PEABODY ENERGY CORP 10-K

Item 9A. Controls and Procedures. Evaluation of Disclosure Controls and Procedures Peabody’s disclosure controls and procedures are designed to, among other things, provide reasonable assurance that material information, both financial and non-financial, and other information required under the securities laws to be disclosed is accumulated and communicated to senior management, including the principal executive officer and principal accounting officer, on a timely basis. As of December 31, 2025, the end of the period covered by this Annual Report on Form 10-K, the Company carried out an evaluation of the effectiveness of the design and operation of its disclosure controls and procedures. Based upon that evaluation, Peabody’s Chief Executive Officer and Chief Financial Officer have concluded that such disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act as of December 31, 2025 were effective to provide reasonable assurance that the desired control objectives were achieved. Changes in Internal Control Over Financial Reporting Peabody periodically reviews its internal control over financial reporting as part of its efforts to ensure compliance with the requirements of Section 404 of the Sarbanes-Oxley Act of 2002. In addition, Peabody routinely reviews its system of internal control over financial reporting to identify potential changes to its processes and systems that may improve controls and increase efficiency, while ensuring that the Company maintains an effective internal control environment. Changes may include such activities as implementing new systems; consolidating the activities of acquired business units; migrating certain processes to its shared services organizations and/or managed third parties; formalizing and refining policies, procedures and control documentation requirements; improving segregation of duties and adding monitoring controls. In addition, when Peabody acquires new businesses, it incorporate its controls and procedures into the acquired business as part of its integration activities. There have been no changes in Peabody’s internal control over financial reporting that occurred during the three months ended December 31, 2025 that have materially affected, or are reasonably likely to materially affect, its internal control over financial reporting. Peabody Energy Corporation 2025 Form 10-K 76 Table of Contents Management’s Report on Internal Control Over Financial Reporting Management is responsible for establishing and maintaining adequate internal control over financial reporting. An evaluation of the effectiveness of the design and operation of the Company’s internal control over financial reporting, as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act, as of the end of the period covered by this report was performed under the supervision and with the participation of management, including its Chief Executive Officer and Chief Financial Officer. This evaluation is performed to determine if the Company’s internal controls over financial reporting provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. Because of inherent limitations, any system of internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Management conducted an assessment of the effectiveness of the Company’s internal control over financial reporting using the criteria set by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control - Integrated Framework (2013). Based on this assessment, management concluded that the Company’s internal control over financial reporting was effective to provide reasonable assurance that the desired control objectives were achieved as of December 31, 2025. Peabody’s independent registered public accounting firm, Ernst & Young LLP, has audited the consolidated financial statements included in this annual report and issued an attestation report on Peabody’s internal control over financial reporting, as included herein. /s/ James C. Grech /s/ Mark A. Spurbeck James C. Grech President and Chief Executive Officer Mark A. Spurbeck Executive Vice President and Chief Financial Officer February 19, 2026 Peabody Energy Corporation 2025 Form 10-K 77 Table of Contents Report of Independent Registered Public Accounting Firm To the Stockholders and the Board of Directors of Peabody Energy Corporation Opinion on Internal Control Over Financial Reporting We have audited Peabody Energy Corporation’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, Peabody Energy Corporation (the Company) maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on the COSO criteria. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2025 and 2024, the related consolidated statements of operations, comprehensive income, changes in stockholders’ equity and cash flows for each of the three years in the period ended December 31, 2025, and the related notes and financial statement schedule listed in the Index at Item 15(a) (collectively referred to as the “financial statements”) and our report dated February 19, 2026 expressed an unqualified opinion thereon. Basis for Opinion The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Definition and Limitations of Internal Control Over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. /s/ Ernst & Young LLP St. Louis, Missouri February 19, 2026 Peabody Energy Corporation 2025 Form 10-K 78 Table of Contents Item 9B. Other Information. Securities Trading Plans of Directors and Executive Officers During the three months ended December 31, 2025, none of Peabody’s directors or officers adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as these terms are defined in Item 408 of Regulation S-K of the Exchange Act. Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections. Not applicable. PART III Item 10. Directors, Executive Officers and Corporate Governance. The information required by Item 401 of Regulation S-K is included under the caption Proposal 1 - “Election of Directors” in Peabody’s 2026 Proxy Statement and in Part I, Item 1. “Business” of this report under the caption “Information About Our Executive Officers.” The information required by Items 405, 406 and 407(c)(3), (d)(4) and (d)(5) of Regulation S-K is included under the captions “Stock Ownership,” “Additional Information Concerning the Board of Directors - Corporate Governance - Code of Business Conduct and Ethics” and “Additional Information Concerning the Board of Directors - Committee Overview - Audit Committee” in Peabody’s 2026 Proxy Statement. Such information is incorporated herein by reference. Item 11. Executive Compensation. The information required by Items 402 and 407(e)(4) and (e)(5) of Regulation S-K is included under the captions “Additional Information Concerning the Board of Directors - Director Compensation,” “Compensation Discussion and Analysis,” “Compensation Committee Interlocks and Insider Participation,” “Compensation Committee Report,” “Risk Assessment in Compensation Programs,” “Executive Compensation Tables,” “Pay Ratio Disclosure” and “Pay Versus Performance Disclosure” in Peabody’s 2026 Proxy Statement and is incorporated herein by reference. Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. The information required by Item 403 of Regulation S-K is included under the caption “Stock Ownership - Security Ownership of Directors and Management and Certain Beneficial Owners” in Peabody’s 2026 Proxy Statement and is incorporated herein by reference. Peabody Energy Corporation 2025 Form 10-K 79 Table of Contents Equity Compensation Plan Information As required by Item 201(d) of Regulation S-K, the following table provides information regarding Peabody’s equity compensation plans as of December 31, 2025: (a) Number of Securities to be Issued upon Exercise of Outstanding Options, Warrants and Rights Weighted-Average Exercise Price of Outstanding Options, Warrants and Rights Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in Column (a)) Plan Category Equity compensation plans approved by security holders 664,135 (1) $ — (2) 4,917,561 Equity compensation plans not approved by security holders — — — Total 664,135 $ — 4,917,561 (1) Shares issuable pursuant to outstanding performance units and vested but not issued deferred stock units. Performance units are shown at target and could change based on actual metrics achieved. (2) The weighted-average exercise price shown in the table does not take into account outstanding deferred stock units or performance awards. Refer to Note 15. “Share-Based Compensation” to the accompanying consolidated financial statements for additional information regarding the material features of Peabody’s current equity compensation plans. Item 13. Certain Relationships and Related Transactions, and Director Independence. The information required by Items 404 and 407(a) of Regulation S-K is included under the captions “Review of Related Person Transactions” and “Additional Information Concerning the Board of Directors - Board Independence” in Peabody’s 2026 Proxy Statement and is incorporated herein by reference. Item 14. Principal Accountant Fees and Services. The information required by Item 9(e) of Schedule 14A is included under the caption “Audit Fees” in Peabody’s 2026 Proxy Statement and is incorporated herein by reference. PART IV Item 15. Exhibits and Financial Statement Schedules. (a) Documents Filed as Part of the Report (1) Financial Statements. The following consolidated financial statements of Peabody Energy Corporation and the report thereon of the independent registered public accounting firm are included herein on the pages indicated: Page Report of Independent Registered Public Accounting Firm (PCAOB ID: 42 ) F- 1 Consolidated Statements of Operations — For the Years Ended December 31, 202 5 , 202 4 and 20 23 F- 3 Consolidated Statements of Comprehensive Income — For the Years Ended December 31, 202 5 , 202 4 and 202 3 F- 4 Consolidated Balance Sheets — December 31, 202 5 and 202 4 F- 5 Consolidated Statements of Cash Flows — For the Years Ended December 31, 202 5 , 202 4 and 202 3 F- 6 Consolidated Statements of Changes in Stockholders’ Equity — For the Years Ended December 31, 202 5 , 202 4 and 202 3 F- 8 Notes to Consolidated Financial Statements F- 9 Peabody Energy Corporation 2025 Form 10-K 80 Table of Contents (2) Financial Statement Schedules. The following financial statement schedule of Peabody Energy Corporation is at the page indicated: Page Valuation and Qualifying Accounts F- 56 All other schedules for which provision is made in the applicable accounting regulation of the Securities and Exchange Commission are not required under the related instructions or are not applicable and, therefore, have been omitted. (3) Exhibits. The exhibits below are numbered in accordance with the Exhibit Table of Item 601 of Regulation S-K. Exhibit No. Description of Exhibit 2.1 Sale and Purchase Agreement dated as of October 26, 2023 by and between Stanmore SMC Pty Ltd, a wholly-owned subsidiary of Stanmore Resources Limited and Peabody (Bowen) Pty Ltd, a wholly-owned subsidiary of Peabody Energy Corporation (Incorporated by reference to Exhibit 2.1 of the Registrant’s Current Report on Form 8-K, filed October 27, 2023). 2.2 Put and Call Option Deed between Stanmore SMC Pty Ltd and Peabody (Bowen) Pty Ltd. (Incorporated by reference to Exhibit 2.2 of the Registrant’s Current Report on Form 8-K, filed October 27, 2023). 2.3 ‡ Share Purchase Agreement, dated as of November 25, 2024, by and among Peabody Energy Corporation, Anglo American Netherlands B.V., Anglo American Services (UK) Ltd. and Peabody SMC Pty Ltd (Incorporated by reference to Exhibit 2.1 of the Registrant’s Current Report on Form 8-K, filed November 29 , 2024). 2.4 ‡ Share and Asset Purchase Agreement, dated as of November 25, 2024, by and among Peabody Energy Corporation, Anglo American Netherlands B.V., Moranbah North Coal Pty Ltd., Anglo American Steelmaking Coal Assets Eastern Australia Limited, Anglo American Steelmaking Coal Holdings Limited, Anglo American Services (UK) Ltd. and Peabody MNG Pty Ltd (Incorporated by reference to Exhibit 2.2 of the Registrant’s Current Report on Form 8-K, filed November 29, 2024). 2.5 ‡ Option Deed, dated as of November 25, 2024, by and among Peabody SMC Pty Ltd, Peabody Australia Holdco Pty Ltd, PT Bukit Makmur Internasional and PT Delta Dunia Makmur Tbk (Incorporated by reference to Exhibit 2.3 of the Registrant’s Current Report on Form 8-K, filed November 29, 2024). 2.6 ‡ Dawson Loan Note Deed, dated as of November 25, 2024, by and among Peabody SMC Pty Ltd and PT Bukit Makmur Internasional (Incorporated by reference to Exhibit 2.4 of the Registrant’s Current Report on Form 8-K, filed November 29, 2024). 3.1 Fourth Amended and Restated Certificate of Incorporation of the Registrant (Incorporated by reference to Exhibit 3.1 of the Registrant’s Current Report on Form 8-K filed April 3, 2017). 3.2 Third Amended and Restated By-laws of the Registrant (Incorporated by reference to Exhibit 3.1 of the Registrant’s Current Report on Form 8-K, filed October 17, 2025) 4.1 Specimen of stock certificate representing the Registrant’s common stock, $.01 par value (Incorporated by reference to Exhibit 4.13 of Amendment No. 4 to the Registrant’s Form S-1 Registration Statement No. 333-55412, filed May 1, 2001). 4.2 Description of Securities (Incorporated by reference to Exhibit 4.2 of the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2024, filed February 20, 2025). 4.3 Indenture, dated as of March 1, 2022, between Peabody Energy Corporation and Wilmington Trust, National Association, as trustee (Incorporated by reference to Exhibit 4.1 of the Registrant’s Current Report on Form 8-K filed on March 1, 2022). 10.1 Federal Coal Lease WYW0321779: North Antelope/Rochelle Mine (Incorporated by reference to Exhibit 10.3 of the Registrant’s Form S-4 Registration Statement No. 333-59073, filed July 14, 1998). 10.2 Federal Coal Lease WYW119554: North Antelope/Rochelle Mine (Incorporated by reference to Exhibit 10.4 of the Registrant’s Form S-4 Registration Statement No. 333-59073, filed July 14, 1998). 10.3 Federal Coal Lease WYW5036: Rawhide Mine (Incorporated by reference to Exhibit 10.5 of the Registrant’s Form S-4 Registration Statement No. 333-59073, filed July 14, 1998). 10.4 Federal Coal Lease WYW3397: Caballo Mine (Incorporated by reference to Exhibit 10.6 of the Registrant’s Form S-4 Registration Statement No. 333-59073, filed July 14, 1998). 10.5 Federal Coal Lease WYW83394: Caballo Mine (Incorporated by reference to Exhibit 10.7 of the Registrant’s Form S-4 Registration Statement No. 333-59073, filed July 14, 1998). Peabody Energy Corporation 2025 Form 10-K 81 Table of Contents 10.6 Federal Coal Lease WYW136142 (Incorporated by reference to Exhibit 10.8 of Amendment No. 1 to the Registrant’s Form S-4 Registration Statement No. 333-59073, filed September 8, 1998). 10.7 Royalty Prepayment Agreement by and among Peabody Natural Resources Company, Gallo Finance Company and Chaco Energy Company, dated September 30, 1998 (incorporated by reference to Exhibit 10.9 of the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 1998). 10.8 Federal Coal Lease WYW154001: North Antelope Rochelle South (Incorporated by reference to Exhibit 10.68 of the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2004). 10.9 Federal Coal Lease WYW150210: North Antelope Rochelle Mine (Incorporated by reference to Exhibit 10.8 of the Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2005). 10.10 Federal Coal Lease WYW151134 effective May 1, 2005: West Roundup (Incorporated by reference to Exhibit 10.1 of the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2005). 10.11 Federal Coal Lease Readjustment WYW78633: Caballo (Incorporated by reference to Exhibit 10.24 of the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2012). 10.12 Transfer by Assignment and Assumption of Federal Coal Lease WYW172657: Caballo West (Incorporated by reference to Exhibit 10.25 of the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2012). 10.13 Federal Coal Lease WYW176095: Porcupine South (Incorporated by reference to Exhibit 10.26 of the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2012). 10.14 Federal Coal Lease WYW173408: North Porcupine (Incorporated by reference to Exhibit 10.27 of the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2012). 10.15 Federal Coal Lease WYW172413: School Creek (Incorporated by reference to Exhibit 10.28 of the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2012). 10.16* Variation of Employment Contract, dated August 11, 2021, between Peabody Energy Australia Coal Pty Ltd and Darren R. Yeates (Incorporated by reference to Exhibit 99.1 of the Registrant’s Current Report on Form 8-K, filed August 13, 2021). 10.17* Amendment and Restatement of Contract of Employment, dated December 27, 2024, between Peabody Energy Australia Coal Pty Ltd and Darren R. Yeates (Incorporated by reference to Exhibit 10.1 of the Registrant's Current Report on Form 8-K filed December 30, 2024). 10.18* Peabody Energy Corporation 2019 Executive Severance Plan. (Incorporated by reference to Exhibit 10.32 of the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2018). 10.19 Fifth Amended and Restated Receivables Purchase Agreement, dated as of March 25, 2016, by and among P&L Receivables Company, LLC, Peabody Energy Corporation, the various Sub-Servicers listed on the signature pages thereto, all Conduit Purchasers listed on the signature pages thereto, all Committed Purchasers listed on the signature pages thereto, all Purchaser Agents listed on the signature pages thereto, all LC Participants listed on the signature pages thereto, and PNC Bank, National Association, as Administrator and as LC Bank (Incorporated by reference to Exhibit 10.1 of the Registrant’s Current Report on Form 8-K filed March 31, 2016). 10.20 First Amendment to the Fifth Amended and Restated Receivables Purchase Agreement, dated as of April 12, 2016, by and among P&L Receivables Company, LLC, Peabody Energy Corporation, the various Sub-Servicers listed on the signature pages thereto, and PNC Bank, National Association, as Administrator and as the Sole Purchaser, Committed Purchaser, LC Bank and LC Participant (Incorporated by reference to Exhibit 10.1 of the Registrant’s Current Report on Form 8-K, filed April 13, 2016). 10.21 Second Amendment to the Fifth Amended and Restated Receivables Purchase Agreement, dated as of April 18, 2016, by and among Peabody Energy Corporation, P&L Receivables Company, LLC, the various Sub-Servicers listed on the signature pages thereto, and PNC Bank, National Association, as Administrator and as the Sole Purchaser, Committed Purchaser, LC Bank and LC Participant (Incorporated by reference to Exhibit 10.1 of the Registrant’s Current Report on Form 8-K, filed April 22, 2016). 10.22 Sixth Amendment to the Sixth Amended and Restated Receivables Purchase Agreement, dated as of June 30, 2020, by and among P&L Receivables Company, LLC, Peabody Energy Corporation, all Committed Purchasers listed on the signature pages thereto, all Purchaser Agents listed on the signature pages thereto, all LC Participants listed on the signature pages thereto, and PNC Bank, National Association, as Administrator and as LC Bank (Incorporated by reference to Exhibit 10.2 of the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2020). 10.23 Receivables Purchase Facility Commitment Letter entered into as of January 27, 2017, by and among the Registrant, P&L Receivables Company, LLC and PNC Bank, National Association (Incorporated by reference to Exhibit 10.1 of the Registrant’s Current Report on Form 8-K filed on January 27, 2017). 10.24 Notice Letter and Term Sheet dated as of February 15, 2017, for Amendments to the Receivables Purchase Facility Commitment Letter entered into as of January 27, 2017, by and among the Registrant, P&L Receivables Company, LLC and PNC Bank, National Association (Incorporated by reference to Exhibit 10.128 of the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2016). Peabody Energy Corporation 2025 Form 10-K 82 Table of Contents 10.25 Sixth Amended and Restated Receivables Purchase Agreement, dated as of April 3, 2017, by and among P&L Receivables Company, LLC, Peabody Energy Corporation, the various Sub-Servicers listed on the signature pages thereto, all Conduit Purchasers listed on the signature pages thereto, all Committed Purchasers listed on the signature pages thereto, all Purchaser Agents listed on the signature pages thereto, all LC Participants listed on the signature pages thereto, and PNC Bank, National Association, as Administrator and as LC Bank (Incorporated by reference to Exhibit 10.4 of the Registrant’s Current Report on Form 8-K filed April 3, 2017). 10.26 First Amendment to the Sixth Amended and Restated Receivables Purchase Agreement, dated as of Ju ne 30, 2017, by and among P&L Receivables Company, LLC, Peabody Energy Corporation, the various parties identified on the signature pages thereto as Sub-Servicers, Metropolitan Collieries Pty Ltd, and PNC Bank, National Association, as Administrator and as the sole Purchaser Agent, Committed Purchaser, LC Bank and LC Participant on the date thereof (Incorporated by reference to Exhibit 10.9 of the Registrant’s Quarterly Report on Form 10-Q, filed August 14, 2017). 10.27 Second Amendment to the Sixth Amended and Restated Receivables Purchase Agreement, dated as of December 13, 2017, by and among P&L Receivables Company, LLC, Peabody Energy Corporation, Regions Bank, and PNC Bank, National Association, as Administrator and as the sole Purchaser Agent, Committed Purchaser, LC Bank and LC Participant on the date thereof (Incorporated by reference to Exhibit 10.57 of the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2017). 10.28 Fifth Amendment to the Sixth Amended and Restated Receivables Purchase Agreement, dated as of April 3, 2019, by and among P&L Receivables Company, LLC, Peabody Energy Corporation, all Committed Purchasers listed on the signature pages thereto, all Purchaser Agents listed on the signature pages thereto, all LC Participants listed on the signature pages thereto, and PNC Bank, National Association, as Administrator and as LC Bank (Incorporated by reference to Exhibit 10.1 of the Registrant’s Current Report on Form 8-K, filed April 4, 2019). 10.29 Credit Agreement dated as of April 3, 2017, among the Registrant, as Borrower, Goldman Sachs Bank USA, as Administrative Agent, and the other lenders party thereto (Incorporated by reference to Exhibit 10.3 of the Registrant’s Current Report on Form 8-K, filed April 3, 2017). 10.30 Amendment No. 1 to Credit Agreement, by and among Peabody Energy Corporation, the subsidiaries of the Peabody Energy Corporation party thereto as reaffirming parties, the lenders party thereto and Goldman Sachs Bank USA, as administrative agent, dated as of September 18, 2017 (Incorporated by reference to Exhibit 10.1 of the Registrant’s Current Report on Form 8-K filed September 18, 2017). 10.31 Amendment No. 2 to Credit Agreement, by and among Peabody Energy Corporation, the subsidiaries of Peabody Energy Corporation party thereto as reaffirming parties, the lenders party thereto and Goldman Sachs Bank USA, as administrative agent, dated as of November 17, 2017 (Incorporated by reference to Exhibit 10.1 of the Registrant’s Current Report on Form 8-K, filed November 20, 2017). 10.32 Amendment No. 3 to Credit Agreement, by and among Peabody Energy Corporation, the subsidiaries of Peabody Energy Corporation party thereto as reaffirming parties, the lenders party thereto and Goldman Sachs Bank USA, as administrative agent, dated as of December 18, 2017 (Incorporated by reference to Exhibit 10.1 of the Registrant’s Current Report on Form 8-K, filed December 19, 2017). 10.33 Amendment No. 4 to Credit Agreement, by and among Peabody Energy Corporation, the subsidiaries of Peabody Energy Corporation party thereto as reaffirming parties, the lenders party thereto and Goldman Sachs Bank USA, as administrative agent, dated as of April 11, 2018 (Incorporated by reference to Exhibit 10.1 of the Registrant’s Current Report on Form 8-K, filed April 11, 2018). 10.34 Amendment No. 5 to Credit Agreement, by and among Peabody Energy Corporation, the subsidiaries of Peabody Energy Corporation party thereto as reaffirming parties, the lenders party thereto and Goldman Sachs Bank USA, as administrative agent, dated as of June 27, 2018 (Incorporated by reference to Exhibit 10.1 of the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2018). 10.35 Amendment No. 6 to Credit Agreement, by and among Peabody Energy Corporation, the subsidiaries of Peabody Energy Corporation party thereto as reaffirming parties, the incremental revolving lenders party thereto, Goldman Sachs Bank USA, as existing administrative agent, and JPMorgan Chase Bank, N.A., as successor administrative agent, dated as of September 17, 2019 (Incorporated by reference to Exhibit 10.1 of the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2019). 10.36 Amendment No. 7 to Credit Agreement by and among Peabody Energy Corporation, the subsidiaries of the Peabody Energy Corporation party thereto as reaffirming parties, the lenders party thereto, and JPMorgan Chase Bank, N.A., as successor administrative agent, dated as of September 17, 2019 (Incorporated by reference to Exhibit 10.2 of the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2019). 10.37 Amendment No. 8 to Credit Agreement by and among Peabody Energy Corporation, the subsidiaries of Peabody Energy Corporation party thereto as reaffirming parties, the lenders party thereto, and JPMorgan Chase Bank, N.A., as administrative agent, dated as of January 29, 2021 (as successor to Goldman Sachs Bank USA in its capacity as administrative agent) (Incorporated by reference to Exhibit 10.3 of the Registrant’s Current Report on Form 8-K/A filed on February 1, 2021). 10.38* Peabody Energy Corporation 2017 Incentive Plan (Incorporated by reference to Exhibit 4.6 of the Registrant’s Registration Statement on Form S-8, filed April 3, 2017). Peabody Energy Corporation 2025 Form 10-K 83 Table of Contents 10.39 Registration Rights Agreement, dated as of April 3. 2017, among the Registrant and the stockholders party thereto (Incorporated by reference to Exhibit 10.1 of the Registrant’s Current Report on Form 8-K filed, April 3, 2017). 10.40 Form of Indemnification Agreement (Incorporated by reference to Exhibit 10.9 of the Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2017). 10.41* Form of Restricted Stock Unit Agreement under the Peabody Energy Corporation 2017 Incentive Plan (Incorporated by reference to Exhibit 10.7 of the Registrant’s Current Report on Form 8-K, filed April 3, 2017). 10.42* Form of Restrictive Covenant Agreement under the Peabody Energy Corporation 2017 Incentive Plan (Incorporated by reference to Exhibit 10.8 of the Registrant’s Current Report on Form 8-K, filed April 3, 2017). 10.43* Form of Deferred Stock Unit Agreement under the Peabody Energy Corporation 2017 Incentive Plan (Incorporated by reference to Exhibit 10.12 of the Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2017). 10.44* Form of Performance Share Unit Agreement under the Peabody Energy Corporation 2017 Incentive Plan. (Incorporated by reference to Exhibit 10.68 of the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2017). 10.45 Form of Indemnification Agreement (Incorporated by reference to Exhibit 10.73 of the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2018). 10.46* Form of Deferred Stock Unit Agreement under the Peabody Energy Corporation 2017 Incentive Plan (Incorporated by reference to Exhibit 10.74 of the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2018). 10.47* Form of Restricted Stock Unit Agreement (ELT Level 2019 Special Award) under the Peabody Energy Corporation 2017 Incentive Plan (Incorporated by reference to Exhibit 10.75 of the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2019). 10.48* Form of Restricted Stock Unit Agreement (Director Level and Above 2019 Special Award) under the Peabody Energy Corporation 2017 Incentive Plan (Incorporated by reference to Exhibit 10.76 of the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2019). 10.49* Form of Deferred Stock Unit Agreement under the Peabody Energy Corporation 2017 Incentive Plan (Incorporated by reference to Exhibit 10.2 of the Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2020). 10.50* Form of Restricted Stock Unit Agreement (Director Level and Above 2020 Off-Cycle Award) under the Peabody Energy Corporation 2017 Incentive Plan (Incorporated by reference to Exhibit 10.3 of the Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2020). 10.51* Form of Performance Share Units Agreement under the Peabody Energy Corporation 2017 Incentive Plan (Incorporated by reference to Exhibit 10.4 of the Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2020). 10.52* Form of Restricted Stock Unit Agreement under the Peabody Energy Corporation 2017 Incentive Plan (Incorporated by reference to Exhibit 10.5 of the Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2020). 10.53* Form of 2021 Service-Based Cash Award Agreement under the Peabody Energy Corporation 2017 Incentive Plan (Incorporated by reference to Exhibit 10.1 of the Registrant’s Current Report on Form 8-K filed on March 5, 2021) . 10.54* Form of Amendment No. 1 to 2021 Service-Based Cash Award Agreement under the Peabody Energy Corporation 2017 Incentive Plan (Incorporated by reference to Exhibit 10.2 of the Registrant’s Current Report on Form 8-K filed on March 5, 2021). 10.55* Form of 2022 Service-Based Cash Award Agreement under the Peabody Energy Corporation 2017 Incentive Plan (US Employees) (Incorporated by reference to Exhibit 10.75 of the Registrant’s Annual Report on Form 10-K, filed February 18, 2022). 10.56* Form of 2022 Performance-Based Cash Award Agreement under the Peabody Energy Corporation 2017 Incentive Plan (US Employees) (Incorporated by reference to Exhibit 10.76 of the Registrant’s Annual Report on Form 10-K, filed February 18, 2022). 10.57* Form of 2022 Restricted Stock Unit Agreement under the Peabody Energy Corporation 2017 Incentive Plan (US Employees) (Incorporated by reference to Exhibit 10.77 of the Registrant’s Annual Report on Form 10-K, filed February 18, 2022). 10.58* Form of 2022 Global Restricted Stock Unit Agreement under the Peabody Energy Corporation 2017 Incentive Plan (AUS Employees) (Incorporated by reference to Exhibit 10.78 of the Registrant’s Annual Report on Form 10-K, filed February 18, 2022). Peabody Energy Corporation 2025 Form 10-K 84 Table of Contents 10.59* Offer of Restricted Stock Units to Australian Resident Grantees under the Peabody Energy Corporation 2017 Incentive Plan (AUS Employees) (Incorporated by reference to Exhibit 10.79 of the Registrant’s Annual Report on Form 10-K, filed February 18, 2022). 10.60* Form of 2022 Service-Based Cash Award Agreement under the Peabody Energy Corporation 2017 Incentive Plan (AUS Employees) (Incorporated by reference to Exhibit 10.80 of the Registrant’s Annual Report on Form 10-K, filed February 18, 2022). 10.61* Form of 2022 Performance-Based Cash Award Agreement under the Peabody Energy Corporation 2017 Incentive Plan (AUS Employees) (Incorporated by reference to Exhibit 10.81 of the Registrant’s Annual Report on Form 10-K, filed February 18, 2022). 10.62* Form of 2025 Performance Unit Agreement (with cash) (ELT Level) under the Peabody Energy Corporation 2017 Incentive Plan (Incorporated by reference to Exhibit 10.71 of the Registrant’s Annual Report on Form 10-K, filed February 20, 2025). 10.63* Form of 2025 Restricted Stock Unit Agreement (ELT Level) under the Peabody Energy Corporation 2017 Incentive Plan (Incorporated by reference to Exhibit 10.72 of the Registrant’s Annual Report on Form 10-K, filed February 20, 2025). 10.64* Form of 2025 Service-Based Cash Award Agreement (ELT Level) under the Peabody Energy Corporation 2017 Incentive Plan (Incorporated by reference to Exhibit 10.73 of the Registrant’s Annual Report on Form 10-K, filed February 20, 2025). 10.65*† Form of 2026 Performance Unit Agreement (with cash) (ELT Level) under the Peabody Energy Corporation 2017 Incentive Plan 10.66*† Form of 2026 Restricted Stock Unit Agreement (ELT Level) under the Peabody Energy Corporation 2017 Incentive Plan 10.67*† Form of 2026 Service-Based Cash Award Agreement (ELT Level) under the Peabody Energy Corporation 2017 Incentive Plan 10.68*† Form of 2026 Performance Unit Agreement (with cash) (CEO) under the Peabody Energy Corporation 2017 Incentive Plan 10.69*† Form of 2026 Restricted Stock Unit Agreement (CEO) under the Peabody Energy Corporation 2017 Incentive Plan 10.70*† Form of 2026 Service-Based Cash Award Agreement (CEO) under the Peabody Energy Corporation 2017 Incentive Plan 10.71 Management Services Agreement, dated as of August 4, 2020, by and between Peabody Investments Corp. and each of the Client Companies listed on the signature page thereto (Incorporated by reference to Exhibit 10.3 of the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2020). 10.72 Management Services Agreement, dated as of August 4, 2020, by and between Peabody Energy Australia Pty Ltd and each of the Client Companies listed on the signature page thereto (Incorporated by reference to Exhibit 10.4 of the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2020). 10.73 Transaction Support Agreement, dated as of November 6, 2020, between Peabody Energy Corporation, certain subsidiaries of Peabody Energy Corporation and the Participating Sureties (Incorporated by reference to Exhibit 10.5 of the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2020). 10.74 Transaction Support Agreement, dated as of December 24, 2020, between Peabody, certain subsidiaries of Peabody, the Revolving Lenders, the Administrative Agent, and the Consenting Noteholders (Incorporated by reference to Exhibit 10.1 of the Registrant’s Current Report on Form 8-K, filed December 28, 2020). 10.75 Amended and Restated Transaction Support Agreement, dated as of December 31, 2020, between Peabody, certain subsidiaries of Peabody, the Revolving Lenders, the Administrative Agent, and the Consenting Noteholders (Incorporated by reference to Exhibit 10.1 of the Registrant’s Current Report on Form 8-K, filed January 4, 2021). 10.76 First Amendment to Amended and Restated Transaction Support Agreement, dated as of January 29, 2021, between Peabody, certain subsidiaries of Peabody, the Revolving Lenders, the Administrative Agent, and the Consenting Noteholders (Incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K/A filed on February 1, 2021). 10.77 Agreement for Irrevocable Standby Letters of Credit, dated as of February 17, 2022, between Peabody and Goldman Sachs Bank USA (Incorporated by reference to Exhibit 10.89 of the Registrant’s Annual Report on Form 10-K, filed February 18, 2022). 10.78 Eighth Amendment to the Sixth Amended and Restated Receivables Purchase Agreement, dated as of January 28, 2022, by and among P&L Receivables Company, LLC, Peabody Energy Corporation, all Committed Purchasers listed on the signature pages thereto, all Purchaser Agents listed on the signature pages thereto, all LC Participants listed on the signature pages thereto, PNC Bank, National Association, as Administrator and as LC Bank and PNC Capital Markets LLC, as Structuring Agent (Incorporated by reference to Exhibit 10.1 o f the Registrant’s Current Report on Form 8-K filed on January 31, 2022). Peabody Energy Corporation 2025 Form 10-K 85 Table of Contents 10.79 Commitment Agreement, dated March 23, 2022, by and among Peabody Investments Corp., The Prudential Insurance Company of America and Fiduciary Counselors Inc. (Incorporated by reference to Exhibit 10.4 of the Registrant’s Current Report on Form 10-Q, filed May 5, 2022). 10.80 Ninth Amendment to the Sixth Amended and Restated Receivables Purchase Agreement, dated as of February 13, 2023, by and among P&L Receivables Company, LLC, Peabody Energy Corporation, all Committed Purchasers listed on the signature pages thereto, all Purchaser Agents listed on the signature pages thereto, all LC Participants listed on the signature pages thereto, PNC Bank, National Association, as Administrator and as LC Bank and PNC Capital Markets LLC, as Structuring Agent (Incorporated by reference to Exhibit 10.1 of the Registrant’s Current Report on Form 8-K, filed February 14, 2023). 10.81 Amendment to Surety Transaction Support Agreement and Surety Term Sheet, dated as of April 14, 2023, by and among Peabody Energy Corporation, certain subsidiaries of Peabody Energy Corporation party thereto and the providers of its surety program (Incorporated by reference to Exhibit 10.1 of the Registrant’s Current Report on Form 8-K filed April 17, 2023). 10.82* Peabody Investments Corp. 2023 Supplemental Employee Retirement Account (Incorporated by reference to Exhibit 10.1 of the Registrant’s Quarterly Report on Form 10-Q filed August 3, 2023). 10.83 Credit Agreement, dated as of January 18, 2024, among Peabody Energy Corporation, certain subsidiaries of Peabody Energy Corporation party thereto, PNC Bank, National Association, as administrative agent, and the lenders party thereto (Incorporated by reference to Exhibit 1.1 of the Registrant’s Current Report on Form 8-K file d January 18, 2024). 10.84 Amendment No. 1 to Credit Agreement, dated as of November 25, 2024, by and among Peabody Energy Corporation, PNC Bank, National Association, as administrative agent, and the lenders party thereto (Incorporated by reference to Exhibit 10.1 of the Registrant’s Current Report on Form 8-K, filed November 25, 2024). 10.85 Tenth Amendment to the Sixth Amended and Restated Receivables Purchase Agreement, dated as of January 28, 2025, by and among P&L Receivables Company, LLC, Peabody Energy Corporation, all Committed Purchasers listed on the signature pages thereto, all Purchaser Agents listed on the signature pages thereto, all LC Participants listed on the signature pages thereto, PNC Bank, National Association, as Administrator and as LC Bank and PNC Capital Markets LLC, as Structuring Agent (Incorporated by reference to Exhibit 10.1 of the Registrant’s Current Report on Form 8-K, filed January 31, 2025). 10.86* Employment Transition Agreement, dated as of December 17, 2025, between Peabody Energy Corporation and James C. Grech (Incorporated by reference to Exhibit 10.1 of the Registrant’s Current Report on Form 8-K, filed December 19, 2025). 19.1 Insider Trading Policy, effective as of February 23, 2023 (Incorporated by reference to Exhibit 19.1 of the Registrant’s Annual Report on Form 10-K, filed February 20, 2025). 21† List of Subsidiaries. 23.1† Consent of Ernst & Young LLP, Independent Registered Public Accounting Firm. 23.2† Consents of Qualified Persons for Technical Report Summary for the North Antelope Rochelle Mine. 23.3† Consents of Qualified Persons for Technical Report Summary for the Wilpinjong Mine. 23.4† Consents of Qualified Persons for Technical Report Summary for the Centurion Mine. 31.1† Certification of periodic financial report by the Registrant’s Chief Executive Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. 31.2† Certification of periodic financial report by the Registrant’s Chief Financial Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. 32.1† Certification of periodic financial report pursuant to 18 U.S.C. Section 1350, adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, by the Registrant’s Chief Executive Officer. 32.2† Certification of periodic financial report pursuant to 18 U.S.C. Section 1350, adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, by the Registrant’s Chief Financial Officer. 95† Mine Safety Disclosure required by Item 104 of Regulation S-K. 96.1 Technical Report Summary for the North Antelope Rochelle Mine, effective as of December 31, 2021 (Incorporated by reference to Exhibit 96.1 of the Registrant’s Annual Report on Form 10-K, filed February 18, 2022) 96.2† Technical Report Summary for the Wilpinjong Mine, effective as of December 31, 2025 96.3 Technical Report Summary for the Centurion Mine, effective as of October 15, 2024 (Incorporated by reference to Exhibit 96.1 of the Registrant’s Current Report on Form 8-K, filed October 15, 2024) 97 Peabody Energy Corporation Clawback Policy, effective as of August 3, 2023 (Incorporated by reference to Exhibit 97 of the Registrant’s Annual Report on Form 10-K, filed February 23, 2024) 101.INS Inline XBRL Instance Document - the instance document does not appear in the interactive data file because XBRL tags are embedded within the Inline XBRL document 101.SCH Inline XBRL Taxonomy Extension Schema Document Peabody Energy Corporation 2025 Form 10-K 86 Table of Contents 101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document 101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document 101.LAB Inline XBRL Taxonomy Extension Label Linkbase Document 101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document 104 Cover Page Interactive Data File (embedded within the Inline XBRL document). * These exhibits constitute all management contracts, compensatory plans and arrangements required to be filed as an exhibit to this form pursuant to Item 15(a)(3) and 15(b) of this report. † Filed herewith. ‡ Certain portions of this exhibit have been redacted pursuant to Regulation S-K, Item 601(a)(6) and Item 601(b)(2)(ii). This exhibit excludes certain immaterial schedules and exhibits pursuant to the provisions of Regulation S-K, Item 601(a)(5). A copy of any of the omitted information, schedules and exhibits pursuant to Regulation S-K, Item 601(a)(5), Item 601(a)(6) and Item 601(b)(2)(ii), as applicable, will be furnished to the Securities and Exchange Commission upon request. Pursuant to the Instructions to Exhibits, certain instruments defining the rights of holders of long-term debt securities of the Company and its consolidated subsidiaries are not filed because the total amount of securities authorized under any such instrument does not exceed 10% of the total assets of the Company and its subsidiaries on a consolidated basis. A copy of such instrument will be furnished to the Securities and Exchange Commission upon request. Item 16. Form 10-K Summary. None. Peabody Energy Corporation 2025 Form 10-K 87 Table of Contents SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. PEABODY ENERGY CORPORATION /s/ JAMES C. GRECH James C. Grech President and Chief Executive Officer Date: February 19, 2026 Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons, on behalf of the registrant and in the capacities and on the dates indicated. Signature Title Date /s/ JAMES C. GRECH President and Chief Executive Officer, Director (principal executive officer) February 19, 2026 James C. Grech /s/ MARK A. SPURBECK Executive Vice President and Chief Financial Officer (principal financial and accounting officer) February 19, 2026 Mark A. Spurbeck /s/ M. KATHERINE BANKS Director February 19, 2026 M. Katherine Banks /s/ ANDREA BERTONE Director February 19, 2026 Andrea Bertone /s/ BILL CHAMPION Director February 19, 2026 Bill Champion /s/ NICHOLAS CHIREKOS Director February 19, 2026 Nicholas Chirekos /s/ STEPHEN GORMAN Director February 19, 2026 Stephen Gorman /s/ GEORGANNE HODGES Director February 19, 2026 Georganne Hodges /s/ JOE LAYMON Director February 19, 2026 Joe Laymon /s/ ROBERT MALONE Chairman February 19, 2026 Robert Malone /s/ CLAYTON WALKER Director February 19, 2026 Clayton Walker Peabody Energy Corporation 2025 Form 10-K 88 Table of Contents Report of Independent Registered Public Accounting Firm To the Stockholders and the Board of Directors of Peabody Energy Corporation Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of Peabody Energy Corporation (the Company) as of December 31, 2025 and 2024, the related consolidated statements of operations, comprehensive income, changes in stockholders' equity and cash flows for each of the three years in the period ended December 31, 2025, and the related notes and financial statement schedule listed in the Index at Item 15(a) (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February 19, 2026 expressed an unqualified opinion thereon. Basis for Opinion These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matter The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Peabody Energy Corporation 2025 Form 10-K F-1 Table of Contents Asset Retirement Obligation Liabilities – Surface Mines Description of the Matter At December 31, 2025, the Company’s asset retirement obligation (ARO) liabilities totaled $754.9 million. As discussed in Note 1 and Note 11 to the consolidated financial statements, the Company estimates its ARO liabilities in the U.S. and Australia for final reclamation and mine closure based upon detailed engineering calculations of the amount and timing of the future cash spending for a third party to perform the required work. The Company records an ARO asset associated with the discounted liability for final reclamation and mine closure. The obligation and corresponding asset are recognized in the period in which the liability is incurred. As changes in estimates occur, the revisions to the obligation and asset are recognized at the appropriate credit-adjusted, risk-free rate. Auditing the Company’s ARO liabilities for surface mines was complex because the calculations involve subjective assumptions related to estimates of disturbed acreage as determined from engineering data, estimates of future costs to reclaim the disturbed acreage and the timing of these cash flows. How We Addressed the Matter in Our Audit We obtained an understanding, evaluated the design, and tested the operating effectiveness of the controls over the Company’s accounting for ARO liabilities for surface mines, including controls over management’s review of the ARO calculation and the significant assumptions and data inputs described above. Our audit procedures included, among others, evaluating the methodology used, and testing the significant assumptions discussed above and the underlying data used by the Company in its estimate of ARO liabilities for surface mines. To assess the estimates of disturbed acreage, estimates of future costs to reclaim the disturbed acreage, and the timing of these cash flows, we evaluated significant changes from the prior year estimate, evaluated consistency between timing of reclamation activities and projected mine life, evaluated the estimated costs for surface mines by comparing anticipated costs to recent operating or third-party data, and recalculated management's estimate. Additionally, we involved our specialists to assist in our assessment of the Company’s ARO liabilities for certain surface mines. As part of this effort, our specialists interviewed members of the Company’s engineering staff, assessed the completeness of the mine reclamation estimate with respect to meeting mine closure and post closure plan regulatory requirements, tested the accuracy and completeness of the underlying data used in the engineering estimates and assessed the significant assumptions discussed above. /s/ Ernst & Young LLP We have served as the Company’s auditor since 1991. St. Louis, Missouri February 19, 2026 Peabody Energy Corporation 2025 Form 10-K F-2 Table of Contents PEABODY ENERGY CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS Year Ended December 31, 2025 2024 2023 (Dollars in millions, except per share data) Revenue $ 3,861.5 $ 4,236.7 $ 4,946.7 Costs and expenses Operating costs and expenses (exclusive of items shown separately below) 3,334.9 3,420.9 3,385.1 Depreciation, depletion and amortization 384.5 343.0 321.4 Asset retirement obligation expenses 36.5 48.9 50.5 Selling and administrative expenses 105.0 91.0 90.7 Restructuring charges 9.5 4.4 3.3 Costs related to terminated acquisition 78.9 10.3 — Net gain on disposals ( 27.7 ) ( 9.8 ) ( 15.0 ) Shoal Creek insurance recovery — ( 109.5 ) — Loss (income) from equity affiliates 14.4 ( 11.5 ) ( 6.9 ) Other operating loss 5.6 3.7 42.9 Operating (loss) profit ( 80.1 ) 445.3 1,074.7 Interest expense, net of capitalized interest 43.9 46.9 59.8 Net loss on early debt extinguishment — — 8.8 Interest income ( 55.4 ) ( 71.0 ) ( 76.8 ) Net periodic benefit credit, excluding service cost ( 29.7 ) ( 40.6 ) ( 41.6 ) Net mark-to-market adjustment on actuarially determined liabilities ( 5.4 ) ( 6.1 ) ( 0.3 ) (Loss) income from continuing operations before income taxes ( 33.5 ) 516.1 1,124.8 Income tax provision 8.8 108.8 308.8 (Loss) income from continuing operations, net of income taxes ( 42.3 ) 407.3 816.0 Loss from discontinued operations, net of income taxes ( 0.2 ) ( 3.8 ) ( 0.4 ) Net (loss) income ( 42.5 ) 403.5 815.6 Less: Net income attributable to noncontrolling interests 10.4 32.6 56.0 Net (loss) income attributable to common stockholders $ ( 52.9 ) $ 370.9 $ 759.6 (Loss) income from continuing operations: Basic (loss) income per share $ ( 0.43 ) $ 2.99 $ 5.52 Diluted (loss) income per share $ ( 0.43 ) $ 2.73 $ 5.00 Net (loss) income attributable to common stockholders: Basic (loss) income per share $ ( 0.43 ) $ 2.96 $ 5.52 Diluted (loss) income per share $ ( 0.43 ) $ 2.70 $ 5.00 See accompanying notes to consolidated financial statements Peabody Energy Corporation 2025 Form 10-K F-3 Table of Contents PEABODY ENERGY CORPORATION CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Year Ended December 31, 2025 2024 2023 (Dollars in millions) Net (loss) income $ ( 42.5 ) $ 403.5 $ 815.6 Postretirement plans (net of $ 0.0 tax provisions in each period) ( 40.8 ) ( 46.5 ) ( 53.8 ) Foreign currency translation adjustment 3.1 ( 4.3 ) 0.9 Other comprehensive loss, net of income taxes ( 37.7 ) ( 50.8 ) ( 52.9 ) Comprehensive (loss) income ( 80.2 ) 352.7 762.7 Less: Net income attributable to noncontrolling interests 10.4 32.6 56.0 Comprehensive (loss) income attributable to common stockholders $ ( 90.6 ) $ 320.1 $ 706.7 See accompanying notes to consolidated financial statements Peabody Energy Corporation 2025 Form 10-K F-4 Table of Contents PEABODY ENERGY CORPORATION CONSOLIDATED BALANCE SHEETS December 31, 2025 2024 (Amounts in millions, except per share data) ASSETS Current assets Cash and cash equivalents $ 575.3 $ 700.4 Accounts receivable, net of allowance for credit losses of $ 0.0 at December 31, 2025 and 2024 314.9 359.3 Inventories, net 383.2 393.4 Other current assets 285.4 327.6 Total current assets 1,558.8 1,780.7 Property, plant, equipment and mine development, net 3,153.3 3,081.5 Operating lease right-of-use assets 121.2 119.3 Restricted cash and collateral 844.1 809.8 Investments and other assets 127.6 162.4 Deferred income taxes 2.2 — Total assets $ 5,807.2 $ 5,953.7 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities Current portion of long-term debt $ 15.2 $ 15.8 Accounts payable and accrued expenses 827.0 811.7 Total current liabilities 842.2 827.5 Long-term debt, less current portion 321.2 332.3 Deferred income taxes 26.3 40.9 Asset retirement obligations, less current portion 692.8 667.8 Accrued postretirement benefit costs 109.2 120.4 Operating lease liabilities, less current portion 87.5 86.7 Other noncurrent liabilities 145.8 169.3 Total liabilities 2,225.0 2,244.9 Stockholders’ equity Preferred Stock — $ 0.01 per share par value; 100.0 shares authorized, no shares issued or outstanding as of December 31, 2025 or 2024 — — Series Common Stock — $ 0.01 per share par value; 50.0 shares authorized, no shares issued or outstanding as of December 31, 2025 or 2024 — — Common Stock — $ 0.01 per share par value; 450.0 shares authorized, 189.3 shares issued and 121.6 shares outstanding as of December 31, 2025 and 189.1 shares issued and 121.4 shares outstanding as of December 31, 2024 1.9 1.9 Additional paid-in capital 4,004.8 3,990.5 Treasury stock, at cost — 67.7 common shares as of December 31, 2025 and 2024 ( 1,927.3 ) ( 1,926.5 ) Retained earnings 1,355.9 1,445.8 Accumulated other comprehensive income 101.1 138.8 Peabody Energy Corporation stockholders’ equity 3,536.4 3,650.5 Noncontrolling interests 45.8 58.3 Total stockholders’ equity 3,582.2 3,708.8 Total liabilities and stockholders’ equity $ 5,807.2 $ 5,953.7 See accompanying notes to consolidated financial statements Peabody Energy Corporation 2025 Form 10-K F-5 Table of Contents PEABODY ENERGY CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS Year Ended December 31, 2025 2024 2023 (Dollars in millions) Cash Flows From Operating Activities Net (loss) income $ ( 42.5 ) $ 403.5 $ 815.6 Loss from discontinued operations, net of income taxes 0.2 3.8 0.4 (Loss) income from continuing operations, net of income taxes ( 42.3 ) 407.3 816.0 Adjustments to reconcile (loss) income from continuing operations, net of income taxes to net cash provided by operating activities: Depreciation, depletion and amortization 384.5 343.0 321.4 Noncash interest expense, net 5.6 5.4 4.6 Deferred income taxes ( 16.7 ) 12.2 82.9 Noncash share-based compensation 13.8 7.3 6.9 Asset impairment — — 2.0 Noncash provision for NARM and Shoal Creek losses — — 33.7 Net gain on disposals ( 27.7 ) ( 9.8 ) ( 15.0 ) Noncash income from port and rail capacity assignment — ( 0.3 ) ( 9.6 ) Net loss on early debt extinguishment — — 8.8 Loss (income) from equity affiliates 14.4 ( 11.5 ) ( 6.9 ) Shoal Creek insurance recovery — ( 10.9 ) — Unrealized (gains) losses on foreign currency option contracts ( 6.0 ) 9.0 ( 7.4 ) Changes in current assets and liabilities: Accounts receivable 48.8 21.9 88.4 Inventories 10.2 ( 41.6 ) ( 59.7 ) Other current assets 23.1 ( 5.3 ) 0.9 Accounts payable and accrued expenses 10.3 ( 184.9 ) 120.2 Collateral arrangements ( 7.3 ) 149.1 ( 199.6 ) Asset retirement obligations ( 15.2 ) ( 4.5 ) ( 10.3 ) Postretirement benefit obligations ( 52.0 ) ( 74.5 ) ( 61.9 ) Pension obligations ( 4.9 ) 3.6 ( 1.3 ) Other, net ( 2.6 ) ( 2.7 ) 2.2 Net cash provided by continuing operations 336.0 612.8 1,116.3 Net cash used in discontinued operations ( 2.3 ) ( 6.3 ) ( 80.8 ) Net cash provided by operating activities 333.7 606.5 1,035.5 See accompanying notes to consolidated financial statements Peabody Energy Corporation 2025 Form 10-K F-6 Table of Contents PEABODY ENERGY CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS - (Continued) Year Ended December 31, 2025 2024 2023 (Dollars in millions) Cash Flows From Investing Activities Additions to property, plant, equipment and mine development ( 411.4 ) ( 401.3 ) ( 348.3 ) Changes in accrued expenses related to capital expenditures ( 10.0 ) ( 1.2 ) 2.9 Wards Well acquisition — ( 143.8 ) — Deposit associated with terminated acquisition — ( 75.0 ) — Returned deposit related to terminated acquisition 29.0 — — Insurance proceeds attributable to Shoal Creek equipment losses — 10.9 — Proceeds from disposal of assets, net of receivables 32.5 17.1 22.8 Contributions to joint ventures ( 601.9 ) ( 728.0 ) ( 741.6 ) Distributions from joint ventures 617.8 717.2 721.7 Other, net ( 2.6 ) 6.0 ( 0.1 ) Net cash used in investing activities ( 346.6 ) ( 598.1 ) ( 342.6 ) Cash Flows From Financing Activities Repayments of long-term debt ( 12.2 ) ( 10.4 ) ( 9.0 ) Proceeds from loan note related to terminated acquisition — 9.3 — Repayment of loan note related to terminated acquisition ( 9.3 ) — — Payment of debt issuance and other deferred financing costs ( 1.8 ) ( 12.0 ) ( 0.3 ) Common stock repurchases — ( 183.1 ) ( 347.7 ) Excise taxes paid related to common stock repurchases ( 1.7 ) ( 3.3 ) — Repurchase of employee common stock relinquished for tax withholding ( 0.8 ) ( 4.1 ) ( 13.7 ) Dividends paid ( 36.5 ) ( 37.6 ) ( 30.6 ) Distributions to noncontrolling interests ( 22.9 ) ( 34.8 ) ( 59.0 ) Net cash used in financing activities ( 85.2 ) ( 276.0 ) ( 460.3 ) Net change in cash, cash equivalents and restricted cash ( 98.1 ) ( 267.6 ) 232.6 Cash, cash equivalents and restricted cash at beginning of period (1) 1,382.6 1,650.2 1,417.6 Cash, cash equivalents and restricted cash at end of period (2) $ 1,284.5 $ 1,382.6 $ 1,650.2 (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 $ 575.3 Restricted cash included in “Restricted cash and collateral” 709.2 Cash, cash equivalents and restricted cash at end of period $ 1,284.5 See accompanying notes to consolidated financial statements Peabody Energy Corporation 2025 Form 10-K F-7 Table of Contents PEABODY ENERGY CORPORATION CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY Peabody Energy Corporation Stockholders’ Equity Common Stock Additional Paid-in Capital Treasury Stock Retained Earnings (Accumulated Deficit) Accumulated Other Comprehensive Income Noncontrolling Interests Total Stockholders’ Equity (Dollars in millions, except per share data) December 31, 2022 $ 1.9 $ 3,975.9 $ ( 1,372.9 ) $ 383.9 $ 242.5 $ 63.5 $ 3,294.8 Net income — — — 759.6 — 56.0 815.6 Dividends declared ($ 0.225 per share) — 0.2 — ( 30.8 ) — — ( 30.6 ) Postretirement plans (net of $ 0.0 tax provision) — — — — ( 53.8 ) — ( 53.8 ) Foreign currency translation adjustment — — — — 0.9 — 0.9 Share-based compensation for equity-classified awards — 6.9 — — — — 6.9 Common stock repurchases — — ( 347.7 ) — — — ( 347.7 ) Net change in unsettled common stock repurchases — — ( 2.6 ) — — — ( 2.6 ) Excise tax accrued on common stock repurchases — — ( 3.3 ) — — — ( 3.3 ) Repurchase of employee common stock relinquished for tax withholding — — ( 13.7 ) — — — ( 13.7 ) Distributions to noncontrolling interests — — — — — ( 59.0 ) ( 59.0 ) December 31, 2023 $ 1.9 $ 3,983.0 $ ( 1,740.2 ) $ 1,112.7 $ 189.6 $ 60.5 $ 3,607.5 Net income — — — 370.9 — 32.6 403.5 Dividends declared ($ 0.300 per share) — 0.2 — ( 37.8 ) — — ( 37.6 ) Postretirement plans (net of $ 0.0 tax provision) — — — — ( 46.5 ) — ( 46.5 ) Foreign currency translation adjustment — — — — ( 4.3 ) — ( 4.3 ) Share-based compensation for equity-classified awards — 7.3 — — — — 7.3 Common stock repurchases — — ( 183.1 ) — — — ( 183.1 ) Net change in unsettled common stock repurchases — — 2.6 — — — 2.6 Excise tax accrued on common stock repurchases — — ( 1.7 ) — — — ( 1.7 ) Repurchase of employee common stock relinquished for tax withholding — — ( 4.1 ) — — — ( 4.1 ) Distributions to noncontrolling interests — — — — — ( 34.8 ) ( 34.8 ) December 31, 2024 $ 1.9 $ 3,990.5 $ ( 1,926.5 ) $ 1,445.8 $ 138.8 $ 58.3 $ 3,708.8 Net loss — — — ( 52.9 ) — 10.4 ( 42.5 ) Dividends declared ($ 0.300 per share) — 0.5 — ( 37.0 ) — — ( 36.5 ) Postretirement plans (net of $ 0.0 tax provision) — — — — ( 40.8 ) — ( 40.8 ) Foreign currency translation adjustment — — — — 3.1 — 3.1 Share-based compensation for equity-classified awards — 13.8 — — — — 13.8 Repurchase of employee common stock relinquished for tax withholding — — ( 0.8 ) — — — ( 0.8 ) Distributions to noncontrolling interests — — — — — ( 22.9 ) ( 22.9 ) December 31, 2025 $ 1.9 $ 4,004.8 $ ( 1,927.3 ) $ 1,355.9 $ 101.1 $ 45.8 $ 3,582.2 See accompanying notes to consolidated financial statements Peabody Energy Corporation 2025 Form 10-K F-8 Table of Contents PEABODY ENERGY CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (1) Summary of Significant Accounting Policies Basis of Presentation The consolidated financial statements include the accounts of Peabody Energy Corporation (PEC) and its affiliates. The Company, or Peabody, are used interchangeably to refer to Peabody Energy Corporation, to Peabody Energy Corporation and its subsidiaries, or to such subsidiaries, as appropriate to the context. 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 an unincorporated 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 consolidated financial statements. All intercompany transactions, profits and balances have been eliminated in consolidation. Certain prior period amounts in the consolidated statements of operations have been reclassified to conform with the current period presentation. These reclassifications were made to combine prior period items, including an asset impairment and provisions for non-recurring operational losses, with other discrete items as “Other operating loss” within the consolidated statements of operations. Description of Business The Company is engaged in the mining of thermal coal for sale primarily to electric utilities and industrial facilities and metallurgical coal for sale to steel producers. The Company’s mining operations are located in the United States (U.S.) and Australia, including an equity-affiliate mining operation in Australia. The Company’s other commercial activities include trading and brokerage activities, managing its coal reserves and resources and real estate holdings and supporting the development of clean coal technologies. On November 21, 2024, Peabody entered into a partnership with an unrelated renewable energy company, to advance renewable energy projects by repurposing reclaimed land previously used for mining, including certain reclaimed mining land held by the Company. Newly Adopted Accounting Standard 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 adopted this ASU in the current year, and applied the amendments retrospectively to all prior periods presented in the consolidated financial statements. The adoption of this ASU impacted the Company’s disclosures in Note 7. “Income Taxes,” with no impacts to its consolidated results of operations, cash flows and financial condition. Accounting Standards Not Yet Implemented 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. Peabody Energy Corporation 2025 Form 10-K F-9 Table of Contents PEABODY ENERGY CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Government Grants . In December 2025, ASU 2025-10 was issued, which establishes guidance on the recognition, measurement and presentation of a government grant received by a business entity. Accounting principles generally accepted in the United States (U.S. GAAP) did not provide such guidance, and many business entities have been analogizing to International Accounting Standard (IAS) 20 or other guidance when accounting for government grants. The Company is required to adopt the amendments for fiscal years beginning after December 15, 2028 and interim reporting periods within those periods. The amendments can be applied using a modified retrospective or retrospective approach. Early adoption is permitted. The Company will apply this guidance upon its adoption, as applicable. Revenue The majority of the Company’s revenue is derived from the sale of coal under long-term coal supply agreements (those with initial terms of one year or longer and which often include price reopener and/or extension provisions) and contracts with terms of less than one year, including sales made on a spot basis. The Company’s revenue from coal sales is realized and earned when control passes to the customer. Under the typical terms of the Company’s coal supply agreements, title and risk of loss transfer to the customer at the mine or port, where coal is loaded to the transportation sources that serve the Company’s mines. The Company incurs certain “add-on” taxes and fees on coal sales. Reported coal sales include taxes and fees charged by various federal and state governmental bodies and the freight charged on destination customer contracts. The Company’s seaborne operating platform is primarily export focused with customers spread across several countries, with a portion of the thermal and metallurgical coal sold within Australia. Generally, revenue from individual countries vary year by year based on electricity and steel demand, the strength of the global economy, governmental policies and several other factors, including those specific to each country. A majority of these sales are executed through annual and multi-year international coal supply agreements that contain provisions requiring both parties to renegotiate pricing periodically. Industry commercial practice, and the Company’s typical practice, is to negotiate pricing for seaborne thermal coal contracts on an annual, spot or index basis and seaborne metallurgical coal contracts on a quarterly, spot or index basis. In the case of periodically negotiated pricing, the Company may deliver coal under provisional pricing until a final agreed-upon price is determined. Variable consideration resulting from provisional pricing arrangements is recognized based on the Company’s best estimate of the amount expected to be received at the time control is transferred to the customer that is not expected to result in a material reversal of revenue. The Company’s U.S. thermal operating platform primarily sells thermal coal to electric utilities in the U.S. under long-term contracts, with a portion sold into the seaborne markets as conditions warrant. A significant portion of the coal production from the U.S. thermal operations is sold under existing long-term supply agreements. Certain customers of those segments utilize long-term sales agreements in recognition of the importance of reliability, service and predictable coal prices to their operations. The terms of coal supply agreements result from competitive bidding and extensive negotiations with customers. Consequently, the terms of those agreements may vary in many respects, including price adjustment features, price reopener terms, coal quality requirements, quantity parameters, permitted sources of supply, treatment of environmental constraints, extension options, force majeure and termination and assignment provisions. Contract pricing is set forth on a per ton basis, and revenue is generally recorded as the product of price and volume delivered. Many of the Company’s coal supply agreements contain provisions that permit the parties to adjust the contract price upward or downward at specified times. These contract prices may be adjusted based on inflation or deflation and/or changes in the factors affecting the cost of producing coal, such as taxes, fees, royalties and changes in the laws regulating the mining, production, sale or use of coal. In a limited number of contracts, failure of the parties to agree on a price under those provisions may allow either party to terminate the contract. The Company sometimes experiences a reduction in coal prices in new long-term coal supply agreements replacing some of its expiring contracts. Coal supply agreements also typically contain force majeure provisions allowing temporary suspension of performance by the Company or the customer during the duration of specified events beyond the control of the affected party. Most of the coal supply agreements contain provisions requiring the Company to deliver coal meeting quality thresholds for certain characteristics such as Btu, sulfur content, ash content, grindability and ash fusion temperature. Failure to meet these specifications could result in economic penalties, including price adjustments, the rejection of deliveries or termination of the contracts. Moreover, some of these agreements allow the Company’s customers to terminate their contracts in the event of changes in regulations affecting the industry that restrict the use or type of coal permissible at the customer’s plant or increase the price of coal beyond specified limits. Additional revenue may include gains and losses related to mark-to-market adjustments from economic hedge activities intended to hedge future coal sales, revenue from customer contract-related payments and other insignificant items including royalties related to coal lease agreements, sales agency commissions, farm income and property and facility rentals. Royalty income generally results from the lease or sublease of mineral rights to third parties, with payments based upon a percentage of the selling price or an amount per ton of coal produced. Peabody Energy Corporation 2025 Form 10-K F-10 Table of Contents PEABODY ENERGY CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Discontinued Operations The Company classifies items within discontinued operations in the consolidated financial statements when the operations and cash flows of a particular component of the Company have been (or will be) eliminated from the ongoing operations of the Company as a result of a disposal (by sale or otherwise) and represents a strategic shift that has (or will have) a major effect on the entity’s operations and financial results. Discontinued operations include certain former Seaborne Thermal and Other U.S. Thermal reportable segment assets that have ceased production and other previously divested legacy operations, including Patriot Coal Corporation and certain of its wholly-owned subsidiaries (Patriot). On August 8, 2023, the Company entered into a settlement agreement with the U.S. Department of Labor to resolve a liability dispute regarding the federal black lung claims of Patriot. In accordance with the settlement agreement, the Company paid $ 72.0 million to settle the Patriot federal black lung claims, with the exception of approximately $ 4.2 million of certain claims for attorney’s fees and additional compensation due to claimants not paid during appeal. As a result of the settlement, the Company recognized a $ 3.9 million gain within “Loss from discontinued operations, net of income taxes” during the year ended December 31, 2023. Assets and Liabilities Held for Sale The Company classifies assets and liabilities (disposal groups) to be sold as held for sale in the period in which all of the following criteria are met: management, having the authority to approve the action, commits to a plan to sell the disposal group; the disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such disposal groups; an active program to locate a buyer and other actions required to complete the plan to sell the disposal group have been initiated; the sale of the disposal group is probable, and transfer of the disposal group is expected to qualify for recognition as a completed sale within one year, except if events or circumstances beyond the Company's control extend the period of time required to sell the disposal group beyond one year; the disposal group is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. The Company initially measures a disposal group that is classified as held for sale at the lower of its carrying value or fair value less any costs to sell. Any loss resulting from this measurement is recognized in the period in which the held for sale criteria are met. Conversely, gains are not recognized on the sale of a disposal group until the date of sale. The Company assesses the fair value of a disposal group, less any costs to sell, each reporting period it remains classified as held for sale and reports any subsequent changes as an adjustment to the carrying value of the disposal group, as long as the new carrying value does not exceed the carrying value of the disposal group at the time it was initially classified as held for sale. Upon determining that a disposal group meets the criteria to be classified as held for sale, the Company reports the assets and liabilities of the disposal group, if material, in the line items assets held for sale and liabilities held for sale in the consolidated balance sheets. Cash and Cash Equivalents Cash and cash equivalents are stated at cost, which approximates fair value. Cash equivalents consist of highly liquid investments with original maturities of three months or less. Accounts Receivable The timing of revenue recognition, billings and cash collections results in accounts receivable from customers. Customers are invoiced as coal is shipped or at periodic intervals in accordance with contractual terms. Invoices typically include customary adjustments for the resolution of price variability related to prior shipments, such as coal quality thresholds. Payments are generally received within thirty days of invoicing. Inventories Coal is reported as inventory at the point in time the coal is extracted from the mine. Raw coal represents coal stockpiles that may be sold in current condition or may be further processed prior to shipment to a customer. Saleable coal represents coal stockpiles which require no further processing prior to shipment to a customer. Peabody Energy Corporation 2025 Form 10-K F-11 Table of Contents PEABODY ENERGY CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Coal inventory is valued at the lower of average cost or net realizable value. Coal inventory costs include labor, supplies, equipment (including depreciation thereto) and operating overhead and other related costs incurred at or on behalf of the mining location. Net realizable value considers the projected future sales price of the particular coal product, less applicable selling costs and, in the case of raw coal, estimated remaining processing costs. The valuation of coal inventory is subject to several additional estimates, including those related to ground and aerial surveys used to measure quantities and processing recovery rates. Materials and supplies inventory is valued at the lower of average cost or net realizable value, less a reserve for obsolete or surplus items. This reserve incorporates several factors, such as anticipated usage, inventory turnover and inventory levels. Property, Plant, Equipment and Mine Development Property, plant, equipment and mine development are recorded at cost. Interest costs applicable to major asset additions are capitalized during the construction period. Capitalized interest for the years ended December 31, 2025 and 2024 was $ 8.0 million and $ 5.8 million, respectively. There was no capitalized interest in 2023. Expenditures which extend the useful lives of existing plant and equipment assets are capitalized. Maintenance and repairs are charged to operating costs as incurred. Costs incurred to develop coal mines or to expand the capacity of operating mines are capitalized. Maintenance and repair costs incurred to maintain current production capacity at a mine are charged to operating costs as incurred. Costs to acquire computer hardware and the development and/or purchase of certain software for internal use are capitalized and depreciated over the estimated useful lives. Coal reserves and resources are recorded at cost, or at fair value in the case of nonmonetary exchanges of coal reserves and resources or business acquisitions. Depletion of coal reserves and amortization of advance royalties are computed using the units-of-production method utilizing expected recoverable tons (as adjusted for recoverability factors) in the depletion base. Mine development costs are principally amortized over the estimated lives of the mine using the straight-line method. Depreciation of plant and equipment is computed using the straight-line method over the shorter of the asset’s estimated useful life or the life of the mine. At December 31, 2025, the maximum estimated remaining life for any of the Company’s mines was 31 years. As such, the estimated useful lives of the building and improvements and machinery and equipment asset categories range from 1 to 31 years. The estimated life of leasehold improvements is the shorter of useful life or remaining life of the lease. The Company leases coal reserves under agreements that require royalties to be paid as the coal is sold. Certain agreements also require minimum annual royalties to be paid regardless of the amount of coal mined during the year. Total royalty expense was $ 311.5 million, $ 370.0 million and $ 448.3 million for the years ended December 31, 2025, 2024 and 2023, respectively. A substantial amount of the coal mined by the Company is produced from mineral reserves leased from the owner. One of the major lessors is the U.S. government, from which the Company leases substantially all of the coal it mines in Wyoming under terms set by Congress and administered by the U.S. Bureau of Land Management. These leases are generally for an initial term of ten years but may be extended by diligent development and mining of the reserves until all economically recoverable reserves are depleted. The Company has met the diligent development requirements for substantially all of these federal leases either directly through production, by including the lease as a part of a logical mining unit with other leases upon which development has occurred or by paying an advance royalty in lieu of continued operations. Annual production on these federal leases must total at least 1.0 % of the leased reserve or the original amount of coal in the entire logical mining unit in which the leased reserve resides. In addition, royalties are payable monthly at a rate of 12.5 % of the gross realization from the sale of the coal mined using surface mining methods and at a rate of 8.0 % of the gross realization for coal produced using underground mining methods. The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, cuts federal coal royalty rates to 7 % for both surface and underground mines starting July 4, 2025, and lasting through September 30, 2034. The remainder of the leased coal is generally leased from state governments, land holding companies and various individuals. The duration of these leases varies greatly. Typically, the lease terms are automatically extended as long as active mining continues. Royalty payments are generally based upon a specified rate per ton or a percentage of the gross realization from the sale of the coal. Peabody Energy Corporation 2025 Form 10-K F-12 Table of Contents PEABODY ENERGY CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Mining and exploration in Australia is generally conducted under leases, licenses or permits granted by the relevant state government. Mining and exploration licenses and their associated environmental protection approvals (granted by the state government, and in some cases also the federal government) contain conditions relating to such matters as minimum annual expenditures, environmental compliance, protection of flora and fauna, restoration and rehabilitation. Royalties are paid to the state government as a percentage of the sales price (less certain allowable deductions in some cases). Generally, landowners do not own the mineral rights or have the ability to grant rights to mine those minerals. These rights are retained by the state government. Compensation is often payable to landowners, occupiers and Aboriginal traditional owners with residual native title rights and interests for the loss of access to the land from the proposed mining activities. The amount and type of compensation and the ability to proceed to grant of a mining tenement may be determined by agreement or court determination, as provided by law. Leases The Company determines if an arrangement is a lease at inception. Right-of-use (ROU) assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. For the purpose of calculating such present values, lease payments include components that vary based upon an index or rate, using the prevailing index or rate at the commencement date, and exclude components that vary based upon other factors. As most of its leases do not contain a readily determinable implicit rate, the Company uses its incremental borrowing rate at commencement to determine the present value of lease payments. The Company does not separate lease components (i.e., fixed payments including rent, real estate taxes and insurance costs) from non-lease components (i.e., common-area maintenance) and recognizes them as a single lease component for the majority of asset classes. Variable lease payments not included within lease contracts are expensed as incurred. The Company's leases may include options to extend or terminate the lease, and such options are reflected in the term when their exercise is reasonably certain. Lease expense is recognized on a straight-line basis over the lease term. Equity Investments The Company applies the equity method to investments when it has the ability to exercise significant influence over the operating and financial policies of the joint venture. Investments accounted for under the equity method are initially recorded at cost and any difference between the cost of the Company’s investment and the underlying equity in the net assets of the joint venture at the investment date is amortized over the lives of the related assets that gave rise to the difference. The Company’s pro-rata share of the operating results of joint ventures and basis difference amortization is reported in the consolidated statements of operations in “Loss (income) from equity affiliates.” Similarly, the Company’s pro-rata share of the cumulative foreign currency translation adjustment of its equity method investments whose functional currency is not the U.S. dollar is reported in the consolidated balance sheets as a component of “Accumulated other comprehensive income,” with periodic changes thereto reflected in the consolidated statements of comprehensive income. With respect to cash flows attributable to its equity investments, the Company applies the cumulative earnings approach, in which distributions received are considered returns on investment and are classified as cash inflows from operating activities unless the Company’s cumulative distributions received less distributions received in prior periods that were determined to be returns of investment exceed the cumulative equity in earnings recognized by the Company (as adjusted for amortization of basis differences). When such an excess occurs, current-period distributions up to this excess are considered returns of investment and are classified as cash inflows from investing activities. The Company monitors its equity method investments for circumstances that indicate that the carrying value of the investment may not be recoverable and are determined to be other than temporary. Examples of such indicators include a sustained history of operating losses and adverse changes in earnings and cash flow outlook. In the absence of quoted market prices for an investment, discounted cash flow projections are used to assess fair value, the underlying assumptions to which are generally considered unobservable Level 3 inputs under the fair value hierarchy. If the fair value of an investment is determined to be below its carrying value and that loss in fair value is deemed other than temporary, an impairment loss is recognized. No such impairment losses were recorded in any period presented. Asset Retirement Obligations The Company’s asset retirement obligation (ARO) liabilities primarily consist of spending estimates for surface land reclamation and support facilities at both surface and underground mines in accordance with applicable reclamation laws and regulations in the U.S. and Australia as defined by each mining permit. Asset retirement obligations are determined for each mine using various estimates and assumptions including, among other items, estimates of disturbed acreage as determined from engineering data, estimates of future costs to reclaim the disturbed acreage and the timing of these cash flows, escalated for inflation and then discounted using a credit-adjusted, risk-free rate. Peabody Energy Corporation 2025 Form 10-K F-13 Table of Contents PEABODY ENERGY CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) The Company estimates its ARO liabilities for final reclamation and mine closure based upon detailed engineering calculations of the amount and timing of the future cash spending for a third-party to perform the required work. Spending estimates are escalated for inflation and then discounted at the credit-adjusted, risk-free rate. The Company records an ARO asset associated with the discounted liability for final reclamation and mine closure. The obligation and corresponding asset are recognized in the period in which the liability is incurred. The ARO asset is amortized on the units-of-production method over its expected life and the ARO liability is accreted to the projected spending date. As changes in estimates occur (such as mine plan revisions, changes in estimated costs or changes in timing of the performance of reclamation activities), the revisions to the obligation and asset are recognized at the appropriate credit-adjusted, risk-free rate. Contingencies From time to time, the Company is subject to legal and environmental matters related to its continuing and discontinued operations and certain historical, non-coal producing operations. In connection with such matters, the Company is required to assess the likelihood of any adverse judgments or outcomes, as well as potential ranges of probable losses. A determination of the amount of reserves required for these matters is made after considerable analysis of each individual issue. The Company accrues for legal and environmental matters when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. If a range of possible loss exists and no anticipated loss within the range is more likely than any other anticipated loss, the Company records the accrual at the low end of the range, in accordance with Accounting Standards Codification 450, “Contingencies.” The Company provides disclosure surrounding loss contingencies when it believes that it is at least reasonably possible that a material loss may be incurred or an exposure to loss in excess of amounts already accrued may exist. Adjustments to contingent liabilities are made when additional information becomes available that affects the amount of estimated loss, which information may include changes in facts and circumstances, changes in interpretations of law in the relevant courts, the results of new or updated environmental remediation cost studies and the ongoing consideration of trends in environmental remediation costs. Accrued contingent liabilities exclude claims against third parties and are not discounted. The current portion of these accruals is included in “Accounts payable and accrued expenses” and the long-term portion is included in “Other noncurrent liabilities” in the consolidated balance sheets. In general, legal fees related to environmental remediation and litigation are charged to expense. The Company includes the interest component of any litigation-related penalties within “Interest expense, net of capitalized interest” in the consolidated statements of operations. The Company applies a loss recovery approach for contingent gains related to contingent consideration. Any consideration is recognized when the contingency is resolved and the consideration is realizable and collection is probable. Costs Related to Terminated 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 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). Concurrently with its entry into the Purchase Agreements, 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. 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. Concurrent with the termination of the acquisition, Peabody terminated the agreement for the related sale of the Dawson Assets to BUMA and the Bridge Facility. Peabody Energy Corporation 2025 Form 10-K F-14 Table of Contents PEABODY ENERGY CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Costs related to the terminated acquisition include typical costs, such as legal and professional fees, as well as duration and commitment fees on the Bridge Facility. During the year ended December 31, 2025, Peabody paid duration and commitment fees of $ 20.8 million and $ 25.9 million, respectively. Refer to Note 9. “Long-term Debt” and Note 20. “Commitments and Contingencies” for further information regarding the terminated acquisition. Income Taxes The Company recognizes deferred tax assets and liabilities for the temporary difference between the consolidated financial carrying amounts of existing assets and liabilities and their respective tax bases and consideration of operating loss and tax credit carryforwards. Deferred income taxes are measured using enacted rates in effect for the year in which temporary differences are expected to be recovered or settled. The impact on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. Valuation allowances are provided to reduce deferred tax assets to the amount that will be more likely than not realized. The Company makes judgments and estimates regarding the amount and timing of the reversal of taxable temporary differences, the impact of tax planning strategies and expected future taxable income. The Company recognizes the tax on global intangible low-taxed income (GILTI) as a period expense. The Company recognizes the tax benefit from uncertain tax positions when it is “more likely than not” the tax position will be sustained upon examination by the taxing authorities based on the technical merits of the position. To the extent that the Company’s assessment of such tax positions changes, the change in estimate will be recorded in the period in which the determination is made. Tax-related interest and penalties are classified as a component of income tax expense. Postretirement Health Care and Life Insurance Benefits The Company accounts for postretirement benefits other than pensions by accruing the costs of benefits to be provided over the employees’ period of active service. These costs are determined on an actuarial basis. The Company’s consolidated balance sheets reflect the accumulated postretirement benefit obligations of its postretirement benefit plans. The Company accounts for changes in its postretirement benefit obligations as a settlement when an irrevocable action has been effected that relieves the Company of its actuarially-determined liability to individual plan participants and removes substantial risk surrounding the nature, amount and timing of the obligation’s funding and the assets used to effect the settlement. The Company records amounts attributable to actuarial valuation changes currently in earnings rather than recording such amounts within accumulated other comprehensive income and amortizing to expense over applicable time periods. See Note 12. “Postretirement Health Care and Life Insurance Benefits” for information related to postretirement benefits. Pension Plan The Company sponsors a non-contributory defined benefit pension plan accounted for by accruing the cost to provide the benefits over the employees’ period of active service. These costs are determined on an actuarial basis. The Company’s consolidated balance sheets reflect the funded status of the defined benefit pension plan. The Company records amounts attributable to actuarial valuation changes currently in earnings rather than recording such amounts within accumulated other comprehensive income and amortizing to expense over applicable time periods. See Note 13. “Pension and Savings Plans” for information related to pension plans. Restructuring Activities From time to time, the Company initiates restructuring activities in connection with its repositioning efforts to appropriately align its cost structure or optimize its coal production relative to prevailing market conditions. Costs associated with restructuring actions can include the impact of early mine closures, voluntary and involuntary workforce reductions, office closures and other related activities. Costs associated with restructuring activities are recognized in the period incurred. Included as a component of “Restructuring charges” in the Company’s consolidated statements of operations for the years ended December 31, 2025, 2024 and 2023 were aggregate restructuring charges of $ 9.5 million, $ 4.4 million and $ 3.3 million, respectively, primarily associated with voluntary and involuntary workforce reductions. As of December 31, 2025, a $ 1.1 million accrual for restructuring charges remained in “Accounts payable and accrued expenses,” which is expected to be paid during 2026. Peabody Energy Corporation 2025 Form 10-K F-15 Table of Contents PEABODY ENERGY CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Derivatives The Company recognizes at fair value all contracts meeting the definition of a derivative as assets or liabilities in the consolidated balance sheets, with the exception of certain sales contracts for which the Company has elected to apply a normal purchases and normal sales exception. With respect to derivatives used in hedging activities, the Company assesses at hedge inception whether such derivatives are highly effective at offsetting the changes in the anticipated exposure of the hedged item. The change in the fair value of derivatives designated as a cash flow hedge is recorded in “Accumulated other comprehensive income” in the consolidated balance sheets until the hedged transaction impacts reported earnings, at which time any gain or loss is reclassified to earnings. If the hedge ceases to qualify for hedge accounting, the Company prospectively recognizes changes in the fair value of the instrument in earnings in the period of the change. Gains or losses from derivative financial instruments designated as fair value hedges are recognized immediately in earnings, along with the offsetting gain or loss related to the underlying hedged item. The Company’s asset and liability derivative positions are offset on a counterparty-by-counterparty basis if the contractual agreement provides for the net settlement of contracts with the counterparty in the event of default or termination of any one contract. Non-derivative contracts and derivative contracts for which the Company has elected to apply the normal purchases and normal sales exception are accounted for on an accrual basis. Business Combinations The Company accounts for business combinations using the acquisition method of accounting. The acquisition method requires the Company to determine the fair value of all acquired assets, including identifiable intangible assets and all assumed liabilities. The total cost of acquisitions is allocated to the underlying identifiable net assets, based on their respective estimated fair values. Determining the fair value of assets acquired and liabilities assumed requires management’s judgment and the utilization of independent valuation experts, and often involves the use of significant estimates and assumptions, including assumptions with respect to future cash inflows and outflows, discount rates and asset lives, among other items. Asset Acquisitions The Company recognizes the obligation for contingent consideration in asset acquisitions as an adjustment to the cost basis of the assets acquired if and when the contingency is resolved and the consideration is paid or becomes payable. Impairment of Long-Lived Assets The Company evaluates its long-lived assets held and used in operations for impairment as events and changes in circumstances indicate that the carrying amount of such assets might not be recoverable. Factors that would indicate potential impairment to be present include, but are not limited to, a sustained history of operating or cash flow losses, an unfavorable change in earnings and cash flow outlook, prolonged adverse industry or economic trends and a significant adverse change in the extent or manner in which a long-lived asset is being used or in its physical condition. The Company generally does not view short-term declines in thermal and metallurgical coal prices as an indicator of impairment for conducting impairment tests because of historic price volatility. However, the Company generally views a sustained trend of depressed coal pricing (for example, over periods exceeding one year) as a potential indicator of impairment. Because of the volatile and cyclical nature of coal prices and demand, it is reasonably possible that coal prices may decrease and/or fail to improve in the near term, which, absent sufficient mitigation such as an offsetting reduction in the Company’s operating costs, may result in the need for future adjustments to the carrying value of its long-lived mining assets and mining-related investments. Assets are grouped at the lowest level for which there are identifiable cash flows that are largely independent of the cash flows of other groups of assets. For its active mining operations, the Company generally groups such assets at the mine level, or the mining complex level for mines that share infrastructure. For its development and exploration properties and portfolio of surface land and coal reserve and resource holdings, the Company considers several factors to determine whether to evaluate those assets individually or on a grouped basis for purposes of impairment testing. Such factors include geographic proximity to one another, the expectation of shared infrastructure upon development based on future mining plans and whether it would be most advantageous to bundle such assets in the event of sale to a third-party. Peabody Energy Corporation 2025 Form 10-K F-16 Table of Contents PEABODY ENERGY CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) When indicators of impairment are present, the Company evaluates its long-lived assets for recoverability by comparing the estimated undiscounted cash flows expected to be generated by those assets under various assumptions to their carrying amounts. If such undiscounted cash flows indicate that the carrying value of the asset group is not recoverable, impairment losses are measured by comparing the estimated fair value of the asset group to its carrying amount. As quoted market prices are unavailable for the Company’s individual mining operations, fair value is determined through the use of an expected present value technique based on the income approach, except for non-strategic coal reserves, coal resources, surface lands and undeveloped coal properties excluded from the Company’s long-range mine planning. In those cases, a market approach is utilized based on the most comparable market multiples available. The estimated future cash flows and underlying assumptions used to assess recoverability and, if necessary, measure the fair value of the Company’s long-lived mining assets are derived from those developed in connection with the Company’s planning and budgeting process. The Company believes its assumptions to be consistent with those a market participant would use for valuation purposes. The most critical assumptions underlying the Company’s projections and fair value estimates include those surrounding future tons sold, coal prices for unpriced coal, production costs (including costs for labor, commodity supplies and contractors), transportation costs, foreign currency exchange rates and a risk-adjusted, cost of capital (all of which generally constitute unobservable Level 3 inputs under the fair value hierarchy), in addition to market multiples for non-strategic coal reserves, coal resources, surface lands and undeveloped coal properties excluded from the Company’s long-range mine planning (which generally constitute Level 2 inputs under the fair value hierarchy). There were no impairment charges related to long-lived assets during the years ended December 31, 2025, 2024 or 2023. Fair Value For assets and liabilities that are recognized or disclosed at fair value in the consolidated financial statements, the Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Foreign Currency Functional currency is determined by the primary economic environment in which an entity operates, which for the Company’s foreign operations is generally the U.S. dollar because sales prices in international coal markets and the Company’s sources of financing for those operations are denominated in that currency. Accordingly, substantially all of the Company’s consolidated foreign subsidiaries utilize the U.S. dollar as their functional currency. Monetary assets and liabilities are remeasured at year-end exchange rates while non-monetary items are remeasured at historical rates. Income and expense accounts are remeasured at the average rates in effect during the year, except for those expenses related to balance sheet amounts that are remeasured at historical exchange rates. Gains and losses from foreign currency remeasurement related to tax balances are included as a component of “Income tax provision,” while all other remeasurement gains and losses are included in “Operating costs and expenses” in the consolidated statements of operations. The total impact of foreign currency remeasurement on the consolidated statements of operations was a net gain of $ 22.4 million for the year ended December 31, 2025, net loss of $ 32.3 million for the year ended December 31, 2024 and a net gain of $ 5.3 million for the year ended December 31, 2023. The Company owns a 50 % equity interest in Middlemount Coal Pty Ltd. (Middlemount), which owns the Middlemount Mine in Queensland, Australia. Middlemount utilizes the Australian dollar as its functional currency. Accordingly, the assets and liabilities of that equity investee are translated to U.S. dollars at the year-end exchange rate and income and expense accounts are translated at the average rate in effect during the year. The Company’s pro-rata share of the translation gains and losses of the equity investee are recorded as a component of “Accumulated other comprehensive income” in the consolidated balance sheets. Australian dollar denominated stockholder loans to the Middlemount Mine, which are long term in nature, are considered part of the Company’s net investment in that operation. Accordingly, foreign currency gains or losses on those loans are recorded as a component of foreign currency translation adjustment. The Company recorded a net gain from foreign currency translation of $ 3.1 million for the year ended December 31, 2025, a net loss of $ 4.3 million for year ended December 31, 2024 and a net gain of $ 0.9 million for the year ended December 31, 2023. Share-Based Compensation The Company accounts for share-based compensation at the grant date fair value of awards and recognizes the related expense over the service period of the awards. See Note 15. “Share-Based Compensation” for information related to share-based compensation. Peabody Energy Corporation 2025 Form 10-K F-17 Table of Contents PEABODY ENERGY CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Exploration and Drilling Costs Exploration expenditures are charged to operating costs as incurred, including costs related to drilling and study costs incurred to convert or upgrade mineral resources to reserves. Advance Stripping Costs Pre-production. At existing surface operations, additional pits may be added to increase production capacity in order to meet customer requirements. These expansions may require significant capital to purchase additional equipment, expand the workforce, build or improve existing haul roads and create the initial pre-production box cut to remove overburden (that is, advance stripping costs) for new pits at existing operations. If these pits operate in a separate and distinct area of the mine, the costs associated with initially uncovering coal (that is, advance stripping costs incurred for the initial box cuts) for production are capitalized and amortized over the life of the developed pit consistent with coal industry practices. Post-production. Advance stripping costs related to post-production are expensed as incurred. Where new pits are routinely developed as part of a contiguous mining sequence, the Company expenses such costs as incurred. The development of a contiguous pit typically reflects the planned progression of an existing pit, thus maintaining production levels from the same mining area utilizing the same employee group and equipment. Use of Estimates in the Preparation of the Consolidated Financial Statements These consolidated financial statements have been prepared in conformity with U.S. GAAP. In doing so, estimates and assumptions are made that affect the amounts reported in the consolidated financial statements and accompanying notes. These estimates are based on historical experience and on various other assumptions deemed reasonable under the circumstances, the results of which form the basis for making judgments about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The Company’s actual results may differ materially from these estimates. Significant estimates inherent in the preparation of these consolidated financial statements include, but are not limited to, postretirement benefit plans, asset retirement obligations, evaluation of long-lived assets for impairment, income taxes including the realization of deferred tax assets and contingencies. (2) Revenue Recognition 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. Year Ended December 31, 2025 Seaborne Thermal Seaborne Metallurgical Powder River Basin Other U.S. Thermal Corporate and Other (1) Consolidated (Dollars in millions) Thermal coal Domestic $ 136.0 $ — $ 1,153.0 $ 707.5 $ — $ 1,996.5 Export 771.8 — — — — 771.8 Total thermal 907.8 — 1,153.0 707.5 — 2,768.3 Metallurgical coal Export — 1,034.8 — — — 1,034.8 Total metallurgical — 1,034.8 — — — 1,034.8 Other 0.7 1.8 — ( 0.2 ) 56.1 58.4 Revenue $ 908.5 $ 1,036.6 $ 1,153.0 $ 707.3 $ 56.1 $ 3,861.5 Peabody Energy Corporation 2025 Form 10-K F-18 Table of Contents PEABODY ENERGY CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Year Ended December 31, 2024 Seaborne Thermal Seaborne Metallurgical Powder River Basin Other U.S. Thermal Corporate and Other (1) Consolidated (Dollars in millions) Thermal coal Domestic $ 150.8 $ — $ 1,096.4 $ 785.0 $ — $ 2,032.2 Export 1,060.6 — — — — 1,060.6 Total thermal 1,211.4 — 1,096.4 785.0 — 3,092.8 Metallurgical coal Export — 1,049.5 — — — 1,049.5 Total metallurgical — 1,049.5 — — — 1,049.5 Other 2.5 6.1 2.4 37.6 45.8 94.4 Revenue $ 1,213.9 $ 1,055.6 $ 1,098.8 $ 822.6 $ 45.8 $ 4,236.7 Year Ended December 31, 2023 Seaborne Thermal Seaborne Metallurgical Powder River Basin Other U.S. Thermal Corporate and Other (1) Consolidated (Dollars in millions) Thermal coal Domestic $ 136.4 $ — $ 1,193.9 $ 867.7 $ — $ 2,198.0 Export 1,192.5 — — — — 1,192.5 Total thermal 1,328.9 — 1,193.9 867.7 — 3,390.5 Metallurgical coal Export — 1,299.6 — — — 1,299.6 Total metallurgical — 1,299.6 — — — 1,299.6 Other 0.8 2.3 4.2 20.5 228.8 256.6 Revenue $ 1,329.7 $ 1,301.9 $ 1,198.1 $ 888.2 $ 228.8 $ 4,946.7 (1) Corporate and Other includes the following: Year Ended December 31, 2025 2024 2023 (Dollars in millions) Unrealized gains on derivative contracts related to forecasted sales $ — $ — $ 159.0 Realized losses on derivative contracts related to forecasted sales — — ( 80.9 ) Revenue from physical sale of coal (2) 35.4 27.8 109.4 Other 20.7 18.0 41.3 Total Corporate and Other $ 56.1 $ 45.8 $ 228.8 (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, including as part of settling certain derivative contracts. Primarily represents the difference between the price contracted with the customer and the price allocated to the reportable segment. Committed Revenue from Contracts with Customers The Company expects to recognize revenue subsequent to December 31, 2025 of approximately $ 5.0 billion related to contracts with customers in which volumes and prices per ton were fixed or reasonably estimable at December 31, 2025. Approximately 33 % of such amount is expected to be recognized over the next twelve months and the remainder thereafter. Actual revenue related to such contracts may differ materially for various reasons, including price adjustment features for coal quality and cost escalations, volume optionality provisions and potential force majeure events. This estimate of future revenue does not include any revenue related to contracts with variable prices per ton that cannot be reasonably estimated, such as the majority of seaborne metallurgical and seaborne thermal coal contracts where pricing is negotiated or settled quarterly or annually. Peabody Energy Corporation 2025 Form 10-K F-19 Table of Contents PEABODY ENERGY CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Accounts Receivable “Accounts receivable, net” at December 31, 2025 and 2024 consisted of the following: December 31, 2025 2024 (Dollars in millions) Trade receivables, net $ 267.0 $ 294.9 Miscellaneous receivables, net 47.9 64.4 Accounts receivable, net $ 314.9 $ 359.3 None of the above receivables included allowances for credit losses at December 31, 2025 or 2024. No charges for credit losses were recognized during the years ended December 31, 2025, 2024 or 2023. (3) Inventories “Inventories, net” as of December 31, 2025 and 2024 consisted of the following: December 31, 2025 2024 (Dollars in millions) Materials and supplies, net $ 161.6 $ 157.5 Raw coal 95.6 109.6 Saleable coal 126.0 126.3 Inventories, net $ 383.2 $ 393.4 Materials and supplies inventories, net presented above have been shown net of reserves of $ 5.1 million and $ 3.5 million as of December 31, 2025 and 2024, respectively. (4) Equity Method Investments The Company’s equity method investments include its interests in 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 consolidated balance sheets, and the related “Loss (income) from equity affiliates”: Book Value at Loss (Income) from Equity Affiliates December 31, Year Ended December 31, 2025 2024 2025 2024 2023 (Dollars in millions) Equity method investment related to Middlemount $ 47.5 $ 52.7 $ 8.3 $ ( 14.9 ) $ ( 14.8 ) Equity method investment related to R3 — — — 3.3 7.9 Equity method investment related to R3 II — 5.8 6.1 0.1 — Total equity method investments $ 47.5 $ 58.5 $ 14.4 $ ( 11.5 ) $ ( 6.9 ) Middlemount The Company received no cash payments from Middlemount during the years ended December 31, 2025, 2024 and 2023. 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 $ 11.3 million and $ 8.0 million to R3 during the years ended December 31, 2024 and 2023, respectively. Peabody Energy Corporation 2025 Form 10-K F-20 Table of Contents PEABODY ENERGY CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) In November 2024, R3 sold seven projects to an unrelated party and contributed the 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. R3 also distributed $ 11.4 million of the proceeds to Peabody. As Peabody is the only remaining equity holder of R3, the Company consolidated R3. (5) 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. Foreign Currency The Company utilizes options and collars to hedge currency risk associated with anticipated Australian dollar operating expenditures. As of December 31, 2025, the Company held average rate options with an aggregate notional amount of $ 550.0 million Australian dollars to hedge currency risk associated with anticipated Australian dollar operating expenditures over the nine-month period ending September 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 $ 0.70 to $ 0.72 over the nine-month period ending September 30, 2026. As of December 31, 2025, the Company also held purchased collars with an aggregate notional amount of $ 554.0 million Australian dollars related to anticipated Australian dollar operating expenditures during the nine-month period ending September 30, 2026. The purchased collars have a floor ranging from $ 0.60 to $ 0.61 and a ceiling ranging from $ 0.69 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. Derivative Contracts Related to Forecasted Sales As of December 31, 2025, the Company had no coal derivative contracts related to its forecasted sales. Historically, such financial contracts have included futures and forwards. During the years ended December 31, 2025 and 2024, the Company did not have any open positions. During the year ended December 31, 2023, the Company recorded a net unrealized mark-to-market gain of $ 159.0 million on financial coal derivative contracts and no unrealized mark-to-market gains or losses on physical forward sales contracts. Financial Trading Contracts On a limited basis, the Company may enter coal or freight derivative contracts for trading purposes. Such financial contracts may include futures, forwards and options. The Company held no financial trading contracts as of December 31, 2025. 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 consolidated balance sheets. As of December 31, 2025, the Company had an asset derivative comprised of foreign currency option contracts with a fair value of $ 2.7 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 consolidated balance sheets. Peabody Energy Corporation 2025 Form 10-K F-21 Table of Contents PEABODY ENERGY CORPORATION NOTES TO 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 consolidated statements of operations. Year Ended December 31, 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 $ 3.3 $ ( 2.7 ) $ 6.0 Total $ 3.3 $ ( 2.7 ) $ 6.0 Year Ended December 31, 2024 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 $ ( 12.7 ) $ ( 3.7 ) $ ( 9.0 ) Total $ ( 12.7 ) $ ( 3.7 ) $ ( 9.0 ) Year Ended December 31, 2023 Total (loss) gain recognized in income (Loss) gain realized in income on derivatives Unrealized gain (loss) recognized in income on derivatives Derivative Instrument Classification (Dollars in millions) Foreign currency option contracts Operating costs and expenses $ ( 1.9 ) $ ( 9.3 ) $ 7.4 Derivative contracts related to forecasted sales Revenue 78.1 ( 80.9 ) 159.0 Financial trading contracts Revenue — 11.5 ( 11.5 ) Total $ 76.2 $ ( 78.7 ) $ 154.9 The Company classifies derivative-related activity within the “Cash Flows From Operating Activities” section of the 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. Peabody Energy Corporation 2025 Form 10-K F-22 Table of Contents PEABODY ENERGY CORPORATION NOTES TO 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. December 31, 2025 Level 1 Level 2 Level 3 Total (Dollars in millions) Foreign currency option contracts $ — $ 2.7 $ — $ 2.7 Total net assets $ — $ 2.7 $ — $ 2.7 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. • Derivative contracts related to forecasted sales and financial trading contracts are generally valued based on unadjusted quoted prices in active markets (Level 1) or a valuation that is corroborated by the use of market-based pricing (Level 2) except when credit and non-performance risk is considered to be a significant input (greater than 10 % of fair value), then the Company classifies 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 December 31, 2025 and 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. December 31, 2025 2024 (Dollars in millions) Total debt at par value $ 340.8 $ 354.4 Less: Unamortized debt issuance costs ( 4.4 ) ( 6.3 ) Net carrying amount $ 336.4 $ 348.1 Estimated fair value $ 557.8 $ 438.0 The Company had no transfers between Levels 1, 2 and 3 during the years ended December 31, 2025, 2024 and 2023. The Company’s policy is to value all transfers between levels using the beginning of period valuation. During the year ended December 31, 2023, the Company recognized impairment charges of $ 2.0 million related to the fair value of an investment in equity securities included in “Other operating loss” in the accompanying consolidated statements of operations. Peabody Energy Corporation 2025 Form 10-K F-23 Table of Contents PEABODY ENERGY CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) (6) Property, Plant, Equipment and Mine Development Property, plant, equipment and mine development, net, as of December 31, 2025 and 2024 consisted of the following: December 31, 2025 2024 (Dollars in millions) Land and coal interests $ 2,691.2 $ 2,648.5 Buildings and improvements 758.8 726.7 Machinery and equipment 2,377.1 2,078.8 Less: Accumulated depreciation, depletion and amortization ( 2,673.8 ) ( 2,372.5 ) Property, plant, equipment and mine development, net $ 3,153.3 $ 3,081.5 Land and coal interests included coal reserves and resources with a net book value of $ 1.1 billion as of both December 31, 2025 and 2024. Such coal reserves and resources were comprised of mineral rights for leased coal interests and advance royalties that had a net book value of $ 0.6 billion as of both December 31, 2025 and 2024 and coal reserves and resources held by fee ownership of $ 0.5 billion as of both December 31, 2025 and 2024. The amount of coal reserves and resources unassigned to active mining operations, and thus not subject to current depletion, including certain exploratory properties, of $ 0.1 billion as of both at December 31, 2025 and 2024. The Company identified certain assets with an aggregate carrying value of approximately $ 64 million at December 31, 2025 in its Other U.S. Thermal reportable segment whose recoverability is most sensitive to customer concentration risk. (7) Income Taxes (Loss) income from continuing operations before income taxes and income tax provision for the periods presented below consisted of the following: Year Ended December 31, 2025 2024 2023 (Dollars in millions) U.S. $ ( 62.7 ) $ 180.2 $ 77.8 Non-U.S. 29.2 335.9 1,047.0 (Loss) income from continuing operations before income taxes $ ( 33.5 ) $ 516.1 $ 1,124.8 Year Ended December 31, 2025 2024 2023 (Dollars in millions) Current: U.S. federal $ ( 0.1 ) $ ( 0.1 ) $ ( 0.1 ) Non-U.S. 25.6 96.7 225.9 State — — 0.1 Total current 25.5 96.6 225.9 Deferred: Non-U.S. ( 16.7 ) 12.2 82.9 Total deferred ( 16.7 ) 12.2 82.9 Income tax provision $ 8.8 $ 108.8 $ 308.8 Peabody Energy Corporation 2025 Form 10-K F-24 Table of Contents PEABODY ENERGY CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) The following is a reconciliation of the expected income tax provision at the U.S. federal statutory rate to the Company’s income tax provision for the periods presented below: Year Ended December 31, 2025 2024 2023 Amount % Amount % Amount % (Dollars in millions) U.S. federal statutory rate $ ( 7.0 ) 21.0 % $ 108.4 21.0 % $ 236.2 21.0 % Foreign tax effects: Australia Statutory tax rate difference between Australia and U.S. 2.2 ( 6.6 ) % 30.2 5.9 % 94.4 8.4 % Permanent difference - remeasurement ( 6.8 ) 20.3 % 21.6 4.2 % 2.6 0.2 % Remeasurement of foreign tax accounts 2.5 ( 7.5 ) % ( 5.7 ) ( 1.1 ) % ( 0.9 ) ( 0.1 ) % Other 4.8 ( 14.3 ) % ( 0.3 ) ( 0.1 ) % ( 7.8 ) ( 0.7 ) % United Kingdom Deferred tax asset write-off due to liquidation 15.0 ( 44.8 ) % — — % — — % Change in valuation allowance ( 15.0 ) 44.8 % — — % — — % Other ( 0.8 ) 2.4 % — — % 0.4 — % Changes in valuation allowance 18.9 ( 56.4 ) % ( 29.6 ) ( 5.7 ) % 5.0 0.4 % Worldwide change in prior year unrecognized tax benefits ( 1.1 ) 3.3 % ( 6.9 ) ( 1.3 ) % ( 1.5 ) ( 0.1 ) % Nondeductible and nontaxable items 3.5 ( 10.4 ) % 2.0 0.4 % 3.0 0.3 % Other adjustments Excess U.S. depletion ( 9.1 ) 27.2 % ( 8.8 ) ( 1.7 ) % ( 14.0 ) ( 1.2 ) % Other, net 1.7 ( 5.3 ) % ( 2.1 ) ( 0.4 ) % ( 8.6 ) ( 0.7 ) % Total income tax provision $ 8.8 ( 26.3 ) % $ 108.8 21.2 % $ 308.8 27.5 % The Organisation for Economic Co-operation and Development (OECD)/G20 Inclusive Framework on Base Erosion and Profit Shifting published the Pillar Two model rules designed to address the tax challenges arising from the digitalization of the global economy. Pillar Two legislation has been enacted or substantially enacted in certain jurisdictions in which the Company operates, effective for the financial year beginning January 1, 2024. Based on an assessment performed, the Pillar Two effective tax rates in all jurisdictions in which the Company operates are above 15 % and the Company is not currently aware of any circumstances under which this might change. Therefore, the Company did not incur any Pillar Two top-up taxes for the years ended December 31, 2025 and 2024. On July 4, 2025, the OBBBA was signed into law and the tax provisions that were effective for 2025 had no effect on the income tax provision for the year ended December 31, 2025. Peabody Energy Corporation 2025 Form 10-K F-25 Table of Contents PEABODY ENERGY CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and liabilities as of December 31, 2025 and 2024 consisted of the following: December 31, 2025 2024 (Dollars in millions) Deferred tax assets: Tax loss carryforwards and credits $ 808.2 $ 732.5 Property, plant, equipment and mine development, principally due to differences in depreciation, depletion and asset impairments 539.0 523.2 Accrued postretirement benefit obligations 29.3 33.7 Asset retirement obligations 108.8 102.4 Employee benefits 19.3 19.7 Take-or-pay obligations 5.9 5.5 Investments and other assets 28.6 32.6 Workers’ compensation obligations 9.3 8.4 Operating lease liabilities 29.5 29.0 Other 38.6 33.0 Total gross deferred tax assets 1,616.5 1,520.0 Valuation allowance ( 1,469.2 ) ( 1,420.9 ) Total net deferred tax assets 147.3 99.1 Deferred tax liabilities: Property, plant, equipment and mine development, principally due to differences in depreciation, depletion and asset impairments 123.7 95.5 Operating lease right-of-use assets 28.9 29.1 Investments and other assets 18.8 15.4 Total deferred tax liabilities 171.4 140.0 Net deferred tax liability $ ( 24.1 ) $ ( 40.9 ) Deferred taxes are classified as follows on the Consolidated Balance Sheets: Noncurrent deferred income tax asset $ 2.2 $ — Noncurrent deferred income tax liability $ ( 26.3 ) $ ( 40.9 ) As of December 31, 2025, the Company had gross U.S. federal net operating losses (NOLs) of $ 2.0 billion. The Company’s tax loss carryforwards and credits of $ 808.2 million as of December 31, 2025 were comprised primarily of net federal NOLs of $ 406.1 million, tax general business credits (GBCs) of $ 139.1 million, net Australia NOLs and capital tax loss carryforwards of $ 165.8 million, state NOLs of $ 93.4 million and other foreign NOLs of $ 2.8 million. The foreign tax loss carryforwards have no expiration date. The federal NOLs begin to expire in 2037, the state NOLs begin to expire in 2028 and the GBCs begin to expire in 2027. In assessing the near-term use of NOLs and tax credits and corresponding valuation allowance adjustments, the Company evaluates the expected level of reversals of existing taxable temporary differences, available tax planning strategies and future taxable income. The Company maintained valuation allowances of $ 1.5 billion against the U.S. net deferred tax asset position of $ 1.0 billion and against certain foreign deferred tax assets, primarily in Australia, of $ 0.5 billion. The valuation allowance against the U.S. and certain foreign deferred tax assets continues to be recorded due to unlikely realization. Peabody Energy Corporation 2025 Form 10-K F-26 Table of Contents PEABODY ENERGY CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Unrecognized Tax Benefits The amount of the Company’s gross unrecognized tax benefits has not changed since December 31, 2024. The amount of the net unrecognized tax benefits that, if recognized, would directly affect the effective tax rate was $ 9.2 million at both December 31, 2025 and 2024. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits for the periods presented below is as follows: Year Ended December 31, 2025 2024 2023 (Dollars in millions) Balance at beginning of period $ 9.2 $ 8.7 $ 9.5 Additions for current year tax positions 1.1 1.4 0.9 (Reductions) additions for prior year tax positions ( 1.1 ) 0.4 ( 1.7 ) Reductions for expirations of statutes limitations — ( 1.3 ) — Balance at end of period $ 9.2 $ 9.2 $ 8.7 The Company recognizes interest and penalties related to unrecognized tax benefits in its income tax provision. The Company’s gross interest and penalties decreased by $ 6.2 million during the year ended December 31, 2024 due to expiration of statutes. The Company had no accrued gross interest and penalties related to unrecognized tax benefits at December 31, 2025 and 2024. The Company recorded $ 0.2 million of gross interest and penalties during the year ended December 31, 2023 and had $ 6.1 million of accrued gross interest and penalties related to unrecognized tax benefits at December 31, 2023. Tax Returns Subject to Examination The Company’s federal income tax returns for the tax years 2017, 2020 and 2022 through 2024 are subject to potential examinations by the Internal Revenue Service. The Company’s state income tax returns for the tax years 2016 and thereafter remain potentially subject to examination by various state taxing authorities due to NOL carryforwards. Australian income tax returns for tax years 2021 through 2024 are subject to potential examinations by the Australian Taxation Office. Foreign Earnings As of December 31, 2025, the Company has unremitted earnings relating to certain wholly owned subsidiaries that are not permanently reinvested, but there are no residual cash taxes on the unremitted earnings. The Company has an earnings deficit for remaining investments outside the U.S. and continues to be permanently reinvested with respect to its historical earnings. However, when appropriate, the Company has the ability to access foreign cash without incurring residual cash taxes due to the existence of NOLs. Tax Payments and Refunds The following table summarizes the Company’s income tax payments, net for the periods presented below: Year Ended December 31, 2025 2024 2023 (Dollars in millions) U.S. — federal $ ( 0.1 ) $ ( 0.1 ) $ ( 0.2 ) U.S. — state and local — — 0.1 Australia 26.1 222.6 130.7 Total income tax payments, net $ 26.0 $ 222.5 $ 130.6 Peabody Energy Corporation 2025 Form 10-K F-27 Table of Contents PEABODY ENERGY CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) (8) Accounts Payable and Accrued Expenses and Other Noncurrent Liabilities Accounts payable and accrued expenses consisted of the following: December 31, 2025 2024 (Dollars in millions) Trade accounts payable $ 205.0 $ 228.4 Accrued payroll and related benefits 187.6 176.8 Other accrued expenses 143.6 130.1 Asset retirement obligations 62.1 55.9 Accrued production and sales taxes 53.4 56.7 Accrued royalties 50.8 50.7 Operating lease liabilities 36.0 32.4 Accrued insurance 27.2 29.8 Safeguard liability 20.2 10.2 Accrued litigation reserve 19.2 10.0 Workers’ compensation obligations 12.0 11.3 Accrued interest 4.4 4.7 Liabilities associated with discontinued operations 3.5 4.0 Income taxes payable 2.0 10.7 Accounts payable and accrued expenses $ 827.0 $ 811.7 Other noncurrent liabilities consisted of the following: December 31, 2025 2024 (Dollars in millions) Accrued production and sales taxes $ 42.8 $ 47.9 Workers’ compensation obligations 29.5 26.6 Accrued payroll and related benefits 21.1 35.7 Take-or-pay contracts 17.6 16.4 Safeguard liability 9.9 5.0 Other accrued expenses 9.8 16.2 Pension obligations 8.0 12.8 Liabilities associated with discontinued operations 7.1 8.7 Other noncurrent liabilities $ 145.8 $ 169.3 Peabody Energy Corporation 2025 Form 10-K F-28 Table of Contents PEABODY ENERGY CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) (9) Long-term Debt The Company’s total indebtedness as of December 31, 2025 and 2024 consisted of the following: December 31, Debt Instrument (defined below, as applicable) 2025 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 20.8 25.1 Less: Debt issuance costs ( 4.4 ) ( 6.3 ) 336.4 348.1 Less: Current portion of long-term debt 15.2 15.8 Long-term debt $ 321.2 $ 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. 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 2028 Convertible Notes are convertible at the option of the holders only in the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ended June 30, 2022, if the last reported sale price per share of the Company’s common stock exceeds 130 % of the conversion price for each of at least 20 trading days during the 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter; (2) during the five consecutive business days immediately after any five consecutive trading day period (such five consecutive trading day period, the Measurement Period) in which the trading price per $ 1,000 principal amount of 2028 Convertible Notes for each trading day of the Measurement Period was less than 98 % of the product of the last reported sale price per share of the Company’s common stock on such trading day and the conversion rate on such trading day; (3) upon the occurrence of certain corporate events or distributions on the Company’s common stock; (4) if the Company calls any 2028 Convertible Notes for redemption; and (5) at any time from, and including, September 1, 2027 until the close of business on the second scheduled trading day immediately before the maturity date. Peabody Energy Corporation 2025 Form 10-K F-29 Table of Contents PEABODY ENERGY CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Upon conversion, the Company may satisfy its conversion obligation by paying or delivering, as applicable, cash, shares of the Company’s common stock or a combination of cash and shares of the Company’s common stock, at the Company’s election, in the manner and subject to the terms and conditions provided in the indenture. 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 $ 0.225 per share dividends declared and paid since the prior conversion rate adjustment yielded a revised conversion rate of 52.3853 shares per $ 1,000 principal amount of 2028 Convertible Notes, which met the 1 % threshold to impact the existing conversion rate of 51.7762 . As such, effective November 13, 2025, the conversion rate was increased to 52.3853 shares of the Company’s common stock per $ 1,000 principal amount of 2028 Convertible Notes. 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. If certain corporate events described in the indenture occur prior to the maturity date, or the Company delivers a notice of redemption (as described below), the conversion rate will be increased for a holder who elects to convert its 2028 Convertible Notes in connection with such corporate event or notice of redemption, as the case may be, in certain circumstances. The Company may not redeem the 2028 Convertible Notes prior to March 1, 2025. The Company may redeem for cash all or any portion of the 2028 Convertible Notes, at its option, on or after March 1, 2025 and on or before the 40th scheduled trading day immediately before the maturity date, at a cash redemption price equal to 100 % of the principal amount of the 2028 Convertible Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date, but only if the last reported sale price per share of the Company’s common stock exceeds 130 % of the conversion price on (1) each of at least 20 trading days, whether or not consecutive, during the 30 consecutive trading days ending on, and including, the trading day immediately before the date the Company sends the related redemption notice; and (2) the trading day immediately before the date the Company sends such notice. However, the Company may not redeem less than all of the outstanding 2028 Convertible Notes unless at least $ 75 million aggregate principal amount of 2028 Convertible Notes are outstanding and not called for redemption as of the time the Company sends the related redemption notice. No sinking fund is provided for the 2028 Convertible Notes. If the Company undergoes a fundamental change (as defined in the indenture), noteholders may require the Company to repurchase their 2028 Convertible Notes at a cash repurchase price equal to 100 % of the principal amount of the 2028 Convertible Notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the fundamental change repurchase date. During the fourth quarter of 2025, the Company’s reported common stock prices prompted the conversion feature of the 2028 Convertible Notes. As a result, the 2028 Convertible Notes are convertible at the option of the holders during the first quarter of 2026. It is the Company’s current intent and policy to settle any conversions of the 2028 Convertible Notes through shares of its common stock. As such, the 2028 Convertible Notes are not classified as a current obligation in the accompanying consolidated balance sheets. Through February 18, 2026, the Company has not received any conversion requests and does not anticipate receiving any conversion requests in the near term as the market value of the 2028 Convertible Notes exceeds their conversion value. As of December 31, 2025, the if-converted value of the 2028 Convertible Notes exceeded the principal amount by $ 177.9 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. Peabody Energy Corporation 2025 Form 10-K F-30 Table of Contents PEABODY ENERGY CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) 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, (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 1. “Summary of Significant Accounting Policies,” Peabody terminated the acquisition with Anglo on August 19, 2025. As of December 31, 2025, the 2024 Credit Agreement had only been utilized for letters of credit, including $ 49.2 million outstanding as of December 31, 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 19. “Financial Instruments, Guarantees With Off-Balance-Sheet Risk and Other Guarantees.” Availability under the 2024 Credit Agreement was $ 270.8 million at December 31, 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. BUMA Loan Note 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 returned $ 9.3 million to BUMA. Refer to Note 1. “Summary of Significant Accounting Policies” for additional information. Peabody Energy Corporation 2025 Form 10-K F-31 Table of Contents PEABODY ENERGY CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) 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. Year Ended December 31, 2025 2024 2023 (Dollars in millions) 2028 Convertible Notes $ 10.4 $ 10.4 $ 10.4 Finance lease obligations 1.5 1.8 1.8 Financial assurance instruments 26.4 27.3 38.2 Amortization of debt issuance costs 5.6 5.4 3.6 Receivables securitization program 2.4 2.6 3.6 Capitalized interest ( 8.0 ) ( 5.8 ) — Other 5.6 5.2 2.2 Interest expense, net of capitalized interest $ 43.9 $ 46.9 $ 59.8 Cash paid for interest, net of capitalized interest $ 39.5 $ 37.6 $ 61.9 Non-cash interest expense $ 5.6 $ 5.4 $ 4.6 Covenant Compliance The Company was compliant with all relevant covenants under its debt and other finance agreements at December 31, 2025. Finance Lease Obligations Refer to Note 10. “Leases” for additional information associated with the Company’s finance leases, which pertain to the financing of mining equipment used in operations. (10) Leases The Company has operating and finance leases for mining and non-mining equipment, office space and certain other facilities under various non-cancellable agreements. Historically, the majority of the Company’s leases have been accounted for as operating leases. Refer to Note 1. “Summary of Significant Accounting Policies” for the Company’s policies regarding “Leases.” The Company and certain of its subsidiaries have guaranteed other subsidiaries’ performance under various lease obligations. Certain lease agreements are subject to the restrictive covenants of the Company’s credit facilities and include cross-acceleration provisions, under which the lessor could require remedies including, but not limited to, immediate recovery of the present value of any remaining lease payments. The Company typically agrees to indemnify lessors for the value of the property or equipment leased, should the property be damaged or lost during the course of the Company’s operations. The Company expects that losses with respect to leased property, if any, may be covered by insurance (subject to deductibles). Aside from indemnification of the lessor for the value of the property leased, the Company’s maximum potential obligations under its leases are equal to the respective future minimum lease payments, and the Company assumes that no amounts could be recovered from third parties. Peabody Energy Corporation 2025 Form 10-K F-32 Table of Contents PEABODY ENERGY CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) The components of lease expense for the periods presented below were as follows: Year Ended December 31, 2025 2024 2023 (Dollars in millions) Operating lease cost: Operating leases $ 34.3 $ 36.9 $ 22.1 Short-term leases 26.1 32.7 44.3 Variable leases 5.0 4.7 8.7 Sublease income ( 0.2 ) ( 0.6 ) ( 1.4 ) Total operating lease cost $ 65.2 $ 73.7 $ 73.7 Finance lease cost: Amortization of right-of-use assets $ 9.4 $ 8.8 $ 7.2 Interest on lease liabilities 1.5 1.8 1.7 Total finance lease cost $ 10.9 $ 10.6 $ 8.9 Supplemental balance sheet information related to leases at December 31, 2025 and 2024 was as follows: December 31, 2025 2024 (Dollars in millions) Operating leases: Operating lease right-of-use assets $ 121.2 $ 119.3 Accounts payable and accrued expenses $ 36.0 $ 32.4 Operating lease liabilities, less current portion 87.5 86.7 Total operating lease liabilities $ 123.5 $ 119.1 Finance leases: Property, plant, equipment and mine development $ 40.7 $ 46.8 Accumulated depreciation ( 25.1 ) ( 22.8 ) Property, plant, equipment and mine development, net $ 15.6 $ 24.0 Current portion of long-term debt $ 15.2 $ 15.8 Long-term debt, less current portion 5.6 9.3 Total finance lease liabilities $ 20.8 $ 25.1 Weighted average remaining lease term (years) Operating leases 4.0 4.0 Finance leases 1.8 5.2 Weighted average discount rate Operating leases 7.5 % 7.1 % Finance leases 6.2 % 6.2 % Peabody Energy Corporation 2025 Form 10-K F-33 Table of Contents PEABODY ENERGY CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Supplemental cash flow information related to leases for the periods presented below was as follows: Year Ended December 31, 2025 2024 2023 (Dollars in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 34.9 $ 34.1 $ 18.8 Operating cash flows for finance leases 1.5 1.8 1.7 Financing cash flows for finance leases 12.2 10.4 9.0 Right-of-use assets obtained in exchange for lease obligations: Operating leases 58.9 84.9 55.6 Finance leases 4.6 14.4 6.7 The Company's leases have remaining lease terms ranging from 1 year to 8.0 years, and may include options to extend the terms, as applicable. The contractual maturities of lease liabilities were as follows: Period Ending December 31, Operating Leases Finance Leases (Dollars in millions) 2026 $ 41.4 $ 14.9 2027 34.6 5.3 2028 29.0 1.7 2029 18.8 0.4 2030 12.1 0.1 2030 and thereafter 2.5 — Total lease payments 138.4 22.4 Less imputed interest ( 14.9 ) ( 1.6 ) Total lease liabilities $ 123.5 $ 20.8 (11) Asset Retirement Obligations Reconciliations of the Company’s asset retirement obligations are as follows: December 31, 2025 2024 (Dollars in millions) Balance at beginning of period $ 723.7 $ 702.8 Liabilities settled ( 51.2 ) ( 51.7 ) Accretion expense 54.6 51.4 Revisions to estimates 27.8 21.2 Balance at end of period $ 754.9 $ 723.7 Less: Current portion (included in “Accounts payable and accrued expenses”) 62.1 55.9 Noncurrent obligation (included in “Asset retirement obligations, less current portion”) $ 692.8 $ 667.8 Balance at end of period — active locations $ 567.6 $ 507.9 Balance at end of period — closed or inactive locations $ 187.3 $ 215.8 The Company’s reclamation obligations are secured by surety bonds, which are supported by standby letters of credit and restricted cash, and various other forms of collateral. See Note 19. “Financial Instruments, Guarantees With Off-Balance-Sheet Risk and Other Guarantees” for a discussion of the collateral securing the asset retirement obligations. Peabody Energy Corporation 2025 Form 10-K F-34 Table of Contents PEABODY ENERGY CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) (12) Postretirement Health Care and Life Insurance Benefits The Company currently provides health care and life insurance benefits to qualifying salaried and hourly retirees of its current and certain former subsidiaries and their dependents from benefit plans established by the Company. Plan coverage for health benefits is provided to future hourly and salaried retirees in accordance with the applicable plan document. Life insurance benefits are provided to future represented hourly retirees in accordance with the Company’s benefit plans and any applicable labor agreement. Net periodic postretirement benefit credit included the following components: Year Ended December 31, 2025 2024 2023 (Dollars in millions) Service cost for benefits earned $ 0.3 $ 0.5 $ 0.5 Interest cost on accumulated postretirement benefit obligation 7.8 9.1 10.2 Expected return on plan assets ( 0.3 ) ( 0.4 ) ( 0.5 ) Amortization of prior service credit ( 40.8 ) ( 53.0 ) ( 53.8 ) Net actuarial gain ( 8.5 ) ( 17.0 ) ( 2.6 ) Net periodic postretirement benefit credit $ ( 41.5 ) $ ( 60.8 ) $ ( 46.2 ) The actuarial gain for all benefit plans in 2025 was primarily due to favorable impact of claims experience and favorable expected future claims costs, based upon recent Centers for Medicare and Medicaid Services direct subsidy announcements, offset by the decrease in discount rate used to measure the benefit obligation and increase in medical trend rate. The actuarial gain for all benefit plans in 2024 was primarily due to the increase in the discount rate used to measure the benefit obligation and favorable impact of claims experience for the year. The actuarial gain for all benefit plans in 2023 was primarily due to favorable impact of claims experience for the year offset by the decrease in the discount rate used to measure the benefit obligation. The following includes pretax amounts recorded in “Accumulated other comprehensive income”: Year Ended December 31, 2025 2024 2023 (Dollars in millions) Prior service credit arising during year $ — $ ( 6.5 ) $ — Amortization: Prior service credit 40.8 53.0 53.8 Total recorded in “Accumulated other comprehensive income” $ 40.8 $ 46.5 $ 53.8 The Company amortizes prior service credit over an amortization period of the average remaining service period to full eligibility for participating employees at the time of the plan change or the expected lifetime of participants in the plan. A prior service credit established during 2024 is described below. The estimated prior service credit that will be amortized from accumulated other comprehensive income into net periodic postretirement benefit cost during the year ending December 31, 2026 is $ 11.4 million. Peabody Energy Corporation 2025 Form 10-K F-35 Table of Contents PEABODY ENERGY CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) The following table sets forth the plans’ funded status reconciled with the amounts shown in the consolidated balance sheets: December 31, 2025 2024 (Dollars in millions) Change in benefit obligation: Accumulated postretirement benefit obligation at beginning of period $ 145.4 $ 178.0 Service cost 0.3 0.5 Interest cost 7.8 9.1 Plan amendments — ( 6.5 ) Benefits paid and administrative fees (net of Medicare Part D reimbursements) ( 15.2 ) ( 18.8 ) Actuarial gain ( 8.1 ) ( 16.9 ) Accumulated postretirement benefit obligation at end of period 130.2 145.4 Change in plan assets: Fair value of plan assets at beginning of period 11.3 14.3 Actual return on plan assets 0.8 0.5 Employer contributions 12.2 15.3 Benefits paid and administrative fees (net of Medicare Part D reimbursements) ( 15.2 ) ( 18.8 ) Fair value of plan assets at end of period 9.1 11.3 Funded status at end of period ( 121.1 ) ( 134.1 ) Less: Current portion (included in “Accounts payable and accrued expenses”) 11.9 13.7 Noncurrent obligation (included in “Accrued postretirement benefit costs”) $ 109.2 $ 120.4 In December 2024, the Company entered into a new labor agreement covering certain represented employees. Under terms of the new labor agreement, when a represented employee retires or dies the health benefits of the retiree and/or their surviving spouse and any eligible dependents will be provided by the labor union and will no longer be covered by the Company’s health plan. The Company will continue to offer a life insurance benefit to eligible represented retirees. The impact of the changes on future benefits reduced the Company’s accumulated postretirement benefit obligation by $ 6.5 million. The reduction was attributable to the elimination of health care benefits for certain represented retirees. The reduction in liability was recorded with an offsetting balance in “Accumulated other comprehensive income” and is being amortized to earnings over the average remaining life expectancy of participants benefiting under the plan ( 11.7 years and 12.7 years were the remaining amortization periods at December 31, 2025 and 2024, respectively; $ 6.0 million remaining in “Accumulated other comprehensive income” at December 31, 2025). A prior service credit established in October 2021 is being amortized to earnings over the average remaining life expectancy of the affected plan participants ( 10.0 years and 11.0 years were the remaining amortization periods at December 31, 2025 and 2024, respectively; $ 97.8 million remaining in “Accumulated other comprehensive income” at December 31, 2025). A prior service credit established in December 2020 is being amortized to earnings over the average remaining life expectancy of the affected plan participants ( 5.5 years and 6.5 years were the remaining amortization periods at December 31, 2025 and 2024, respectively; $ 5.7 million remaining in “Accumulated other comprehensive income” at December 31, 2025). A prior service credit established in September 2020 was being amortized to earnings over an average remaining service period to full eligibility for participating employees ( 0.9 years was the remaining amortization period at December 31, 2024). A prior service credit established in December 2018 was fully amortized to earnings as of December 31, 2024. The weighted-average assumptions used to determine the benefit obligations for the plans as of the end of each year were as follows: December 31, 2025 2024 Discount rate 5.39 % 5.70 % Measurement date December 31, 2025 December 31, 2024 Peabody Energy Corporation 2025 Form 10-K F-36 Table of Contents PEABODY ENERGY CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) The weighted-average assumptions used to determine net periodic postretirement benefit credit for the plans during each period were as follows: Year Ended December 31, 2025 2024 2023 Discount rate 5.70 % 5.44 % 5.70 % Expected long-term return on plan assets (pretax) 5.95 % 5.75 % 5.75 % Measurement date December 31, 2024 December 31, 2023 December 31, 2022 The expected rate of return on plan assets is determined by taking into consideration expected long-term returns associated with each major asset class based on long-term historical ranges, inflation assumptions and the expected net value from active management of the assets based on actual results. Effective January 1, 2026, the Company decreased its expected rate of return on plan assets from 5.95 % to 4.55 % reflecting the impact of its asset allocations and capital market expectations. The following presents information about the assumed health care cost trend rate: Year Ended December 31, 2025 2024 Pre-Medicare: Health care cost trend rate assumed for next year 7.00 % 6.50 % Rate to which the cost trend is assumed to decline (the ultimate trend rate) 4.75 % 4.75 % Year that the rate reaches the ultimate trend rate 2035 2032 Post-Medicare: Health care cost trend rate assumed for next year (1) 6.75 % 6.15 % Rate to which the cost trend is assumed to decline (the ultimate trend rate) 4.75 % 4.75 % Year that the rate reaches the ultimate trend rate 2035 2032 (1) An additional one-time increase of 3 % was applied to claims in 2024 to reflect potential reductions in payments from Center for Medicare and Medicaid Services related to the passage of the Inflation Reduction Act in August 2022. Plan Assets The Company maintains a Voluntary Employees’ Beneficiary Association (VEBA) trust to pre-fund a portion of benefits for non-represented retirees. Assets of the Peabody Investments Corp. Non-Represented Retiree VEBA Trust (the Non-Represented Trust) are invested in accordance with the investment policy established by the Peabody VEBA Retirement Committee after consultation with outside investment advisors and actuaries. As of December 31, 2025, the asset allocation strategy for the Non-Represented Trust is 100 % in fixed income assets. As of December 31, 2024, the asset allocation strategy for the Non-Represented Trust was 30 % in equity and 70 % in fixed income assets. The plan assets are primarily invested in corporate bonds and U.S. government and equity securities. All plan assets are classified within Level 1 and Level 2 of the fair value hierarchy, and there are no Level 3 securities. The fair value of plan assets was $ 9.1 million and $ 11.3 million as of December 31, 2025 and 2024, respectively. Contributions Annual contributions to the Non-Represented Trust are discretionary. During the year ended December 31, 2025, the Company made no contributions to the trust. Estimated Future Benefit Payments Estimated future benefit payments of the Company's benefit obligation, which reflect expected future service, as appropriate, are expected to be $ 16.2 million in 2026, $ 15.4 million in 2027, $ 14.7 million in 2028, $ 13.7 million in 2029, $ 12.9 million in 2030 and $ 51.7 million in years 2031-2035. Peabody Energy Corporation 2025 Form 10-K F-37 Table of Contents PEABODY ENERGY CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) (13) Pension and Savings Plans The Company sponsors a defined benefit pension plan covering eligible employees who are represented by the United Mine Workers of America (UMWA) under the Kayenta Reclamation Agreement of 2024 (the Western Plan or the qualified plan). The Western Plan is actuarially evaluated, incorporating various assumptions such as the discount rate and the expected rate of return on plan assets. The funded status of the Western Plan, which is recorded in “Other noncurrent liabilities” on the consolidated balance sheets, is measured as the difference between the fair value of plan assets and the projected benefit obligation. As of December 31, 2025 and 2024, the fair value of plan assets was $ 106.5 million and $ 104.8 million, respectively, the projected benefit obligation and accumulated benefit obligation was $ 114.5 million and $ 117.6 million, respectively, and the under-funded status was $ 8.0 million and $ 12.8 million, respectively. Previously, the Company sponsored a defined benefit pension plan covering certain U.S. salaried employees and eligible hourly employees at certain subsidiaries (the Peabody Plan). During the year ended December 31, 2023, the Company settled $ 443.2 million of its pension obligations for active and deferred participants in the Peabody Plan with an equal amount paid from plan assets. As a result of the Peabody Plan’s over-funded status, $ 11.1 million was transferred to a Company sponsored employee retirement account (the Qualified Replacement Plan) during December 2023 as part of the distribution of the Peabody Plan assets resulting from the Peabody Plan termination. The Company has used the funds in the Qualified Replacement Plan as of December 31, 2025. Plan Assets Assets of the PIC Master Trust (the Master Trust) are invested in accordance with investment guidelines established by the Peabody Western Plan Retirement Committee after consultation with outside investment advisors and actuaries. The asset allocation targets have been set with the expectation that the assets of the Master Trust will be managed with an appropriate level of risk to fund the qualified plan’s expected liabilities. As a result of discretionary contributions made in recent years, the Western Plan has become nearly fully funded and therefore, as of December 31, 2025 and 2024 the Master Trust investment portfolio reflected the Company’s target asset mix of 100 % fixed income investments. A financial instrument’s level within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Following is a description of the valuation techniques and inputs used for investments measured at fair value, including the general classification of such investments pursuant to the valuation hierarchy. Corporate bonds . The Master Trust invests in corporate bonds for diversification and to provide a hedge to interest rate movements affecting liabilities. Investment types are predominantly investment-grade corporate bonds. Fair value for these securities is provided by a third-party pricing service that utilizes various inputs such as benchmark yields, reported trades, broker/dealer quotes, issuer spreads and benchmark securities as well as other relevant economic measures. Corporate bonds are classified within the Level 2 valuation hierarchy since fair value inputs are derived prices in active markets and the bonds are not traded on a national securities exchange. U.S. government securities . The Master Trust invests in U.S. government securities for diversification and to provide a hedge to interest rate movements affecting liabilities. Investment types are predominantly U.S. government bonds, agency securities and municipal bonds. Fair value for these securities is provided by a third-party pricing service that utilizes various inputs such as benchmark yields, reported trades, broker/dealer quotes, issuer spreads and benchmark securities as well as other relevant economic measures. If fair value is based on quoted prices in active markets and traded on a national securities exchange, U.S. government securities are classified within the Level 1 valuation hierarchy; otherwise, U.S. government securities are classified within the Level 2 valuation hierarchy. Other . The Master Trust invests in international government securities and asset-backed securities for diversification and to provide a hedge to interest rate movements affecting liabilities. These investments are classified within the Level 2 valuation hierarchy since fair value inputs are derived prices in active markets and are not traded on a national securities exchange. The Master Trust also invests in cash funds to manage liquidity resulting from payment of participant benefits and certain administrative fees, where investment vehicles primarily include a non-interest bearing cash fund with an earnings credit allowance feature, various exchange-traded derivative instruments consisting of futures and interest rate swap agreements used to manage the duration of certain liability-hedging investments. These cash funds are classified within the Level 1 valuation hierarchy. Peabody Energy Corporation 2025 Form 10-K F-38 Table of Contents PEABODY ENERGY CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Private mutual funds . The Master Trust invests in mutual funds for growth and diversification. Investment vehicles include an institutional fund that holds a diversified portfolio of long-duration corporate fixed income investments (Corporate Bond Fund). The Corporate Bond Fund is not traded on a national securities exchange and is valued at net asset value (NAV), the practical expedient to estimate fair value. The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in those investments. The following tables present the fair value of assets in the Master Trust by asset category and by fair value hierarchy: December 31, 2025 Level 1 Level 2 Level 3 Total (Dollars in millions) Corporate bonds $ — $ 60.3 $ — $ 60.3 U.S. government securities 16.1 3.2 — 19.3 Other 6.1 2.4 — 8.5 Total assets at fair value $ 22.2 $ 65.9 $ — 88.1 Assets measured at net asset value practical expedient (1) Private mutual funds 18.4 Total plan assets $ 106.5 December 31, 2024 Level 1 Level 2 Level 3 Total (Dollars in millions) Corporate bonds $ — $ 65.3 $ — $ 65.3 U.S. government securities 13.7 3.4 — 17.1 Other 4.3 1.9 — 6.2 Total assets at fair value $ 18.0 $ 70.6 $ — 88.6 Assets measured at net asset value practical expedient (1) Private mutual funds 16.2 Total plan assets $ 104.8 (1) In accordance with Accounting Standards Update 2015-07, investments that are measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the tables are intended to permit reconciliation of the fair value hierarchy to the total value of assets of the plans. Contributions 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 December 31, 2025, the qualified plan was expected to be at or above the Pension Protection Act thresholds. The Company was not required to make any cash contributions to the qualified plan in 2025 based on minimum funding requirements. During the year ended December 31, 2025, the Company made a discretionary cash contribution of $ 5.0 million to the qualified plan which allowed for the 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. The Company expects to contribute $ 2.1 million in 2026 to meet the minimum funding requirements. Peabody Energy Corporation 2025 Form 10-K F-39 Table of Contents PEABODY ENERGY CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Estimated Future Benefit Payments Estimated future benefit payments of the Company's benefit obligation, which reflect expected future service, as appropriate, are expected to be $ 10.7 million in 2026, $ 10.6 million in 2027, $ 10.4 million in 2028, $ 10.2 million in 2029, $ 10.0 million in 2030 and $ 45.6 million in years 2031-2035. Defined Contribution Plans The Company sponsors employee retirement accounts under three 401(k) plans for eligible U.S. employees. The Company matches voluntary contributions to each plan up to specified levels. For one plan, the Company has sole discretion in making any matching contributions. The expense for these plans was $ 22.4 million, $ 21.7 million and $ 21.3 million for the years ended December 31, 2025, 2024 and 2023, respectively. Discretionary contribution features in the plans allow for additional contributions from the Company. The Company granted discretionary contributions of $ 7.8 million, $ 7.8 million and $ 7.3 million during the years ended December 31, 2025, 2024 and 2023, respectively. Discretionary contributions paid during the years ended December 31, 2025, 2024 and 2023 were $ 7.7 million, $ 7.7 million and $ 4.6 million, respectively. Superannuation The Company makes superannuation contributions for eligible Australia employees in accordance with the employer contribution rate set by the government of Australia. The employer contribution rates were 12.0 % for July 1, 2025 through December 31, 2025; 11.5 % for July 1, 2024 through June 30, 2025; 11.0 % for July 1, 2023 through June 30, 2024; and 10.5 % for January 1, 2023 through June 30, 2023. The expense related to these contributions was $ 27.0 million, $ 25.7 million and $ 21.9 million for the years ended December 31, 2025, 2024, and 2023, respectively. A performance contribution feature allows for additional discretionary contributions from the Company. The Company granted discretionary performance contributions of $ 1.6 million, $ 2.2 million and $ 1.6 million during the years ended December 31, 2025, 2024, and 2023, respectively. Discretionary contributions paid during the years ended December 31, 2025, 2024, and 2023 were $ 2.0 million, $ 1.9 million and $ 1.3 million, respectively. (14) Stockholders’ Equity Common Stock In accordance with the Company’s Four th Amended and Restated Certificate of Incorporation, the Company has 450.0 million authorized shares of Common Stock, par value $ 0.01 per share. Holders of Common Stock are entitled to one vote per share on all matters to be voted upon by the stockholders. The holders of Common Stock do not have cumulative voting rights in the election of directors. Holders of Common Stock are entitled to receive ratably dividends if, as and when dividends are declared from time to time by the Board of Directors (the Board) out of funds legally available for that purpose, after payment of dividends required to be paid on any outstanding preferred stock or series common stock. Upon dissolution, liquidation or winding up of the Company, the holders of Common Stock are entitled to receive ratably the assets available for distribution to the stockholders after payment of liabilities and subject to the right of holders of any outstanding preferred stock or series common stock. The Common Stock has no preemptive or conversion rights and is not subject to further calls or assessment by the Company. There are no redemption or sinking fund provisions applicable to the Common Stock. The following table summarizes Common Stock activity during the periods presented below: Year Ended December 31, 2025 2024 2023 (In millions) Shares outstanding at the beginning of the period 121.4 128.7 143.9 Shares issued for vested restricted stock units 0.2 0.6 1.5 Shares repurchased — ( 7.9 ) ( 16.7 ) Shares outstanding at the end of the period 121.6 121.4 128.7 Peabody Energy Corporation 2025 Form 10-K F-40 Table of Contents PEABODY ENERGY CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Preferred Stock The Board is authorized to issue up to 100.0 million shares of preferred stock, par value $ 0.01 per share. The Board can determine the terms and rights of each series, including whether dividends (if any) will be cumulative or non-cumulative and the dividend rate of the series, redemption or sinking fund provisions, conversion terms, prices and rates and amounts payable on shares of the series in the event of any voluntary or involuntary liquidation, dissolution or winding up of the affairs of the Company and whether the shares of the series will be convertible into shares of any other class or series, or any other security, of the Company or any other corporation. The Board may also determine restrictions on the issuance of shares of the same series or of any other class or series, and the voting rights (if any) of the holders of the series. There were no outstanding shares of preferred stock as of December 31, 2025. Series Common Stock The Board is authorized to issue up to 50.0 million shares of series common stock, par value $ 0.01 per share. The Board can determine the terms and rights of each series, whether dividends (if any) will be cumulative or non-cumulative and the dividend rate of the series, redemption or sinking fund provisions, conversion terms, prices and rates and amounts payable on shares of the series in the event of any voluntary or involuntary liquidation, dissolution or winding up of the affairs of the Company and whether the shares of the series will be convertible into shares of any other class or series, or any other security, of the Company or any other corporation. The Board may also determine restrictions on the issuance of shares of the same series or of any other class or series, and the voting rights (if any) of the holders of the series. There were no outstanding shares of series common stock as of December 31, 2025. Treasury Stock Shares repurchases. On April 17, 2023, the Board authorized a share repurchase program (2023 Repurchase Program) authorizing repurchases of up to $ 1.0 billion of its Common Stock. Under the 2023 Repurchase Program, the Company may purchase shares of Common Stock at its discretion. The manner, timing, pricing and amount of any share repurchase transactions will be based on a variety of factors, including market conditions, applicable legal requirements and alternative opportunities that the Company may have for the use or investment of capital. The Company did not repurchase shares during the year ended December 31, 2025. Through December 31, 2025, the Company repurchased 23.8 million shares of its common stock under the 2023 Repurchase Program for $ 530.8 million (which included commissions paid of $ 0.4 million), leaving $ 469.6 million available for share repurchase. During the year ended December 31, 2025, the Company paid excise taxes of $ 1.7 million related to prior year repurchases of Common Stock. The Company includes commission fees and excise taxes, as incurred, with the cost of treasury stock. Shares relinquished. The Company routinely allows employees to relinquish Common Stock to pay estimated taxes upon the vesting of restricted stock units and the payout of performance units that are settled in Common Stock under its equity incentive plans. The number of shares of Common Stock relinquished was less than 0.1 million, 0.1 million and 0.6 million for the years ended December 31, 2025, 2024 and 2023, respectively. The value of the Common Stock tendered by employees was based upon the closing price on the dates of the respective transactions. (15) Share-Based Compensation The Company has established the Peabody Energy Corporation 2017 Incentive Plan (the 2017 Incentive Plan) for employees, non-employee directors and consultants that allows for the issuance of share-based compensation in various forms including options (including non-qualified stock options and incentive stock options), stock appreciation rights, restricted stock, restricted stock units, deferred stock, performance units, dividend equivalents and cash incentive awards. Under the 2017 Incentive Plan, approximately 14 million shares of the Company’s Common Stock were reserved for issuance. As of December 31, 2025, there are approximately 4.9 million shares of the Company’s Common Stock available for grant. Peabody Energy Corporation 2025 Form 10-K F-41 Table of Contents PEABODY ENERGY CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Share-Based Compensation Expense and Cash Flows The Company’s share-based compensation expense is recorded in “Operating costs and expenses” and “Selling and administrative expenses” in the consolidated statements of operations. Share-based compensation expense and cash flow amounts were as follows: Year Ended December 31, 2025 2024 2023 (Dollars in millions) Share-based compensation expense $ 13.8 $ 7.3 $ 6.9 Tax benefit — — — Share-based compensation expense, net of tax benefit $ 13.8 $ 7.3 $ 6.9 As of December 31, 2025, the total unrecognized compensation cost related to nonvested awards was $ 14.9 million, which is expected to be recognized over 2.0 years with a weighted-average period of 0.8 years. Deferred Stock Units During the years ended December 31, 2025, 2024 and 2023, the Company granted deferred stock units to each of the non-employee members of the Board. The fair value of these units is equal to the market price of the Company’s Common Stock at the date of grant. These deferred stock units generally vest on a monthly basis over 12 months and are settled in Common Stock either three years after the date of grant, or termination from the Board service, whichever is elected by the director. Restricted Stock Units The Company grants restricted stock units to certain senior management and non-senior management employees. For units granted to both senior and non-senior management employees containing only service conditions, the fair value of the award is equal to the market price of the Company’s Common Stock at the date of grant. Units granted to senior and non-senior management employees vest at various times (none of which exceed three years ) in accordance with the underlying award agreement. Compensation cost for both senior and non-senior management employees is recognized on a straight-line basis over the requisite service period. The payouts for active grants awarded during the years ended December 31, 2025, 2024 and 2023 will be settled in the Company’s Common Stock. Awards granted to certain senior management employees during the year ended December 31, 2025 contain a performance feature in which the award can be increased by up to 200 % based on Adjusted EBITDA results over a two-year period. Awards granted to certain non-senior management employees during the year ended December 31, 2025 contain a performance feature in which the award can be increased by up to 100 % based on Adjusted EBITDA results over a two-year period. The incremental shares, which can be increased by up to 411,236 shares as of December 31, 2025 if the performance condition is satisfied, are not included in the table below. A summary of restricted stock unit activity is as follows: Year Ended December 31, 2025 Weighted Average Grant-Date Fair Value Nonvested at December 31, 2024 405,130 $ 24.32 Granted 284,737 20.78 Vested ( 144,377 ) 24.67 Forfeited ( 27,489 ) 19.24 Nonvested at December 31, 2025 518,001 $ 22.37 The total fair value at grant date of restricted stock units granted during the years ended December 31, 2025, 2024 and 2023 was $ 5.9 million, $ 10.1 million and $ 5.5 million, respectively. Peabody Energy Corporation 2025 Form 10-K F-42 Table of Contents PEABODY ENERGY CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) The restricted stock units receive dividend equivalent units (DEUs) upon payment of cash dividends to holders of Common Stock. DEUs vest subject to the same vesting requirements as the underlying restricted stock unit award. As of December 31, 2025, there were approximately 12,500 nonvested DEUs. The total fair value of restricted stock units and DEUs vested was $ 3.0 million, $ 13.1 million and $ 13.8 million during the years ended December 31, 2025, 2024 and 2023, respectively. Performance Units Performance units are typically granted annually in January and vest at the end of a three-year period and are primarily limited to senior management personnel. The performance units are usually subject to the achievement of goals. The performance units granted during the year ended December 31, 2023 were based on the following conditions: two-year free cash flow and environmental reclamation (performance condition). In addition, the payout of the performance units could have been increased by up to 50 % of the award granted if the performance condition was satisfied. There are no incremental shares expected to be granted during the year ended December 31, 2026. The performance units granted during the year ended December 31, 2024 were based on the following conditions: two-year free cash flow, sales volume and environmental reclamation (performance condition). In addition, the payout of the performance units can be increased or decreased by up to 25 % of the award based on three-year stock price performance compared to a custom peer group (market condition). The performance units can be increased by up to a maximum of 100 % of the award granted. The incremental shares, which can be increased by up to 147,709 shares as of December 31, 2025 if the performance condition is satisfied, are not included in the table below. The performance units granted during the year ended December 31, 2025 were based on the following conditions: two-year free cash flow, sales volume and environmental reclamation (performance condition). In addition, the payout of the performance units can be increased or decreased by up to 25 % of the award based on three-year stock price performance compared to a custom peer group (market condition). The performance units can be increased by up to a maximum of 100 % of the award granted. The incremental shares, which can be increased by up to 195,130 shares as of December 31, 2025 if the performance condition is satisfied, are not included in the table below. Awards granted during the year ended December 31, 2025 will be settled in the Company's Common Stock. There were 199,566 , 176,487 , and 531,915 performance units granted during the years ended December 31, 2025, 2024, and 2023, respectively. A summary of performance unit activity is as follows: Year Ended December 31, 2025 Weighted Average Remaining Contractual Life Nonvested at December 31, 2024 274,911 1.5 Granted 199,566 Vested — Forfeited ( 9,534 ) Nonvested at December 31, 2025 464,943 1.2 As of December 31, 2025, there were no performance units and DEUs that were vested. The performance units receive DEUs upon payment of cash dividends to holders of Common Stock. DEUs vest subject to the same vesting requirements as the underlying performance unit award. As of December 31, 2025, there were approximately 17,600 nonvested DEUs. Peabody Energy Corporation 2025 Form 10-K F-43 Table of Contents PEABODY ENERGY CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) (16) 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 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. North Antelope Rochelle Mine Tornado On June 23, 2023, the Company’s North Antelope Rochelle Mine sustained damage from a tornado which led to a temporary suspension of operations. The mine resumed operations on June 25, 2023. During the year ended December 31, 2023, the Company recorded a provision for loss of $ 12.2 million related to the tornado damage included in “Other operating loss” in the accompanying consolidated statements of operations. The combined provision included $ 4.0 million for materials and supplies inventories, $ 1.0 million for buildings and equipment and $ 7.2 million for incremental repair costs. During the year ended December 31, 2024, the Company recorded $ 3.7 million for incremental repair costs related to the tornado damage included in “Other operating loss” in the accompanying consolidated statements of operations. 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. During the year ended December 31, 2023, the Company recorded a provision for loss of $ 28.7 million related to the fire, which included $ 17.8 million related to longwall development and other costs and $ 10.9 million for equipment deemed inoperable within the affected area of the mine. The provision for loss is included in “Other operating loss” in the accompanying consolidated statements of operations. 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 year ended December 31, 2024. The Company collected all of the insurance recovery during the year ended December 31, 2024, and classified $ 10.9 million of the recovery within the “Cash Flows From Investing Activities” section of the 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. Port and Rail Capacity Assignment During the year ended December 31, 2023, the Company entered into two agreements to assign the right to its excess port and rail capacity related to its Centurion Mine to unrelated parties. In the first transaction, the Company assigned its right in exchange for $ 30.0 million Australian dollars. Half of such amount was received by the Company upon entry into the agreement, and half was payable in June 2024, subject to certain conditions. In connection with the transaction, the Company recorded revenue of $ 19.2 million during the year ended December 31, 2023. In association with the completion of the Wards Well acquisition described above, the remaining receivable was settled as part of the consideration on April 16, 2024. In the second transaction, the Company assigned its right in exchange for $ 10.0 million Australian dollars, all of which was received as of December 31, 2023. In connection with the transaction, the Company recorded revenue of $ 6.7 million during the year ended December 31, 2023. Peabody Energy Corporation 2025 Form 10-K F-44 Table of Contents PEABODY ENERGY CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) (17) 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. For further discussion of the Company’s share-based compensation awards, see Note 15. “Share-Based Compensation.” 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 shares related to the 2028 Convertible Notes for the year ended December 31, 2025 because their inclusion would have been anti-dilutive. The computation of diluted EPS also excluded aggregate share-based compensation awards of 0.8 million for the year ended December 31, 2025 and less than 0.1 million for both the years ended December 31, 2024 and 2023 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. Peabody Energy Corporation 2025 Form 10-K F-45 Table of Contents PEABODY ENERGY CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) The following illustrates the earnings allocation method utilized in the calculation of basic and diluted EPS: Year Ended December 31, 2025 2024 2023 (In millions, except per share data) Basic EPS numerator: (Loss) income from continuing operations, net of income taxes $ ( 42.3 ) $ 407.3 $ 816.0 Less: Net income attributable to noncontrolling interests 10.4 32.6 56.0 (Loss) income from continuing operations attributable to common stockholders ( 52.7 ) 374.7 760.0 Loss from discontinued operations, net of income taxes ( 0.2 ) ( 3.8 ) ( 0.4 ) Net (loss) income attributable to common stockholders $ ( 52.9 ) $ 370.9 $ 759.6 Diluted EPS numerator: (Loss) income from continuing operations, net of income taxes $ ( 42.3 ) $ 407.3 $ 816.0 Add: Tax adjusted interest expense related to 2028 Convertible Notes — 12.2 12.2 Less: Net income attributable to noncontrolling interests 10.4 32.6 56.0 (Loss) income from continuing operations attributable to common stockholders ( 52.7 ) 386.9 772.2 Loss from discontinued operations, net of income taxes ( 0.2 ) ( 3.8 ) ( 0.4 ) Net (loss) income attributable to common stockholders $ ( 52.9 ) $ 383.1 $ 771.8 EPS denominator: Weighted average shares outstanding — basic 121.8 125.1 137.6 Dilutive impact of share-based compensation awards — 0.5 0.6 Dilutive impact of 2028 Convertible Notes — 16.3 16.1 Weighted average shares outstanding — diluted 121.8 141.9 154.3 Basic EPS attributable to common stockholders: (Loss) income from continuing operations $ ( 0.43 ) $ 2.99 $ 5.52 Loss from discontinued operations — ( 0.03 ) — Net (loss) income attributable to common stockholders $ ( 0.43 ) $ 2.96 $ 5.52 Diluted EPS attributable to common stockholders: (Loss) income from continuing operations $ ( 0.43 ) $ 2.73 $ 5.00 Loss from discontinued operations — ( 0.03 ) — Net (loss) income attributable to common stockholders $ ( 0.43 ) $ 2.70 $ 5.00 (18) Management — Labor Relations On December 31, 2025, the Company had approximately 5,400 employees worldwide, including approximately 4,200 hourly employees; the employee amounts exclude employees that were employed at operations classified as discontinued operations. Approximately 39 % of those hourly employees were represented by organized labor unions and were employed by mines that generated 18 % of the Company’s 2025 coal production from continuing operations. In the U.S., the hourly employees of one active mine and one inactive mine are represented by an organized labor union. In Australia, the coal mining industry is unionized and the majority of hourly workers employed at the Company’s Australian mining operations are members of trade unions. The Mining and Energy Union (MEU) generally represents the Company’s Australian subsidiaries’ hourly production and engineering employees, including those employed through contract mining relationships. Peabody Energy Corporation 2025 Form 10-K F-46 Table of Contents PEABODY ENERGY CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) The following table presents the Company’s active and inactive mining operations as of December 31, 2025 in which the employees are represented by organized labor unions: Mine Approximate Number of Active Employees Represented Union Current Agreement Expiration Date or Date Amendable U.S. Kayenta 30 UMWA November 2029 Shoal Creek 290 UMWA June 2029 Australia Wilpinjong 425 MEU May 2028 Coppabella (1) 305 MEU December 2025 Moorvale 125 MEU May 2028 Centurion 240 N/A January 2028 CMJV Handling and preparation plant employees 10 MEU April 2027 Metropolitan Underground employees - Production 190 MEU July 2028 Underground employees - Deputies 15 MEU July 2026 Handling and preparation plant employees 20 MEU January 2027 Wambo Handling and preparation plant employees (1) 20 MEU August 2025 (1) The Company is currently negotiating a new labor agreement with the MEU and employees. (19) Financial Instruments, Guarantees With Off-Balance-Sheet Risk and Other Guarantees In the normal course of business, the Company is a party to various guarantees and financial instruments that carry off-balance-sheet risk and are not reflected in the accompanying 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 consolidated balance sheets. The following table summarizes the Company’s financial instruments that carry off-balance-sheet risk. December 31, 2025 Reclamation Support Other Support (1) Total (Dollars in millions) Surety bonds $ 908.8 $ 88.4 $ 997.2 Letters of credit (2) 53.6 59.0 112.6 962.4 147.4 1,109.8 Less: Letters of credit in support of surety bonds (3) ( 53.6 ) ( 1.6 ) ( 55.2 ) Obligations supported, net $ 908.8 $ 145.8 $ 1,054.6 (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. Peabody Energy Corporation 2025 Form 10-K F-47 Table of Contents PEABODY ENERGY CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) 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 $ 487.3 million at December 31, 2025. The Company must also maintain a maximum net leverage ratio of 1.5 to 1.0 , where the numerator consists of its funded debt, net of cash, and the denominator consists of its Adjusted EBITDA for the trailing twelve months. 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 December 31, 2025. At December 31, 2025, the Company’s maximum aggregate collateral amount was $ 509.9 million , which was comprised of $ 383.6 million in trust accounts and letters of credit of $ 126.3 million held for the benefit of certain surety providers. Letter of Credit Facility The Company had a credit agreement, which prior to its termination in April 2023, provided for irrevocable standby letters of credit (LC Facility). The now-terminated LC Facility was amended at various dates to effect certain changes, including in February 2023 to reduce capacity, accelerate the expiration date and eliminate the prepayment premium due upon any reduction of commitments thereunder. The Company recorded early debt extinguishment losses of $ 8.8 million during the year ended December 31, 2023, primarily as a result of the February 2023 amendment and subsequent termination. 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 year ended December 31, 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 December 31, 2025, the Company had no outstanding borrowings and $ 63.4 million of letters of credit outstanding under the Securitization Program. Availability under the Securitization Program, which is adjusted for certain ineligible receivables, was $ 96.0 million at December 31, 2025. The Company was not required to post cash collateral under the Securitization Program at December 31, 2025. The Company incurred interest and fees associated with the Securitization Program of $ 2.4 million, $ 2.6 million and $ 3.6 million during the years ended December 31, 2025, 2024 and 2023, respectively, which have been recorded as “Interest expense, net of capitalized interest” in the accompanying consolidated statements of operations. Peabody Energy Corporation 2025 Form 10-K F-48 Table of Contents PEABODY ENERGY CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) 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. The agreement was amended on November 3, 2025, to (i) extend the expiration date to December 31, 2030 and (ii) reduce 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 %. At December 31, 2025, letters of credit of $ 114.6 million were outstanding under the agreement, which were collateralized by cash of $ 116.9 million. In December 2023, the Company established cash-backed bank guarantee facilities, primarily to support Australian reclamation bonding requirements. The Company receives a variable deposit rate on the amount of cash collateral posted in support of the bank guarantee facilities, which mature at various dates between 2026 and 2029. At December 31, 2025, the bank guarantee facilities were backed by cash of $ 208.7 million. Restricted Cash and Collateral The following table summarizes the Company’s “Restricted cash and collateral” in the accompanying 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. December 31, 2025 2024 (Dollars in millions) Restricted cash (1) Surety trust accounts (2) $ 383.6 $ 394.6 Credit support facilities (2) (3) 325.6 287.6 709.2 682.2 Other cash collateral (1) Deposits with regulatory authorities for reclamation and other obligations (3) 134.9 127.6 Restricted cash and collateral $ 844.1 $ 809.8 (1) Restricted cash balances are combined with unrestricted cash and cash equivalents in the accompanying 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 December 31, 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. Other The Company is the lessee under numerous equipment and property leases. It is common in such commercial lease transactions for the Company, as the lessee, to agree to indemnify the lessor for the value of the property or equipment leased, should the property be damaged or lost during the course of the Company’s operations. The Company expects that losses with respect to leased property, if any, may be covered by insurance (subject to deductibles). The Company and certain of its subsidiaries have guaranteed other subsidiaries’ performance under various lease obligations. Aside from indemnification of the lessor for the value of the property leased, the Company’s maximum potential obligations under its leases are equal to the respective future minimum lease payments, and the Company assumes that no amounts could be recovered from third parties. Peabody Energy Corporation 2025 Form 10-K F-49 Table of Contents PEABODY ENERGY CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Substantially all of the Company’s U.S. subsidiaries provide financial guarantees under long-term debt agreements entered into by the Company. The maximum amounts payable under the Company’s debt agreements are equal to the respective principal and interest payments. (20) Commitments and Contingencies Commitments Unconditional Purchase Obligations As of December 31, 2025, purchase commitments for capital expenditures were $ 49.8 million, all of which is obligated within the next 12 months. In Australia, the Company has generally secured the ability to transport coal through rail contracts and ownership interests in five east coast coal export terminals that are primarily funded through take-or-pay arrangements with terms ranging up to 19 years. In the U.S., the Company has entered into certain long-term coal export terminal agreements to secure export capacity through the Gulf Coast. As of December 31, 2025, these Australian and U.S. commitments under take-or-pay arrangements totaled $ 1.0 billion, of which approximately $ 113 million is obligated within the next year. 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 Metropolitan Mine Stormwater Discharge . Metropolitan Collieries was convicted in the Land and Environment Court of New South Wales (NSW) for three offenses under the Protection of the Environment Operations Act 1997 (NSW). Metropolitan was prosecuted by the NSW Environment Protection Authority (EPA) and pleaded guilty to two offenses of water pollution and one offense of contravening its environment protection license relating to the maintenance of a dam. Metropolitan operates a small underground coal mine located in Helensburgh NSW near the Royal National Park and the Garawarra State Conservation Area. Camp Gully Creek, which flows into the Hacking River, runs adjacent to the south of the mine. Between about September 6 and September 8, 2022, water containing sediment and coal fines overflowed from a water storage dam (called Turkeys Nest Dam) via a licensed discharge point into Camp Gully Creek. Between about October 8 and October 9, 2022, further coal-laden water overflowed from the Turkeys Nest Dam into Camp Gully Creek during rainfall. The volume of water, silt and sediment released from Turkeys Nest Dam into Camp Gully Creek during both incidents is not known. However, the Court found that actual and potential harm was caused by the water pollution offenses. Between about July 13 and October 9, 2022, Metropolitan Collieries did not properly maintain Turkeys Nest Dam and its associated plant and equipment. Turkeys Nest Dam was full of coal sediment and other parts of the surface water facilities were blocked by sediment. This meant that the mine had limited storage capacity to capture and store surface water runoff and mine water. On March 21, 2025, Metropolitan Collieries Pty Ltd was sentenced for the three offenses as follows: 1) the Court imposed fines in the total sum of $ 0.2 million; 2) the Court ordered Metropolitan Collieries Pty Ltd to pay the EPA’s costs of the proceedings and the EPA’s investigation costs in the sum of $ 0.3 million; and 3) to publish notices of the convictions and the fines imposed. Arbitration Relating to Terminated Anglo Acquisition . On November 25, 2024, Peabody entered into 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 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 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. Peabody Energy Corporation 2025 Form 10-K F-50 Table of Contents PEABODY ENERGY CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) 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. Metropolitan Mine Aboriginal Land Claim Appeal . An Aboriginal land claim lodged under the Aboriginal Land Rights Act 1983 (NSW) for vacant Crown land, seeking freehold ownership of part of the Metropolitan Mine, was previously assessed and refused by the NSW Minister for Crown Lands. The claimant Aboriginal Land Council has now appealed that decision to the New South Wales (NSW) Land and Environment Court. The area subject to the claim encompasses several pieces of mine surface infrastructure, including the mine access road, car park, and the surface water extraction point with associated pumping infrastructure. This matter is ongoing. 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. (21) Segment and Geographic 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. The Company’s seaborne operating platform is primarily export focused with customers spread across several countries, with a portion of its thermal and metallurgical coal sold within Australia. Generally, revenue from individual countries varies year by year based on electricity and steel demand, the strength of the global economy, governmental policies and several other factors, including those specific to each country. The Company classifies its seaborne mines within the Seaborne Thermal or Seaborne Metallurgical reportable segments based on the primary customer base and coal reserve type of each mining operation. A small portion of the coal mined by the Seaborne Thermal reportable segment is of a metallurgical grade. Similarly, a small portion of the coal mined by the Seaborne Metallurgical reportable segment is of a thermal grade. Additionally, the Company may market some of its metallurgical coal products as a thermal coal product from time to time depending on market conditions. The Company’s Seaborne Thermal operations consist of mines in New South Wales, Australia. The mines in that reportable segment utilize surface extraction processes to mine low-sulfur, high Btu thermal coal. Prior to September 2025, when the Wambo Underground Mine ceased production, the reportable segment also used underground extraction processes. The Company’s Seaborne Metallurgical operations consist of mines in Queensland, Australia, one in New South Wales, Australia and one in Alabama, USA. The mines in that reportable segment utilize both surface and underground extraction processes to mine various qualities of metallurgical coal. The metallurgical coal qualities include hard coking coal, semi-hard coking coal, semi-soft coking coal and pulverized coal injection coal. The Company’s thermal operations in the U.S. are focused on the mining, preparation and sale of thermal coal, sold primarily to electric utilities in the U.S. under long-term contracts, with a relatively small portion sold as international exports as conditions warrant. The Company’s Powder River Basin operations consist of its mines in Wyoming. The mines in that reportable segment are characterized by surface mining extraction processes, coal with a lower sulfur content and Btu and higher customer transportation costs (due to longer shipping distances). The Company’s Other U.S. Thermal operations reflect the aggregation of its Illinois, Indiana, New Mexico and Colorado mining operations. The mines in that reportable segment are characterized by a mix of surface and underground mining extraction processes, coal with a higher sulfur content and Btu and lower customer transportation costs (due to shorter shipping distances). Geologically, the Company’s Powder River Basin operations mine sub-bituminous coal deposits and its Other U.S. Thermal operations mine both bituminous and sub-bituminous coal deposits. Peabody Energy Corporation 2025 Form 10-K F-51 Table of Contents PEABODY ENERGY CORPORATION NOTES TO 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. Reportable s egment results for the year ended December 31, 2025 were as follows: Seaborne Thermal Seaborne Metallurgical Powder River Basin Other U.S. Thermal Reportable Segment Totals (Dollars in millions) Revenue $ 908.5 $ 1,036.6 $ 1,153.0 $ 707.3 $ 3,805.4 Less Significant Segment Expenses: Labor costs 140.3 246.1 212.7 205.3 Repair costs 113.0 195.6 145.4 150.0 Outside services 111.5 355.0 130.3 147.7 Commodities expense 80.6 58.7 160.8 76.3 Sales related costs 196.3 238.2 281.1 43.1 Other expenses (1) 44.6 ( 113.4 ) 46.9 13.5 Adjusted EBITDA 222.2 56.4 175.8 71.4 525.8 Additions to property, plant, equipment and mine development 39.8 309.4 33.1 24.0 406.3 Reportable segment results for the year ended December 31, 2024 were as follows: Seaborne Thermal Seaborne Metallurgical Powder River Basin Other U.S. Thermal Reportable Segment Totals (Dollars in millions) Revenue $ 1,213.9 $ 1,055.6 $ 1,098.8 $ 822.6 $ 4,190.9 Less Significant Segment Expenses: Labor costs 157.2 212.7 206.8 218.6 Repair costs 152.8 190.8 131.7 141.0 Outside services 128.7 258.9 123.2 146.8 Commodities expense 88.6 59.6 158.5 77.0 Sales related costs 224.3 231.6 297.5 53.0 Other expenses (1) 32.3 ( 140.5 ) 42.5 35.4 Adjusted EBITDA 430.0 242.5 138.6 150.8 961.9 Additions to property, plant, equipment and mine development 73.2 266.6 35.0 18.6 393.4 Peabody Energy Corporation 2025 Form 10-K F-52 Table of Contents PEABODY ENERGY CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Reportable segment results for the year ended December 31, 2023 were as follows: Seaborne Thermal Seaborne Metallurgical Powder River Basin Other U.S. Thermal Reportable Segment Totals (Dollars in millions) Revenue $ 1,329.7 $ 1,301.9 $ 1,198.1 $ 888.2 $ 4,717.9 Less Significant Segment Expenses: Labor costs 148.8 187.2 201.1 218.8 Repair costs 154.4 151.3 154.9 153.4 Outside services 122.7 205.1 138.0 176.2 Commodities expense 97.0 61.5 180.2 102.7 Sales related costs 207.4 259.0 341.9 58.7 Other expenses (1) 22.6 ( 0.3 ) 28.3 ( 29.1 ) Adjusted EBITDA 576.8 438.1 153.7 207.5 1,376.1 Additions to property, plant, equipment and mine development 62.0 186.4 40.9 47.6 336.9 (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 year ended December 31, 2024, the Seaborne Metallurgical reportable 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 reportable segment as such information is not regularly reviewed by the Company’s CODM. Further, some assets service more than one reportable segment within the division and an allocation of such assets would not be meaningful or representative on a reportable segment by reportable 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: December 31, 2025 2024 2023 (Dollars in millions) Seaborne $ 2,543.4 $ 2,465.3 $ 2,088.2 U.S. Thermal 1,301.7 1,346.9 1,373.2 Corporate and Other 1,962.1 2,141.5 2,500.7 Total assets $ 5,807.2 $ 5,953.7 $ 5,962.1 The Company defines its long-lived assets as its property, plant, equipment and mine development, net and operating lease right-of-use assets. The following table presents the geographic location of the Company’s long-lived assets: December 31, 2025 2024 2023 (Dollars in millions) U.S. $ 1,334.4 $ 1,432.1 $ 1,523.1 Australia 1,818.9 1,649.4 1,321.0 Property, plant, equipment and mine development, net $ 3,153.3 $ 3,081.5 $ 2,844.1 U.S. $ 96.0 $ 85.6 $ 28.7 Australia 25.1 33.7 33.1 Other 0.1 — 0.1 Operating lease right-of-use assets $ 121.2 $ 119.3 $ 61.9 Peabody Energy Corporation 2025 Form 10-K F-53 Table of Contents PEABODY ENERGY CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) A reconciliation of reportable segment totals follows: Year Ended December 31, 2025 2024 2023 (Dollars in millions) Revenue from reportable segments $ 3,805.4 $ 4,190.9 $ 4,717.9 Reconciling items Corporate and Other (1) 56.1 45.8 228.8 Revenue $ 3,861.5 $ 4,236.7 $ 4,946.7 Adjusted EBITDA from reportable segments $ 525.8 $ 961.9 $ 1,376.1 Reconciling items Corporate and Other (1) ( 70.9 ) ( 90.2 ) ( 12.2 ) Depreciation, depletion and amortization ( 384.5 ) ( 343.0 ) ( 321.4 ) Asset retirement obligation expenses ( 36.5 ) ( 48.9 ) ( 50.5 ) Restructuring charges ( 9.5 ) ( 4.4 ) ( 3.3 ) Costs related to terminated acquisition ( 78.9 ) ( 10.3 ) — Shoal Creek insurance recovery - property damage — 28.7 — Changes in amortization of basis difference related to equity affiliates 2.7 1.8 1.6 Other operating loss ( 5.6 ) ( 3.7 ) ( 42.9 ) Interest expense, net of capitalized interest ( 43.9 ) ( 46.9 ) ( 59.8 ) Net loss on early debt extinguishment — — ( 8.8 ) Interest income 55.4 71.0 76.8 Net mark-to-market adjustment on actuarially determined liabilities 5.4 6.1 0.3 Unrealized gains on derivative contracts related to forecasted sales — — 159.0 Unrealized gains (losses) on foreign currency option contracts 6.0 ( 9.0 ) 7.4 Take-or-pay contract-based intangible recognition 1.0 3.0 2.5 (Loss) income from continuing operations before incomes taxes $ ( 33.5 ) $ 516.1 $ 1,124.8 Additions to property, plant, equipment and mine development from reportable segments $ 406.3 $ 393.4 $ 336.9 Reconciling items Corporate and Other 5.1 7.9 11.4 Additions to property, plant, equipment and mine development $ 411.4 $ 401.3 $ 348.3 (1) Corporate and Other 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. Peabody Energy Corporation 2025 Form 10-K F-54 Table of Contents PEABODY ENERGY CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) The following table presents revenue as a percent of total revenue from external customers by geographic region: Year Ended December 31, 2025 2024 2023 U.S. 48.4 % 45.0 % 42.4 % Japan 15.9 % 18.8 % 14.7 % Australia 7.9 % 8.8 % 8.9 % China 7.5 % 11.3 % 10.9 % India 5.6 % 1.2 % 1.2 % Indonesia 2.2 % 2.4 % 2.0 % South Korea 2.2 % 0.6 % — % Taiwan 2.0 % 3.3 % 6.6 % Vietnam 1.8 % 0.9 % 2.4 % Brazil 1.5 % 2.0 % 3.6 % Belgium 1.0 % 1.3 % 0.6 % France 0.8 % 1.1 % 1.6 % Malaysia 0.6 % 1.5 % 0.9 % Germany 0.3 % 0.2 % 1.0 % Other 2.3 % 1.6 % 3.2 % Total 100.0 % 100.0 % 100.0 % The Company attributes revenue to individual countries based on the location of the physical delivery of the coal. Peabody Energy Corporation 2025 Form 10-K F-55 Table of Contents PEABODY ENERGY CORPORATION SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS Description Balance at Beginning of Period Charged to Costs and Expenses Deductions (1) Other (2) Balance at End of Period (Dollars in millions) Year Ended December 31, 2025 Reserves deducted from asset accounts: Reserve for materials and supplies $ 3.5 $ 2.9 $ ( 1.3 ) $ — $ 5.1 Tax valuation allowances 1,420.9 16.4 — 31.9 1,469.2 Year Ended December 31, 2024 Reserves deducted from asset accounts: Reserve for materials and supplies $ 7.2 $ 1.7 $ ( 5.4 ) $ — $ 3.5 Tax valuation allowances 1,473.5 ( 9.6 ) — ( 43.0 ) 1,420.9 Year Ended December 31, 2023 Reserves deducted from asset accounts: Reserve for materials and supplies 9.5 2.6 ( 4.9 ) — 7.2 Tax valuation allowances 1,451.0 0.6 — 21.9 1,473.5 (1) Reserves utilized, unless otherwise indicated. (2) Includes the impact of changes in the Australian dollar exchange rates. Peabody Energy Corporation 2025 Form 10-K F-56