lower year-over-year provision for taxes ($15.2 million).

Adjusted EBITDA for the three months ended March 31, 2025 reflected a year-over-year decrease of $16.5 million.

Three and Six Months Ended June 30, 2025 Compared to the Three and Six Months Ended June 30, 2024

The decrease in results from continuing operations, net of income taxes for the three and six months ended June 30, 2025 compared to the same periods in the prior year ($236.4 million and $243.8 million, respectively) was driven by lower revenue primarily due to lower seaborne coal pricing ($151.9 million and $198.5 million, respectively) and the prior year insurance recovery at the Shoal Creek Mine ($109.5 million, three and six months).

This unfavorable variance was partially offset by lower year-over-year income taxes ($42.1 million and $57.3 million, respectively) and lower operating costs and expenses ($14.5 million and $58.5 million, respectively).

Adjusted EBITDA for the three and six months ended June 30, 2025 reflected a year-over-year decrease of $216.4 million and $232.9 million, respectively.

The following table presents tons sold by operating segment:

Three Months Ended March 31, Increase (Decrease)

2025 2024 Tons %

(Tons in millions)

Three Months Ended June 30, (Decrease) Increase

to Volumes Six Months Ended June 30, (Decrease) Increase

2025 2024 Tons % 2025 2024 Tons %

(Tons in millions) (Tons in millions)

Seaborne Thermal 3.6 4.1 (0.5) (12) % 8.0 8.1 (0.1) (1) %

3 unchanged sentences

Total tons sold from operating segments 28.7 25.6 3.1 12 % 57.6 52.9 4.7 9 %

Corporate and Other — 0.1 (0.1) (100) %

Corporate and Other — — — n.m.

— 0.1 (0.1) (100) %

Total tons sold 28.7 25.6 3.1 12 % 57.6 53.0 4.6 9 %

1 unchanged sentence

The following table presents supplemental financial data by operating segment:

Three Months Ended March 31, (Decrease)

Three Months Ended June 30, (Decrease)

Increase Six Months Ended June 30, (Decrease)

2025 2024 $ % 2025 2024 $ %

26 unchanged sentences

The following table presents revenue by reporting segment:

Three Months Ended March 31, (Decrease) Increase to Revenue

Three Months Ended June 30, (Decrease) Increase to Revenue Six Months Ended June 30, (Decrease) Increase to Revenue

2025 2024 $ % 2025 2024 $ %

(Dollars in millions)

(Dollars in millions) (Dollars in millions)

Seaborne Thermal $ 195.1 $ 307.5 $ (112.4) (37) % $ 460.2 $ 591.4 $ (131.2) (22) %

5 unchanged sentences

Seaborne Thermal.

Segment revenue decreased during the three months ended March 31, 2025 compared to the same period in the prior year due to unfavorable realized prices ($80.6 million), offset by favorable volume and mix variances ($61.8 million).

Segment revenue decreased during the three months ended June 30, 2025 compared to the same period in the prior year due to unfavorable realized prices ($69.5 million) and unfavorable export volume ($42.9 million).

Segment revenue decreased during the six months ended June 30, 2025 compared to the same period in the prior year due to unfavorable realized prices ($146.9 million), offset by favorable mix variances ($15.7 million).

Seaborne Metallurgical.

Segment revenue decreased during the three months ended March 31, 2025 compared to the same period in the prior year due to unfavorable realized prices ($75.2 million), offset by favorable volume ($48.3 million).

Segment revenue decreased during the three and six months ended June 30, 2025 compared to the same periods in the prior year due to unfavorable realized prices ($80.4 million and $155.5 million, respectively), offset by favorable volume ($38.3 million and $86.5 million, respectively).

Powder River Basin.

Segment revenue increased during the three months ended March 31, 2025 compared to the same period in the prior year due to favorable volume ($17.7 million) and favorable realized prices ($3.8 million).

Segment revenue decreased during the three months ended March 31, 2025 compared to the same period in the prior year primarily due to decreased revenue from sales contract cancellation settlements ($13.5 million), unfavorable realized prices ($6.5 million) and unfavorable volume ($2.9 million).

Segment revenue increased during the three months ended June 30, 2025 compared to the same period in the prior year due to favorable volume ($56.1 million) driven by increased demand.

The increase was offset by unfavorable realized prices ($2.3 million) which reflected the impact of quality adjustments for moisture due to wet weather in the current year.

Segment revenue increased during the six months ended June 30, 2025 compared to the same period in the prior year due to favorable volume ($73.9 million) resulting from increased demand and favorable realized prices ($1.4 million).

Segment revenue decreased during the three and six months ended June 30, 2025 compared to the same periods in the prior year due to unfavorable volume ($39.6 million and $43.1 million, respectively) resulting from decreased demand and rail performance issues in the Midwest and challenging geological issues at the Twentymile Mine, unfavorable realized prices ($5.6 million and $11.5 million, respectively) and decreased revenue from sales contract cancellation settlements ($1.7 million and $15.2 million, respectively).

Corporate and Other.

Segment revenue for the three months ended March 31, 2025 was comparable to the same period in the prior year.

The decrease in segment revenue during the three and six months ended June 30, 2025 compared to the same periods in the prior year was driven by lower results from trading activities.

Segment Costs

The following table presents costs by reporting segment:

Three Months Ended March 31, (Decrease) Increase to Total Segment Costs

Three Months Ended June 30, (Decrease) Increase to Total Segment Costs Six Months Ended June 30, (Decrease) Increase to Total Segment Costs

2025 2024 $ % 2025 2024 $ %

(Dollars in millions)

(Dollars in millions) (Dollars in millions)

Seaborne Thermal $ 161.6 $ 203.1 $ (41.5) (20) % $ 342.5 $ 393.2 $ (50.7) (13) %

8 unchanged sentences

Seaborne Thermal.

Segment Costs decreased during the three months ended March 31, 2025 compared to the same period in the prior year due to lower costs for labor, repairs and outside services resulting from timing of maintenance and operational improvements ($19.9 million) and favorable commodity pricing ($4.8 million).

These decreases were offset by higher variable expense ($19.1 million) due to higher volume (0.4 million tons).

Segment Costs decreased during the three and six months ended June 30, 2025 compared to the same periods in the prior year due to lower costs for labor, repairs and outside services resulting from timing of maintenance and operational improvements ($15.1 million and $35.0 million, respectively), lower sales related costs driven by both lower realized prices and volume ($7.8 million and $5.3 million, respectively), lower variable expense (three months, $6.7 million) resulting from lower volume (three months, 0.5 million tons) and favorable commodity pricing ($2.6 million and $7.4 million, respectively).

Seaborne Metallurgical.

Segment Costs increased during the three months ended March 31, 2025 compared to the same period in the prior year due to higher variable operational and sales related costs driven by increased volume (0.4 million tons).

Segment Costs increased during the three and six months ended June 30, 2025 compared to the same periods in the prior year due to higher variable operational and sales related costs driven by increased volumes (0.2 million tons and 0.6 million tons, respectively) and development of the Centurion Mine.

Powder River Basin.

Segment Costs increased during the three months ended March 31, 2025 compared to the same period in the prior year primarily due to higher sales related costs ($5.5 million) driven by favorable volume (0.9 million tons) and higher leasing costs ($2.8 million).

These increases were offset by lower costs for labor, repairs and outside services ($6.2 million) due to mining in areas with less overburden.

The decrease in Segment Costs during the three months ended March 31, 2025 compared to the same period in the prior year was driven by lower volume (0.1 million tons).

Segment Costs increased during the three and six months ended June 30, 2025 compared to the same periods in the prior year primarily due to higher sales related costs ($13.6 million and $19.1 million, respectively) driven by favorable volume (4.2 million tons and 5.1 million tons, respectively) and higher costs for repairs and outside services ($9.3 million and $5.1 million, respectively) due in part to unplanned dragline outages and haul truck repairs.

The decrease in Segment Costs during the three and six months ended June 30, 2025 compared to the same periods in the prior year was driven by lower volume (0.8 million tons and 0.9 million tons, respectively) and lower costs for labor ($6.2 million and $8.9 million, respectively).

Corporate and Other.

Segment Costs decreased during the three months ended March 31, 2025 compared to the same period in the prior year primarily due to favorable foreign currency rate changes.

Segment Costs decreased during the three and six months ended June 30, 2025 compared to the same periods in the prior year primarily due to favorable remeasurement of foreign currency denominated monetary assets, substantially comprised of Australian dollar denominated restricted cash and cash collateral.

Adjusted EBITDA

The following table presents Adjusted EBITDA for each of the Company’s reporting segments:

Three Months Ended March 31, (Decrease) Increase to Segment Adjusted EBITDA

Three Months Ended June 30, (Decrease) Increase to Segment Adjusted EBITDA Six Months Ended June 30, (Decrease) Increase to Segment Adjusted EBITDA

2025 2024 $ % 2025 2024 $ %

(Dollars in millions)

(Dollars in millions) (Dollars in millions)

Seaborne Thermal $ 33.5 $ 104.4 $ (70.9) (68) % $ 117.7 $ 198.2 $ (80.5) (41) %

8 unchanged sentences

Seaborne Thermal.

Segment Adjusted EBITDA decreased during the three months ended March 31, 2025 compared to the same period in the prior year due to lower realized prices net of sales price sensitive costs ($78.6 million), offset by favorable operational costs ($32.2 million) and favorable volume and mix variances ($28.7 million).

Segment Adjusted EBITDA decreased during the three and six months ended June 30, 2025 compared to the same periods in the prior year due to lower realized prices net of sales price sensitive costs ($67.3 million and $143.3 million, respectively) and unfavorable volume (three months, $23.9 million), offset by favorable operational costs ($11.0 million and $43.9 million, respectively) driven by timing of maintenance and operational improvements.

Seaborne Metallurgical.

Segment Adjusted EBITDA decreased during the three months ended March 31, 2025 compared to the same period in the prior year due to lower realized prices net of sales price sensitive costs ($63.6 million), offset by favorable operational costs ($35.8 million).

Segment Adjusted EBITDA decreased during the three months ended June 30, 2025 compared to the same period in the prior year due to the prior year Shoal Creek insurance recovery ($80.8 million), lower realized prices net of sales price sensitive costs ($59.3 million) and unfavorable volumes at the Australian operations ($16.0 million).

Segment Adjusted EBITDA decreased during the six months ended June 30, 2025 compared to the same period in the prior year due to lower realized prices net of sales price sensitive costs ($122.5 million) and the prior year Shoal Creek insurance recovery ($80.8 million), offset by favorable operational costs ($11.6 million) driven by favorable volumes.

Powder River Basin.

Segment Adjusted EBITDA increased during the three months ended March 31, 2025 compared to the same period in the prior year due to favorable volume ($7.5 million), decreased overburden removal costs ($5.6 million) and lower costs for materials, services, repairs and labor ($4.2 million).

Segment Adjusted EBITDA decreased during the three months ended March 31, 2025 compared to the same period in the prior year primarily due to decreased sales contract cancellation settlements ($13.5 million).

Segment Adjusted EBITDA increased during the three and six months ended June 30, 2025 compared to the same periods in the prior year due to favorable volume ($30.0 million and $37.8 million, respectively) and decreased overburden removal costs ($6.6 million and $12.0 million, respectively), offset by higher costs for materials, services, repairs and labor ($12.6 million and $8.6 million, respectively).

Segment Adjusted EBITDA decreased during the three months ended June 30, 2025 compared to the same period in the prior year primarily due to higher costs for materials, services and repairs ($10.5 million), unfavorable volume ($7.8 million) and lower realized prices net of sales price sensitive costs ($5.4 million).

Segment Adjusted EBITDA decreased during the six months ended June 30, 2025 compared to the same period in the prior year due to decreased sales contract cancellation settlements ($15.2 million), higher costs for materials, services and repairs ($11.2 million), unfavorable volume ($10.2 million) and lower realized prices net of sales price sensitive costs ($8.9 million).

Corporate and Other Adjusted EBITDA.

The following table presents a summary of the components of Corporate and Other Adjusted EBITDA:

Three Months Ended March 31, (Decrease) Increase to Adjusted EBITDA

Three Months Ended June 30, (Decrease) Increase to Adjusted EBITDA Six Months Ended June 30, (Decrease) Increase to Adjusted EBITDA

2025 2024 $ % 2025 2024 $ %

(Dollars in millions)

(Dollars in millions) (Dollars in millions)

Middlemount (1)

10 unchanged sentences

(2) Includes gains (losses) on certain surplus coal reserve, coal resource and surface land sales and property management costs and revenue.

(3) Includes trading and brokerage activities, costs associated with post-mining activities, gains (losses) on certain asset disposals, minimum charges on certain transportation-related contracts, results from the Company’s equity method investment in renewable energy joint ventures, costs associated with suspended operations including the Centurion Mine, the impact of foreign currency remeasurement and expenses related to the Company’s other commercial activities.

Corporate and Other Adjusted EBITDA increased during the three months ended March 31, 2025 compared to the same period in the prior year primarily due to the favorable impact of foreign currency rate changes ($20.2 million) and lower costs at closed and suspended operations ($7.6 million).

These favorable impacts were partially offset by unfavorable variances in Middlemount’s results driven by lower sales pricing and unfavorable production costs.

Income From Continuing Operations, Net of Income Taxes

The following table presents income from continuing operations, net of income taxes:

Three Months Ended March 31, (Decrease) Increase to Income

(3) Includes trading and brokerage activities, costs associated with post-mining activities, gains (losses) on certain asset disposals, minimum charges on certain transportation-related contracts, results from the Company’s equity method investment in renewable energy joint ventures, costs associated with suspended operations, holding costs associated with the Centurion Mine, the impact of foreign currency remeasurement and expenses related to the Company’s other commercial activities.

Corporate and Other Adjusted EBITDA increased during the three and six months ended June 30, 2025 compared to the same periods in the prior year primarily due to favorable remeasurement of foreign currency denominated monetary assets, substantially comprised of Australian dollar denominated restricted cash and cash collateral ($8.3 million and $28.4 million, respectively), higher gains on equipment and land sales ($7.2 million and $10.4 million, respectively) and favorable results from the Company’s equity method investment in renewable energy joint ventures ($5.8 million and $8.3 million, respectively).

These favorable variances were offset by unfavorable trading results ($5.4 million and $1.9 million, respectively) and unfavorable variances in Middlemount’s results driven by lower sales pricing.

(Loss) Income From Continuing Operations, Net of Income Taxes

The following table presents (loss) income from continuing operations, net of income taxes:

Three Months Ended June 30, (Decrease) Increase to Income Six Months Ended June 30, (Decrease) Increase to Income

2025 2024 $ % 2025 2024 $ %

(Dollars in millions)

(Dollars in millions) (Dollars in millions)

Adjusted EBITDA (1)

4 unchanged sentences

Transaction costs related to business combinations (18.8) — (18.8) n.m.

(21.2) — (21.2) n.m.

Provision for NARM loss — (1.9) 1.9 100 % — (3.7) 3.7 100 %

Shoal Creek insurance recovery - property damage — 28.7 (28.7) (100) % — 28.7 (28.7) (100) %

Changes in amortization of basis difference related to equity affiliates 0.8 0.3 0.5 167 % 1.4 0.7 0.7 100 %

3 unchanged sentences

Take-or-pay contract-based intangible recognition 0.3 0.8 (0.5) (63) % 0.5 1.5 (1.0) (67) %

Income tax provision (4.9) (20.1) 15.2 76 %

Income from continuing operations, net of income taxes $ 38.3 $ 45.7 $ (7.4) (16) %

Income tax benefit (provision) 2.7 (39.4) 42.1 107 % (2.2) (59.5) 57.3 96 %

(Loss) income from continuing operations, net of income taxes $ (25.6) $ 210.8 $ (236.4) (112) % $ 12.7 $ 256.5 $ (243.8) (95) %

(1) This is a financial measure not recognized in accordance with U.S.

2 unchanged sentences

The following table presents a summary of depreciation, depletion and amortization expense by reporting segment:

Three Months Ended March 31, (Decrease) Increase to Income

Three Months Ended June 30, (Decrease) Increase to Income Six Months Ended June 30, (Decrease) Increase to Income

2025 2024 $ % 2025 2024 $ %

(Dollars in millions)

(Dollars in millions) (Dollars in millions)

Seaborne Thermal $ (31.0) $ (28.7) $ (2.3) (8) % $ (64.4) $ (56.3) $ (8.1) (14) %

6 unchanged sentences

Additionally, the following table presents a summary of the Company’s weighted-average depletion rate per ton for active mines in each of its operating segments:

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

Seaborne Thermal $ 2.00 $ 2.08 $ 2.00 $ 2.09

2 unchanged sentences

Thermal 1.81 1.69 1.82 1.62

Depreciation, depletion and amortization expense increased during the three months ended March 31, 2025 compared to the same period in the prior year primarily due to increased depreciation resulting from asset additions and shortened mine lives.

The changes in the weighted-average depletion rate per ton for both the Powder River Basin and the Other U.S.

Thermal segments during the three months ended March 31, 2025 compared to the same period in the prior year reflect the impact of volume and mix variances across the segments.

Depreciation, depletion and amortization expense increased during the three and six months ended June 30, 2025 compared to the same periods in the prior year primarily due to increased depreciation resulting from asset additions.

The changes in the weighted-average depletion rate per ton for both the Seaborne Metallurgical and the Other U.S.

Thermal segments during the three and six months ended June 30, 2025 compared to the same periods in the prior year reflect the impact of volume and mix variances across the segments.

Restructuring Charges.

The increase in restructuring charges during the current year is due to the upcoming closure of the Wambo Underground Mine.

Transaction Costs Related to Business Combinations.

The charges recorded during the current year period relate to the planned acquisition of multiple metallurgical coal mines from Anglo which was announced during the fourth quarter of 2024.

The charges recorded during the current year relate to the planned acquisition of multiple metallurgical coal mines from Anglo which was announced during the fourth quarter of 2024.

In additional to typical costs, such as legal and professional fees, the charges for the three and six months ended June 30, 2025 include a $10.4 million duration fee on the bridge loan facility.

Refer to Note 11.

“Other Events” in the accompanying unaudited condensed consolidated financial statements for further information regarding the planned Anglo acquisition.

Interest Expense, Net of Capitalized Interest.

The decrease in expense during the three months ended March 31, 2025 compared to the same period in the prior year was driven by lower interest and fees for financial assurance instruments and the capitalization of interest related to the development of the Centurion Mine.

Shoal Creek Insurance Recovery - Property Damage .

During June 2024, the Company reached a settlement related to the Shoal Creek losses and recorded a $109.5 million insurance recovery, as discussed in Note 11.

“Other Events” in the accompanying unaudited condensed consolidated financial statements.

Of this amount, Adjusted EBITDA excluded an allocated amount applicable to losses recognized at the time of the insurance recovery related to longwall development and equipment deemed inoperable within the affected area of the mine, which consisted of $28.7 million recognized during the year ended December 31, 2023.

The remaining $80.8 million, applicable to incremental costs and business interruption recoveries, was included in Adjusted EBITDA for the three and six months ended June 30, 2024.

Interest Income.

The decrease in income during the three months ended March 31, 2025 compared to the same period in the prior year was driven by lower average cash balances during the current period.

The decrease in income during the three and six months ended June 30, 2025 compared to the same periods in the prior year was driven by lower average cash balances during the current period.

Unrealized Gains (Losses) on Foreign Currency Option Contracts.

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“Derivatives and Fair Value Measurements” to the accompanying unaudited condensed consolidated financial statements.

Income Tax Provision.

The decrease in the income tax provision during the three months ended March 31, 2025 compared to the same period in the prior year was primarily due to lower expected pretax income.

Income Tax Benefit (Provision).

The decrease in the income taxes during the three and six months ended June 30, 2025 compared to the same periods in the prior year was primarily due to lower expected pretax income.

Refer to Note 8.

“Income Taxes” to the accompanying unaudited condensed consolidated financial statements for additional information.

Net Income Attributable to Common Stockholders

The following table presents net income attributable to common stockholders:

Three Months Ended March 31, (Decrease) Increase

Net (Loss) Income Attributable to Common Stockholders

The following table presents net (loss) income attributable to common stockholders:

Three Months Ended June 30, (Decrease) Increase

to Income Six Months Ended June 30, (Decrease) Increase

2025 2024 $ % 2025 2024 $ %

(Dollars in millions)

Income from continuing operations, net of income taxes $ 38.3 $ 45.7 $ (7.4) (16) %

(Dollars in millions) (Dollars in millions)

(Loss) income from continuing operations, net of income taxes $ (25.6) $ 210.8 $ (236.4) (112) % $ 12.7 $ 256.5 $ (243.8) (95) %

Loss from discontinued operations, net of income taxes (0.4) (1.6) 1.2 75 % (0.7) (2.3) 1.6 70 %

Net income 38.0 45.0 (7.0) (16) %

Net (loss) income (26.0) 209.2 (235.2) (112) % 12.0 254.2 (242.2) (95) %

Net income attributable to noncontrolling interests 1.6 9.8 (8.2) (84) % 5.2 15.2 (10.0) (66) %

Net income attributable to common stockholders $ 34.4 $ 39.6 $ (5.2) (13) %

Net (loss) income attributable to common stockholders $ (27.6) $ 199.4 $ (227.0) (114) % $ 6.8 $ 239.0 $ (232.2) (97) %

Net Income Attributable to Noncontrolling Interests.

The decrease in net income attributable to noncontrolling interests during the three and six months ended June 30, 2025 compared to the same periods in the prior year was primarily due to a decline in the financial results of Peabody’s majority-owned Wambo operations in which there is an outside non-controlling interest.

Diluted Earnings per Share (EPS)

The following table presents diluted EPS:

Three Months Ended March 31, (Decrease) Increase

Three Months Ended June 30, Decrease to EPS Six Months Ended June 30, (Decrease) Increase

2025 2024 $ % 2025 2024 $ %

Diluted EPS attributable to common stockholders:

Income from continuing operations $ 0.27 $ 0.30 $ (0.03) (10) %

(Loss) income from continuing operations $ (0.22) $ 1.43 $ (1.65) (115) % $ 0.06 $ 1.72 $ (1.66) (97) %

Loss from discontinued operations (0.01) (0.01) — — % — (0.02) 0.02 100 %

Net income attributable to common stockholders $ 0.27 $ 0.29 $ (0.02) (7) %

Net (loss) income attributable to common stockholders $ (0.23) $ 1.42 $ (1.65) (116) % $ 0.06 $ 1.70 $ (1.64) (96) %

Diluted EPS is commensurate with the changes in results from continuing operations and discontinued operations during that period.

Diluted EPS reflects weighted average diluted common shares outstanding of 138.7 million and 144.9 million for the three months ended March 31, 2025 and 2024, respectively.

Diluted EPS reflects weighted average diluted common shares outstanding of 121.7 million and 142.8 million for the three months ended June 30, 2025 and 2024, respectively, and 122.3 million and 143.8 million for the six months ended June 30, 2025 and 2024, respectively.

Reconciliation of Non-GAAP Financial Measures

Adjusted EBITDA is defined as income from continuing operations before deducting net interest expense, income taxes, asset retirement obligation expenses and depreciation, depletion and amortization.

Adjusted EBITDA is defined as (loss) income from continuing operations before deducting net interest expense, income taxes, asset retirement obligation expenses and depreciation, depletion and amortization.

Adjusted EBITDA is also adjusted for the discrete items that management excluded in analyzing the segments’ operating performance, as displayed in the reconciliations below.

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

(Dollars in millions)

Income from continuing operations, net of income taxes $ 38.3 $ 45.7

(Loss) income from continuing operations, net of income taxes $ (25.6) $ 210.8 $ 12.7 $ 256.5

Depreciation, depletion and amortization

93.4 82.9 185.5 162.7

Asset retirement obligation expenses

13.8 12.9 27.4 25.8

Restructuring charges

3.5 0.1 5.2 0.2

Transaction costs related to business combinations 18.8 — 21.2 —

Provision for NARM loss — 1.9 — 3.7

Shoal Creek insurance recovery - property damage — (28.7) — (28.7)

Changes in amortization of basis difference related to equity affiliates (0.8) (0.3) (1.4) (0.7)

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Take-or-pay contract-based intangible recognition

Income tax provision 4.9 20.1

(0.3) (0.8) (0.5) (1.5)

Income tax (benefit) provision (2.7) 39.4 2.2 59.5

Total Adjusted EBITDA

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Total Segment Costs is defined as operating costs and expenses adjusted for the discrete items that management excluded in analyzing each of its segments’ operating performance, as displayed in the reconciliations below.

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

(Dollars in millions)

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Take-or-pay contract-based intangible recognition

0.3 0.8 0.5 1.5

Net periodic benefit credit, excluding service cost (7.4) (10.2) (14.8) (20.3)

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The following table presents Total Segment Costs by reporting segment:

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

(Dollars in millions)

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The following tables present tons sold, revenue, Total Segment Costs and Adjusted EBITDA by operating segment:

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

Seaborne Thermal Seaborne Metallurgical Powder River Basin Other U.S.

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Adjusted EBITDA Margin per Ton $ 9.12 $ (4.18) $ 2.16 $ 4.69

Three Months Ended March 31, 2024

Three Months Ended June 30, 2024

Seaborne Thermal Seaborne Metallurgical Powder River Basin Other U.S.

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Total Segment Costs 203.1 231.5 204.1 166.6

Adjusted EBITDA, excluding Shoal Creek insurance recovery $ 104.4 $ 62.8 $ 17.8 $ 35.4

Shoal Creek insurance recovery - business interruption — 80.8 — —

Adjusted EBITDA $ 104.4 $ 143.6 $ 17.8 $ 35.4

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Adjusted EBITDA Margin per Ton $ 25.29 $ 31.82 $ 1.13 $ 9.68

Six Months Ended June 30, 2025

Seaborne Thermal Seaborne Metallurgical Powder River Basin Other U.S.

(Amounts in millions, except per ton data)

Tons sold 8.0 4.0 39.6 6.0

Revenue $ 460.2 $ 472.3 $ 551.3 $ 323.8

Total Segment Costs 342.5 468.3 472.0 277.4

Adjusted EBITDA $ 117.7 $ 4.0 $ 79.3 $ 46.4

Revenue per Ton $ 57.25 $ 119.40 $ 13.92 $ 54.20

Costs per Ton 42.61 118.39 11.92 46.43

Adjusted EBITDA Margin per Ton $ 14.64 $ 1.01 $ 2.00 $ 7.77

Six Months Ended June 30, 2024

Seaborne Thermal Seaborne Metallurgical Powder River Basin Other U.S.

(Amounts in millions, except per ton data)

Tons sold 8.1 3.4 34.5 6.9

Revenue $ 591.4 $ 541.3 $ 476.0 $ 393.6

Total Segment Costs 393.2 430.2 441.8 311.7

Adjusted EBITDA, excluding Shoal Creek insurance recovery $ 198.2 $ 111.1 $ 34.2 $ 81.9

Shoal Creek insurance recovery - business interruption — 80.8 — —

Adjusted EBITDA $ 198.2 $ 191.9 $ 34.2 $ 81.9

Revenue per Ton $ 72.86 $ 159.10 $ 13.80 $ 57.33

Costs per Ton 48.44 126.46 12.81 45.40

Adjusted EBITDA Margin per Ton $ 24.42 $ 32.64 $ 0.99 $ 11.93

Regulatory Update

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The Black Lung Benefits Act requires each coal mine operator to secure the payment of its potential benefits liability by either qualifying as a self-insurer or by purchasing and maintaining a commercial insurance contract.

The Department of Labor’s (DOL) Office of Workers’ Compensation Programs (OWCP) is responsible for authorizing coal mine operators to self-insure and for setting the security amounts.

The Department of Labor’s Office of Workers’ Compensation Programs (OWCP) is responsible for authorizing coal mine operators to self-insure and for setting the security amounts.

As part of its ongoing efforts to reform the self-insurance program to ensure that operators are adequately securing their liabilities, the OWCP finalized a rule on December 12, 2024 to update its regulations for authorizing operators to self-insure and for determining appropriate security amounts.

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In response to an executive order issued by President Trump requiring agencies to identify regulations for regulatory roll back, the EPA announced on March 12, 2025, that it will reconsider several EPA actions, including:

• Regulation of greenhouse gas emissions from new and existing fossil fuel-fired electric generating units (EGUs), commonly known as “Clean Power Plan 2.0,” which could also impact the final 2015 New Source Performance Standards for fossil fuel-fired EGUs;

• National Ambient Air Quality Standards for fine particulate matter;

• Cross State Air Pollution Rule;

• Mercury and Air Toxic Standards;

• Regulation of greenhouse gas (GHG) emissions from new and existing fossil fuel-fired electric generating units (EGUs);

• National Ambient Air Quality Standards for fine particulate matter (PM);

• Cross State Air Pollution Rule (CSAPR);

• Mercury and Air Toxic Standards (MATS);

• Implementation of the Regional Haze Program;

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• Rules for disposal of coal combustion residuals.

On June 17, 2025, in accordance with the agency’s earlier announcement, the EPA proposed to repeal all GHG emissions standards for new and existing fossil fuel-fired power plants and, in the alternative, to repeal emission guidelines for existing fossil fuel-fired power plants and requirements for modified coal-fired steam generating to use carbon capture and sequestration technology.

In addition, on June 17, 2025, the EPA proposed to repeal parts of a final 2024 MATS rule regarding filterable PM standards and requirements and a revised mercury standard for existing lignite-fired electric generating units.

Peabody will continue to monitor these items as changes could have significant impact on the U.S.

coal mining industry, Peabody’s mining operations and its customers.

Complaints Filed Against “Climate Superfund Laws” and Announced State Actions .

On April 30 and May 1, 2025, respectively, the U.S.

Department of Justice filed complaints for declaratory and injunctive relief against the states of Michigan and Hawaii regarding alleged liability of fossil fuel companies for past GHG emissions and against New York and Vermont for “climate superfund” laws.

These complaints allege that existing litigation and state laws interfere with federal law, including the Clean Air Act, and with interstate and foreign commerce.

The Company will monitor this litigation and its potential impact on the U.S.

coal mining industry, its mining operations and customers.

National Environmental Policy Act (NEPA) .

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The CEQ has clarified that individual agencies are free to continue following or to amend their own NEPA implementation procedures, which largely conformed to the CEQ’s regulations.

On May 28, 2025, the CEQ withdrew its January 9, 2023 interim guidance on consideration of GHG emissions and climate change when conducting environmental reviews pursuant to NEPA.

SEC Climate-Related Disclosures .

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Specifically, the final rules required disclosure of, among other things, climate-related risks that have had or are reasonably likely to have a material impact on a public company’s business strategy, results of operations or financial condition;

certain greenhouse gas (GHG) emissions associated with a public company along with, in many cases, an attestation report by a GHG emissions attestation provider;

certain GHG emissions associated with a public company along with, in many cases, an attestation report by a GHG emissions attestation provider;

and certain climate-related financial metrics to be included in a company’s audited financial statements.

The final rules were challenged by multiple parties, and the cases were consolidated into a judicial review by the Eighth Circuit.

The final rules were challenged by multiple parties, and the cases were consolidated into a judicial review by the U.S.

Court of Appeals for the Eighth Circuit (Eighth Circuit).

On April 4, 2024, the SEC voluntarily stayed implementation of the final rules pending such judicial review.

On March 27, 2025, the SEC announced that it would end its defense of the final rules.

On April 24, 2025, the Eighth Circuit directed the SEC to provide a status update in the ongoing litigation concerning the final rules.

On July 23, 2025, the SEC indicated that it does not intend to review or reconsider the final rules but requested that the Eighth Circuit proceed with the litigation and decide the case.

One Big Beautiful Bill Act of 2025 .

The One Big Beautiful Bill Act of 2025 (OBBBA) was signed into law on July 4, 2025.

Several provisions of the legislation could materially affect the Company’s operations, financial condition or cash flows, including a reduction to the federal royalty rate on coal production and the addition of metallurgical coal which is suitable for use in the production of steel to the list of critical minerals eligible for the Section 45X tax credit through 2029 at a rate of 2.5% of production costs.

While Peabody currently estimates benefits of approximately $15 million to $20 million in the second half of 2025 related to the federal royalty reduction provisions of the legislation, the Company will continue to evaluate the applicability and effect of the OBBBA as more guidance is issued.

Regulatory Matters - Australia

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and access to multi-employer bargaining or single interest employer authorizations.

Following this amendment, the Wambo Underground Mine and four other mines in New South Wales (NSW) were served with an application for a single interest employer authorization which was granted by the Fair Work Commission against three employers including Peabody.

The three employers appealed the authorization in a hearing held in March 2025.

A decision on the appeal is expected in the second quarter of 2025.

An application to the Commission to remove the Wambo Underground Mine from the authorization due to its pending closure was granted by the Commission on July 3, 2025.

On December 7, 2023, the Fair Work Legislation Amendment (Closing Loopholes) Bill 2023 was passed by the Australian Federal Parliament.

The legislation allows unions, employees and/or hosts to make application to the Fair Work Commission for a ‘regulated labour hire arrangement order’ that, if successful, requires labor hire employers to provide similar wages and conditions to regulated workers as those provided to employees of the host.

The Fair Work Commission must make the order requested if it is satisfied that (1) the employer supplies (or will supply) employee(s) to a regulated host to perform work for the host;

The legislation allows unions, employees and/or hosts to make application to the Commission for a ‘regulated labour hire arrangement order’ that, if successful, requires labor hire employers to provide similar wages and conditions to regulated workers as those provided to employees of the host.

The Commission must make the order requested if it is satisfied that (1) the employer supplies (or will supply) employee(s) to a regulated host to perform work for the host;

(2) the regulated host has 15 employees or more;

and (3) the regulated host has an enterprise agreement that would apply to the regulated employees if they were directly employed by the host, unless the Fair Work Commission is satisfied that it is not fair and reasonable to do so.

and (3) the regulated host has an enterprise agreement that would apply to the regulated employees if they were directly employed by the host, unless the Commission is satisfied that it is not fair and reasonable to do so.

These orders do not apply to contactor arrangements, only labor hire.

Various union applications for regulated labor hire arrangement orders to apply at Australian coal mining operations have been successfully made, and are currently being considered by Australia’s Fair Work Commission.

Orders have been made in relation to three labor hire employers who provide labor to Peabody Energy Australia PCI Mine Management Pty Ltd (now a regulated host) at its Coppabella Mine.

Additionally an application for a regulated labor hire arrangement order has been made at the Metropolitan Mine in relation to a labor hire employer which is currently progressing through the determination process.

Various union applications for regulated labor hire arrangement orders to apply at Australian coal mining operations have been successfully made, and are currently being considered by the Commission.

Orders have been made in relation to labor hire employers who provide labor to Peabody Energy Australia PCI Mine Management Pty Ltd (now a regulated host) at its Coppabella Mine and to Helensburgh Coal Pty Ltd (now a regulated host) at the Metropolitan Mine.

The Australian Parliament has passed various other pieces of legislation changing the Australian industrial and employment landscape.

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The Company continues to monitor the progress of any claims that have the potential to impact on its operations.

Aboriginal and Torres Strait Islander Heritage Protection Act 1984 (ATSHIP).

Aboriginal and Torres Strait Islander Heritage Protection Act 1984 (ATSIHP).

The purpose of the ATSIHP Act is to ensure the preservation and protection from harm or desecration of areas and objects in Australia and in Australian waters, that are of particular significance to Aboriginal people.

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The project proponent has indicated that the decision renders the mine project unviable and has initiated Federal Court proceedings seeking a judicial review of the decision-making process.

The first hearing is scheduled for the second quarter of 2025.

Metropolitan Mine Stormwater Discharge.

Significantly high rainfall in New South Wales, including unprecedented rain totals at the Metropolitan Mine site resulted in stormwater being discharged from the mine site on several occasions in 2021 and 2022.

On September 6, 2023, the New South Wales Environment Protection Authority commenced a prosecution for five breaches of the Protection of the Environment Operations Act 1997 (the Act) relating to the stormwater discharges.

On March 15, 2024, the Metropolitan Collieries Pty Ltd (MCPL) pled guilty to two of the charges related to water pollution and two charges related to a failure to adequately maintain plant and equipment were consolidated into one charge to which the MCPL also pled guilty.

The remaining charge was discontinued.

A sentencing hearing was held in November 2024 and the judgment was handed down in March 2025.

MCPL was convicted of three separate offenses under the Act and fined a total monetary penalty of $0.1 million.

MCPL was also ordered to pay costs in the amount of $0.2 million.

There are also various publication orders that MCPL must comply with under the judgement.

Hearings into the matter are expected to occur in December 2025.

Risks and Regulations Related to Global Climate Change

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In December 2012, Australia signed on to the second commitment period.

During the UNFCCC conference in Paris, France in late 2015, an agreement was adopted calling for voluntary emissions reduction contributions after the second commitment period ends in 2020 (the Paris Agreement).

The agreement was entered into force on November 4, 2016 after ratification and execution by more than 55 countries, including Australia, that account for at least 55% of global GHG emissions.

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The Company’s ability to early retire debt, declare dividends or repurchase shares in the future will depend on its future financial performance, which in turn depends on the successful implementation of its strategy and on financial, competitive, regulatory, technical and other factors, general economic conditions, demand for and selling prices of coal and other factors specific to its industry, many of which are beyond the Company’s control.

As of March 31, 2025, the Company’s cash and cash equivalents balances totaled $696.5 million, including approximately $389 million held by U.S.

As of June 30, 2025, the Company’s cash and cash equivalents balances totaled $585.9 million, including approximately $370 million held by U.S.

subsidiaries, approximately $204 million held by Australian subsidiaries and the remainder held by other foreign subsidiaries in accounts predominantly domiciled in the U.S.

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in the form of intercompany dividends.

During the three months ended March 31, 2025, no profits from foreign subsidiaries were repatriated.

During the six months ended June 30, 2025, no profits from foreign subsidiaries were repatriated.

If foreign-held cash is repatriated in the future, the Company does not expect restrictions or potential taxes will have a material effect to its near-term liquidity.

The Company’s available liquidity increased to $1,087.0 million as of March 31, 2025 from $1,072.5 million as of December 31, 2024.

The Company’s available liquidity decreased from $1,072.5 million as of December 31, 2024 to $958.9 million as of June 30, 2025.

Available liquidity was comprised of the following:

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

(Dollars in millions)

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Capital Returns to Shareholders

The Company paid dividends of $9.1 million during the three months ended March 31, 2025.

The Company paid dividends of $18.3 million during the six months ended June 30, 2025.

Surety Agreement Amendment and Collateral Requirements

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In order to maintain the maximum collateral agreement, the Company must remain compliant with a minimum liquidity test and a maximum net leverage ratio, as measured each quarter.

The minimum liquidity test requires the Company to maintain liquidity at the greater of $400 million or the difference between the penal sum of all surety bonds and the amount of collateral posted in favor of surety providers, which was $499.0 million at March 31, 2025.

The Company must also maintain a maximum net leverage ratio of 1.5 to 1.0, where the numerator consists of its funded debt, net of cash, and the denominator consists of its Adjusted EBITDA for the trailing twelve months.

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The Company’s ability to pay dividends and make share repurchases is also subject to the quarterly minimum liquidity test.

The Company is in compliance with such requirements at March 31, 2025.

At March 31, 2025, the Company’s maximum aggregate collateral amount was $525.0 million, which was comprised of $398.0 million in trust accounts and letters of credit of $127.0 million held for the benefit of certain surety providers.

The Company is in compliance with such requirements at June 30, 2025.

At June 30, 2025, the Company’s maximum aggregate collateral amount was $519.6 million, which was comprised of $392.7 million in trust accounts and letters of credit of $126.9 million held for the benefit of certain surety providers.

Credit Support Facilities

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The agreement has an initial expiration date of December 31, 2025.

At March 31, 2025, letters of credit of $115.6 million were outstanding under the agreement, which were collateralized by cash of $119.1 million.

At June 30, 2025, letters of credit of $115.6 million were outstanding under the agreement, which were collateralized by cash of $119.1 million.

In December 2023, the Company established cash-backed bank guarantee facilities, primarily to support Australian reclamation bonding requirements.

The Company receives a variable deposit rate on the amount of cash collateral posted in support of the bank guarantee facilities, which mature at various dates between 2026 and 2029.

At March 31, 2025, the bank guarantee facilities were backed by cash of $170.2 million.

At June 30, 2025, the bank guarantee facilities were backed by cash of $202.4 million.

Revolving Credit Facility

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“Other Events,” (ii) the related bridge loan facility and (iii) the incurrence of additional indebtedness to finance the acquisition, subject to compliance with certain pro forma financial covenants.

As of March 31, 2025, the 2024 Credit Agreement had only been utilized for letters of credit, including $49.3 million outstanding as of March 31, 2025.

As of June 30, 2025, the 2024 Credit Agreement had only been utilized for letters of credit, including $49.3 million outstanding as of June 30, 2025.

These letters of credit support the Company’s reclamation bonding requirements, lease obligations, insurance policies and various other performance guarantees as further described in Note 13.

“Financial Instruments and Other Guarantees.” Availability under the 2024 Credit Agreement was $270.7 million at March 31, 2025.

“Financial Instruments and Other Guarantees.” Availability under the 2024 Credit Agreement was $270.7 million at June 30, 2025.

The 2024 Credit Agreement contains customary covenants that, among other things and subject to certain exceptions (including compliance with financial ratios), may limit the Company and its subsidiaries’ ability to incur additional indebtedness, make certain restricted payments or investments, sell or otherwise dispose of assets, enter into transactions with affiliates, create or incur liens, and merge, consolidate or sell all or substantially all of their assets.

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subsidiaries, as well as a pledge of two Australian subsidiaries.

The Company’s total indebtedness as of March 31, 2025 and December 31, 2024 is presented in the table below.

Debt Instrument (defined below, as applicable) March 31, 2025 December 31, 2024

Capital Expenditures

Due to the reduction of certain sustaining capital expenditures, the Company revised its expected 2025 capital expenditures from approximately $450 million to $420 million.

The Company’s total indebtedness as of June 30, 2025 and December 31, 2024 is presented in the table below.

Debt Instrument (defined below, as applicable) June 30, 2025 December 31, 2024

(Dollars in millions)

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Long-term debt $ 329.2 $ 332.3

The Company’s indebtedness requires estimated contractual principal and interest payments, assuming interest rates in effect at March 31, 2025, of approximately $19 million in 2025, $18 million in 2026, $13 million in 2027, $326 million in 2028, less than $1 million in 2029 and $10 million thereafter.

Cash paid for interest, net of capitalized interest related to the Company’s indebtedness and financial assurance instruments amounted to $9.9 million and $11.5 million during the three months ended March 31, 2025 and 2024, respectively.

The Company’s indebtedness requires estimated contractual principal and interest payments, assuming interest rates in effect at June 30, 2025, of approximately $16 million in 2025, $17 million in 2026, $13 million in 2027, $326 million in 2028, less than $1 million in 2029 and $10 million thereafter.

Cash paid for interest, net of capitalized interest related to the Company’s indebtedness and financial assurance instruments amounted to $24.1 million during both the six months ended June 30, 2025 and 2024.

2028 Convertible Notes

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The 2028 Convertible Notes bear interest at a rate of 3.250% per year, payable semi-annually in arrears on March 1 and September 1 of each year.

During the first quarter of 2025, the Company’s reported common stock prices did not prompt the conversion feature of the 2028 Convertible Notes.

As a result, the 2028 Convertible Notes will not be convertible during the second quarter of 2025.

During the second quarter of 2025, the Company’s reported common stock prices did not prompt the conversion feature of the 2028 Convertible Notes.

As a result, the 2028 Convertible Notes will not be convertible during the third quarter of 2025.

Bridge Loan Facility

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The Company expects to replace the Bridge Facility with permanent financing prior to the closing date, but there can be no assurance such financing will occur and any such expectation is subject to market conditions.

During the three months ended June 30, 2025, the Company paid a $10.4 million duration fee on the Bridge Facility.

To the extent borrowings are made under the Bridge Facility, any loans would bear interest at a SOFR plus an applicable margin of 8.00% or a base rate plus an applicable margin of 7.00%, at the Company’s option.

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Funding capacity under the program may also be utilized for letters of credit in support of other obligations, which has been the Company’s primary utilization.

At March 31, 2025, the Company had no outstanding borrowings and $60.4 million of letters of credit outstanding under the program.

The Company was not required to post cash collateral under the securitization program at March 31, 2025.

At June 30, 2025, the Company had no outstanding borrowings and $58.6 million of letters of credit outstanding under the program.

The Company was not required to post cash collateral under the securitization program at June 30, 2025.

The accounts receivable securitization program was amended in January 2025 to extend its maturity to January 2028.

Covenant Compliance

The Company was compliant with all relevant covenants under its debt and other finance agreements at March 31, 2025.

The following table summarizes the Company’s cash flows for the three months ended March 31, 2025 and 2024, as reported in the accompanying unaudited condensed consolidated financial statements.

Three Months Ended March 31,

The Company was compliant with all relevant covenants under its debt and other finance agreements at June 30, 2025.

The following table summarizes the Company’s cash flows for the six months ended June 30, 2025 and 2024, as reported in the accompanying unaudited condensed consolidated financial statements.

Six Months Ended June 30,

(Dollars in millions)

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Operating Activities.

Net cash provided by operating activities for the three months ended March 31, 2025 was comparable to the same period in the prior year and primarily driven by a year-over-year increase in operating cash flow from working capital ($169.3 million), offset by a decrease in cash from collateral arrangements resulting from prior year collateral releases ($151.7 million) and lower cash generated from mining operations.

The increase in net cash provided by operating activities for the six months ended June 30, 2025 compared to the same period in the prior year was primarily driven by a year-over-year increase in operating cash flow from working capital ($303.9 million), offset by a decrease in cash from collateral arrangements resulting from prior year collateral releases ($154.9 million) and lower cash generated from mining operations.

Investing Activities.

The increase in net cash used in investing activities for the three months ended March 31, 2025 compared to the same period in the prior year was driven higher capital expenditures and payments of capital accruals ($40.8 million).

These variances were partially offset by higher net distribution from joint ventures ($22.1 million).

The decrease in net cash used in investing activities for the six months ended June 30, 2025 compared to the same period in the prior year was driven by a decrease due to the prior period Wards Well acquisition ($143.8 million) and higher net distribution from joint ventures ($28.3 million).

These variances were partially offset by higher payment of capital accruals ($28.3 million).

Financing Activities.

The decrease in net cash used by financing activities for the three months ended March 31, 2025 compared to the same period in the prior year was primarily driven by decreases in common stock repurchases ($83.1 million) and payment of debt issuance and other deferred financing costs ($9.1 million).

The decrease in net cash used by financing activities for the six months ended June 30, 2025 compared to the same period in the prior year was primarily driven by decreases in common stock repurchases ($83.1 million) and payment of debt issuance and other deferred financing costs ($9.3 million).

Off-Balance-Sheet Arrangements

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The following table summarizes the Company’s financial instruments that carry off-balance-sheet risk.

March 31, 2025

June 30, 2025

Reclamation Support Other Support (1)

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(3) Certain letters of credit serve as collateral for surety bonds at the request of surety bond providers.

Not presented in the above table is $815.3 million of restricted cash and other balances serving as collateral which are included in the accompanying condensed consolidated balance sheets at March 31, 2025, as described in Note 13.

Not presented in the above table is $847.1 million of restricted cash and other balances serving as collateral which are included in the accompanying condensed consolidated balance sheets at June 30, 2025, as described in Note 13.

“Financial Instruments and Other Guarantees” of the accompanying unaudited condensed consolidated financial statements.

Such collateral is primarily in support of the financial instruments noted above, including in relation to the Company’s surety bond portfolio, its collateralized letter of credit agreement, its bank guarantee facilities and amounts held directly with beneficiaries which are not supported by surety bonds.

The restricted cash and collateral balance increased $5.5 million during the three months ended March 31, 2025 due to an increase in bonding requirements and the impact of foreign currency rate changes.

At March 31, 2025, the Company had total asset retirement obligations of $725.4 million.

The restricted cash and collateral balance increased $37.3 million during the six months ended June 30, 2025 due to an increase in bonding requirements and the impact of foreign currency rate changes.

At June 30, 2025, the Company had total asset retirement obligations of $729.1 million.

Bonding requirement amounts may differ significantly from the re lated asset retirement obligation because such requirements are calculated under the assumption that reclamation begins currently, whereas the Company’s accounting liabilities are discounted from the end of a mine’s economic life (when final reclamation work would begin) to the balance sheet date.

At March 31, 2025, the Company’s reclamation bonding requirements were supported by approximately $710 million of restricted cash and other balances serving as collateral, which substantially supports the financial liability for final mine reclamation as calculated in accordance with U.S.

At June 30, 2025, the Company’s reclamation bonding requirements were supported by approximately $740 million of restricted cash and other balances serving as collateral, which exceeds the financial liability for final mine reclamation as calculated in accordance with U.S.

Critical Accounting Policies and Estimates

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Actual results may differ from these estimates.

At March 31, 2025, the Company identified certain assets with an aggregate carrying value of approximately $75 million in its Other U.S.

At June 30, 2025, the Company identified certain assets with an aggregate carrying value of approximately $71 million in its Other U.S.

Thermal segment whose recoverability is most sensitive to customer concentration risk.

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“Management’s Discussion and Analysis of Financial Condition and Results of Operations” in its Annual Report on Form 10-K for the year ended December 31, 2024.

The Company’s critical accounting policies remain unchanged at March 31, 2025, and there have been no material changes in the Company’s critical accounting estimates.

The Company’s critical accounting policies remain unchanged at June 30, 2025, and there have been no material changes in the Company’s critical accounting estimates.

Newly Adopted Accounting Standards and Accounting Standards Not Yet Implemented

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis