PEABODY ENERGY CORP 10-Q

Item 1. Financial Statements. PEABODY ENERGY CORPORATION UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 (Dollars in millions, except per share data) Revenue $ 1,012.1 $ 1,088.0 $ 2,839.2 $ 3,113.6 Costs and expenses Operating costs and expenses (exclusive of items shown separately below) 896.9 845.8 2,456.5 2,463.9 Depreciation, depletion and amortization 100.0 84.7 285.5 247.4 Asset retirement obligation expenses 13.9 12.9 41.3 38.7 Selling and administrative expenses 27.4 20.6 74.5 64.7 Restructuring charges 4.0 1.9 9.2 2.1 Costs related to terminated acquisition 54.0 — 75.2 — Other operating (income) loss: Net gain on disposals ( 5.3 ) ( 0.1 ) ( 25.3 ) ( 9.7 ) Provision for NARM loss — — — 3.7 Shoal Creek insurance recovery — — — ( 109.5 ) Loss from equity affiliates 2.6 2.1 10.2 7.1 Operating (loss) profit ( 81.4 ) 120.1 ( 87.9 ) 405.2 Interest expense, net of capitalized interest 10.0 9.7 32.6 35.1 Interest income ( 13.9 ) ( 17.7 ) ( 43.1 ) ( 53.7 ) Net periodic benefit credit, excluding service cost ( 7.5 ) ( 10.1 ) ( 22.3 ) ( 30.4 ) (Loss) income from continuing operations before income taxes ( 70.0 ) 138.2 ( 55.1 ) 454.2 Income tax (benefit) provision ( 3.4 ) 25.7 ( 1.2 ) 85.2 (Loss) income from continuing operations, net of income taxes ( 66.6 ) 112.5 ( 53.9 ) 369.0 Loss from discontinued operations, net of income taxes ( 0.3 ) ( 1.0 ) ( 1.0 ) ( 3.3 ) Net (loss) income ( 66.9 ) 111.5 ( 54.9 ) 365.7 Less: Net income attributable to noncontrolling interests 3.2 10.2 8.4 25.4 Net (loss) income attributable to common stockholders $ ( 70.1 ) $ 101.3 $ ( 63.3 ) $ 340.3 (Loss) income from continuing operations: Basic (loss) income per share $ ( 0.57 ) $ 0.82 $ ( 0.51 ) $ 2.72 Diluted (loss) income per share $ ( 0.57 ) $ 0.74 $ ( 0.51 ) $ 2.47 Net (loss) income attributable to common stockholders: Basic (loss) income per share $ ( 0.58 ) $ 0.81 $ ( 0.52 ) $ 2.69 Diluted (loss) income per share $ ( 0.58 ) $ 0.74 $ ( 0.52 ) $ 2.44 See accompanying notes to unaudited condensed consolidated financial statements. 1 Table of Contents PEABODY ENERGY CORPORATION UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 (Dollars in millions) Net (loss) income $ ( 66.9 ) $ 111.5 $ ( 54.9 ) $ 365.7 Postretirement plans (net of $ 0.0 tax provisions in each period) ( 10.2 ) ( 13.3 ) ( 30.6 ) ( 39.8 ) Foreign currency translation adjustment 0.4 2.3 2.6 0.9 Other comprehensive loss, net of income taxes ( 9.8 ) ( 11.0 ) ( 28.0 ) ( 38.9 ) Comprehensive (loss) income ( 76.7 ) 100.5 ( 82.9 ) 326.8 Less: Net income attributable to noncontrolling interests 3.2 10.2 8.4 25.4 Comprehensive (loss) income attributable to common stockholders $ ( 79.9 ) $ 90.3 $ ( 91.3 ) $ 301.4 See accompanying notes to unaudited condensed consolidated financial statements. 2 Table of Contents PEABODY ENERGY CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) September 30, 2025 December 31, 2024 (Amounts in millions, except per share data) ASSETS Current assets Cash and cash equivalents $ 603.3 $ 700.4 Accounts receivable, net of allowance for credit losses of $ 0.0 at September 30, 2025 and December 31, 2024 307.2 359.3 Inventories, net 405.2 393.4 Other current assets 273.5 327.6 Total current assets 1,589.2 1,780.7 Property, plant, equipment and mine development, net 3,075.5 3,081.5 Operating lease right-of-use assets 99.6 119.3 Restricted cash and collateral 851.0 809.8 Investments and other assets 129.0 162.4 Total assets $ 5,744.3 $ 5,953.7 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities Current portion of long-term debt $ 15.5 $ 15.8 Accounts payable and accrued expenses 781.8 811.7 Total current liabilities 797.3 827.5 Long-term debt, less current portion 321.8 332.3 Deferred income taxes 29.5 40.9 Asset retirement obligations, less current portion 674.5 667.8 Accrued postretirement benefit costs 116.4 120.4 Operating lease liabilities, less current portion 70.3 86.7 Other noncurrent liabilities 150.8 169.3 Total liabilities 2,160.6 2,244.9 Stockholders’ equity Preferred Stock — $ 0.01 per share par value; 100.0 shares authorized, no shares issued or outstanding as of September 30, 2025 and December 31, 2024 — — Series Common Stock — $ 0.01 per share par value; 50.0 shares authorized, no shares issued or outstanding as of September 30, 2025 and December 31, 2024 — — Common Stock — $ 0.01 per share par value; 450.0 shares authorized, 189.3 shares issued and 121.6 shares outstanding as of September 30, 2025 and 189.1 shares issued and 121.4 shares outstanding as of December 31, 2024 1.9 1.9 Additional paid-in capital 3,999.7 3,990.5 Treasury stock, at cost — 67.7 common shares as of September 30, 2025 and December 31, 2024 ( 1,927.3 ) ( 1,926.5 ) Retained earnings 1,354.7 1,445.8 Accumulated other comprehensive income 110.8 138.8 Peabody Energy Corporation stockholders’ equity 3,539.8 3,650.5 Noncontrolling interests 43.9 58.3 Total stockholders’ equity 3,583.7 3,708.8 Total liabilities and stockholders’ equity $ 5,744.3 $ 5,953.7 See accompanying notes to unaudited condensed consolidated financial statements. 3 Table of Contents PEABODY ENERGY CORPORATION UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Nine Months Ended September 30, 2025 2024 (Dollars in millions) Cash Flows From Operating Activities Net (loss) income $ ( 54.9 ) $ 365.7 Loss from discontinued operations, net of income taxes 1.0 3.3 (Loss) income from continuing operations, net of income taxes ( 53.9 ) 369.0 Adjustments to reconcile (loss) income from continuing operations, net of income taxes to net cash provided by operating activities: Depreciation, depletion and amortization 285.5 247.4 Noncash interest expense 4.2 4.0 Deferred income taxes ( 11.3 ) ( 10.9 ) Noncash share-based compensation 8.9 5.7 Net gain on disposals ( 25.3 ) ( 9.7 ) Noncash income from port and rail capacity assignment — ( 0.3 ) Loss from equity affiliates 10.2 7.1 Shoal Creek insurance recovery — ( 16.6 ) Unrealized gains on foreign currency option contracts ( 6.1 ) ( 0.4 ) Changes in current assets and liabilities: Accounts receivable 69.5 82.0 Inventories ( 11.8 ) ( 92.6 ) Other current assets 37.7 15.6 Accounts payable and accrued expenses ( 0.3 ) ( 198.3 ) Collateral arrangements ( 5.6 ) 143.3 Asset retirement obligations 6.3 ( 1.2 ) Postretirement benefit obligations ( 34.6 ) ( 45.0 ) Pension obligations ( 4.0 ) — Other, net ( 2.6 ) ( 7.7 ) Net cash provided by continuing operations 266.8 491.4 Net cash used in discontinued operations ( 1.7 ) ( 4.7 ) Net cash provided by operating activities 265.1 486.7 4 Table of Contents PEABODY ENERGY CORPORATION UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - (Continued) Nine Months Ended September 30, 2025 2024 (Dollars in millions) Cash Flows From Investing Activities Additions to property, plant, equipment and mine development ( 280.8 ) ( 265.7 ) Changes in accrued expenses related to capital expenditures ( 34.6 ) ( 6.5 ) Wards Well acquisition — ( 143.8 ) Insurance proceeds attributable to Shoal Creek equipment losses — 10.9 Returned deposit related to terminated acquisition 29.0 — Proceeds from disposal of assets, net of receivables 16.6 16.1 Contributions to joint ventures ( 436.2 ) ( 550.1 ) Distributions from joint ventures 455.0 549.8 Other, net ( 1.8 ) ( 0.3 ) Net cash used in investing activities ( 252.8 ) ( 389.6 ) Cash Flows From Financing Activities Repayments of long-term debt ( 9.9 ) ( 7.2 ) Repayment of loan note related to terminated acquisition ( 9.3 ) — Payment of debt issuance and other deferred financing costs ( 1.8 ) ( 11.1 ) Common stock repurchases — ( 183.1 ) Excise taxes paid related to common stock repurchases ( 1.7 ) — Repurchase of employee common stock relinquished for tax withholding ( 0.8 ) ( 4.1 ) Dividends paid ( 27.5 ) ( 28.5 ) Distributions to noncontrolling interests ( 22.8 ) ( 34.8 ) Net cash used in financing activities ( 73.8 ) ( 268.8 ) Net change in cash, cash equivalents and restricted cash ( 61.5 ) ( 171.7 ) Cash, cash equivalents and restricted cash at beginning of period (1) 1,382.6 1,650.2 Cash, cash equivalents and restricted cash at end of period (2) $ 1,321.1 $ 1,478.5 (1) The following table provides a reconciliation of “Cash, cash equivalents and restricted cash at beginning of period”: Cash and cash equivalents $ 700.4 Restricted cash included in “Restricted cash and collateral” 682.2 Cash, cash equivalents and restricted cash at beginning of period $ 1,382.6 (2) The following table provides a reconciliation of “Cash, cash equivalents and restricted cash at end of period”: Cash and cash equivalents $ 603.3 Restricted cash included in “Restricted cash and collateral” 717.8 Cash, cash equivalents and restricted cash at end of period $ 1,321.1 See accompanying notes to unaudited condensed consolidated financial statements. 5 Table of Contents PEABODY ENERGY CORPORATION UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 (Dollars in millions, except per share data) Common Stock Balance, beginning of period $ 1.9 $ 1.9 $ 1.9 $ 1.9 Balance, end of period 1.9 1.9 1.9 1.9 Additional paid-in capital Balance, beginning of period 3,996.0 3,987.2 3,990.5 3,983.0 Dividend equivalent units on dividends declared 0.1 0.1 0.3 0.2 Share-based compensation for equity-classified awards 3.6 1.6 8.9 5.7 Balance, end of period 3,999.7 3,988.9 3,999.7 3,988.9 Treasury stock Balance, beginning of period ( 1,927.3 ) ( 1,825.5 ) ( 1,926.5 ) ( 1,740.2 ) Common stock repurchases — ( 100.0 ) — ( 183.1 ) Net change in unsettled common stock repurchases — — — 2.6 Excise tax accrued on common stock repurchases — ( 1.0 ) — ( 1.7 ) Repurchase of employee common stock relinquished for tax withholding — — ( 0.8 ) ( 4.1 ) Balance, end of period ( 1,927.3 ) ( 1,926.5 ) ( 1,927.3 ) ( 1,926.5 ) Retained earnings Balance, beginning of period 1,434.1 1,332.5 1,445.8 1,112.7 Net (loss) income attributable to common stockholders ( 70.1 ) 101.3 ( 63.3 ) 340.3 Dividends declared ($ 0.075 , $ 0.075 , $ 0.225 and $ 0.225 per share, respectively) ( 9.3 ) ( 9.5 ) ( 27.8 ) ( 28.7 ) Balance, end of period 1,354.7 1,424.3 1,354.7 1,424.3 Accumulated other comprehensive income Balance, beginning of period 120.6 161.7 138.8 189.6 Postretirement plans (net of $ 0.0 tax provisions in each period) ( 10.2 ) ( 13.3 ) ( 30.6 ) ( 39.8 ) Foreign currency translation adjustment 0.4 2.3 2.6 0.9 Balance, end of period 110.8 150.7 110.8 150.7 Noncontrolling interests Balance, beginning of period 48.8 57.2 58.3 60.5 Net income attributable to noncontrolling interests 3.2 10.2 8.4 25.4 Distributions to noncontrolling interests ( 8.1 ) ( 16.3 ) ( 22.8 ) ( 34.8 ) Balance, end of period 43.9 51.1 43.9 51.1 Total stockholders’ equity $ 3,583.7 $ 3,690.4 $ 3,583.7 $ 3,690.4 See accompanying notes to unaudited condensed consolidated financial statements. 6 Table of Contents PEABODY ENERGY CORPORATION NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (1) Basis of Presentation The unaudited condensed consolidated financial statements include the accounts of Peabody Energy Corporation (PEC) and its consolidated subsidiaries and affiliates (along with PEC, the Company or Peabody). Interests in subsidiaries controlled by the Company are consolidated with any outside stockholder interests reflected as noncontrolling interests, except when the Company has an undivided interest in a joint venture. In those cases, the Company includes its proportionate share in the assets, liabilities, revenue and expenses of the jointly controlled entities within each applicable line item of the unaudited condensed consolidated financial statements. All intercompany transactions, profits and balances have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements and should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024. In the opinion of management, these financial statements reflect all normal, recurring adjustments necessary for a fair presentation. Balance sheet information presented herein as of December 31, 2024 has been derived from the Company’s audited consolidated balance sheet at that date. The Company’s consolidated results of operations for the three and nine months ended September 30, 2025 are not necessarily indicative of the results that may be expected for future quarters or for the year ending December 31, 2025. (2) Newly Adopted Accounting Standards and Accounting Standards Not Yet Implemented Newly Adopted Accounting Standards The Company did not adopt any new accounting standards that had a material impact on its unaudited condensed consolidated financial statements or disclosures. Accounting Standards Not Yet Implemented Income Taxes . In December 2023, Accounting Standards Update (ASU) 2023-09 was issued, which requires public entities to disclose more information primarily related to the income tax rate reconciliation and income taxes paid. The guidance also eliminates certain existing disclosure requirements related to uncertain tax positions and unrecognized deferred tax liabilities. The Company is required to adopt the amendments for fiscal years beginning after December 15, 2024. The amendments should be applied prospectively, with a retrospective option. Early adoption is permitted. The Company expects this ASU to only impact its disclosures with no impacts to its consolidated results of operations, cash flows and financial condition. Expense Disaggregation . In November 2024, ASU 2024-03 was issued, which requires public entities to disclose additional information about specific expense categories in the notes to financial statements at interim and annual reporting periods. The Company is required to adopt the amendments for fiscal years beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027. The amendments should be applied prospectively, with a retrospective option. Early adoption is permitted. The Company expects this ASU to only impact its disclosures with no impacts to its consolidated results of operations, cash flows and financial condition. Induced Conversions of Convertible Debt . In November 2024, ASU 2024-04 was issued, which clarifies the requirements for determining whether certain settlements of convertible debt instruments should be accounted for as an induced conversion. The amendments in this ASU affect entities that settle convertible debt instruments for which the conversion privileges were changed to induce conversion. The Company is required to adopt the amendments for fiscal years beginning after December 15, 2025 and interim reporting periods within those periods. The amendments should be applied prospectively, with a retrospective option. Early adoption is permitted. The Company will apply this guidance upon its adoption, as applicable. (3) Revenue Recognition Refer to Note 1. “Summary of Significant Accounting Policies” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, for the Company’s policies regarding “Revenue” and “Accounts receivable, net.” 7 Table of Contents PEABODY ENERGY CORPORATION NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued) Disaggregation of Revenue Revenue by product type and market is set forth in the following tables. With respect to its seaborne reportable segments, the Company classifies as “Export” certain revenue from domestically-delivered coal under contracts in which the price is derived on a basis similar to export contracts. Three Months Ended September 30, 2025 Seaborne Thermal Seaborne Metallurgical Powder River Basin Other U.S. Thermal Corporate and Other (1) Consolidated (Dollars in millions) Thermal coal Domestic $ 33.6 $ — $ 301.4 $ 192.0 $ — $ 527.0 Export 208.8 — — — — 208.8 Total thermal 242.4 — 301.4 192.0 — 735.8 Metallurgical coal Export — 258.5 — — — 258.5 Total metallurgical — 258.5 — — — 258.5 Other 0.3 0.4 — — 17.1 17.8 Revenue $ 242.7 $ 258.9 $ 301.4 $ 192.0 $ 17.1 $ 1,012.1 Three Months Ended September 30, 2024 Seaborne Thermal Seaborne Metallurgical Powder River Basin Other U.S. Thermal Corporate and Other (1) Consolidated (Dollars in millions) Thermal coal Domestic $ 38.8 $ — $ 304.2 $ 214.0 $ — $ 557.0 Export 272.4 — — — — 272.4 Total thermal 311.2 — 304.2 214.0 — 829.4 Metallurgical coal Export — 240.4 — — — 240.4 Total metallurgical — 240.4 — — — 240.4 Other 2.0 2.1 1.1 2.7 10.3 18.2 Revenue $ 313.2 $ 242.5 $ 305.3 $ 216.7 $ 10.3 $ 1,088.0 Nine Months Ended September 30, 2025 Seaborne Thermal Seaborne Metallurgical Powder River Basin Other U.S. Thermal Corporate and Other (1) Consolidated (Dollars in millions) Thermal coal Domestic $ 107.1 $ — $ 852.6 $ 515.7 $ — $ 1,475.4 Export 595.4 — — — — 595.4 Total thermal 702.5 — 852.6 515.7 — 2,070.8 Metallurgical coal Export — 730.1 — — — 730.1 Total metallurgical — 730.1 — — — 730.1 Other 0.4 1.1 0.1 0.1 36.6 38.3 Revenue $ 702.9 $ 731.2 $ 852.7 $ 515.8 $ 36.6 $ 2,839.2 8 Table of Contents PEABODY ENERGY CORPORATION NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued) Nine Months Ended September 30, 2024 Seaborne Thermal Seaborne Metallurgical Powder River Basin Other U.S. Thermal Corporate and Other (1) Consolidated (Dollars in millions) Thermal coal Domestic $ 116.3 $ — $ 779.7 $ 592.3 $ — $ 1,488.3 Export 786.1 — — — — 786.1 Total thermal 902.4 — 779.7 592.3 — 2,274.4 Metallurgical coal Export — 778.4 — — — 778.4 Total metallurgical — 778.4 — — — 778.4 Other 2.2 5.4 1.6 18.0 33.6 60.8 Revenue $ 904.6 $ 783.8 $ 781.3 $ 610.3 $ 33.6 $ 3,113.6 (1) Corporate and Other includes the following: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 (Dollars in millions) Revenue from physical sale of coal (2) $ 14.0 $ 5.9 $ 25.8 $ 20.1 Other 3.1 4.4 10.8 13.5 Total Corporate and Other $ 17.1 $ 10.3 $ 36.6 $ 33.6 (2) Includes revenue recognized upon the physical sale of coal purchased from the Company’s reportable segments and sold to customers through the Company’s coal trading business. Primarily represents the difference between the price contracted with the customer and the price allocated to the reportable segment. Accounts Receivable “Accounts receivable, net” at September 30, 2025 and December 31, 2024 consisted of the following: September 30, 2025 December 31, 2024 (Dollars in millions) Trade receivables, net $ 254.6 $ 294.9 Miscellaneous receivables, net 52.6 64.4 Accounts receivable, net $ 307.2 $ 359.3 None of the above receivables included allowances for credit losses at September 30, 2025 or December 31, 2024. No charges for credit losses were recognized during the three and nine months ended September 30, 2025 or 2024. (4) Inventories “Inventories, net” as of September 30, 2025 and December 31, 2024 consisted of the following: September 30, 2025 December 31, 2024 (Dollars in millions) Materials and supplies, net $ 164.3 $ 157.5 Raw coal 82.4 109.6 Saleable coal 158.5 126.3 Inventories, net $ 405.2 $ 393.4 Materials and supplies inventories, net presented above have been shown net of reserves of $ 3.9 million and $ 3.5 million as of September 30, 2025 and December 31, 2024, respectively. 9 Table of Contents PEABODY ENERGY CORPORATION NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued) (5) Equity Method Investments The Company’s equity method investments include its interests in Middlemount Coal Pty Ltd. (Middlemount), R3 Renewables LLC (R3), R3 Renewables II LLC (R3 II) and certain other equity method investments. The table below summarizes the book value of those investments, which are reported in “Investments and other assets” in the condensed consolidated balance sheets, and the related “Loss from equity affiliates” in the unaudited condensed consolidated statements of operations: Loss (Income) from Equity Affiliates Book Value at Three Months Ended September 30, Nine Months Ended September 30, September 30, 2025 December 31, 2024 2025 2024 2025 2024 (Dollars in millions) Equity method investment related to Middlemount $ 47.3 $ 52.7 $ 1.2 $ ( 2.2 ) $ 8.0 $ ( 4.1 ) Equity method investment related to R3 — — — 4.3 — 11.2 Equity method investment related to R3 II 2.0 5.8 1.4 — 2.2 — Total equity method investments $ 49.3 $ 58.5 $ 2.6 $ 2.1 $ 10.2 $ 7.1 R3 and R3 II In March 2022, the Company entered into a joint venture with unrelated partners to form R3, an entity in which the Company held a 50 % interest. R3 was formed with the intent of developing various sites, including certain reclaimed mining land held by the Company in the U.S., for utility-scale photovoltaic solar generation and battery storage. The Company contributed $ 10.8 million to R3 during the nine months ended September 30, 2024. In November 2024, R3 sold seven projects to an unrelated party and contributed its remaining three projects to a new entity (R3 II). The unrelated party purchased 75 % of the equity in R3 II for cash and contingent consideration for the future obligation to pay seller’s milestone payments. R3 used the proceeds from the equity purchase of R3 II to repurchase shares from the other investors of R3, such that Peabody is the only remaining equity holder of R3, which has a 25 % equity interest in R3 II. The Company contributed $ 0.7 million to R3 II during the nine months ended September 30, 2025. (6) Derivatives and Fair Value Measurements Derivatives From time to time, the Company may utilize various types of derivative instruments to manage its exposure to risks in the normal course of business, including (1) foreign currency exchange rate risk and the variability of cash flows associated with forecasted Australian dollar expenditures made in its Australian mining platform and (2) price risk of fluctuating coal prices related to forecasted sales or purchases of coal, or changes in the fair value of a fixed price physical sales contract. These risk management activities are actively monitored for compliance with the Company’s risk management policies. On a limited basis, the Company engages in the direct and brokered trading of coal and freight-related contracts. Except those contracts for which the Company has elected to apply a normal purchases and normal sales exception, all derivative coal trading contracts are accounted for at fair value. 10 Table of Contents PEABODY ENERGY CORPORATION NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued) Foreign Currency The Company utilizes options and collars to hedge currency risk associated with anticipated Australian dollar operating expenditures. As of September 30, 2025, the Company held average rate options with an aggregate notional amount of $ 524.0 million Australian dollars to hedge currency risk associated with anticipated Australian dollar operating expenditures over the nine-month period ending June 30, 2026. The instruments entitle the Company to receive payment on the notional amount should the quarterly average Australian dollar-to-U.S. dollar exchange rate exceed amounts ranging from $ 0.67 to $ 0.71 over the nine-month period ending June 30, 2026. As of September 30, 2025, the Company also held purchased collars with an aggregate notional amount of $ 541.0 million Australian dollars related to anticipated Australian dollar operating expenditures during the nine-month period ending June 30, 2026. The purchased collars have a floor ranging from approximately $ 0.58 to $ 0.61 and a ceiling ranging from $ 0.68 to $ 0.70 , whereby the Company will incur a loss on the instruments for quarterly average Australian dollar-to-U.S. dollar exchange rates below the floor and a gain for quarterly average rates above the ceiling. Tabular Derivatives Disclosures The Company has master netting agreements with certain of its counterparties which allow for the settlement of contracts in an asset position with contracts in a liability position in the event of default or termination. Such netting arrangements reduce the Company’s credit exposure related to these counterparties. For classification purposes, the Company records the net fair value of all the positions with a given counterparty as a net asset or liability in the condensed consolidated balance sheets. As of September 30, 2025, the Company had an asset derivative comprised of foreign currency option contracts with a fair value of $ 2.9 million. As of December 31, 2024, the Company had a liability derivative comprised of foreign currency option contracts with a fair value of $ 3.6 million. The net amount of asset derivatives is included in “Other current assets” and the net amount of liability derivatives is included in “Accounts payable and accrued expenses” in the accompanying condensed consolidated balance sheets. 11 Table of Contents PEABODY ENERGY CORPORATION NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued) The Company does not seek cash flow hedge accounting treatment for its derivative financial instruments and, thus, changes in fair value are reflected in current earnings. The tables below show the amounts of pretax gains and losses related to the Company’s derivatives and their classification within the accompanying unaudited condensed consolidated statements of operations. Three Months Ended September 30, 2025 Total loss recognized in income Loss realized in income on derivatives Unrealized loss recognized in income on derivatives Derivative Instrument Classification (Dollars in millions) Foreign currency option contracts Operating costs and expenses $ ( 2.9 ) $ ( 0.6 ) $ ( 2.3 ) Total $ ( 2.9 ) $ ( 0.6 ) $ ( 2.3 ) Three Months Ended September 30, 2024 Total gain recognized in income Loss realized in income on derivatives Unrealized gain recognized in income on derivatives Derivative Instrument Classification (Dollars in millions) Foreign currency option contracts Operating costs and expenses $ 3.6 $ ( 0.1 ) $ 3.7 Total $ 3.6 $ ( 0.1 ) $ 3.7 Nine Months Ended September 30, 2025 Total gain recognized in income Loss realized in income on derivatives Unrealized gain recognized in income on derivatives Derivative Instrument Classification (Dollars in millions) Foreign currency option contracts Operating costs and expenses $ 4.3 $ ( 1.8 ) $ 6.1 Total $ 4.3 $ ( 1.8 ) $ 6.1 Nine Months Ended September 30, 2024 Total loss recognized in income Loss realized in income on derivatives Unrealized gain recognized in income on derivatives Derivative Instrument Classification (Dollars in millions) Foreign currency option contracts Operating costs and expenses $ ( 2.1 ) $ ( 2.5 ) $ 0.4 Total $ ( 2.1 ) $ ( 2.5 ) $ 0.4 The Company classifies derivative-related activity within the “Cash Flows From Operating Activities” section of the unaudited condensed consolidated statements of cash flows. Fair Value Measurements The Company uses a three-level fair value hierarchy that categorizes assets and liabilities measured at fair value based on the observability of the inputs utilized in the valuation. These levels include: Level 1 - inputs are quoted prices in active markets for the identical assets or liabilities; Level 2 - inputs are other than quoted prices included in Level 1 that are directly or indirectly observable through market-corroborated inputs; and Level 3 - inputs are unobservable, or observable but cannot be market-corroborated, requiring the Company to make assumptions about pricing by market participants. 12 Table of Contents PEABODY ENERGY CORPORATION NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued) The following tables set forth the hierarchy of the Company’s net asset (liability) positions for which fair value is measured on a recurring basis. September 30, 2025 Level 1 Level 2 Level 3 Total (Dollars in millions) Foreign currency option contracts $ — $ 2.9 $ — $ 2.9 Total net assets $ — $ 2.9 $ — $ 2.9 December 31, 2024 Level 1 Level 2 Level 3 Total (Dollars in millions) Foreign currency option contracts $ — $ ( 3.6 ) $ — $ ( 3.6 ) Equity securities 1.0 — — 1.0 Total net assets (liabilities) $ 1.0 $ ( 3.6 ) $ — $ ( 2.6 ) For Level 1 and 2 financial assets and liabilities, the Company utilizes both direct and indirect observable price quotes, including interest rate yield curves, exchange indices, broker/dealer quotes, published indices, issuer spreads, benchmark securities and other market quotes. In the case of certain debt securities, fair value is provided by a third-party pricing service. Below is a summary of the Company’s valuation techniques for Level 1 and 2 financial assets and liabilities: • Foreign currency option contracts are valued utilizing inputs obtained in quoted public markets (Level 2) except when credit and non-performance risk is considered to be a significant input, then the Company classifies such contracts as Level 3. • Investments in equity securities are based on unadjusted quoted prices in active markets (Level 1). Other Financial Instruments . The following methods and assumptions were used by the Company in estimating fair values for other financial instruments as of September 30, 2025 and December 31, 2024: • Cash and cash equivalents, restricted cash, accounts receivable, including those within the Company’s accounts receivable securitization program, notes receivable and accounts payable have carrying values which approximate fair value due to the short maturity or the liquid nature of these instruments. • Long-term debt fair value estimates are based on observed prices for securities when available (Level 2), and otherwise on estimated borrowing rates to discount the cash flows to their present value (Level 3). Market risk associated with the Company’s fixed-rate long-term debt relates to the potential reduction in the fair value from an increase in interest rates. The fair value of debt, shown below, is principally based on reported market values and estimates based on interest rates, maturities, credit risk, underlying collateral and completed market transactions. September 30, 2025 December 31, 2024 (Dollars in millions) Total debt at par value $ 342.1 $ 354.4 Less: Unamortized debt issuance costs ( 4.8 ) ( 6.3 ) Net carrying amount $ 337.3 $ 348.1 Estimated fair value $ 501.1 $ 438.0 The Company had no transfers between Levels 1, 2 and 3 during the three and nine months ended September 30, 2025 and 2024. The Company’s policy is to value all transfers between levels using the beginning of period valuation. 13 Table of Contents PEABODY ENERGY CORPORATION NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued) (7) Property, Plant, Equipment and Mine Development The composition of property, plant, equipment and mine development, net, as of September 30, 2025 and December 31, 2024 is set forth in the table below: September 30, 2025 December 31, 2024 (Dollars in millions) Land and coal interests $ 2,645.1 $ 2,648.5 Buildings and improvements 754.1 726.7 Machinery and equipment 2,295.7 2,078.8 Less: Accumulated depreciation, depletion and amortization ( 2,619.4 ) ( 2,372.5 ) Property, plant, equipment and mine development, net $ 3,075.5 $ 3,081.5 At-Risk Assets The Company identified certain assets with an aggregate carrying value of approximately $ 68 million at September 30, 2025 in its Other U.S. Thermal segment whose recoverability is most sensitive to customer concentration risk. (8) Income Taxes The Company's effective tax rate before remeasurement for the nine months ended September 30, 2025 is based on the Company’s estimated full year effective tax rate, comprised of expected statutory tax provision, offset by foreign rate differential and changes in valuation allowance. The Company’s income tax benefit of $ 3.4 million and income tax provision of $ 25.7 million for the three months ended September 30, 2025 and 2024, respectively, included tax provisions of $ 0.4 million and $ 1.0 million, respectively, related to the remeasurement of foreign income tax accounts. The Company’s income tax benefit of $ 1.2 million and income tax provision of $ 85.2 million for the nine months ended September 30, 2025 and 2024, respectively, included a tax provision of $ 2.3 million and a tax benefit of $ 2.9 million, respectively, related to the remeasurement of foreign income tax accounts. Due to existing valuation allowances, the income tax expense is primarily related to the Australian income. (9) Long-term Debt The Company’s total indebtedness as of September 30, 2025 and December 31, 2024 consisted of the following: Debt Instrument (defined below, as applicable) September 30, 2025 December 31, 2024 (Dollars in millions) 3.250 % Convertible Senior Notes due March 2028 (2028 Convertible Notes) $ 320.0 $ 320.0 BUMA Loan Note — 9.3 Finance lease obligations 22.1 25.1 Less: Debt issuance costs ( 4.8 ) ( 6.3 ) 337.3 348.1 Less: Current portion of long-term debt 15.5 15.8 Long-term debt $ 321.8 $ 332.3 2028 Convertible Notes On March 1, 2022, through a private offering, the Company issued the 2028 Convertible Notes in the aggregate principal amount of $ 320.0 million. The 2028 Convertible Notes are senior unsecured obligations of the Company and are governed under an indenture. The Company used the proceeds of the offering of the 2028 Convertible Notes and available cash to redeem its then-existing senior secured notes and to pay related premiums, fees and expenses relating to the offering and redemptions. The Company capitalized $ 11.2 million of debt issuance costs related to the offering, which are being amortized over the terms of the notes. 14 Table of Contents PEABODY ENERGY CORPORATION NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued) The 2028 Convertible Notes will mature on March 1, 2028, unless earlier converted, redeemed or repurchased in accordance with their terms. 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. The initial conversion rate for the 2028 Convertible Notes was 50.3816 shares of the Company’s common stock per $ 1,000 principal amount of 2028 Convertible Notes, which represented an initial conversion price of approximately $ 19.85 per share of the Company’s common stock. The terms of the indenture require conversion rate adjustments upon the payment of dividends to holders of the Company’s common stock once such cumulative dividends impact the conversion rate by at least 1 %. Effective February 19, 2025, the conversion rate was increased to 51.7762 shares of the Company’s common stock per $ 1,000 principal amount of 2028 Convertible Notes, which represented an adjusted conversion price of approximately $ 19.31 per share. Under the applicable conversion rate formula, the cumulative $ 0.150 per share dividends declared and paid since the prior conversion rate adjustment yielded a revised conversion rate of 52.2561 shares per $ 1,000 principal amount of 2028 Convertible Notes, which did not meet the 1 % threshold to impact the existing conversion rate of 51.7762 . The conversion rate may be impacted prospectively, based upon cumulative dividends paid. The conversion rate is also subject to further adjustment under certain circumstances in accordance with the terms of the indenture. 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. As of September 30, 2025, the if-converted value of the 2028 Convertible Notes exceeded the principal amount by $ 123.5 million. Revolving Credit Facility The Company established a revolving credit facility with a maximum aggregate principal amount of $ 320.0 million in revolving commitments by entering into a credit agreement, dated as of January 18, 2024 (the 2024 Credit Agreement), by and among the Company, as borrower, certain subsidiaries of the Company party thereto, PNC Bank, National Association, as administrative agent, and the lenders party thereto. The Company paid aggregate debt issuance costs of $ 9.7 million. The revolving commitments and any related loans, if applicable (any such loans, the Revolving Loans), established by the 2024 Credit Agreement terminate or mature, as applicable, on January 18, 2028, subject to certain conditions relating to the Company’s outstanding 2028 Convertible Notes. The Revolving Loans bear interest at a secured overnight financing rate (SOFR) plus an applicable margin ranging from 3.50 % to 4.25 %, depending on the Company’s total net leverage ratio (as defined under the 2024 Credit Agreement) or a base rate plus an applicable margin ranging from 2.50 % to 3.25 %, at the Company’s option. Letters of credit issued under the 2024 Credit Agreement incur a combined fee equal to an applicable margin ranging from 3.50 % to 4.25 % plus a fronting fee equal to 0.125 % per annum. 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 then-planned acquisition of multiple coal mines from Anglo American plc (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. The Company paid aggregate deferred financing costs of $ 0.9 million as part of the amendment. 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 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. The 2024 Credit Agreement is secured by substantially all assets of the Company and its U.S. subsidiaries, as well as a pledge of two Australian subsidiaries. 15 Table of Contents PEABODY ENERGY CORPORATION NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued) BUMA Loan Note The Company had agreed to, following the closing of the then-planned Anglo acquisition, sell a portion of the assets (the Dawson Assets) to Pt Bukit Makmur Mandiri Utama or one of its subsidiaries (BUMA). Accordingly, on November 25, 2024, concurrent with its entry into the purchase agreements for the Anglo acquisition, the Company entered into a loan note deed with BUMA pursuant to which BUMA would lend to the Company the funds required to purchase the Dawson Assets under the Anglo acquisition purchase agreements and fund certain other obligations in relation to the Dawson Assets (the BUMA Loan Note). The Company received $ 9.3 million in BUMA Loan Note proceeds during the year ended December 31, 2024 to fund a portion of the deposit to Anglo for the then-planned acquisition. Concurrent with the August 19, 2025 termination of the Anglo acquisition, the Company terminated the agreement for the related sale of the Dawson Assets to BUMA and returned the $ 9.3 million of proceeds during the three months ended September 30, 2025. Refer to Note 14. “Commitments and Contingencies” for additional information associated with the Anglo acquisition. 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 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. Interest Charges The following table presents the components of the Company’s interest expense related to its indebtedness and financial assurance instruments such as surety bonds and letters of credit. Additionally, the table sets forth the amount of cash paid for interest, net of capitalized interest and the amount of non-cash interest expense primarily related to the amortization of debt issuance costs. Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 (Dollars in millions) 2028 Convertible Notes $ 2.6 $ 2.6 $ 7.8 $ 7.8 Financial assurance instruments 6.2 5.8 19.8 20.7 Amortization of debt issuance costs 1.4 0.6 4.2 4.0 Receivables securitization program 0.6 0.5 1.8 1.9 Finance lease obligations 0.4 0.4 1.1 1.3 Capitalized interest ( 2.0 ) ( 2.7 ) ( 5.9 ) ( 4.4 ) Other 0.8 2.5 3.8 3.8 Interest expense, net of capitalized interest $ 10.0 $ 9.7 $ 32.6 $ 35.1 Cash paid for interest, net of capitalized interest $ 10.9 $ 8.5 $ 35.0 $ 32.6 Non-cash interest expense $ 0.9 $ 0.8 $ 4.2 $ 4.0 Covenant Compliance The Company was compliant with all relevant covenants under its debt and other finance agreements at September 30, 2025. (10) Pension and Postretirement Benefit Costs The components of net periodic pension, postretirement benefit and workers’ compensation costs, excluding the service cost for benefits earned, are included in “Net periodic benefit credit, excluding service cost” in the unaudited condensed consolidated statements of operations. 16 Table of Contents PEABODY ENERGY CORPORATION NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued) The Company sponsors a qualified pension plan. Annual contributions to the qualified plan are made in accordance with minimum funding standards and the Company’s agreement with the Pension Benefit Guaranty Corporation (PBGC). Funding decisions also consider certain funded status thresholds defined by the Pension Protection Act of 2006. As of September 30, 2025, the qualified plan was expected to be at or above the Pension Protection Act thresholds. The Company is not required to make any cash contributions to the qualified plan in 2025 based on minimum funding requirements. During the nine months ended September 30, 2025, the Company made a discretionary cash contribution of $ 5.0 million to the qualified plan which allowed for termination of the Company’s agreement with the PBGC and resulted in the release of a $ 37.0 million letter of credit that had been maintained in favor of the PBGC. Net periodic postretirement benefit credit included the following components: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 (Dollars in millions) Service cost for benefits earned $ 0.1 $ 0.1 $ 0.3 $ 0.3 Interest cost on accumulated postretirement benefit obligation 1.9 2.3 5.8 6.9 Expected return on plan assets ( 0.1 ) ( 0.1 ) ( 0.3 ) ( 0.3 ) Amortization of prior service credit ( 10.2 ) ( 13.3 ) ( 30.6 ) ( 39.8 ) Net periodic postretirement benefit credit $ ( 8.3 ) $ ( 11.0 ) $ ( 24.8 ) $ ( 32.9 ) The Company has established a Voluntary Employees’ Beneficiary Association (VEBA) trust to pre-fund a portion of benefits for non-represented retirees. The Company does not expect to make any discretionary contributions to the VEBA trust in 2025 and plans to utilize a portion of VEBA assets to make certain benefit payments. (11) Other Events Wards Well Acquisition On April 16, 2024, the Company acquired the southern part of the Wards Well tenements (Wards Well) which are adjacent to the Company’s Centurion Mine in Queensland, Australia. The acquisition was accounted for as an asset acquisition. The acquired asset was measured at the cost of the acquisition based on the total consideration, allocated on the basis of relative fair value. The total consideration of $ 153.4 million, consisting of cash consideration of $ 134.4 million, cash transaction costs of $ 9.4 million and the non-cash settlement of existing receivables with the acquiree of $ 9.6 million, was recorded in “Property, plant, equipment and mine development, net” in the condensed consolidated balance sheets. The agreement also included an initial contingent royalty of up to $ 200 million. The royalty will only be payable once the Company has recovered its investment and development costs of Wards Well and if the average sales price achieved exceeds certain thresholds. No royalty is payable if the Company does not commence mining Wards Well. The Company will adjust the cost basis of the assets acquired if and when the contingent royalty is paid or becomes payable. Shoal Creek On March 29, 2023, the Company’s Shoal Creek Mine experienced a fire. On June 20, 2023, the Company announced that the Shoal Creek Mine, in coordination with the Mine Safety and Health Administration, had safely completed localized sealing of the affected area of the mine. In October 2023, the Company filed an insurance claim against applicable insurance policies with combined business interruption and property loss limits of $ 125 million above a $ 50 million deductible. During June 2024, the Company reached a settlement and recognized a $ 109.5 million insurance recovery, which the Company included in its results of operations during the nine months ended September 30, 2024. The Company collected $ 103.8 million of the insurance recovery during the nine months ended September 30, 2024, and classified $ 10.9 million of the recovery within the “Cash Flows From Investing Activities” section of the unaudited condensed consolidated statements of cash flows since this portion of the recovery related to equipment damage for which the Company previously recognized a provision for loss. The remaining $ 5.7 million of the insurance recovery was subsequently collected in October 2024. 17 Table of Contents PEABODY ENERGY CORPORATION NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued) (12) Earnings per Share (EPS) Basic EPS is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted EPS is computed based on the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding. As such, the Company includes the 2028 Convertible Notes and share-based compensation awards in its potentially dilutive securities. Generally, dilutive securities are not included in the computation of loss per share when a company reports a net loss from continuing operations as the impact would be anti-dilutive. For all but performance units, the potentially dilutive impact of the Company’s share-based compensation awards is determined using the treasury stock method. Under the treasury stock method, awards are treated as if they had been exercised with any proceeds used to repurchase common stock at the average market price during the period. Any incremental difference between the assumed number of shares issued and purchased is included in the diluted share computation. For performance units, their contingent features result in an assessment for any potentially dilutive common stock by using the end of the reporting period as if it were the end of the contingency period for all units granted. A conversion of the 2028 Convertible Notes may result in payment in the Company’s common stock. For diluted EPS purposes, the potentially dilutive common stock is assumed to have been converted at the beginning of the period (or at the time of issuance, if later). In periods where the potentially dilutive common stock is included in the computation of diluted EPS, the numerator will be adjusted to add back tax adjusted interest expense, which includes the amortization of debt issuance costs, related to the convertible debt. The computation of diluted EPS excluded 16.6 million and 16.5 million shares related to the 2028 Convertible Notes for the three and nine months ended September 30, 2025, respectively, because their inclusion would have been anti-dilutive for those periods. The computation of diluted EPS also excluded aggregate share-based compensation awards of 0.8 million and 1.0 million for the three and nine months ended September 30, 2025, respectively, and less than 0.1 million for both the three and nine months ended September 30, 2024 because to do so would have been anti-dilutive for those periods. Because the potential dilutive impact of such share-based compensation awards is calculated under the treasury stock method, anti-dilution generally occurs when the exercise prices or unrecognized compensation cost per share of such awards are higher than the Company’s average stock price during the applicable period. Anti-dilution also occurs when a company reports a net loss from continuing operations, and the dilutive impact of all share-based compensation awards are excluded accordingly. 18 Table of Contents PEABODY ENERGY CORPORATION NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued) The following illustrates the earnings allocation method utilized in the calculation of basic and diluted EPS. Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 (In millions, except per share data) Basic EPS numerator: (Loss) income from continuing operations, net of income taxes $ ( 66.6 ) $ 112.5 $ ( 53.9 ) $ 369.0 Less: Net income attributable to noncontrolling interests 3.2 10.2 8.4 25.4 (Loss) income from continuing operations attributable to common stockholders ( 69.8 ) 102.3 ( 62.3 ) 343.6 Loss from discontinued operations, net of income taxes ( 0.3 ) ( 1.0 ) ( 1.0 ) ( 3.3 ) Net (loss) income attributable to common stockholders $ ( 70.1 ) $ 101.3 $ ( 63.3 ) $ 340.3 Diluted EPS numerator: (Loss) income from continuing operations, net of income taxes $ ( 66.6 ) $ 112.5 $ ( 53.9 ) $ 369.0 Add: Tax adjusted interest expense related to 2028 Convertible Notes — 3.1 — 9.2 Less: Net income attributable to noncontrolling interests 3.2 10.2 8.4 25.4 (Loss) income from continuing operations attributable to common stockholders ( 69.8 ) 105.4 ( 62.3 ) 352.8 Loss from discontinued operations, net of income taxes ( 0.3 ) ( 1.0 ) ( 1.0 ) ( 3.3 ) Net (loss) income attributable to common stockholders $ ( 70.1 ) $ 104.4 $ ( 63.3 ) $ 349.5 EPS denominator: Weighted average shares outstanding — basic 121.7 124.9 121.7 126.3 Dilutive impact of share-based compensation awards — 0.4 — 0.5 Dilutive impact of 2028 Convertible Notes — 16.3 — 16.3 Weighted average shares outstanding — diluted 121.7 141.6 121.7 143.1 Basic EPS attributable to common stockholders: (Loss) income from continuing operations $ ( 0.57 ) $ 0.82 $ ( 0.51 ) $ 2.72 Loss from discontinued operations ( 0.01 ) ( 0.01 ) ( 0.01 ) ( 0.03 ) Net (loss) income attributable to common stockholders $ ( 0.58 ) $ 0.81 $ ( 0.52 ) $ 2.69 Diluted EPS attributable to common stockholders: (Loss) income from continuing operations $ ( 0.57 ) $ 0.74 $ ( 0.51 ) $ 2.47 Loss from discontinued operations ( 0.01 ) — ( 0.01 ) ( 0.03 ) Net (loss) income attributable to common stockholders $ ( 0.58 ) $ 0.74 $ ( 0.52 ) $ 2.44 (13) Financial Instruments and Other Guarantees In the normal course of business, the Company is a party to various guarantees and financial instruments that carry off-balance-she et risk and are not reflected in the accompanying condensed consolidated balance sheets. Such financial instruments provide support for the Company’s reclamation bonding requirements, lease obligations, insurance policies and various other performance guarantees. The Company periodically evaluates the instruments for on-balance-sheet treatment based on the amount of exposure under the instrument and the likelihood of required performance. The Company does not expect any material losses to result from these guarantees or off-balance-sheet instruments in excess of liabilities provided for in the accompanying condensed consolidated balance sheets. 19 Table of Contents PEABODY ENERGY CORPORATION NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued) The following table summarizes the Company’s financial instruments that carry off-balance-sheet risk. September 30, 2025 Reclamation Support Other Support (1) Total (Dollars in millions) Surety bonds $ 924.8 $ 88.3 $ 1,013.1 Letters of credit (2) 55.2 56.6 111.8 980.0 144.9 1,124.9 Less: Letters of credit in support of surety bonds (3) ( 55.2 ) ( 0.1 ) ( 55.3 ) Obligations supported, net $ 924.8 $ 144.8 $ 1,069.6 (1) Instruments support obligations related to leases, health care plans, workers’ compensation, property and casualty insurance, customer and vendor contracts and certain restoration ancillary to prior mining activities. (2) Amounts do not include cash-collateralized letters of credit. (3) Certain letters of credit serve as collateral for surety bonds at the request of surety bond providers. Surety Agreement Amendment and Collateral Requirements In April 2023, the Company amended its existing agreement with the providers of its surety bond portfolio, dated November 6, 2020. Under the April 2023 amendment, the Company and its surety providers agreed to a maximum aggregate collateral amount based upon bonding levels which will vary prospectively as bonding levels increase or decrease. The amendment also extended the agreement through December 31, 2026. 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 $ 493.9 million at September 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. For purposes of calculating the ratio, only 50 % of the outstanding principal amount of the Company’s 2028 Convertible Notes is deemed to be funded debt. 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 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. Accounts Receivable Securitization In 2017, the Company entered into the Sixth Amended and Restated Receivables Purchase Agreement, as amended from time to time. The receivables securitization program authorized under the agreement (Securitization Program) is subject to customary events of default. 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 the program. Funding capacity under the Securitization Program may also be utilized for letters of credit in support of other obligations, which has been the Company’s primary utilization. The accounts receivable securitization program was amended in January 2025 to extend its maturity to January 2028. During the nine months ended September 30, 2025, the Company capitalized $ 1.8 million of debt issuance costs related to the amendment. Borrowings under the Securitization Program bear interest at SOFR plus 2.1 % per annum and remain outstanding throughout the term of the agreement, subject to the Company maintaining sufficient eligible receivables. At September 30, 2025, the Company had no outstanding borrowings and $ 62.5 million of letters of credit outstanding under the Securitization Program. Availability under the Securitization Program, which is adjusted for certain ineligible receivables, was $ 77.2 million at September 30, 2025. The Company was not required to post cash collateral under the Securitization Program at September 30, 2025. 20 Table of Contents PEABODY ENERGY CORPORATION NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued) The Company incurred interest and fees associated with the Securitization Program of $ 0.6 million and $ 0.5 million during the three months ended September 30, 2025 and 2024, respectively, and $ 1.8 million and $ 1.9 million during the nine months ended September 30, 2025 and 2024, respectively, which have been recorded as “Interest expense, net of capitalized interest” in the accompanying unaudited condensed consolidated statements of operations. 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 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. 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 September 30, 2025, the bank guarantee facilities were backed by cash of $ 205.9 million. Restricted Cash and Collateral The following table summarizes the Company’s “Restricted cash and collateral” in the accompanying condensed consolidated balance sheets. Restricted cash balances are held in controlled accounts with minimum balance requirements; withdrawals are subject to the approval of account beneficiaries, such as the Company’s surety providers, who have perfected security interests in the funds. The Company’s other cash collateral generally includes deposits held by regulatory authorities or financial institutions over which the Company has no control or ability to access. Portions of the restricted cash balances and deposits are held in accounts denominated in Australian dollars. September 30, 2025 December 31, 2024 (Dollars in millions) Restricted cash (1) Surety trust accounts (2) $ 392.8 $ 394.6 Credit support facilities (2) (3) 325.0 287.6 717.8 682.2 Other cash collateral (1) Deposits with regulatory authorities for reclamation and other obligations (3) 133.2 127.6 Restricted cash and collateral $ 851.0 $ 809.8 (1) Restricted cash balances are combined with unrestricted cash and cash equivalents in the accompanying unaudited condensed consolidated statements of cash flows; changes between unrestricted cash and cash equivalents and restricted cash balances are thus not reflected in the operating, investing or financing activities therein. Changes in other cash collateral balances are reflected as operating activities therein. (2) Surety trust accounts, the funding for collateralized letters of credit and cash supporting the bank guarantee facilities are comprised of highly liquid investments with original maturities of three months or less; interest and other earnings on such funds accrue to the Company. (3) At September 30, 2025, the Australian dollar denominated balances supporting the bank guarantee facilities and the deposits with regulatory authorities were $ 312 million and $ 201 million, respectively. At December 31, 2024, the Australian dollar denominated balances supporting the bank guarantee facilities and the deposits with regulatory authorities were $ 271 million and $ 205 million, respectively. 21 Table of Contents PEABODY ENERGY CORPORATION NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued) (14) Commitments and Contingencies Commitments Unconditional Purchase Obligations As of September 30, 2025, purchase commitments for capital expenditures were $ 64.7 million, all of which is obligated within the next 12 months. There were no other material changes to the Company’s commitments from the information provided in Note 21. “Commitments and Contingencies” to the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024. Contingencies From time to time, the Company or its subsidiaries are involved in legal proceedings arising in the ordinary course of business or related to indemnities or historical operations. The Company believes it has recorded adequate reserves for these liabilities. The Company discusses its significant legal proceedings below, including ongoing proceedings and those that impacted the Company’s consolidated results of operations for the periods presented. Litigation and Matters Relating to Continuing Operations Arbitration Relating to Terminated Anglo American Acquisition. On November 25, 2024, Peabody entered into definitive agreements (the Purchase Agreements), to acquire from Anglo 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 agreed to, following the prospective closing of the Anglo acquisition, sell the Dawson Assets to 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. Following Peabody’s termination of the Purchase Agreements, Anglo returned $ 29.0 million of the $ 75.0 million deposit previously paid by Peabody, and Peabody has demanded the outstanding portion of the deposit also be returned. 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. Other At times, the Company becomes a party to other disputes, including those related to contract miner performance, claims, lawsuits, arbitration proceedings, regulatory investigations and administrative procedures in the ordinary course of business in the U.S., Australia and other countries where the Company does business. Based on current information, the Company believes that such other pending or threatened proceedings are likely to be resolved without a material adverse effect on its consolidated financial condition, results of operations or cash flows. The Company reassesses the probability and the ability to estimate contingent losses as new information becomes available. (15) Segment Information The Company reports its results of operations primarily through the following reportable segments: Seaborne Thermal, Seaborne Metallurgical, Powder River Basin and Other U.S. Thermal. 22 Table of Contents PEABODY ENERGY CORPORATION NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued) The Company’s chief operating decision maker (CODM), defined as the President and Chief Executive Officer, uses Adjusted EBITDA as the primary financial metric to measure each segment’s operating performance against expected results and to allocate resources, including capital investment in mining operations and potential expansions. Adjusted EBITDA is a non-GAAP financial measure 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 reportable segments’ operating performance, as displayed in the reconciliations below. Management believes this non-GAAP measure is used by investors to measure the Company’s operating performance. Adjusted EBITDA is not intended to serve as an alternative to U.S. GAAP measures of performance and may not be comparable to similarly-titled measures presented by other companies. Segment results were as follows: Three Months Ended September 30, 2025 Seaborne Thermal Seaborne Metallurgical Powder River Basin Other U.S. Thermal Segment Totals (Dollars in millions) Revenue $ 242.7 $ 258.9 $ 301.4 $ 192.0 $ 995.0 Less Significant Segment Expenses: Labor costs 35.8 62.4 56.5 54.3 Repair costs 29.3 48.5 38.8 40.5 Outside services 31.2 100.4 35.0 40.8 Commodities expense 20.6 17.1 42.3 19.2 Sales related costs 54.0 56.1 66.2 11.5 Other expenses (1) 30.8 ( 53.4 ) 10.9 18.8 Adjusted EBITDA 41.0 27.8 51.7 6.9 127.4 Additions to property, plant, equipment and mine development 8.2 87.8 11.5 7.7 115.2 Three Months Ended September 30, 2024 Seaborne Thermal Seaborne Metallurgical Powder River Basin Other U.S. Thermal Segment Totals (Dollars in millions) Revenue $ 313.2 $ 242.5 $ 305.3 $ 216.7 $ 1,077.7 Less Significant Segment Expenses: Labor costs 38.8 54.1 50.9 54.8 Repair costs 44.6 63.3 33.9 36.7 Outside services 35.4 77.0 31.9 36.5 Commodities expense 23.0 14.8 41.7 19.2 Sales related costs 57.8 52.9 82.5 14.3 Other expenses (1) ( 6.4 ) ( 47.4 ) 12.7 26.8 Adjusted EBITDA 120.0 27.8 51.7 28.4 227.9 Additions to property, plant, equipment and mine development 17.4 64.5 9.8 4.9 96.6 23 Table of Contents PEABODY ENERGY CORPORATION NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued) Nine Months Ended September 30, 2025 Seaborne Thermal Seaborne Metallurgical Powder River Basin Other U.S. Thermal Segment Totals (Dollars in millions) Revenue $ 702.9 $ 731.2 $ 852.7 $ 515.8 $ 2,802.6 Less Significant Segment Expenses: Labor costs 108.6 178.7 159.2 153.4 Repair costs 83.1 136.9 102.9 114.2 Outside services 84.9 258.3 94.9 114.2 Commodities expense 59.6 43.1 116.8 56.4 Sales related costs 153.4 168.8 215.4 30.9 Other expenses (1) 54.6 ( 86.4 ) 32.5 ( 6.6 ) Adjusted EBITDA 158.7 31.8 131.0 53.3 374.8 Additions to property, plant, equipment and mine development 26.3 213.9 20.9 17.7 278.8 Nine Months Ended September 30, 2024 Seaborne Thermal Seaborne Metallurgical Powder River Basin Other U.S. Thermal Segment Totals (Dollars in millions) Revenue $ 904.6 $ 783.8 $ 781.3 $ 610.3 $ 3,080.0 Less Significant Segment Expenses: Labor costs 117.9 155.8 152.2 162.8 Repair costs 118.5 139.5 94.9 104.9 Outside services 97.7 186.3 89.8 109.5 Commodities expense 69.4 46.4 117.2 58.3 Sales related costs 162.5 166.9 212.6 40.0 Other expenses (1) 20.4 ( 130.8 ) 28.7 24.5 Adjusted EBITDA 318.2 219.7 85.9 110.3 734.1 Additions to property, plant, equipment and mine development 50.1 179.7 22.3 10.0 262.1 (1) Other expenses for the mining operations primarily include lease expense; non-sales related taxes; insurance expense; and joint facility charges; offset by credits related to the capitalization of costs to the consolidated balance sheet. For the nine months ended September 30, 2024, the Seaborne Metallurgical segment includes $ 80.8 million related to the portion of the Shoal Creek insurance recovery that was applicable to incremental costs and business interruption recoveries. Total assets are reflected at the division level only for the Company’s reportable segments and are not allocated between each individual segment as such information is not regularly reviewed by the Company’s CODM. Further, some assets service more than one segment within the division and an allocation of such assets would not be meaningful or representative on a segment by segment basis. Assets related to closed, suspended or otherwise inactive mines are included within the Corporate and Other category. The following table presents total assets at the division level: September 30, 2025 December 31, 2024 (Dollars in millions) Seaborne $ 2,466.8 $ 2,465.3 U.S. Thermal 1,296.6 1,346.9 Corporate and Other 1,980.9 2,141.5 Total assets $ 5,744.3 $ 5,953.7 24 Table of Contents PEABODY ENERGY CORPORATION NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued) A reconciliation of segment totals follows: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 (Dollars in millions) Revenue from reportable segments $ 995.0 $ 1,077.7 $ 2,802.6 $ 3,080.0 Reconciling items Corporate and Other (1) 17.1 10.3 36.6 33.6 Revenue $ 1,012.1 $ 1,088.0 $ 2,839.2 $ 3,113.6 Adjusted EBITDA from reportable segments $ 127.4 $ 227.9 $ 374.8 $ 734.1 Reconciling items Corporate and Other (1) ( 27.9 ) ( 3.1 ) ( 38.0 ) ( 39.1 ) Depreciation, depletion and amortization ( 100.0 ) ( 84.7 ) ( 285.5 ) ( 247.4 ) Asset retirement obligation expenses ( 13.9 ) ( 12.9 ) ( 41.3 ) ( 38.7 ) Restructuring charges ( 4.0 ) ( 1.9 ) ( 9.2 ) ( 2.1 ) Costs related to terminated acquisition ( 54.0 ) — ( 75.2 ) — Provision for NARM loss — — — ( 3.7 ) Shoal Creek insurance recovery - property damage — — — 28.7 Changes in amortization of basis difference related to equity affiliates 0.5 0.4 1.9 1.1 Interest expense, net of capitalized interest ( 10.0 ) ( 9.7 ) ( 32.6 ) ( 35.1 ) Interest income 13.9 17.7 43.1 53.7 Unrealized (losses) gains on foreign currency option contracts ( 2.3 ) 3.7 6.1 0.4 Take-or-pay contract-based intangible recognition 0.3 0.8 0.8 2.3 (Loss) income from continuing operations before incomes taxes $ ( 70.0 ) $ 138.2 $ ( 55.1 ) $ 454.2 Additions to property, plant, equipment and mine development from reportable segments $ 115.2 $ 96.6 $ 278.8 $ 262.1 Reconciling items Corporate and Other (1) 1.0 2.1 2.0 3.6 Additions to property, plant, equipment and mine development $ 116.2 $ 98.7 $ 280.8 $ 265.7 (1) The Company’s Corporate and Other operating segment includes selling and administrative expenses, results from equity method investments, trading and brokerage activities, minimum charges on certain transportation-related contracts, the closure of inactive mining sites, the impact of foreign currency remeasurement and certain commercial matters. 25 Table of Contents