What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-11-07 compared with 2025-08-07 · 217 added, 208 removed, 492 unchanged (46% of the section changed)

21 unchanged sentences

Total Segment Costs is also used by management as a component of a metric to measure each segment’s operating performance.

Also included in the following discussion of Peabody’s results of operations are references to Revenue per Ton, Costs per Ton and Adjusted EBITDA Margin per Ton for each reporting segment.

These metrics are used by management to measure each reporting segment’s operating performance.

Management believes Costs per Ton and Adjusted EBITDA Margin per Ton best reflect controllable costs and operating results at the reporting segment level.

Also included in the following discussion of Peabody’s results of operations are references to Revenue per Ton, Costs per Ton and Adjusted EBITDA Margin per Ton for each reportable segment.

These metrics are used by management to measure each reportable segment’s operating performance.

Management believes Costs per Ton and Adjusted EBITDA Margin per Ton best reflect controllable costs and operating results at the reportable segment level.

The Company considers all measures reported on a per ton basis to be operating/statistical measures;

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Peabody is a leading producer of metallurgical and thermal coal.

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

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

In 2024, Peabody sold 118.0 million tons of coal.

Since December 31, 2024, the Wambo Underground Mine in the Seaborne Thermal Mining segment shipped its final tons.

As a result, the Company owned interests in 16 active coal mining operations located in the United States (U.S.) and Australia at September 30, 2025.

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

The Company reports its results of operations primarily through the following reportable segments:

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

Thermal and Corporate and Other.

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

Refer to Note 15.

“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.

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

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

High Low Average September 30, 2025 November 3, 2025

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

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(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.

The seaborne pricing included in the table above is not necessarily indicative of the pricing the Company realized during the three months ended September 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.

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 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.

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 September 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.

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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 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.

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 tariffs 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 nine months ended September 30, 2025 presented herein may not be indicative of their ultimate impacts.

Within the seaborne metallurgical coal market, coking coal prices relevant to Australian operations finished the quarter higher.

The quarter saw increased coal buying activity from India after its monsoon season, signs of supply rationalization in China’s steel and coal industries following China’s anti-involution policy announcement made in July, ongoing unplanned mine outages at non-Peabody mines and lower Chinese steel exports quarter-over-quarter.

Looking forward, the seaborne metallurgical coal price may remain volatile based on the outcomes of China’s supply reforms, 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 were mixed during the nine months ended September 30, 2025.

In China, power generation has increased year-over-year through September 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, which has led to weaker coal import demand through the nine months ended September 30, 2025.

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

Looking forward, seaborne thermal coal prices may remain volatile based on the outcomes of China’s supply reforms, potential re-stocking activity in the Northern Hemisphere as winter approaches and volatility in global natural gas markets which can impact global thermal coal markets.

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

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.

Through the nine months ended September 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 nine months ended September 30, 2025, while wind and solar’s combined generation share is at 19% and the share of natural gas generation has declined to approximately 41%.

coal inventories have declined through September 30, 2025, driven by stronger summer demand, resulting in stockpiles declining over 20 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, 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

After industrial action at the Metropolitan Mine beginning in mid-June 2025, employees returned to work on August 1, 2025.

The Company negotiated an enterprise agreement with the Mining and Energy Union and employees, which the employees accepted on August 13, 2025.

The enterprise agreement was ratified with the Fair Work Commission on September 10, 2025.

Arbitration Relating to Terminated Anglo American Acquisition

On November 25, 2024, Peabody entered into definitive agreements (the Purchase Agreements) with Anglo American plc (Anglo), to acquire a portion of the assets and businesses associated with Anglo’s metallurgical coal portfolio in Australia, including Anglo’s interests in the Moranbah North and Grosvenor mines, the Moranbah South development project, the Capcoal complex, the Roper Creek mine and the Dawson complex (comprising the Dawson Main/Central operating mine, the Dawson South operating mine, the Dawson South Exploration project and the Theodore South exploration project, collectively, the Dawson Assets).

The Company has agreed to, following the prospective closing of the Anglo acquisition, sell the Dawson Assets to Pt Bukit Makmur Mandiri Utama or one of its subsidiaries (BUMA).

The Purchase Agreements required Peabody to acquire the balance, or a portion thereof, of the remaining interest in the Moranbah North and Grosvenor mines upon receipt of a tag-along notice from any joint venture participant (the Tag-Along Notice).

On January 15, 2025, Peabody received a Tag-Along Notice pursuant to which Peabody acquired an additional 0.5% interest in the Moranbah North and Grosvenor mines.

Peabody has secured a bridge facility commitment to finance the acquisition.

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, 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.

The Company agreed to, following the prospective closing of the Anglo acquisition, sell the Dawson Assets to Pt Bukit Makmur Mandiri Utama or one of its subsidiaries (BUMA).

On August 19, 2025, Peabody terminated the Purchase Agreements.

The termination of the Purchase Agreements followed Peabody’s prior delivery of a notice of a Material Adverse Change (MAC) as a result of an ignition event at the Moranbah North mine on March 31, 2025, which had led to the closure of the mine.

“Long-term Debt” and Note 14.

“Other Events” for further information.

“Commitments and Contingencies” to the accompanying unaudited condensed consolidated financial statements for further information.

On September 23, 2025, various subsidiaries of Anglo initiated International Chamber of Commerce arbitration proceedings in London, United Kingdom, against Peabody and certain of its affiliates.

Anglo’s complaint alleges, among other things, that Peabody wrongfully terminated the Purchase Agreements and seeks, among other things, declarations that the ignition event at the Moranbah North mine did not constitute a MAC, as well as damages for losses in an unspecified amount, plus costs and interest.

Peabody remains confident that a MAC occurred, and that it was entitled to terminate the Purchase Agreements.

Potential Recovery of Rare Earth Elements (REEs)

Peabody has been evaluating the potential recovery of REEs at its mines within the Powder River Basin.

The Company is progressing its REE initiative and intends to advance the characterization of REEs and critical minerals in its feedstock;

continue discussions with the U.S.

administration regarding critical minerals policies and priorities;

and engage in multiple workstreams as the Company moves through the evaluation process.

Results of Operations

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.

Three and Nine Months Ended September 30, 2025 Compared to the Three and Nine Months Ended September 30, 2024

The decrease in results from continuing operations, net of income taxes for the three and nine months ended September 30, 2025 compared to the same periods in the prior year ($179.1 million and $422.9 million, respectively) was driven by lower revenue primarily due to lower seaborne coal pricing ($75.9 million and $274.4 million, respectively), higher operating costs and expenses (three months, $51.1 million), current year costs related to the terminated Anglo acquisition ($54.0 million and $75.2 million, respectively) and the prior year insurance recovery at the Shoal Creek Mine (nine months, $109.5 million).

This unfavorable variance was partially offset by lower year-over-year income tax provisions ($29.1 million and $86.4 million, respectively).

Adjusted EBITDA for the three and nine months ended September 30, 2025 reflected a year-over-year decrease of $125.3 million and $358.2 million, respectively.

The following table presents tons sold by operating segment:

Three Months Ended June 30, (Decrease) Increase

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

Three Months Ended September 30, Increase (Decrease)

to Volumes Nine Months Ended September 30, (Decrease) Increase

2025 2024 Tons % 2025 2024 Tons %

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Thermal 3.7 4.0 (0.3) (8) % 9.7 10.9 (1.2) (11) %

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

Total tons sold from reportable segments 32.5 31.9 0.6 2 % 90.1 84.8 5.3 6 %

Corporate and Other — — — n.m.

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Supplemental Financial Data

The following table presents supplemental financial data by operating segment:

Three Months Ended June 30, (Decrease)

Increase Six Months Ended June 30, (Decrease)

The following table presents supplemental financial data by reportable segment:

Three Months Ended September 30, (Decrease)

Increase Nine Months Ended September 30, (Decrease)

2025 2024 $ % 2025 2024 $ %

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and certain other costs related to post-mining activities.

The following table presents revenue by reporting segment:

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

The following table presents revenue by reportable segment:

Three Months Ended September 30, (Decrease) Increase to Revenue Nine Months Ended September 30, (Decrease) Increase to Revenue

2025 2024 $ % 2025 2024 $ %

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Seaborne Thermal.

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).

Segment revenue decreased during the three and nine months ended September 30, 2025 compared to the same periods in the prior year due to unfavorable realized prices ($72.8 million and $213.5 million, respectively), offset by favorable mix variances ($2.3 million and $11.8 million, respectively).

Seaborne Metallurgical.

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).

Segment revenue increased during the three months ended September 30, 2025 compared to the same period in the prior year due to favorable volume ($74.6 million) primarily from the Shoal Creek and Centurion Mines, offset by unfavorable realized prices ($58.2 million).

Segment revenue decreased during the nine months ended September 30, 2025 compared to the same period in the prior year due to unfavorable realized prices ($221.7 million), offset by favorable volume ($169.1 million) from the Shoal Creek and Centurion Mines.

Powder River Basin.

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).

Segment revenue decreased during the three months ended September 30, 2025 compared to the same period in the prior year due to unfavorable realized prices ($10.3 million) which were driven by the impact of adjustments to cost pass-through contracts with certain customers resulting from the federal royalty rate reduction included in the One Big Beautiful Bill Act of 2025 (OBBBA).

The decrease was offset by favorable volume ($6.4 million) driven by increased demand.

Segment revenue increased during the nine months ended September 30, 2025 compared to the same period in the prior year due to favorable volume ($80.2 million) resulting from increased demand, offset by unfavorable realized prices ($8.8 million) which were driven by the impact of the federal royalty rate reduction.

Segment revenue decreased during the three and nine months ended September 30, 2025 compared to the same periods in the prior year due to unfavorable volume ($11.6 million and $48.6 million, respectively) resulting from decreased demand, a dragline outage at the Bear Run Mine and challenging geological issues at the Twentymile Mine;

unfavorable realized prices ($10.4 million and $28.0 million, respectively);

and decreased revenue from sales contract cancellation settlements ($2.7 million and $17.9 million, respectively).

Corporate and Other.

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.

The increase in segment revenue during the three and nine months ended September 30, 2025 compared to the same periods in the prior year was driven by higher results from trading activities.

Segment Costs

The following table presents costs by reporting segment:

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

The following table presents costs by reportable segment:

Three Months Ended September 30, Increase (Decrease) to Total Segment Costs Nine Months Ended September 30, (Decrease) Increase to Total Segment Costs

2025 2024 $ % 2025 2024 $ %

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Seaborne Thermal.

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).

Segment Costs increased during the three months ended September 30, 2025 compared to the same period in the prior year due to higher recognized costs resulting from sales volume outpacing production volume ($41.3 million).

This increase was offset by lower costs for labor, repairs and outside services ($22.5 million), lower sales related costs ($3.8 million) driven by lower realized prices and favorable commodity pricing ($2.4 million).

Segment costs decreased during the nine months ended September 30, 2025 compared to the same period in the prior year due to lower costs for labor, repairs and outside services ($57.5 million) resulting from timing of maintenance and operational improvements, favorable commodity pricing ($9.8 million), lower sales related costs ($9.1 million) driven by both lower realized prices and volume and lower leasing expense ($6.4 million);

offset by higher recognized costs resulting from sales volume outpacing production volume ($53.7 million).

Seaborne Metallurgical.

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.

Segment Costs increased during the three and nine months ended September 30, 2025 compared to the same periods in the prior year due to higher variable operational and sales related costs driven by increased volumes (0.4 million tons and 1.0 million tons, respectively).

Powder River Basin.

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).

Segment Costs decreased during the three months ended September 30, 2025 compared to the same period in the prior year primarily due to lower sales related costs ($16.3 million) which were largely driven by the federal royalty rate reduction on coal production included in the OBBBA, offset by higher costs for labor, repairs and outside services ($13.6 million) due in part to unplanned dragline outages, haul truck repairs and increased headcount.

Segment Costs increased during the nine months ended September 30, 2025 compared to the same period in the prior year primarily due to higher costs for labor, repairs and outside services ($20.1 million) due in part to unplanned dragline outages, haul truck repairs and increased headcount.

The decrease in Segment Costs during the three and nine months ended September 30, 2025 compared to the same periods in the prior year was driven by lower volume (0.3 million tons and 1.2 million tons, respectively) and lower costs for labor ($0.5 million and $9.4 million, respectively).

Corporate and Other.

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.

Segment Costs increased during the three months ended September 30, 2025 compared to the same period in the prior year primarily due to unfavorable remeasurement of foreign currency denominated monetary assets, substantially comprised of Australian dollar denominated restricted cash and cash collateral, and higher expense from trading activities.

Segment Costs increased during the nine months ended September 30, 2025 compared to the same period in the prior year primarily due to lower credits for net periodic benefits, excluding service costs and higher expense from trading activities.

These increases were offset by 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 June 30, (Decrease) Increase to Segment Adjusted EBITDA Six Months Ended June 30, (Decrease) Increase to Segment Adjusted EBITDA

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

Three Months Ended September 30, Decrease to Segment Adjusted EBITDA Nine Months Ended September 30, (Decrease) Increase to Segment Adjusted EBITDA

2025 2024 $ % 2025 2024 $ %

10 unchanged sentences

Seaborne Thermal.

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.

Segment Adjusted EBITDA decreased during the three months ended September 30, 2025 compared to the same period in the prior year due to lower realized prices net of sales price sensitive costs ($69.2 million) and unfavorable operational costs ($18.5 million).

Seaborne Metallurgical.

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.

Segment Adjusted EBITDA was flat for the three months ended September 30, 2025 compared to the same period in the prior year as favorable operational costs ($20.9 million), driven by the prior year impacts of wet weather in Australia and a longwall move at the Shoal Creek Mine, were offset by lower realized prices net of sales price sensitive costs ($23.8 million).

Segment Adjusted EBITDA decreased during the nine months ended September 30, 2025 compared to the same period in the prior year due to lower realized prices net of sales price sensitive costs ($169.8 million) and the prior year Shoal Creek insurance recovery ($80.8 million), offset by favorable operational costs ($45.3 million).

Powder River Basin.

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).

Segment Adjusted EBITDA was flat for the three months ended September 30, 2025 compared to the same period in the prior year as the decrease in Segment Costs was offset by the decrease in revenue, as described in the sections above.

Segment Adjusted EBITDA increased during the nine months ended September 30, 2025 compared to the same period in the prior year due to favorable volume ($42.5 million), decreased overburden removal costs ($12.9 million) and higher realized prices net of sales sensitive costs ($10.6 million) which were largely driven by the net impact of the federal royalty rate reduction.

The increases were offset by higher costs for materials, services, repairs and labor ($20.1 million).

Segment Adjusted EBITDA decreased during the three months ended September 30, 2025 compared to the same period in the prior year primarily driven by higher costs for materials, services and repairs ($8.4 million) due in part to the dragline outage at the Bear Run Mine and the longwall move at the Twentymile Mine in the current period and lower realized prices net of sales price sensitive costs ($8.3 million).

Segment Adjusted EBITDA decreased during the nine months ended September 30, 2025 compared to the same period in the prior year due to lower realized prices net of sales price sensitive costs ($23.2 million), higher costs for materials, services and repairs ($21.3 million) due in part to the dragline outage at the Bear Run Mine and challenging geological issues at the Twentymile Mine and decreased sales contract cancellation settlements ($17.9 million).

Corporate and Other Adjusted EBITDA.

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

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

Three Months Ended September 30, (Decrease) Increase to Adjusted EBITDA Nine Months Ended September 30, (Decrease) Increase to Adjusted EBITDA

2025 2024 $ % 2025 2024 $ %

13 unchanged sentences

(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.

Corporate and Other Adjusted EBITDA decreased during the three months ended September 30, 2025 compared to the same period in the prior year due to unfavorable variances in Middlemount’s results driven by lower sales pricing;

higher selling and administrative expenses;

and unfavorable remeasurement of foreign currency denominated monetary assets, substantially comprised of Australian dollar denominated restricted cash and cash collateral ($12.7 million).

Corporate and Other Adjusted EBITDA increased slightly during the nine months ended September 30, 2025 compared to the same period in the prior year.

Unfavorable variances in Middlemount’s results driven by lower sales pricing and higher selling and administrative expenses were offset by higher gains on equipment and land sales ($15.6 million);

favorable remeasurement of foreign currency denominated monetary assets, substantially comprised of Australian dollar denominated restricted cash and cash collateral ($15.8 million);

and favorable results from the Company’s equity method investment in renewable energy joint ventures ($11.1 million).

(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

Three Months Ended September 30, (Decrease) Increase to Income Nine Months Ended September 30, (Decrease) Increase to Income

2025 2024 $ % 2025 2024 $ %

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Restructuring charges (4.0) (1.9) (2.1) (111) % (9.2) (2.1) (7.1) (338) %

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

Costs related to terminated acquisition (54.0) — (54.0) n.m.

(75.2) — (75.2) 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) %

Provision for NARM loss — — — n.m.

— (3.7) 3.7 100 %

Shoal Creek insurance recovery - property damage — — — n.m.

— 28.7 (28.7) (100) %

Changes in amortization of basis difference related to equity affiliates 0.5 0.4 0.1 25 % 1.9 1.1 0.8 73 %

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Interest income 13.9 17.7 (3.8) (21) % 43.1 53.7 (10.6) (20) %

Unrealized gains (losses) on foreign currency option contracts 4.1 2.4 1.7 71 % 8.4 (3.3) 11.7 355 %

Unrealized (losses) gains on foreign currency option contracts (2.3) 3.7 (6.0) (162) % 6.1 0.4 5.7 1,425 %

Take-or-pay contract-based intangible recognition 0.3 0.8 (0.5) (63) % 0.8 2.3 (1.5) (65) %

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Depreciation, Depletion and Amortization.

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

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

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

Three Months Ended September 30, Increase (Decrease) to Income Nine Months Ended September 30, Decrease to Income

2025 2024 $ % 2025 2024 $ %

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(6.0) (0.9) (5.1) (567) % (9.0) (6.7) (2.3) (34) %

Total $ (93.4) $ (82.9) $ (10.5) (13) % $ (185.5) $ (162.7) $ (22.8) (14) %

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 June 30, Six Months Ended June 30,

Total depreciation, depletion and amortization $ (100.0) $ (84.7) $ (15.3) (18) % $ (285.5) $ (247.4) $ (38.1) (15) %

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

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

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Thermal 1.64 1.55 1.75 1.59

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.

Depreciation, depletion and amortization expense increased during the three and nine months ended September 30, 2025 compared to the same periods in the prior year primarily due to increased depreciation resulting from asset additions and increased depletion expense primarily due to increased volume from the Shoal Creek and Centurion Mines.

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.

Thermal segments during the three and nine months ended September 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 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.

The increase in restructuring charges during the current year is due to the closure of the Wambo Underground Mine which occurred during the three months ended September 30, 2025.

Costs Related to Terminated Acquisition.

The charges recorded during the current year relate to the terminated acquisition of multiple metallurgical coal mines from Anglo.

In addition to typical costs, such as legal and professional fees, the charges include commitment and duration fees on the bridge loan facility of $36.3 million and $46.7 million for the three and nine months ended September 30, 2025, respectively.

Refer to Note 14.

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

“Commitments and Contingencies” in the accompanying unaudited condensed consolidated financial statements for further information regarding the acquisition.

Shoal Creek Insurance Recovery - Property Damage .

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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.

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

Interest Income.

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.

Unrealized gains (losses) primarily relate to mark-to-market activity on foreign currency option contracts.

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

Unrealized (Losses) Gains on Foreign Currency Option Contracts.

Unrealized (losses) gains primarily relate to mark-to-market activity on foreign currency option contracts.

For additional information, refer to Note 6.

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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.

The decrease in the income tax benefit (provision) during the three and nine months ended September 30, 2025 compared to the same periods in the prior year was primarily due to lower expected pretax income.

Refer to Note 8.

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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

Three Months Ended September 30, (Decrease) Increase

to Income Nine Months Ended September 30, (Decrease) Increase

2025 2024 $ % 2025 2024 $ %

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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.

The decrease in net income attributable to noncontrolling interests during the three and nine months ended September 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 June 30, Decrease to EPS Six Months Ended June 30, (Decrease) Increase

Three Months Ended September 30, Decrease to EPS Nine Months Ended September 30, (Decrease) Increase

2025 2024 $ % 2025 2024 $ %

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(Loss) income from continuing operations $ (0.57) $ 0.74 $ (1.31) (177) % $ (0.51) $ 2.47 $ (2.98) (121) %

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

Loss from discontinued operations (0.01) — (0.01) n.m.

(0.01) (0.03) 0.02 67 %

Net (loss) income attributable to common stockholders $ (0.58) $ 0.74 $ (1.32) (178) % $ (0.52) $ 2.44 $ (2.96) (121) %

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 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.

Diluted EPS reflects weighted average diluted common shares outstanding of 121.7 million and 141.6 million for the three months ended September 30, 2025 and 2024, respectively, and 121.7 million and 143.1 million for the nine months ended September 30, 2025 and 2024, respectively.

Reconciliation of Non-GAAP Financial Measures

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 June 30, Six Months Ended June 30,

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

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

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4.0 1.9 9.2 2.1

Transaction costs related to business combinations 18.8 — 21.2 —

Costs related to terminated acquisition 54.0 — 75.2 —

Provision for NARM loss — — — 3.7

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(13.9) (17.7) (43.1) (53.7)

Unrealized (gains) losses on foreign currency option contracts (4.1) (2.4) (8.4) 3.3

Unrealized losses (gains) on foreign currency option contracts 2.3 (3.7) (6.1) (0.4)

Take-or-pay contract-based intangible recognition

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$ 99.5 $ 224.8 $ 336.8 $ 695.0

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 June 30, Six Months Ended June 30,

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

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

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$ 896.9 $ 845.8 $ 2,456.5 $ 2,463.9

Unrealized gains (losses) on foreign currency option contracts 4.1 2.4 8.4 (3.3)

Unrealized (losses) gains on foreign currency option contracts (2.3) 3.7 6.1 0.4

Take-or-pay contract-based intangible recognition

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Total Segment Costs $ 887.4 $ 840.2 $ 2,441.1 $ 2,436.2

The following table presents Total Segment Costs by reporting segment:

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

2025 2024 2025 2024

(Dollars in millions)

Seaborne Thermal $ 161.6 $ 203.1 $ 342.5 $ 393.2

Seaborne Metallurgical 261.4 231.5 468.3 430.2

Powder River Basin 232.7 204.1 472.0 441.8

Thermal 141.6 166.6 277.4 311.7

Corporate and Other (10.9) (8.4) (6.5) 19.1

Total Segment Costs $ 786.4 $ 796.9 $ 1,553.7 $ 1,596.0

Revenue per Ton and Adjusted EBITDA Margin per Ton are equal to revenue by segment and Adjusted EBITDA by segment (excluding insurance recoveries), respectively, divided by segment tons sold.

Costs per Ton is equal to Revenue per Ton less Adjusted EBITDA Margin per Ton.

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

Three Months Ended June 30, 2025

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

Three Months Ended September 30, 2025

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

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Adjusted EBITDA Margin per Ton $ 10.02 $ 13.03 $ 2.29 $ 1.87

Three Months Ended June 30, 2024

Three Months Ended September 30, 2024

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

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Total Segment Costs 193.2 214.7 253.6 188.3

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 $ 120.0 $ 27.8 $ 51.7 $ 28.4

2 unchanged sentences

Adjusted EBITDA Margin per Ton $ 29.20 $ 16.56 $ 2.34 $ 7.02

Six Months Ended June 30, 2025

Nine Months Ended September 30, 2025

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

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Adjusted EBITDA Margin per Ton $ 13.08 $ 5.22 $ 2.11 $ 5.51

Six Months Ended June 30, 2024

Nine Months Ended September 30, 2024

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

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The changed requirements for security posted to self-insure black lung liabilities could result in the Company being required to post additional security for its obligations.

The Trump Administration recently issued letters to impacted companies that the 60-day deadline to provide information was no longer applicable and that no additional information was required at this time.

During February 2025, the Trump Administration issued letters to impacted companies that the 60-day deadline to provide information was no longer applicable and that no additional information was required at this time.

They also announced that OWCP would provide additional guidance in due course.

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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.

Both actions are currently pending.

On August 1, 2025, the EPA published a proposed rule to reconsider a 2009 endangerment finding regarding the regulation of GHGs under the Clean Air Act (CAA).

In the 2009 action, the EPA found that current and projected atmospheric concentrations of six GHGs were reasonably anticipated to endanger public health and welfare and that GHG emissions from new motor vehicles contributed to air pollution that threatened public health and welfare.

These determinations formed the basis for subsequent regulation of GHGs from new motor vehicles under section 202 of the CAA.

The EPA is proposing to rescind the 2009 endangerment finding and to fully repeal vehicle rules based on GHG emissions.

On September 29, 2025, the EPA released a pre-publication version of a direct final rule to extend the date for existing steam electric power plants to decide whether to submit a notice of planned participation for the permanent cessation of coal combustion subcategory in the 2024 Supplemental Steam Electric Reconsideration Rule.

On that same day, the EPA released a pre-publication version of a related proposed rule to extend seven deadlines in the 2024 rule.

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.

Regional Haze .

The CAA contains a national visibility goal for the “prevention of any future, and the remedying of any existing, impairment of visibility in Class I areas which impairment results from man-made air pollution.” The EPA promulgated comprehensive regulations in 1999 requiring all states to submit plans to address regional haze that could affect 156 national parks and wilderness areas, including requirements for certain sources to install the best available retrofit technology and for states to demonstrate “reasonable progress” towards meeting the national visibility goal.

States are required to revise plans every 10 years, but these statutory deadlines have not been met.

On March 29, 2024, the EPA published a proposed consent decree under which deadlines (for the second 10-year regional haze implementation period) would be established for the EPA to take final action to approve, disapprove or conditionally approve, in whole or in part, state regional haze implementation plans for 34 states (at various dates from June 28, 2024 to December 31, 2026).

The EPA subsequently filed a motion to approve the consent judgment in the U.S.

District Court for the District of Columbia which was granted.

On December 31, 2024, the EPA proposed to revise the due date for plans (for the third regional haze implementation period) from July 31, 2028 to July 31, 2031.

As noted above, the EPA has also announced plans to “restructure” the regional haze program and, on September 29, 2025, issued an Advance Notice of Proposed Rulemaking to “streamlining regulatory requirements impacting states’ visibility improvement obligations under the Clean Air Act.”

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

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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.

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

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

9 unchanged sentences

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.

On September 29, 2025, the CEQ issued guidance requiring all heads of federal departments and agencies to revise (or to establish) NEPA implementation procedures consistent with Executive Order 14154, the 2023 and 2025 statutory amendments to NEPA and the U.S.

Supreme Court’s May 29, 2025 decision in Seven County Infrastructure Coalition v.

Eagle County, Colorado .

The CEQ emphasized the need for agencies to streamline procedures and ensure that the NEPA process does not go on for too long in time or in volume.

SEC Climate-Related Disclosures .

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One Big Beautiful Bill Act of 2025 .

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

The 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.

Peabody realized benefits of approximately $9 million during the third quarter of 2025 related to the federal royalty reduction provisions of the legislation and estimates similar benefits for the fourth quarter of 2025.

The Company will continue to evaluate the applicability and effect of the OBBBA as more guidance is issued.

Regulatory Matters - Australia

3 unchanged sentences

Most of the hourly workers employed in the Company’s mines are also covered by the Black Coal Mining Industry Award and company specific enterprise agreements approved under the national system.

In December 2022, the federal government passed The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022, which amends the Fair Work Act.

The legislation introduced several changes to workplace laws in Australia including changes to enterprise agreement making and termination;

when industrial action can be taken;

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 (Commission) against three employers including Peabody.

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.

Under the current Commonwealth Labor Party administration, there continues to be an increased legislative focus on enhanced employee entitlements including Flexible Work Arrangements and Right to Disconnect laws.

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 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 legislation allows unions, employees and/or hosts to make application to the Fair Work Commission (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;

1 unchanged sentence

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.

These orders do not apply to contractor 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 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.

This includes the Fair Work Legislation Amendment (Closing Loopholes No.

2) Bill 2023 which was passed on February 12, 2024 and made many changes, including to the definition of who is a casual employee and the definition of who is a contractor versus employee.

The change to the casual employment definition was introduced to move away from a decision of the High Court of Australia in which an employee in the Australian coal mining industry who was rostered to work full-time hours on a 12-month roster was found to be employed on a casual basis pursuant to the terms of his contract of employment and therefore not entitled to receive the benefits that permanent employees receive (e.g.

paid annual leave).

Native Title and Cultural Heritage Laws.

4 unchanged sentences

There is also federal and state legislation to prevent damage to Aboriginal cultural heritage and archaeological sites.

Both NSW and Queensland have additional state specific legislation in place that enables Aboriginal people to claim freehold title to available land currently owned by the state government.

Both New South Wales (NSW) and Queensland have additional state specific legislation in place that enables Aboriginal people to claim freehold title to available land currently owned by the state government.

If and when title to any claimable land is transferred to the relevant Aboriginal people, then ongoing consultation and compensation arrangements will need to be in place with the new landowner.

There is claimable land within proximity to all Company operations in NSW and Queensland and accordingly, as and when any claims are processed by the respective state government, the Company will need to progress consultation and compensation arrangements to ensure that its access rights are maintained.

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

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

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

3 unchanged sentences

Such a declaration may prevent any development being carried out on the relevant area of land.

In 2024, the federal minister made a declaration under the ATSIHP Act over an area that had been approved under state and federal environmental and planning laws for a gold mining project.

In 2024, the Commonwealth Minister made a declaration under the ATSIHP Act over an area that had been approved under state and federal environmental and planning laws for a gold mining project in NSW.

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.

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

The Company will monitor any legal precedents set in this case that have the potential to impact its operations.

Risks and Regulations Related to Global Climate Change

23 unchanged sentences

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

As of September 30, 2025, the Company’s cash and cash equivalents balances totaled $603.3 million, including approximately $377 million held by U.S.

subsidiaries, approximately $215 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 six months ended June 30, 2025, no profits from foreign subsidiaries were repatriated.

During the nine months ended September 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 decreased from $1,072.5 million as of December 31, 2024 to $958.9 million as of June 30, 2025.

The Company’s available liquidity decreased from $1,072.5 million as of December 31, 2024 to $951.2 million as of September 30, 2025.

Available liquidity was comprised of the following:

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

(Dollars in millions)

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Capital Returns to Shareholders

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

The Company paid dividends of $27.5 million during the nine months ended September 30, 2025.

Surety Agreement Amendment and Collateral Requirements

3 unchanged sentences

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 $494.4 million at June 30, 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 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.

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

At September 30, 2025, the Company’s maximum aggregate collateral amount was $519.2 million, which was comprised of $392.8 million in trust accounts and letters of credit of $126.4 million held for the benefit of certain surety providers.

Credit Support Facilities

In February 2022, the Company entered into an agreement which provides up to $250.0 million of capacity for irrevocable standby letters of credit, primarily to support reclamation bonding requirements.

The agreement requires the Company to provide cash collateral at a level of 103% of the aggregate amount of letters of credit outstanding under the arrangement (limited to $5.0 million total excess collateralization).

The initial agreement required the Company to provide cash collateral at a level of 103% of the aggregate amount of letters of credit outstanding under the arrangement (limited to $5.0 million total excess collateralization).

Outstanding letters of credit bear a fixed fee in the amount of 0.75% per annum.

The Company receives a variable deposit rate on the amount of cash collateral posted in support of letters of credit.

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

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.

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

The agreement was amended on November 3, 2025, to (i) extend the expiration date to December 31, 2030 and (ii) change the required minimum cash collateral amount to 102% of the aggregate amount of letters of credit outstanding under the agreement, provided that in the event the Company’s credit rating falls below certain thresholds, the minimum collateral amount shall increase to 103%.

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

At September 30, 2025, the bank guarantee facilities were backed by cash of $205.9 million.

Revolving Credit Facility

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Unused capacity under the 2024 Credit Agreement bears a commitment fee of 0.50% per annum.

On November 25, 2024, the Company amended the 2024 Credit Agreement to, among other things, permit (i) Peabody’s planned acquisition of multiple coal mines from Anglo as further discussed in Note 11.

“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 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.

On November 25, 2024, the Company amended the 2024 Credit Agreement to, among other things, permit (i) Peabody’s then-planned acquisition of multiple coal mines from Anglo, (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 further discussed in Note 14.

“Commitments and Contingencies,” Peabody terminated the acquisition with Anglo on August 19, 2025.

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

“Financial Instruments and Other Guarantees.” Availability under the 2024 Credit Agreement was $270.7 million at September 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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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

The Company expects 2025 capital expenditures of approximately $420 million.

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

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

(Dollars in millions)

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Long-term debt $ 321.8 $ 332.3

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.

The Company’s indebtedness requires estimated contractual principal and interest payments, assuming interest rates in effect at September 30, 2025, of approximately $8 million in 2025, $20 million in 2026, $15 million in 2027, $327 million in 2028, and less than $1 million in 2029 and thereafter.

Cash paid for interest, net of capitalized interest related to the Company’s indebtedness and financial assurance instruments amounted to $35.0 million and $32.6 million during the nine months ended September 30, 2025 and 2024, respectively.

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 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.

During the third 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 fourth quarter of 2025.

Bridge Loan Facility

Concurrently with its entry into definitive agreements to acquire the Anglo assets, the Company entered into a bridge loan facility commitment letter (the Bridge Commitment Letter, and the senior secured 364-day bridge facility provided for therein, the Bridge Facility), pursuant to which the lenders agreed to provide the Bridge Facility to the Company in the amount of up to $2.075 billion in order to finance the planned acquisition in part.

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.

Such applicable margin would increase by an additional 0.75% on the date that is 90 days following the closing date of the planned acquisition.

Any borrowings under the Bridge Facility would mature 364 days from the initial funding date, which would be on or around the closing date of the planned acquisition.

The availability of borrowings under the Bridge Facility is subject to the satisfaction of certain customary conditions for transactions of this type.

Any definitive financing documentation for the Bridge Facility will contain customary representations and warranties, covenants and events of defaults for transactions of this type.

Upon execution of any definitive financing documentation for the Bridge Facility, the Bridge Facility will be guaranteed by substantially all U.S.

subsidiaries of the Company and secured by substantially all assets of the Company, its U.S.

subsidiaries and, subject to certain conditions, certain of the Company’s Australian subsidiaries.

Concurrently with its entry into definitive agreements to acquire the Anglo assets, the Company entered into a bridge loan facility commitment letter (the Bridge Commitment Letter, and the senior secured 364-day bridge facility provided for therein, the Bridge Facility), pursuant to which the lenders agreed to provide the Bridge Facility to the Company in order to finance the then-planned acquisition in part.

The Bridge Facility was terminated on August 19, 2025.

During the three and nine months ended September 30, 2025, the Company paid commitment and duration fees on the Bridge Facility of $36.3 million and $46.7 million, respectively, which are included in “Costs related to terminated acquisition” in the unaudited condensed consolidated statements of operations.

Accounts Receivable Securitization Program

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“Financial Instruments and Other Guarantees” of the accompanying unaudited condensed consolidated financial statements, the Company entered into an accounts receivable securitization program during 2017.

The securitization program provides up to $225.0 million of funding capacity which is accounted for as a secured borrowing, limited to the availability of eligible receivables, and may be secured by a combination of collateral and the trade receivables underlying program.

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 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.

At September 30, 2025, the Company had no outstanding borrowings and $62.5 million of letters of credit outstanding under the program.

The Company was not required to post cash collateral under the securitization program at September 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 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,

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

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

Nine Months Ended September 30,

(Dollars in millions)

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Operating Activities.

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.

The decrease in net cash provided by operating activities for the nine months ended September 30, 2025 compared to the same period in the prior year was primarily driven by a year-over-year decrease in cash from collateral arrangements resulting from prior year collateral releases ($148.9 million), costs related to the terminated Anglo acquisition ($75.2 million) and lower cash from mining operations.

These decreases were partially offset by a year-over-year increase in operating cash flow from working capital ($288.4 million), primarily attributable to changes in accounts payable and accrued expenses ($198.0 million) driven by prior year income tax payments and Shoal Creek inventory primarily due to the prior year lock outage ($87.1 million).

Investing Activities.

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).

The decrease in net cash used in investing activities for the nine months ended September 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), receipt of Anglo acquisition deposit ($29.0 million), and higher net distribution from joint ventures ($19.1 million).

These variances were partially offset by changes in accrued expenses related to capital accruals ($28.1 million), higher capital expenditures ($15.1 million), and the prior year cash receipt for Shoal Creek insurance recovery ($10.9 million).

Financing Activities.

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).

The decrease in net cash used by financing activities for the nine months ended September 30, 2025 compared to the same period in the prior year was primarily driven by decreases in common stock repurchases ($183.1 million).

Off-Balance-Sheet Arrangements

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

June 30, 2025

September 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 $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.

Not presented in the above table is $851.0 million of restricted cash and other balances serving as collateral which are included in the accompanying condensed consolidated balance sheets at September 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 $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.

The restricted cash and collateral balance increased $41.2 million during the nine months ended September 30, 2025 due to an increase in bonding requirements and the impact of foreign currency rate changes.

At September 30, 2025, the Company had total asset retirement obligations of $730.3 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 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.

At September 30, 2025, the Company’s reclamation bonding requirements were supported by approximately $743 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

The Company’s discussion and analysis of its financial condition, results of operations, liquidity and capital resources is based upon its financial statements, which have been prepared in accordance with U.S.

The Company’s discussion and analysis of its financial condition, results of operations, liquidity and capital resources is based upon its unaudited condensed consolidated financial statements, which have been prepared in accordance with U.S.

The Company is also required under U.S.

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Actual results may differ from these estimates.

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

At September 30, 2025, the Company identified certain assets with an aggregate carrying value of approximately $68 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 June 30, 2025, and there have been no material changes in the Company’s critical accounting estimates.

The Company’s critical accounting policies remain unchanged at September 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