What changed in this filing

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Item 1. Financial Statements

2026-08-06 compared with 2026-05-06 · 309 added, 124 removed, 571 unchanged (43% of the section changed)

2 unchanged sentences

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended March 31,

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

2026 2025 2026 2025

(Dollars in millions, except per share data)

9 unchanged sentences

Loss from equity affiliates 9.9 0.9 15.6 7.6

Operating (loss) profit ( 44.2 ) 31.9

Operating loss ( 105.4 ) ( 38.4 ) ( 149.6 ) ( 6.5 )

Interest expense, net of capitalized interest 12.7 11.1 23.4 22.6

Induced conversion expense 17.2 — 17.2 —

Interest income ( 12.1 ) ( 13.8 ) ( 25.2 ) ( 29.2 )

16 unchanged sentences

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME

Three Months Ended March 31,

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

2026 2025 2026 2025

(Dollars in millions)

4 unchanged sentences

Other comprehensive loss, net of income taxes ( 2.3 ) ( 8.4 ) ( 4.0 ) ( 18.2 )

Comprehensive (loss) income ( 27.3 ) 28.2

Comprehensive loss ( 88.5 ) ( 34.4 ) ( 115.8 ) ( 6.2 )

Net income attributable to noncontrolling interests 4.4 1.6 11.2 5.2

Comprehensive (loss) income attributable to common stockholders $ ( 34.1 ) $ 24.6

Comprehensive loss attributable to common stockholders $ ( 92.9 ) $ ( 36.0 ) $ ( 127.0 ) $ ( 11.4 )

See accompanying notes to unaudited condensed consolidated financial statements.

1 unchanged sentence

CONDENSED CONSOLIDATED BALANCE SHEETS

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

(Amounts in millions, except per share data)

1 unchanged sentence

Cash and cash equivalents $ 526.3 $ 575.3

Accounts receivable, net of allowance for credit losses of $ 0.0 at March 31, 2026 and December 31, 2025

Accounts receivable, net of allowance for credit losses of $ 0.0 at June 30, 2026 and December 31, 2025

Inventories, net 440.3 383.2

21 unchanged sentences

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

100.0 shares authorized, no shares issued or outstanding as of June 30, 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

50.0 shares authorized, no shares issued or outstanding as of June 30, 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

450.0 shares authorized, 189.7 shares issued and 121.9 shares outstanding as of June 30, 2026 and 189.3 shares issued and 121.6 shares outstanding as of December 31, 2025

Additional paid-in capital 3,865.8 4,004.8

Treasury stock, at cost — 67.8 and 67.7 common shares as of March 31, 2026 and December 31, 2025

Treasury stock, at cost — 67.8 and 67.7 common shares as of June 30, 2026 and December 31, 2025

( 1,930.6 ) ( 1,927.3 )

8 unchanged sentences

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Three Months Ended March 31,

Six Months Ended June 30,

(Dollars in millions)

8 unchanged sentences

Noncash share-based compensation 8.6 5.3

Induced conversion expense 17.2 —

Net gain on disposals ( 16.1 ) ( 20.0 )

Loss from equity affiliates 15.6 7.6

Unrealized gains on foreign currency option contracts ( 0.3 ) ( 4.3 )

Unrealized losses (gains) on foreign currency option contracts 3.6 ( 8.4 )

Changes in current assets and liabilities:

5 unchanged sentences

Asset retirement obligations ( 0.4 ) 5.0

Workers’ compensation obligations ( 0.5 ) —

Postretirement benefit obligations ( 6.9 ) ( 22.9 )

6 unchanged sentences

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - (Continued)

Three Months Ended March 31,

Six Months Ended June 30,

(Dollars in millions)

8 unchanged sentences

Cash Flows From Financing Activities

Proceeds from long-term debt 360.0 —

Repayments of long-term debt ( 501.7 ) ( 7.6 )

Payment of debt issuance and other deferred financing costs ( 14.3 ) ( 1.8 )

Purchase of capped calls ( 16.7 ) —

Excise taxes paid related to common stock repurchases — ( 1.7 )

Repurchase of employee common stock relinquished for tax withholding ( 3.3 ) ( 0.8 )

18 unchanged sentences

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

Three Months Ended March 31,

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

2026 2025 2026 2025

(Dollars in millions, except per share data)

4 unchanged sentences

Dividend equivalent units on dividends declared 0.1 — 0.2 0.2

Conversion of 2028 Convertible Notes ( 131.1 ) — ( 131.1 ) —

Share-based compensation for equity-classified awards 3.2 2.6 8.6 5.3

Capped calls related to the issuance of 2031 Convertible Notes ( 16.7 ) — ( 16.7 ) —

Balance, end of period 3,865.8 3,996.0 3,865.8 3,996.0

35 unchanged sentences

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.

The Company’s consolidated results of operations for the three and six months ended June 30, 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

4 unchanged sentences

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.

During the second quarter of 2026, the Company completed an induced conversion of one of its convertible debt instruments.

The induced conversion was accounted for in accordance with ASU 2024‑04, and the related impact has been reflected in the Company’s consolidated financial statements for the period.

Accounting Standards Not Yet Implemented

11 unchanged sentences

Early adoption is permitted.

The Company will apply this guidance upon its adoption, as applicable.

The Company currently applies an accounting approach for government grants that is substantially aligned with the recognition and measurement provisions of the ASU.

Accordingly, the Company does not expect adoption to materially affect the recognition, measurement or presentation of these balances.

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Environmental Credits.

In May 2026, ASU 2026-02 was issued, which establishes guidance on the recognition, measurement, presentation and disclosure of environmental credits and environmental credit obligations.

The Company is required to adopt the amendments for fiscal years beginning after December 15, 2027, including interim periods within those years and must be applied on a retrospective basis by recognizing a cumulative effect to retained earnings.

Early adoption is permitted.

The Company will apply this guidance upon its adoption.

The Company currently applies an accounting approach for environmental credits and environmental credit obligations that is substantially aligned with the recognition and measurement provisions of the ASU.

Accordingly, the Company does not expect adoption to materially affect the recognition, measurement or presentation of these balances.

The Company expects the principal impact of adoption will be the incremental disclosures required by the ASU.

(3) Revenue Recognition

1 unchanged sentence

“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.”

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Disaggregation of Revenue

1 unchanged sentence

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

Three Months Ended June 30, 2026

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

9 unchanged sentences

Revenue $ 230.6 $ 358.3 $ 223.8 $ 163.2 $ 27.3 $ 1,003.2

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

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

9 unchanged sentences

Revenue $ 195.1 $ 252.2 $ 275.7 $ 155.1 $ 12.0 $ 890.1

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Six Months Ended June 30, 2026

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

Thermal Corporate and Other (1)

(Dollars in millions)

Domestic $ 75.7 $ — $ 511.8 $ 347.7 $ — $ 935.2

Export 352.2 — 1.5 — — 353.7

Total thermal 427.9 — 513.3 347.7 — 1,288.9

Metallurgical coal

Export — 640.5 — — — 640.5

Total metallurgical — 640.5 — — — 640.5

Other 0.2 0.8 — — 46.1 47.1

Revenue $ 428.1 $ 641.3 $ 513.3 $ 347.7 $ 46.1 $ 1,976.5

Six Months Ended June 30, 2025

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

Thermal Corporate and Other (1)

(Dollars in millions)

Domestic $ 73.5 $ — $ 551.2 $ 323.7 $ — $ 948.4

Export 386.6 — — — — 386.6

Total thermal 460.1 — 551.2 323.7 — 1,335.0

Metallurgical coal

Export — 471.6 — — — 471.6

Total metallurgical — 471.6 — — — 471.6

Other 0.1 0.7 0.1 0.1 19.5 20.5

Revenue $ 460.2 $ 472.3 $ 551.3 $ 323.8 $ 19.5 $ 1,827.1

(1) Corporate and Other includes the following:

Three Months Ended March 31,

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

2026 2025 2026 2025

(Dollars in millions)

Revenue from physical sale of coal (2)

$ 21.7 $ 7.8 $ 35.4 $ 11.8

Other 5.6 4.2 10.7 7.7

2 unchanged sentences

Primarily represents the difference between the price contracted with the customer and the price allocated to the reportable segment.

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

“Accounts receivable, net” at June 30, 2026 and December 31, 2025 consisted of the following:

June 30, 2026 December 31, 2025

(Dollars in millions)

2 unchanged sentences

Accounts receivable, net $ 328.8 $ 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.

None of the above receivables included allowances for credit losses at June 30, 2026 or December 31, 2025.

No charges for credit losses were recognized during the three and six months ended June 30, 2026 or 2025.

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(4) Inventories

“Inventories, net” as of March 31, 2026 and December 31, 2025 consisted of the following:

March 31, 2026 December 31, 2025

“Inventories, net” as of June 30, 2026 and December 31, 2025 consisted of the following:

June 30, 2026 December 31, 2025

(Dollars in millions)

3 unchanged sentences

Inventories, net $ 440.3 $ 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.

Materials and supplies inventories, net presented above have been shown net of reserves of $ 5.2 million and $ 5.1 million as of June 30, 2026 and December 31, 2025, respectively.

(5) Equity Method Investments

3 unchanged sentences

Loss from Equity Affiliates

Book Value at Three Months Ended March 31,

March 31, 2026 December 31, 2025 2026 2025

Book Value at Three Months Ended June 30, Six Months Ended June 30,

June 30, 2026 December 31, 2025 2026 2025 2026 2025

(Dollars in millions)

7 unchanged sentences

These risk management activities are actively monitored for compliance with the Company’s risk management policies.

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.

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Foreign Currency

The Company utilizes options and collars to hedge currency risk associated with anticipated Australian dollar operating expenditures.

As of 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.

As of June 30, 2026, the Company held average rate options with an aggregate notional amount of $ 537.0 million Australian dollars to hedge currency risk associated with anticipated Australian dollar operating expenditures over the nine-month period ending March 31, 2027.

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.

dollar exchange rate exceed amounts ranging from $ 0.71 to $ 0.77 over the nine-month period ending March 31, 2027.

As of June 30, 2026, the Company also held purchased collars with an aggregate notional amount of $ 524.0 million Australian dollars related to anticipated Australian dollar operating expenditures during the nine-month period ending March 31, 2027.

The purchased collars have a floor ranging from $ 0.60 to $ 0.67 and a ceiling ranging from $ 0.70 to $ 0.77 , whereby the Company will incur a loss on the instruments for quarterly average Australian dollar-to-U.S.

4 unchanged sentences

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 June 30, 2026, the Company had a liability derivative comprised of foreign currency option contracts with a fair value of $ 1.0 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.

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The Company does not seek cash flow hedge accounting treatment for its derivative financial instruments and, thus, changes in fair value are reflected in current earnings.

The tables below show the amounts of pretax gains and losses related to the Company’s derivatives and their classification within the accompanying unaudited condensed consolidated statements of operations.

Three Months Ended March 31, 2026

Total gain recognized in income Gain realized in income on derivatives Unrealized gain recognized in income on derivatives

Three Months Ended June 30, 2026

Total loss recognized in income Gain realized in income on derivatives Unrealized loss recognized in income on derivatives

Derivative Instrument Classification

2 unchanged sentences

Total $ ( 1.7 ) $ 2.2 $ ( 3.9 )

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

Total gain recognized in income Loss realized in income on derivatives Unrealized gain recognized in income on derivatives

3 unchanged sentences

Total $ 3.6 $ ( 0.5 ) $ 4.1

Six Months Ended June 30, 2026

Total loss recognized in income Gain 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 $ ( 1.1 ) $ 2.5 $ ( 3.6 )

Total $ ( 1.1 ) $ 2.5 $ ( 3.6 )

Six Months Ended June 30, 2025

Total gain recognized in income Loss realized in income on derivatives Unrealized gain recognized in income on derivatives

Derivative Instrument Classification

(Dollars in millions)

Foreign currency option contracts Operating costs and expenses $ 7.2 $ ( 1.2 ) $ 8.4

Total $ 7.2 $ ( 1.2 ) $ 8.4

The Company classifies derivative-related activity within the “Cash Flows From Operating Activities” section of the unaudited condensed consolidated statements of cash flows.

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Fair Value Measurements

4 unchanged sentences

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

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The following tables set forth the hierarchy of the Company’s net (liability) asset positions for which fair value is measured on a recurring basis.

June 30, 2026

Level 1 Level 2 Level 3 Total

1 unchanged sentence

Foreign currency option contracts $ — $ ( 1.0 ) $ — $ ( 1.0 )

Total net assets $ — $ 3.0 $ — $ 3.0

Total net liabilities $ — $ ( 1.0 ) $ — $ ( 1.0 )

December 31, 2025

8 unchanged sentences

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:

The following methods and assumptions were used by the Company in estimating fair values for other financial instruments as of June 30, 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.

2 unchanged sentences

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

June 30, 2026 December 31, 2025

(Dollars in millions)

3 unchanged sentences

Estimated fair value $ 353.7 $ 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 had no transfers between Levels 1, 2 and 3 during the three and six months ended June 30, 2026 and 2025.

The Company’s policy is to value all transfers between levels using the beginning of period valuation.

2 unchanged sentences

(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

The composition of property, plant, equipment and mine development, net, as of June 30, 2026 and December 31, 2025 is set forth in the table below:

June 30, 2026 December 31, 2025

(Dollars in millions)

5 unchanged sentences

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.

The Company identified certain assets with an aggregate carrying value of approximately $ 57 million at June 30, 2026 in its Other U.S.

Thermal reportable 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.

The Company's effective tax rate before remeasurement for the six months ended June 30, 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 benefits of $ 37.0 million and $ 2.7 million for the three months ended June 30, 2026 and 2025, respectively, included tax provisions of $ 0.3 million and $ 1.4 million, respectively, related to the remeasurement of foreign income tax accounts.

The Company’s income tax benefit of $ 53.0 million and income tax provision of $ 2.2 million for the six months ended June 30, 2026 and 2025, respectively, included tax provisions of $ 0.1 million and $ 1.9 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 results from the Company’s Australian 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

The Company’s total indebtedness as of June 30, 2026 and December 31, 2025 consisted of the following:

Debt Instrument (defined below, as applicable) June 30, 2026 December 31, 2025

(Dollars in millions)

1 unchanged sentence

$ 78.8 $ 320.0

0.50 % Convertible Senior Notes due June 2031 (2031 Convertible Notes)

Finance lease obligations 17.7 20.8

2 unchanged sentences

Long-term debt $ 325.5 $ 321.2

Partial Repurchase of 2028 Convertible Notes

On June 2, 2026, through a private offering, the Company issued $ 250.0 million in aggregate principal amount of 2031 Convertible Notes, as described below.

The Company used the proceeds of the offering of the 2031 Convertible Notes, together with available cash, to repurchase $ 241.2 million aggregate principal amount of its outstanding 2028 Convertible Notes for consideration of $ 386.8 million.

The repurchase of the existing notes was accounted for as an induced conversion in accordance with Accounting Standards Codification 470-20 and ASU 2024-04.

A portion of the consideration in excess of the amount issuable pursuant to the original conversion terms, $ 17.2 million, was recognized as “Induced conversion expense” in the unaudited condensed consolidated statements of operations during the three and six months ended June 30, 2026.

The remaining excess of the consideration over the carrying value of the repurchased 2028 Convertible Notes on the date of repurchase of $ 131.1 million, which included unamortized debt issuance costs of $ 2.7 million, was recorded as “Additional paid-in capital” in the condensed consolidated balance sheets.

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

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 are senior unsecured obligations of the Company and are governed under an indenture, dated as of March 1, 2022 (the 2028 Indenture), between the Company and Wilmington Trust, National Association, as trustee.

During the second quarter of 2026, in connection with the issuance of the 2031 Convertible Notes, the Company used the proceeds therefrom and available cash to repurchase $ 241.2 million in aggregate principal amount of the 2028 Convertible Notes as described above.

The remaining 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.

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.

1 unchanged sentence

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 .

Under the applicable conversion rate formula, the cumulative $ 0.150 per share dividends declared and paid since the prior conversion rate adjustment yielded a revised conversion rate of 52.6686 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 2028 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.

During 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 second quarter of 2026, for which no conversion requests were received.

During the second quarter of 2026, the Company’s reported common stock prices did not prompt the conversion feature of the 2028 Convertible Notes.

As a result, the 2028 Convertible Notes will not be convertible during the third quarter of 2026.

As of June 30, 2026, the if-converted value of the 2028 Convertible Notes exceeded the principal amount by $ 16.6 million.

2031 Convertible Notes

On June 2, 2026, through a private offering, the Company issued the 2031 Convertible Notes in the aggregate principal amount of $ 250.0 million.

The 2031 Convertible Notes are senior unsecured obligations of the Company and are governed under an indenture, dated June 2, 2026 (the 2031 Indenture), between the Company and Wilmington Trust, National Association, as trustee.

The Company used the proceeds of the offering of the 2031 Convertible Notes to fund $ 16.7 million of capped call transactions, as discussed below, and together with available cash, to repurchase $ 241.2 million of its outstanding 2028 Convertible Notes, as described above.

The Company capitalized $ 6.8 million of debt issuance costs related to the offering during the six months ended June 30, 2026.

The 2031 Convertible Notes will mature on June 1, 2031, unless earlier repurchased, redeemed or converted in accordance with their terms.

The 2031 Convertible Notes will bear interest from June 2, 2026 at a rate of 0.50 % per year payable semi-annually in arrears on June 1 and December 1 of each year, beginning on December 1, 2026.

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The 2031 Convertible Notes will be convertible at the option of the holders only in the following circumstances:

(1) during any calendar quarter commencing after the calendar quarter ending on September 30, 2026, 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 2031 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 such 2031 Convertible Notes for redemption;

and (5) at any time from, and including, December 1, 2030 until the close of business on the second scheduled trading day immediately before the maturity date.

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 2031 Indenture.

The initial conversion rate for the 2031 Convertible Notes will be 26.0970 shares of the Company’s common stock per $1,000 principal amount of 2031 Convertible Notes, which represents an initial conversion price of approximately $ 38.32 per share of the Company’s common stock.

The initial conversion price represents a premium of approximately 32.5 % over the U.S.

composite volume weighted average price of Peabody’s common stock from 9:30 a.m.

through 4:00 p.m.

Eastern Daylight Time on May 28, 2026, which was $ 28.9197 per share.

The conversion rate and conversion price are subject to adjustment under certain circumstances in accordance with the terms of the 2031 Indenture.

If certain corporate events described in the 2031 Indenture occur prior to the maturity date, or the Company delivers a redemption notice (as described below), the conversion rate will be increased for a holder who elects to convert its 2031 Convertible Notes in connection with such corporate event or redemption notice, as the case may be, in certain circumstances.

The Company may not redeem the 2031 Convertible Notes prior to June 5, 2029, except in the event of a cleanup redemption (as defined below).

The Company may redeem the 2031 Convertible Notes in whole or in part (subject to certain limitations), at its option at any time, and from time to time, on or after June 5, 2029 and on or before the 31st scheduled trading day immediately before the maturity date, at a cash redemption price equal to 100 % of the principal amount of the 2031 Convertible Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date, if (i) the 2031 Convertible Notes are “freely tradable” (as defined in the 2031 Indenture), and all accrued and unpaid additional interest, if any, has been paid in full, as of the date the Company sends the related redemption notice;

and (ii) 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 2031 Convertible Notes unless at least $ 75 million aggregate principal amount of 2031 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 2031 Convertible Notes.

Peabody may redeem for cash all, but not less than all, of the 2031 Convertible Notes at any time if (i) the 2031 Convertible Notes are “freely tradable” (as defined in the 2031 Indenture), and all accrued and unpaid additional interest, if any, has been paid in full, as of the date Peabody sends the related redemption notice;

and (ii) the amount of the 2031 Convertible Notes that remains outstanding is less than 15 % of the aggregate principal amount of the 2031 Convertible Notes initially issued under the 2031 Indenture at a redemption price equal to 100 % of the principal amount of the 2031 Convertible Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date (a cleanup redemption).

If the Company undergoes a fundamental change (as defined in the 2031 Indenture), noteholders may require the Company to repurchase their 2031 Convertible Notes at a cash repurchase price equal to 100 % of the principal amount of the 2031 Convertible Notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the fundamental change repurchase date.

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Capped Call Transactions

In connection with the offering of the 2031 Convertible Notes, the Company entered into privately negotiated capped call transactions (the Capped Call Transactions) with certain financial institutions.

The Capped Call Transactions are expected generally to reduce the potential dilution to the Company’s common stock upon any conversion of the 2031 Convertible Notes prior to May 30, 2030, and/or offset any potential cash payments the Company is required to make in excess of the principal amount of such converted 2031 Convertible Notes, as the case may be, with such reduction and/or offset subject to a cap based on the cap price.

The cap price of the Capped Call Transactions will initially be $ 50.6095 per share, which represents a premium of approximately 75.0 % over the U.S.

composite volume weighted average price of the Company’s common stock from 9:30 a.m.

through 4:00 p.m.

Eastern Daylight Time on May 28, 2026 (which was $ 28.9197 per share), and is subject to certain adjustments under the terms of the Capped Call Transactions.

The Capped Call Transactions will expire over a period of trading days beginning on April 17, 2030.

The Capped Call Transactions are accounted for as equity instruments in “Additional paid-in capital” in the condensed consolidated balance sheet and are not subsequently remeasured as long as they continue to meet the conditions for equity classification.

Accordingly, the premiums paid for the Capped Call Transactions are recorded as a reduction to additional paid-in capital and do not affect the Company’s basic or diluted earnings per share, although they are expected to reduce the potential economic dilution from any conversion of the 2031 Convertible Notes, subject to the cap.

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.

The Company established a revolving credit facility by entering into a credit agreement, dated as of January 18, 2024, as amended, (the 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.

On June 9, 2026, the Company amended the Credit Agreement to, among other things, permit the Australian Surety Bond Facilities (as defined and further described in Note 12.

“Financial Instruments and Other Guarantees”).

On June 30, 2026, the Company further amended the Credit Agreement to, among other things, (i) increase the revolving commitments under the Credit Agreement from an aggregate principal amount equal to $ 320.0 million to an aggregate principal amount equal to $ 400.0 million;

(ii) extend the maturity date of the revolving commitments and any related loans (any such loans, the Revolving Loans) from January 18, 2028 to June 30, 2030;

and (iii) decrease the interest rate applicable to the Revolving Loans from a rate equal to 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 Credit Agreement) or a base rate plus an applicable margin ranging from 2.50 % to 3.25 %, at the Company’s option, to a rate equal to SOFR plus an applicable margin ranging from 3.25 % to 4.00 %, depending on the Company’s total net leverage ratio or a base rate plus an applicable margin ranging from 2.25 % to 3.00 %, at the Company’s option.

After the June 30, 2026 amendment, letters of credit issued under the Credit Agreement incur a combined fee equal to an applicable margin ranging from 3.25 % to 4.00 % plus a fronting fee equal to 0.125 % per annum.

Prior to the amendment, the combined fee was 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 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.

The Company paid aggregate deferred financing costs of $ 5.6 million as part of the amendments during the six months ended June 30, 2026.

During the second quarter of 2026, the Company borrowed and repaid $ 110.0 million under the revolving credit facility.

At June 30, 2026, the Credit Agreement was only utilized for letters of credit of $ 58.2 million.

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.

“Financial Instruments and Other Guarantees.” Availability under the revolving credit facility was $ 341.8 million at June 30, 2026.

The 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.

6 unchanged sentences

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,

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

2026 2025 2026 2025

(Dollars in millions)

2028 Convertible Notes $ 2.0 $ 2.6 $ 4.6 $ 5.2

2031 Convertible Notes 0.1 — 0.1 —

Finance lease obligations 0.4 0.3 0.7 0.7

8 unchanged sentences

Covenant Compliance

The Company was compliant with all relevant covenants under its debt and other finance agreements at March 31, 2026.

The Company was compliant with all relevant covenants under its debt and other finance agreements at June 30, 2026.

(10) Pension and Postretirement Benefit Costs

3 unchanged sentences

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.

As of June 30, 2026, the qualified plan was expected to be at or above the Pension Protection Act thresholds.

During the three and six months ended June 30, 2026, the Company contributed $ 0.6 million to its qualified pension plan.

The Company expects to contribute a total of $ 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,

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

2026 2025 2026 2025

(Dollars in millions)

8 unchanged sentences

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

In July 2026, the Company announced changes to its postretirement health care benefit plan for non-represented employees and retirees.

Effective December 31, 2026, the Company will no longer provide a medical reimbursement benefit to certain existing employees and retirees.

As of June 30, 2026, the net health care benefit obligation attributed to these certain existing employees and retirees was approximately $ 21.6 million.

The impact of the changes will reduce the Company’s postretirement benefit obligation during the third quarter of 2026.

The liability is expected to be remeasured, with the resulting benefit of the plan changes recorded in “Accumulated other comprehensive income” and amortized to future earnings based upon the remaining life of the plan.

(11) Earnings per Share (EPS)

1 unchanged sentence

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.

As such, the Company includes the 2028 Convertible Notes, the 2031 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.

3 unchanged sentences

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.

A conversion of the Company’s 2028 Convertible Notes and/or 2031 Convertible Notes may result in payment in Peabody’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.

For the three and six months ended June 30, 2026, the computation of diluted EPS excluded 14.4 million and 15.6 million shares, respectively, related to the 2028 Convertible Notes and the 2031 Convertible Notes combined, because their inclusion would have been anti-dilutive for those periods.

The 2031 Convertible Notes were not outstanding during the three and six months ended June 30, 2025;

accordingly, for those periods, the computation of diluted EPS excluded 16.6 million and 16.5 million shares, respectively, related only to the 2028 Convertible Notes, 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 1.1 million shares for the three months ended June 30, 2026 and 2025, respectively, and 1.3 million and 0.3 million for the six months ended June 30, 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.

3 unchanged sentences

The following illustrates the earnings allocation method utilized in the calculation of basic and diluted EPS.

Three Months Ended March 31,

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

2026 2025 2026 2025

(In millions, except per share data)

14 unchanged sentences

Weighted average shares outstanding — basic

122.0 121.7 122.0 121.7

Dilutive impact of share-based compensation awards — — — 0.6

Dilutive impact of 2028 Convertible Notes — 16.4

Weighted average shares outstanding — diluted 122.0 121.7 122.0 122.3

15 unchanged sentences

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

March 31, 2026

June 30, 2026

Reclamation Support Other Support (1)

10 unchanged sentences

(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.

Australian Surety Bond Facilities

On June 12, 2026, certain of the Company’s Australian subsidiaries (collectively, the Australian Surety Bond Facility Obligors), each an indirect subsidiary of PEC, established new Australian dollar-denominated surety bond facilities with an aggregate combined principal amount of $ 700.0 million Australian dollars in commitments by entering into agreements with surety bond providers (the Australian Surety Bond Facilities).

The Australian Surety Bond Facilities have been established to, among other things, establish a surety bonding facility, primarily to support reclamation bonding requirements, to replace the Australian Surety Bond Facility Obligors’ existing 100 % cash collateralized programs.

During the six months ended June 30, 2026, the Company capitalized $ 1.9 million of deferred financing costs related to the Australian Surety Bond Facilities.

The surety bond commitments established under the Australian Surety Bond Facilities terminate on June 12, 2031 (the Maturity Date).

Surety bonds issued under the Australian Surety Bond Facilities may be issued with or without an expiration date, but any surety bond that does not have an expiration date or that has an expiration date occurring after the Maturity Date, must be repaid, prepaid in full or otherwise satisfied on or prior to the Maturity Date.

The Australian Surety Bond Facilities contain customary covenants that, among other things and subject to certain exceptions (including compliance with financial ratios), may limit the Australian Surety Bond Facility Obligors and their respective subsidiaries’ ability to incur additional financial indebtedness, make certain distributions or loans, sell or otherwise dispose of assets, enter into certain affiliate transactions, create or incur liens, and enter into mergers or other significant corporate transactions.

The Australian Surety Bond Facilities are secured by substantially all of the assets of the Australian Surety Bond Facility Obligors.

Surety Agreement Termination

On June 12, 2026, the Company terminated that certain Transaction Support Agreement and Surety Resolution Term Sheet, each dated as of November 6, 2020 (as amended, supplemented or otherwise modified to the date hereof, the TSA), by and among the Company, certain subsidiaries of the Company party thereto and certain providers of its surety program (collectively, the Sureties).

In connection with the termination of the TSA, on June 12, 2026, the Company terminated that certain Collateral Agency and Security Agreement, dated as of May 3, 2022 (as amended, supplemented or otherwise modified to the date hereof, the TSA Security Agreement), by and among the Company, certain subsidiaries of the Company party thereto, the Sureties party thereto and Bank of New York Mellon Trust Company, N.A., as collateral agent (the TSA Collateral Agent).

All obligations of the Company to the Sureties and the TSA Collateral Agent, as applicable, under the TSA and the TSA Security Agreement have been satisfied.

The termination of the TSA allowed for the overall reduction of collateral pledged to the Sureties.

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Accounts Receivable Securitization

6 unchanged sentences

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.

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

At June 30, 2026, the Company had no outstanding borrowings and $ 62.0 million of letters of credit outstanding under the Securitization Program.

Availability under the Securitization Program, which is adjusted for certain ineligible receivables, was $ 91.0 million at June 30, 2026.

The Company was not required to post cash collateral under the Securitization Program at June 30, 2026.

The Company incurred interest and fees associated with the Securitization Program of $ 0.6 million during both the three months ended June 30, 2026 and 2025, and $ 1.2 million during both the six months ended June 30, 2026 and 2025, which have been recorded as “Interest expense, net of capitalized interest” in the accompanying unaudited condensed consolidated statements of operations.

Credit Support Facilities

3 unchanged sentences

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.

At June 30, 2026, letters of credit of $ 77.9 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.

During the second quarter of 2026, the Australian Surety Bond Facilities, as described above, were established which reduced the utilization of the cash-backed bank guarantee facilities during the three months ended June 30,2026.

At June 30, 2026, guarantees of $ 11.8 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.

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Restricted Cash and Collateral

4 unchanged sentences

Portions of the restricted cash balances and deposits are held in accounts denominated in Australian dollars.

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

(Dollars in millions)

11 unchanged sentences

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.

(3) At June 30, 2026, the Australian dollar denominated balances supporting the bank guarantee facilities and the deposits with regulatory authorities were $ 17 million and $ 86 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.

1 unchanged sentence

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.

As of June 30, 2026, purchase commitments for capital expenditures were $ 47.4 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.

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Contingencies

4 unchanged sentences

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 November 25, 2024, Peabody entered into definitive agreements (the Purchase Agreements) to acquire from Anglo certain assets and businesses associated with Anglo’s metallurgical coal portfolio in Australia (collectively, the Assets), 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.

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

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.

At that time, Anglo’s complaint alleged, among other things, that Peabody wrongfully terminated the Purchase Agreements and sought, 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.

On June 5, 2026, Anglo filed its Statement of Claim, in which it purported to quantify, for the first time in the arbitration proceedings, the damages that it is demanding at approximately $ 755.0 million.

This amount primarily consists of $ 628.4 million in claimed losses, representing what Anglo contends is the difference in value of the Assets between November 25, 2024 and August 19, 2025, with the remainder consisting of Anglo’s claimed additional costs and interest on such claimed losses and costs.

Peabody disputes Anglo’s allegations in the arbitration proceedings and submits it properly terminated the Purchase Agreements.

With respect to Anglo’s calculation of its supposed damages, Peabody believes it is fundamentally flawed for several reasons, including because Anglo’s calculation assumes that the substantial portion of any loss in value is not attributable to the MAC and specifically the ignition event at Moranbah North.

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

However, while Peabody strongly disagrees with Anglo’s claim that the ignition event at the Moranbah North mine did not constitute a MAC, it is reasonably possible that the Company may incur a loss in connection with Anglo’s claim.

That said, given Peabody’s strong view that it was entitled to terminate the Purchase Agreements, as well as the fundamental disagreement over the basis for Anglo’s calculation of its alleged damages, Peabody is unable to provide a reasonable estimate of any possible loss or range of loss relating to this matter.

In addition, Peabody expects to receive the remaining $ 46.0 million purchase deposit under the termination provisions of the Purchase Agreements.

A final hearing in the arbitration proceedings is scheduled for September 2027.

Shareholder Action.

On June 25, 2026, a putative class action lawsuit was filed against the Company and certain current/former executives (together Defendants) in the United States District Court of the Eastern District of Missouri on behalf of a putative class of investors who purchased or otherwise acquired Peabody Energy common stock from October 14, 2024 to May 4, 2026.

The lawsuit alleges that Defendants made certain misstatements or omissions in violation of Sections 10(b) and 20(a) of the Securities and Exchange Act of 1934 regarding the Company’s ability to resume longwall production at the Centurion mine.

Defendants have not yet responded to the complaint, but intend to defend themselves vigorously.

Peabody is unable to provide a reasonable estimate of any possible loss or range of loss relating to this matter.

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.

4 unchanged sentences

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

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The Company’s chief operating decision maker (CODM), defined as the President and Chief Executive Officer, uses Adjusted EBITDA as the primary financial metric to measure each segment’s operating performance against expected results and to allocate resources, including capital investment in mining operations and potential expansions.

4 unchanged sentences

GAAP measures of performance and may not be comparable to similarly-titled measures presented by other companies.

Reportable segment results were as follows:

Three Months Ended June 30, 2026

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

Thermal Reportable Segment Totals

(Dollars in millions)

Revenue $ 230.6 $ 358.3 $ 223.8 $ 163.2 $ 975.9

Less Significant Segment Expenses:

Labor costs 37.1 78.5 55.9 48.7

Repair costs 31.0 70.0 28.9 29.4

Outside services 31.8 113.6 30.2 36.1

Commodities expense 37.0 28.5 52.8 25.5

Sales related costs 42.7 93.1 48.6 12.2

Other expenses (1)

( 1.1 ) ( 8.4 ) 14.5 ( 15.6 )

Adjusted EBITDA 52.1 ( 17.0 ) ( 7.1 ) 26.9 54.9

Additions to property, plant, equipment and mine development 9.6 30.7 10.4 5.5 56.2

Three Months Ended June 30, 2025

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

Thermal Reportable Segment Totals

(Dollars in millions)

Revenue $ 195.1 $ 252.2 $ 275.7 $ 155.1 $ 878.1

Less Significant Segment Expenses:

Labor costs 37.7 61.3 52.9 48.9

Repair costs 29.0 41.4 32.6 39.6

Outside services 26.9 85.8 28.8 37.6

Commodities expense 19.9 12.6 35.8 17.7

Sales related costs 44.8 58.7 73.9 9.4

Other expenses (1)

3.3 1.6 8.7 ( 11.6 )

Adjusted EBITDA 33.5 ( 9.2 ) 43.0 13.5 80.8

Additions to property, plant, equipment and mine development 9.6 72.9 5.5 5.4 93.4

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Reportable segment results were as follows:

Three Months Ended March 31, 2026

Six Months Ended June 30, 2026

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

12 unchanged sentences

Additions to property, plant, equipment and mine development 18.2 85.7 25.8 10.7 140.4

Three Months Ended March 31, 2025

Six Months Ended June 30, 2025

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

18 unchanged sentences

The following table presents total assets at the division level:

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

(Dollars in millions)

6 unchanged sentences

A reconciliation of reportable segment totals follows:

Three Months Ended March 31,

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

2026 2025 2026 2025

(Dollars in millions)

13 unchanged sentences

Interest expense, net of capitalized interest ( 12.7 ) ( 11.1 ) ( 23.4 ) ( 22.6 )

Induced conversion expense ( 17.2 ) — ( 17.2 ) —

Interest income 12.1 13.8 25.2 29.2

Unrealized gains on foreign currency option contracts 0.3 4.3

Unrealized (losses) gains on foreign currency option contracts ( 3.9 ) 4.1 ( 3.6 ) 8.4

Take-or-pay contract-based intangible recognition — 0.3 — 0.5

6 unchanged sentences

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

What changed 10-Q

Item 1. Financial Statements