Item 1. Financial Statements
Item 1. Financial Statements.
PEABODY ENERGY CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended March 31,
2026 2025
(Dollars in millions, except per share data)
Revenue $ 973.3 $ 937.0
Costs and expenses
Operating costs and expenses (exclusive of items shown separately below) 864.7 770.2
Depreciation, depletion and amortization 109.5 92.1
Asset retirement obligation expenses 13.6 13.6
Selling and administrative expenses 31.6 23.6
Restructuring charges 1.1 1.7
Costs related to terminated acquisition 3.0 2.4
Net gain on disposals ( 11.7 ) ( 5.2 )
Loss from equity affiliates 5.7 6.7
Operating (loss) profit ( 44.2 ) 31.9
Interest expense, net of capitalized interest 10.7 11.5
Interest income ( 13.1 ) ( 15.4 )
Net periodic benefit credit, excluding service cost ( 0.4 ) ( 7.4 )
(Loss) income from continuing operations before income taxes ( 41.4 ) 43.2
Income tax (benefit) provision ( 16.0 ) 4.9
(Loss) income from continuing operations, net of income taxes ( 25.4 ) 38.3
Loss from discontinued operations, net of income taxes ( 0.2 ) ( 0.3 )
Net (loss) income ( 25.6 ) 38.0
Less: Net income attributable to noncontrolling interests 6.8 3.6
Net (loss) income attributable to common stockholders $ ( 32.4 ) $ 34.4
(Loss) income from continuing operations:
Basic (loss) income per share $ ( 0.26 ) $ 0.29
Diluted (loss) income per share $ ( 0.26 ) $ 0.27
Net (loss) income attributable to common stockholders:
Basic (loss) income per share $ ( 0.27 ) $ 0.28
Diluted (loss) income per share $ ( 0.27 ) $ 0.27
See accompanying notes to unaudited condensed consolidated financial statements.
1
Table of Contents
PEABODY ENERGY CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME
Three Months Ended March 31,
2026 2025
(Dollars in millions)
Net (loss) income $ ( 25.6 ) $ 38.0
Postretirement plans (net of $ 0.0 tax provisions in each period)
( 2.8 ) ( 10.2 )
Foreign currency translation adjustment 1.1 0.4
Other comprehensive loss, net of income taxes ( 1.7 ) ( 9.8 )
Comprehensive (loss) income ( 27.3 ) 28.2
Less: Net income attributable to noncontrolling interests 6.8 3.6
Comprehensive (loss) income attributable to common stockholders $ ( 34.1 ) $ 24.6
See accompanying notes to unaudited condensed consolidated financial statements.
2
Table of Contents
PEABODY ENERGY CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
March 31, 2026 December 31, 2025
(Amounts in millions, except per share data)
ASSETS
Current assets
Cash and cash equivalents $ 492.5 $ 575.3
Accounts receivable, net of allowance for credit losses of $ 0.0 at March 31, 2026 and December 31, 2025
309.5 314.9
Inventories, net 405.5 383.2
Other current assets 303.8 285.4
Total current assets 1,511.3 1,558.8
Property, plant, equipment and mine development, net 3,129.9 3,153.3
Operating lease right-of-use assets 128.9 121.2
Restricted cash and collateral 811.3 844.1
Investments and other assets 126.3 127.6
Deferred income taxes 2.3 2.2
Total assets $ 5,710.0 $ 5,807.2
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Current portion of long-term debt $ 14.3 $ 15.2
Accounts payable and accrued expenses 795.6 827.0
Total current liabilities 809.9 842.2
Long-term debt, less current portion 320.9 321.2
Deferred income taxes 3.5 26.3
Asset retirement obligations, less current portion 694.4 692.8
Accrued postretirement benefit costs 108.8 109.2
Operating lease liabilities, less current portion 94.4 87.5
Other noncurrent liabilities 138.0 145.8
Total liabilities 2,169.9 2,225.0
Stockholders’ equity
Preferred Stock — $ 0.01 per share par value; 100.0 shares authorized, no shares issued or outstanding as of March 31, 2026 or December 31, 2025
— —
Series Common Stock — $ 0.01 per share par value; 50.0 shares authorized, no shares issued or outstanding as of March 31, 2026 or December 31, 2025
— —
Common Stock — $ 0.01 per share par value; 450.0 shares authorized, 189.6 shares issued and 121.8 shares outstanding as of March 31, 2026 and 189.3 shares issued and 121.6 shares outstanding as of December 31, 2025
1.9 1.9
Additional paid-in capital 4,010.3 4,004.8
Treasury stock, at cost — 67.8 and 67.7 common shares as of March 31, 2026 and December 31, 2025
( 1,930.6 ) ( 1,927.3 )
Retained earnings 1,314.2 1,355.9
Accumulated other comprehensive income 99.4 101.1
Peabody Energy Corporation stockholders’ equity 3,495.2 3,536.4
Noncontrolling interests 44.9 45.8
Total stockholders’ equity 3,540.1 3,582.2
Total liabilities and stockholders’ equity $ 5,710.0 $ 5,807.2
See accompanying notes to unaudited condensed consolidated financial statements.
3
Table of Contents
PEABODY ENERGY CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended March 31,
2026 2025
(Dollars in millions)
Cash Flows From Operating Activities
Net (loss) income $ ( 25.6 ) $ 38.0
Loss from discontinued operations, net of income taxes 0.2 0.3
(Loss) income from continuing operations, net of income taxes ( 25.4 ) 38.3
Adjustments to reconcile (loss) income from continuing operations, net of income taxes to net cash provided by operating activities:
Depreciation, depletion and amortization 109.5 92.1
Noncash interest expense, net 1.4 1.6
Deferred income taxes ( 22.8 ) ( 3.9 )
Noncash share-based compensation 5.4 2.7
Net gain on disposals ( 11.7 ) ( 5.2 )
Loss from equity affiliates 5.7 6.7
Unrealized gains on foreign currency option contracts ( 0.3 ) ( 4.3 )
Changes in current assets and liabilities:
Accounts receivable 11.9 84.5
Inventories ( 22.3 ) ( 24.6 )
Other current assets ( 12.7 ) 37.4
Accounts payable and accrued expenses ( 3.1 ) ( 89.7 )
Collateral arrangements ( 0.5 ) ( 0.4 )
Asset retirement obligations 1.6 1.3
Postretirement benefit obligations ( 3.3 ) ( 11.4 )
Pension obligations 0.4 ( 4.9 )
Other, net ( 3.2 ) 0.3
Net cash provided by continuing operations 30.6 120.5
Net cash used in discontinued operations ( 0.6 ) ( 0.6 )
Net cash provided by operating activities 30.0 119.9
4
Table of Contents
PEABODY ENERGY CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - (Continued)
Three Months Ended March 31,
2026 2025
(Dollars in millions)
Cash Flows From Investing Activities
Additions to property, plant, equipment and mine development ( 85.4 ) ( 70.4 )
Changes in accrued expenses related to capital expenditures ( 37.1 ) ( 38.6 )
Proceeds from disposal of assets, net of receivables 5.4 7.2
Contributions to joint ventures ( 165.6 ) ( 138.3 )
Distributions from joint ventures 160.2 150.8
Other, net ( 1.0 ) ( 0.3 )
Net cash used in investing activities ( 123.5 ) ( 89.6 )
Cash Flows From Financing Activities
Repayments of long-term debt ( 2.4 ) ( 2.8 )
Payment of debt issuance and other deferred financing costs — ( 1.7 )
Repurchase of employee common stock relinquished for tax withholding ( 3.3 ) ( 0.8 )
Dividends paid ( 9.2 ) ( 9.1 )
Distributions to noncontrolling interests ( 7.7 ) ( 14.7 )
Net cash used in financing activities ( 22.6 ) ( 29.1 )
Net change in cash, cash equivalents and restricted cash ( 116.1 ) 1.2
Cash, cash equivalents and restricted cash at beginning of period (1)
1,284.5 1,382.6
Cash, cash equivalents and restricted cash at end of period (2)
$ 1,168.4 $ 1,383.8
(1) The following table provides a reconciliation of “Cash, cash equivalents and restricted cash at beginning 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 beginning of period $ 1,284.5
(2) The following table provides a reconciliation of “Cash, cash equivalents and restricted cash at end of period”:
Cash and cash equivalents $ 492.5
Restricted cash included in “Restricted cash and collateral” 675.9
Cash, cash equivalents and restricted cash at end of period $ 1,168.4
See accompanying notes to unaudited condensed consolidated financial statements.
5
Table of Contents
PEABODY ENERGY CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
Three Months Ended March 31,
2026 2025
(Dollars in millions, except per share data)
Common Stock
Balance, beginning of period $ 1.9 $ 1.9
Balance, end of period 1.9 1.9
Additional paid-in capital
Balance, beginning of period 4,004.8 3,990.5
Dividend equivalent units on dividends declared 0.1 0.2
Share-based compensation for equity-classified awards 5.4 2.7
Balance, end of period 4,010.3 3,993.4
Treasury stock
Balance, beginning of period ( 1,927.3 ) ( 1,926.5 )
Repurchase of employee common stock relinquished for tax withholding ( 3.3 ) ( 0.8 )
Balance, end of period ( 1,930.6 ) ( 1,927.3 )
Retained earnings
Balance, beginning of period 1,355.9 1,445.8
Net (loss) income attributable to common stockholders ( 32.4 ) 34.4
Dividends declared ($ 0.075 and $ 0.075 per share, respectively)
( 9.3 ) ( 9.3 )
Balance, end of period 1,314.2 1,470.9
Accumulated other comprehensive income
Balance, beginning of period 101.1 138.8
Postretirement plans (net of $ 0.0 tax provisions in each period)
( 2.8 ) ( 10.2 )
Foreign currency translation adjustment 1.1 0.4
Balance, end of period 99.4 129.0
Noncontrolling interests
Balance, beginning of period 45.8 58.3
Net income attributable to noncontrolling interests 6.8 3.6
Distributions to noncontrolling interests ( 7.7 ) ( 14.7 )
Balance, end of period 44.9 47.2
Total stockholders’ equity $ 3,540.1 $ 3,715.1
See accompanying notes to unaudited condensed consolidated financial statements.
6
Table of Contents
PEABODY ENERGY CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(1) Basis of Presentation
The unaudited condensed consolidated financial statements include the accounts of Peabody Energy Corporation (PEC) and its consolidated subsidiaries and affiliates (along with PEC, the Company or Peabody). Interests in subsidiaries controlled by the Company are consolidated with any outside stockholder interests reflected as noncontrolling interests, except when the Company has an undivided interest in a joint venture. In those cases, the Company includes its proportionate share in the assets, liabilities, revenue and expenses of the jointly controlled entities within each applicable line item of the unaudited condensed consolidated financial statements. All intercompany transactions, profits and balances have been eliminated in consolidation.
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements and should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. In the opinion of management, these financial statements reflect all normal, recurring adjustments necessary for a fair presentation. Balance sheet information presented herein as of December 31, 2025 has been derived from the Company’s audited consolidated balance sheet at that date. The Company’s consolidated results of operations for the three months ended March 31, 2026 are not necessarily indicative of the results that may be expected for future quarters or for the year ending December 31, 2026.
(2) Newly Adopted Accounting Standards and Accounting Standards Not Yet Implemented
Newly Adopted Accounting Standards
Induced Conversions of Convertible Debt . In November 2024, Accounting Standards Update (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 adopted this ASU on January 1, 2026. The adoption of this ASU had no impact to the Company’s consolidated results of operations, cash flows, financial condition or disclosures, but would in the future if there are induced conversions.
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.
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. U.S. GAAP did not provide such guidance, and many business entities have been analogizing to International Accounting Standard 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.
(3) Revenue Recognition
Refer to Note 1. “Summary of Significant Accounting Policies” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, for the Company’s policies regarding “Revenue” and “Accounts receivable, net.”
7
Table of Contents
PEABODY ENERGY CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Disaggregation of Revenue
Revenue by product type and market is set forth in the following tables. With respect to its seaborne reportable segments, the Company classifies as “Export” certain revenue from domestically-delivered coal under contracts in which the price is derived on a basis similar to export contracts.
Three Months Ended March 31, 2026
Seaborne Thermal Seaborne Metallurgical Powder River Basin Other U.S. Thermal Corporate and Other (1)
Consolidated
(Dollars in millions)
Thermal coal
Domestic $ 35.5 $ — $ 289.5 $ 184.5 $ — $ 509.5
Export 161.8 — — — — 161.8
Total thermal 197.3 — 289.5 184.5 — 671.3
Metallurgical coal
Export — 282.3 — — — 282.3
Total metallurgical — 282.3 — — — 282.3
Other 0.2 0.7 — — 18.8 19.7
Revenue $ 197.5 $ 283.0 $ 289.5 $ 184.5 $ 18.8 $ 973.3
Three Months Ended March 31, 2025
Seaborne Thermal Seaborne Metallurgical Powder River Basin Other U.S. Thermal Corporate and Other (1)
Consolidated
(Dollars in millions)
Thermal coal
Domestic $ 37.7 $ — $ 275.5 $ 168.7 $ — $ 481.9
Export 227.3 — — — — 227.3
Total thermal 265.0 — 275.5 168.7 — 709.2
Metallurgical coal
Export — 219.7 — — — 219.7
Total metallurgical — 219.7 — — — 219.7
Other 0.1 0.4 0.1 — 7.5 8.1
Revenue $ 265.1 $ 220.1 $ 275.6 $ 168.7 $ 7.5 $ 937.0
(1) Corporate and Other includes the following:
Three Months Ended March 31,
2026 2025
(Dollars in millions)
Revenue from physical sale of coal (2)
$ 13.7 $ 4.0
Other 5.1 3.5
Total Corporate and Other $ 18.8 $ 7.5
(2) Includes revenue recognized upon the physical sale of coal purchased from the Company’s reportable segments and sold to customers through the Company’s coal trading business. Primarily represents the difference between the price contracted with the customer and the price allocated to the reportable segment.
8
Table of Contents
PEABODY ENERGY CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Accounts Receivable
“Accounts receivable, net” at March 31, 2026 and December 31, 2025 consisted of the following:
March 31, 2026 December 31, 2025
(Dollars in millions)
Trade receivables, net $ 254.1 $ 267.0
Miscellaneous receivables, net 55.4 47.9
Accounts receivable, net $ 309.5 $ 314.9
None of the above receivables included allowances for credit losses at March 31, 2026 or December 31, 2025. No charges for credit losses were recognized during the three months ended March 31, 2026 or 2025.
(4) Inventories
“Inventories, net” as of March 31, 2026 and December 31, 2025 consisted of the following:
March 31, 2026 December 31, 2025
(Dollars in millions)
Materials and supplies, net $ 172.5 $ 161.6
Saleable coal 154.2 126.0
Raw coal 78.8 95.6
Inventories, net $ 405.5 $ 383.2
Materials and supplies inventories, net presented above have been shown net of reserves of $ 5.2 million and $ 5.1 million as of March 31, 2026 and December 31, 2025, respectively.
(5) Equity Method Investments
The Company’s equity method investments include its interests in Middlemount Coal Pty Ltd. (Middlemount) and certain other equity method investments, including R3 Renewables II LLC (R3 II).
The table below summarizes the book value of those investments, which are reported in “Investments and other assets” in the condensed consolidated balance sheets, and the related “Loss from equity affiliates” in the unaudited condensed consolidated statements of operations:
Loss from Equity Affiliates
Book Value at Three Months Ended March 31,
March 31, 2026 December 31, 2025 2026 2025
(Dollars in millions)
Equity method investment related to Middlemount $ 44.0 $ 47.5 $ 4.5 $ 6.3
Other equity method investments — — 1.2 0.4
Total equity method investments $ 44.0 $ 47.5 $ 5.7 $ 6.7
Peabody has a 25 % equity interest in R3 II. The unrelated party with the remaining equity interest in R3 II has a contingent consideration for the future obligation to pay Peabody milestone payments as defined when R3 II was established in 2024.
(6) Derivatives and Fair Value Measurements
Derivatives
From time to time, the Company may utilize various types of derivative instruments to manage its exposure to risks in the normal course of business, including (1) foreign currency exchange rate risk and the variability of cash flows associated with forecasted Australian dollar expenditures made in its Australian mining platform and (2) price risk of fluctuating coal prices related to forecasted sales or purchases of coal, or changes in the fair value of a fixed price physical sales contract. These risk management activities are actively monitored for compliance with the Company’s risk management policies.
9
Table of Contents
PEABODY ENERGY CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
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 March 31, 2026, the Company held average rate options with an aggregate notional amount of $ 528.0 million Australian dollars to hedge currency risk associated with anticipated Australian dollar operating expenditures over the nine-month period ending December 31, 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 $ 0.71 to $ 0.76 over the nine-month period ending December 31, 2026. As of March 31, 2026, the Company also held purchased collars with an aggregate notional amount of $ 539.0 million Australian dollars related to anticipated Australian dollar operating expenditures during the nine-month period ending December 31, 2026. The purchased collars have a floor ranging from $ 0.60 to $ 0.66 and a ceiling ranging from $ 0.70 to $ 0.76 , whereby the Company will incur a loss on the instruments for quarterly average Australian dollar-to-U.S. dollar exchange rates below the floor and a gain for quarterly average rates above the ceiling.
Tabular Derivatives Disclosures
The Company has master netting agreements with certain of its counterparties which allow for the settlement of contracts in an asset position with contracts in a liability position in the event of default or termination. Such netting arrangements reduce the Company’s credit exposure related to these counterparties. For classification purposes, the Company records the net fair value of all the positions with a given counterparty as a net asset or liability in the condensed consolidated balance sheets. As of March 31, 2026, the Company had an asset derivative comprised of foreign currency option contracts with a fair value of $ 3.0 million. 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. The net amount of asset derivatives is included in “Other current assets” and the net amount of liability derivatives is included in “Accounts payable and accrued expenses” in the accompanying condensed consolidated balance sheets.
The Company does not seek cash flow hedge accounting treatment for its derivative financial instruments and, thus, changes in fair value are reflected in current earnings. The tables below show the amounts of pretax gains and losses related to the Company’s derivatives and their classification within the accompanying unaudited condensed consolidated statements of operations.
Three Months Ended March 31, 2026
Total gain recognized in income Gain 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 $ 0.6 $ 0.3 $ 0.3
Total $ 0.6 $ 0.3 $ 0.3
Three Months Ended March 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 $ 3.6 $ ( 0.7 ) $ 4.3
Total $ 3.6 $ ( 0.7 ) $ 4.3
The Company classifies derivative-related activity within the “Cash Flows From Operating Activities” section of the unaudited condensed consolidated statements of cash flows.
10
Table of Contents
PEABODY ENERGY CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
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.
The following tables set forth the hierarchy of the Company’s net asset positions for which fair value is measured on a recurring basis.
March 31, 2026
Level 1 Level 2 Level 3 Total
(Dollars in millions)
Foreign currency option contracts $ — $ 3.0 $ — $ 3.0
Total net assets $ — $ 3.0 $ — $ 3.0
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
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.
Other Financial Instruments . The following methods and assumptions were used by the Company in estimating fair values for other financial instruments as of March 31, 2026 and December 31, 2025:
• 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.
March 31, 2026 December 31, 2025
(Dollars in millions)
Total debt at par value $ 339.1 $ 340.8
Less: Unamortized debt issuance costs ( 3.9 ) ( 4.4 )
Net carrying amount $ 335.2 $ 336.4
Estimated fair value $ 605.8 $ 557.8
The Company had no transfers between Levels 1, 2 and 3 during the three months ended March 31, 2026 and 2025. The Company’s policy is to value all transfers between levels using the beginning of period valuation.
11
Table of Contents
PEABODY ENERGY CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(7) Property, Plant, Equipment and Mine Development
The composition of property, plant, equipment and mine development, net, as of March 31, 2026 and December 31, 2025 is set forth in the table below:
March 31, 2026 December 31, 2025
(Dollars in millions)
Land and coal interests $ 2,689.3 $ 2,691.2
Buildings and improvements 760.5 758.8
Machinery and equipment 2,405.9 2,377.1
Less: Accumulated depreciation, depletion and amortization ( 2,725.8 ) ( 2,673.8 )
Property, plant, equipment and mine development, net $ 3,129.9 $ 3,153.3
At-Risk Assets
The Company identified certain assets with an aggregate carrying value of approximately $ 60 million at March 31, 2026 in its Other U.S. Thermal segment whose recoverability is most sensitive to customer concentration risk.
(8) Income Taxes
The Company's effective tax rate before remeasurement for the three months ended March 31, 2026 is based on the Company’s estimated full year effective tax rate, comprised of expected statutory tax provision, offset by foreign rate differential and changes in valuation allowance. The Company’s income tax benefit of $ 16.0 million and income tax provision of $ 4.9 million for the three months ended March 31, 2026 and 2025, respectively, included a tax benefit of $ 0.2 million and a tax provision of $ 0.5 million, respectively, related to the remeasurement of foreign income tax accounts. Due to existing valuation allowances, the income tax (benefit) provision is primarily related to the Australian results of operations.
(9) Long-term Debt
The Company’s total indebtedness as of March 31, 2026 and December 31, 2025 consisted of the following:
Debt Instrument (defined below, as applicable) March 31, 2026 December 31, 2025
(Dollars in millions)
3.250 % Convertible Senior Notes due March 2028 (2028 Convertible Notes)
$ 320.0 $ 320.0
Finance lease obligations 19.1 20.8
Less: Debt issuance costs ( 3.9 ) ( 4.4 )
335.2 336.4
Less: Current portion of long-term debt 14.3 15.2
Long-term debt $ 320.9 $ 321.2
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 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.
12
Table of Contents
PEABODY ENERGY CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
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 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, which represented an adjusted conversion price of approximately $ 19.09 per share. Under the applicable conversion rate formula, the $ 0.075 per share dividend declared and paid since the prior conversion rate adjustment yielded a revised conversion rate of 52.5028 shares per $ 1,000 principal amount of 2028 Convertible Notes, which did not meet the 1 % threshold to impact the existing conversion rate of 52.3853 . The conversion rate may be impacted prospectively, based upon cumulative dividends paid. The conversion rate is also subject to further adjustment under certain circumstances in accordance with the terms of the indenture.
During both the fourth quarter of 2025 and the first quarter of 2026, the Company’s reported common stock prices prompted the conversion feature of the 2028 Convertible Notes. As a result, the 2028 Convertible Notes were convertible at the option of the holders during the first quarter of 2026, for which no conversion requests were received, and remain convertible during the second quarter of 2026. It is the Company’s current intent 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 condensed consolidated balance sheets. Through May 4, 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 March 31, 2026, the if-converted value of the 2028 Convertible Notes exceeded the principal amount by $ 232.4 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 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.
As of March 31, 2026, the 2024 Credit Agreement had only been utilized for letters of credit, including $ 49.2 million outstanding as of March 31, 2026. 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 12. “Financial Instruments and Other Guarantees.” Availability under the 2024 Credit Agreement was $ 270.8 million at March 31, 2026.
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.
13
Table of Contents
PEABODY ENERGY CORPORATION
NOTES TO UNAUDITED CONDENSED 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.
Three Months Ended March 31,
2026 2025
(Dollars in millions)
2028 Convertible Notes $ 2.6 $ 2.6
Finance lease obligations 0.3 0.4
Financial assurance instruments 6.7 7.2
Amortization of debt issuance costs 1.4 1.4
Receivables securitization program 0.6 0.6
Capitalized interest ( 2.1 ) ( 2.2 )
Other 1.2 1.5
Interest expense, net of capitalized interest $ 10.7 $ 11.5
Cash paid for interest, net of capitalized interest $ 9.9 $ 9.9
Non-cash interest expense $ 1.4 $ 1.6
Covenant Compliance
The Company was compliant with all relevant covenants under its debt and other finance agreements at March 31, 2026.
(10) Pension and Postretirement Benefit Costs
The components of net periodic pension, postretirement benefit and workers’ compensation costs, excluding the service cost for benefits earned, are included in “Net periodic benefit credit, excluding service cost” in the unaudited condensed consolidated statements of operations.
The Company sponsors a qualified pension plan. Annual contributions to the qualified plan are made in accordance with minimum funding standards. Funding decisions also consider certain funded status thresholds defined by the Pension Protection Act of 2006. As of March 31, 2026, the qualified plan was expected to be at or above the Pension Protection Act thresholds. The Company expects to contribute $ 2.0 million to the qualified plan in 2026 to maintain these thresholds and meet minimum funding requirements.
Net periodic postretirement benefit credit included the following components:
Three Months Ended March 31,
2026 2025
(Dollars in millions)
Service cost for benefits earned $ — $ 0.1
Interest cost on accumulated postretirement benefit obligation 1.6 2.0
Expected return on plan assets — ( 0.1 )
Amortization of prior service credit ( 2.8 ) ( 10.2 )
Net periodic postretirement benefit credit $ ( 1.2 ) $ ( 8.2 )
The Company has established a Voluntary Employees’ Beneficiary Association (VEBA) trust to pre-fund a portion of benefits for non-represented retirees. The Company does not expect to make any discretionary contributions to the VEBA trust in 2026 and plans to utilize a portion of VEBA assets to make certain benefit payments.
14
Table of Contents
PEABODY ENERGY CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(11) Earnings per Share (EPS)
Basic EPS is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted EPS is computed based on the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding. As such, the Company includes the 2028 Convertible Notes and share-based compensation awards in its potentially dilutive securities. Generally, dilutive securities are not included in the computation of loss per share when a company reports a net loss from continuing operations as the impact would be anti-dilutive.
For all but performance units, the potentially dilutive impact of the Company’s share-based compensation awards is determined using the treasury stock method. Under the treasury stock method, awards are treated as if they had been exercised with any proceeds used to repurchase common stock at the average market price during the period. Any incremental difference between the assumed number of shares issued and purchased is included in the diluted share computation. For performance units, their contingent features result in an assessment for any potentially dilutive common stock by using the end of the reporting period as if it were the end of the contingency period for all units granted.
A conversion of the 2028 Convertible Notes may result in payment in the Company’s common stock. For diluted EPS purposes, the potentially dilutive common stock is assumed to have been converted at the beginning of the period (or at the time of issuance, if later). In periods where the potentially dilutive common stock is included in the computation of diluted EPS, the numerator will be adjusted to add back tax adjusted interest expense, which includes the amortization of debt issuance costs, related to the convertible debt. The computation of diluted EPS excluded 16.8 million shares related to the 2028 Convertible Notes for the three months ended March 31, 2026, because their inclusion would have been anti-dilutive for those periods.
The computation of diluted EPS also excluded aggregate share-based compensation awards of 1.3 million shares and 0.3 million shares for the three months ended March 31, 2026 and 2025, respectively, 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.
15
Table of Contents
PEABODY ENERGY CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The following illustrates the earnings allocation method utilized in the calculation of basic and diluted EPS.
Three Months Ended March 31,
2026 2025
(In millions, except per share data)
Basic EPS numerator:
(Loss) income from continuing operations, net of income taxes $ ( 25.4 ) $ 38.3
Less: Net income attributable to noncontrolling interests 6.8 3.6
(Loss) income from continuing operations attributable to common stockholders ( 32.2 ) 34.7
Loss from discontinued operations, net of income taxes ( 0.2 ) ( 0.3 )
Net (loss) income attributable to common stockholders $ ( 32.4 ) $ 34.4
Diluted EPS numerator:
(Loss) income from continuing operations, net of income taxes $ ( 25.4 ) $ 38.3
Add: Tax adjusted interest expense related to 2028 Convertible Notes — 3.1
Less: Net income attributable to noncontrolling interests 6.8 3.6
(Loss) income from continuing operations attributable to common stockholders ( 32.2 ) 37.8
Loss from discontinued operations, net of income taxes ( 0.2 ) ( 0.3 )
Net (loss) income attributable to common stockholders $ ( 32.4 ) $ 37.5
EPS denominator:
Weighted average shares outstanding — basic
122.0 121.7
Dilutive impact of share-based compensation awards — 0.6
Dilutive impact of 2028 Convertible Notes — 16.4
Weighted average shares outstanding — diluted 122.0 138.7
Basic EPS attributable to common stockholders:
(Loss) income from continuing operations $ ( 0.26 ) $ 0.29
Loss from discontinued operations ( 0.01 ) ( 0.01 )
Net (loss) income attributable to common stockholders $ ( 0.27 ) $ 0.28
Diluted EPS attributable to common stockholders:
(Loss) income from continuing operations $ ( 0.26 ) $ 0.27
Loss from discontinued operations ( 0.01 ) —
Net (loss) income attributable to common stockholders $ ( 0.27 ) $ 0.27
(12) Financial Instruments and Other Guarantees
In the normal course of business, the Company is a party to various guarantees and financial instruments that carry off-balance-she et risk and are not reflected in the accompanying condensed consolidated balance sheets. Such financial instruments provide support for the Company’s reclamation bonding requirements, lease obligations, insurance policies and various other performance guarantees. The Company periodically evaluates the instruments for on-balance-sheet treatment based on the amount of exposure under the instrument and the likelihood of required performance. The Company does not expect any material losses to result from these guarantees or off-balance-sheet instruments in excess of liabilities provided for in the accompanying condensed consolidated balance sheets.
16
Table of Contents
PEABODY ENERGY CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The following table summarizes the Company’s financial instruments that carry off-balance-sheet risk.
March 31, 2026
Reclamation Support Other Support (1)
Total
(Dollars in millions)
Surety bonds $ 937.5 $ 82.1 $ 1,019.6
Letters of credit (2)
53.5 61.7 115.2
991.0 143.8 1,134.8
Less: Letters of credit in support of surety bonds (3)
( 53.5 ) ( 1.7 ) ( 55.2 )
Obligations supported, net $ 937.5 $ 142.1 $ 1,079.6
(1) Instruments support obligations related to leases, health care plans, workers’ compensation, property and casualty insurance, customer and vendor contracts and certain restoration ancillary to prior mining activities.
(2) Amounts do not include cash-collateralized letters of credit.
(3) Certain letters of credit serve as collateral for surety bonds at the request of surety bond providers.
Surety Agreement Amendment and Collateral Requirements
In April 2023, the Company amended its existing agreement with the providers of its surety bond portfolio, dated November 6, 2020. Under the April 2023 amendment, the Company and its surety providers agreed to a maximum aggregate collateral amount based upon bonding levels which will vary prospectively as bonding levels increase or decrease. The amendment also extended the agreement through December 31, 2026. In order to maintain the maximum collateral agreement, the Company must remain compliant with a minimum liquidity test and a maximum net leverage ratio, as measured each quarter. The minimum liquidity test requires the Company to maintain liquidity at the greater of $ 400 million or the difference between the penal sum of all surety bonds included within the surety bond portfolio and the amount of collateral posted in favor of surety providers, which was $ 479.0 million at March 31, 2026. 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 March 31, 2026.
At March 31, 2026, the Company’s maximum aggregate collateral amount was $ 504.1 million , which was comprised of $ 377.7 million in trust accounts and letters of credit of $ 126.4 million held for the benefit of certain surety providers.
Accounts Receivable Securitization
In 2017, the Company entered into the Sixth Amended and Restated Receivables Purchase Agreement, as amended from time to time. The receivables securitization program authorized under the agreement (Securitization Program) is subject to customary events of default. The Securitization Program provides up to $ 225.0 million of funding capacity which is accounted for as a secured borrowing, limited to the availability of eligible receivables, and may be secured by a combination of collateral and the trade receivables underlying the program. Funding capacity under the Securitization Program may also be utilized for letters of credit in support of other obligations, which has been the Company’s primary utilization. The accounts receivable securitization program was amended in January 2025 to extend its maturity to January 2028. 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 March 31, 2026, the Company had no outstanding borrowings and $ 66.0 million of letters of credit outstanding under the Securitization Program. Availability under the Securitization Program, which is adjusted for certain ineligible receivables, was $ 104.9 million at March 31, 2026. The Company was not required to post cash collateral under the Securitization Program at March 31, 2026.
The Company incurred interest and fees associated with the Securitization Program of $ 0.6 million during the three months ended March 31, 2026 and 2025, which have been recorded as “Interest expense, net of capitalized interest” in the accompanying unaudited condensed consolidated statements of operations.
17
Table of Contents
PEABODY ENERGY CORPORATION
NOTES TO UNAUDITED CONDENSED 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. 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 March 31, 2026, letters of credit of $ 78.1 million were outstanding under the agreement.
In December 2023, the Company established cash-backed bank guarantee facilities, primarily to support Australian reclamation bonding requirements. At March 31, 2026, guarantees of $ 218.5 million were issued for which the Company receives a variable deposit rate on the amount of cash collateral posted in support of the facilities, which mature at various dates between 2026 and 2030.
Restricted Cash and Collateral
The following table summarizes the Company’s “Restricted cash and collateral” in the accompanying condensed consolidated balance sheets. Restricted cash balances are held in controlled accounts with minimum balance requirements; withdrawals are subject to the approval of account beneficiaries, such as the Company’s surety providers, who have perfected security interests in the funds. The Company’s other cash collateral generally includes deposits held by regulatory authorities or financial institutions over which the Company has no control or ability to access. Portions of the restricted cash balances and deposits are held in accounts denominated in Australian dollars.
March 31, 2026 December 31, 2025
(Dollars in millions)
Restricted cash (1)
Surety trust accounts (2)
$ 377.7 $ 383.6
Credit support facilities (2) (3)
298.2 325.6
675.9 709.2
Other cash collateral (1)
Deposits with regulatory authorities for reclamation and other obligations (3)
135.4 134.9
Restricted cash and collateral $ 811.3 $ 844.1
(1) Restricted cash balances are combined with unrestricted cash and cash equivalents in the accompanying unaudited condensed consolidated statements of cash flows; changes between unrestricted cash and cash equivalents and restricted cash balances are thus not reflected in the operating, investing or financing activities therein. Changes in other cash collateral balances are reflected as operating activities therein.
(2) Surety trust accounts, the funding for collateralized letters of credit and cash supporting the bank guarantee facilities are comprised of highly liquid investments with original maturities of three months or less; interest and other earnings on such funds accrue to the Company.
(3) At March 31, 2026, the Australian dollar denominated balances supporting the bank guarantee facilities and the deposits with regulatory authorities were $ 319 million and $ 198 million, respectively. 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.
(13) Commitments and Contingencies
Commitments
Unconditional Purchase Obligations
As of March 31, 2026, purchase commitments for capital expenditures were $ 51.9 million, all of which is obligated within the next 12 months.
There were no other material changes to the Company’s commitments from the information provided in Note 20. “Commitments and Contingencies” to the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.
18
Table of Contents
PEABODY ENERGY CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Contingencies
From time to time, the Company or its subsidiaries are involved in legal proceedings arising in the ordinary course of business or related to indemnities or historical operations. The Company believes it has recorded adequate reserves for these liabilities. The Company discusses its significant legal proceedings below, including ongoing proceedings and those that impacted the Company’s consolidated results of operations for the periods presented.
Litigation and Matters Relating to Continuing Operations
Arbitration Relating to Terminated Anglo American plc (Anglo) Acquisition. On November 25, 2024, Peabody entered into definitive agreements (the Purchase Agreements) to acquire from Anglo a portion of the assets and businesses associated with Anglo’s metallurgical coal portfolio in Australia, including Anglo’s interests in the Moranbah North and Grosvenor mines, the Moranbah South development project, the Capcoal complex, the Roper Creek mine and the Dawson complex (comprising the Dawson Main/Central operating mine, the Dawson South operating mine, the Dawson South Exploration project and the Theodore South exploration project, collectively, the Dawson Assets). The Company agreed to, following the prospective closing of the Anglo acquisition, sell the Dawson Assets to Pt Bukit Makmur Mandiri Utama or one of its subsidiaries (BUMA).
On August 19, 2025, Peabody terminated the Purchase Agreements. The termination of the Purchase Agreements followed Peabody’s prior delivery of a notice of a Material Adverse Change (MAC) as a result of an ignition event at the Moranbah North mine on March 31, 2025, which had led to the closure of the mine. Following Peabody’s termination of the Purchase Agreements, Anglo returned $ 29.0 million of the $ 75.0 million deposit previously paid by Peabody, and Peabody has demanded the outstanding portion of the deposit also be returned.
On September 23, 2025, various subsidiaries of Anglo initiated International Chamber of Commerce arbitration proceedings in London, United Kingdom, against Peabody and certain of its affiliates. Anglo’s complaint alleges, among other things, that Peabody wrongfully terminated the Purchase Agreements and seeks, among other things, declarations that the ignition event at the Moranbah North mine did not constitute a MAC, as well as damages for losses in an unspecified amount, plus costs and interest. Peabody remains confident that a MAC occurred, and that it was entitled to terminate the Purchase Agreements.
Other
At times, the Company becomes a party to other disputes, including those related to contract miner performance, claims, lawsuits, arbitration proceedings, regulatory investigations and administrative procedures in the ordinary course of business in the U.S., Australia and other countries where the Company does business. Based on current information, the Company believes that such other pending or threatened proceedings are likely to be resolved without a material adverse effect on its consolidated financial condition, results of operations or cash flows. The Company reassesses the probability and the ability to estimate contingent losses as new information becomes available.
(14) Segment Information
The Company reports its results of operations primarily through the following reportable segments: Seaborne Thermal, Seaborne Metallurgical, Powder River Basin and Other U.S. Thermal.
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.
19
Table of Contents
PEABODY ENERGY CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Reportable segment results were as follows:
Three Months Ended March 31, 2026
Seaborne Thermal Seaborne Metallurgical Powder River Basin Other U.S. Thermal Reportable Segment Totals
(Dollars in millions)
Revenue $ 197.5 $ 283.0 $ 289.5 $ 184.5 $ 954.5
Less Significant Segment Expenses:
Labor costs 35.7 71.2 60.1 51.3
Repair costs 29.4 64.5 36.6 32.4
Outside services 23.2 101.6 38.3 32.7
Commodities expense 21.1 13.2 50.9 22.9
Sales related costs 39.5 69.0 63.8 11.9
Other expenses (1)
0.1 ( 29.5 ) 16.1 ( 4.5 )
Adjusted EBITDA 48.5 ( 7.0 ) 23.7 37.8 103.0
Additions to property, plant, equipment and mine development 8.6 55.0 15.4 5.2 84.2
Three Months Ended March 31, 2025
Seaborne Thermal Seaborne Metallurgical Powder River Basin Other U.S. Thermal Reportable Segment Totals
(Dollars in millions)
Revenue $ 265.1 $ 220.1 $ 275.6 $ 168.7 $ 929.5
Less Significant Segment Expenses:
Labor costs 35.1 55.0 49.8 50.2
Repair costs 24.8 47.0 31.5 34.1
Outside services 26.8 72.1 31.1 35.8
Commodities expense 19.1 13.4 38.7 19.5
Sales related costs 54.6 54.0 75.3 10.0
Other expenses (1)
20.5 ( 34.6 ) 12.9 ( 13.8 )
Adjusted EBITDA 84.2 13.2 36.3 32.9 166.6
Additions to property, plant, equipment and mine development 8.5 53.2 3.9 4.6 70.2
(1) Other expenses 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 condensed consolidated balance sheet.
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:
March 31, 2026 December 31, 2025
(Dollars in millions)
Seaborne $ 2,537.4 $ 2,543.4
U.S. Thermal 1,318.1 1,301.7
Corporate and Other 1,854.5 1,962.1
Total assets $ 5,710.0 $ 5,807.2
20
Table of Contents
PEABODY ENERGY CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
A reconciliation of reportable segment totals follows:
Three Months Ended March 31,
2026 2025
(Dollars in millions)
Revenue from reportable segments $ 954.5 $ 929.5
Reconciling items
Corporate and Other 18.8 7.5
Revenue $ 973.3 $ 937.0
Adjusted EBITDA from reportable segments $ 103.0 $ 166.6
Reconciling items
Corporate and Other (1)
( 20.5 ) ( 22.6 )
Depreciation, depletion and amortization ( 109.5 ) ( 92.1 )
Asset retirement obligation expenses ( 13.6 ) ( 13.6 )
Restructuring charges ( 1.1 ) ( 1.7 )
Costs related to terminated acquisition ( 3.0 ) ( 2.4 )
Changes in amortization of basis difference related to equity affiliates 0.6 0.6
Interest expense, net of capitalized interest ( 10.7 ) ( 11.5 )
Interest income 13.1 15.4
Unrealized gains on foreign currency option contracts 0.3 4.3
Take-or-pay contract-based intangible recognition — 0.2
(Loss) income from continuing operations before incomes taxes $ ( 41.4 ) $ 43.2
Additions to property, plant, equipment and mine development from reportable segments $ 84.2 $ 70.2
Reconciling items
Corporate and Other 1.2 0.2
Additions to property, plant, equipment and mine development $ 85.4 $ 70.4
(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.
21
Table of Contents
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.