PEABODY ENERGY CORP 10-Q

Item 1. Financial Statements. PEABODY ENERGY CORPORATION UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (Dollars in millions, except per share data) Revenue $ 1,003.2 $ 890.1 $ 1,976.5 $ 1,827.1 Costs and expenses Operating costs and expenses (exclusive of items shown separately below) 953.9 789.4 1,818.6 1,559.6 Depreciation, depletion and amortization 107.5 93.4 217.0 185.5 Asset retirement obligation expenses 13.8 13.8 27.4 27.4 Selling and administrative expenses 23.3 23.5 54.9 47.1 Restructuring charges 2.3 3.5 3.4 5.2 Costs related to terminated acquisition 2.3 18.8 5.3 21.2 Net gain on disposals ( 4.4 ) ( 14.8 ) ( 16.1 ) ( 20.0 ) Loss from equity affiliates 9.9 0.9 15.6 7.6 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 ) Net periodic benefit credit, excluding service cost ( 0.3 ) ( 7.4 ) ( 0.7 ) ( 14.8 ) (Loss) income from continuing operations before income taxes ( 122.9 ) ( 28.3 ) ( 164.3 ) 14.9 Income tax (benefit) provision ( 37.0 ) ( 2.7 ) ( 53.0 ) 2.2 (Loss) income from continuing operations, net of income taxes ( 85.9 ) ( 25.6 ) ( 111.3 ) 12.7 Loss from discontinued operations, net of income taxes ( 0.3 ) ( 0.4 ) ( 0.5 ) ( 0.7 ) Net (loss) income ( 86.2 ) ( 26.0 ) ( 111.8 ) 12.0 Less: Net income attributable to noncontrolling interests 4.4 1.6 11.2 5.2 Net (loss) income attributable to common stockholders $ ( 90.6 ) $ ( 27.6 ) $ ( 123.0 ) $ 6.8 (Loss) income from continuing operations: Basic (loss) income per share $ ( 0.74 ) $ ( 0.22 ) $ ( 1.00 ) $ 0.06 Diluted (loss) income per share $ ( 0.74 ) $ ( 0.22 ) $ ( 1.00 ) $ 0.06 Net (loss) income attributable to common stockholders: Basic (loss) income per share $ ( 0.74 ) $ ( 0.23 ) $ ( 1.01 ) $ 0.06 Diluted (loss) income per share $ ( 0.74 ) $ ( 0.23 ) $ ( 1.01 ) $ 0.06 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 June 30, Six Months Ended June 30, 2026 2025 2026 2025 (Dollars in millions) Net (loss) income $ ( 86.2 ) $ ( 26.0 ) $ ( 111.8 ) $ 12.0 Postretirement plans (net of $ 0.0 tax provisions in each period) ( 2.9 ) ( 10.2 ) ( 5.7 ) ( 20.4 ) Foreign currency translation adjustment 0.6 1.8 1.7 2.2 Other comprehensive loss, net of income taxes ( 2.3 ) ( 8.4 ) ( 4.0 ) ( 18.2 ) Comprehensive loss ( 88.5 ) ( 34.4 ) ( 115.8 ) ( 6.2 ) Less: Net income attributable to noncontrolling interests 4.4 1.6 11.2 5.2 Comprehensive loss attributable to common stockholders $ ( 92.9 ) $ ( 36.0 ) $ ( 127.0 ) $ ( 11.4 ) See accompanying notes to unaudited condensed consolidated financial statements. 2 Table of Contents PEABODY ENERGY CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) June 30, 2026 December 31, 2025 (Amounts in millions, except per share data) ASSETS Current assets Cash and cash equivalents $ 526.3 $ 575.3 Accounts receivable, net of allowance for credit losses of $ 0.0 at June 30, 2026 and December 31, 2025 328.8 314.9 Inventories, net 440.3 383.2 Other current assets 324.2 285.4 Total current assets 1,619.6 1,558.8 Property, plant, equipment and mine development, net 3,081.9 3,153.3 Operating lease right-of-use assets 119.5 121.2 Restricted cash and collateral 459.8 844.1 Investments and other assets 124.9 127.6 Deferred income taxes 43.4 2.2 Total assets $ 5,449.1 $ 5,807.2 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities Current portion of long-term debt $ 13.5 $ 15.2 Accounts payable and accrued expenses 792.7 827.0 Total current liabilities 806.2 842.2 Long-term debt, less current portion 325.5 321.2 Deferred income taxes — 26.3 Asset retirement obligations, less current portion 692.4 692.8 Accrued postretirement benefit costs 108.0 109.2 Operating lease liabilities, less current portion 85.9 87.5 Other noncurrent liabilities 133.2 145.8 Total liabilities 2,151.2 2,225.0 Stockholders’ equity Preferred Stock — $ 0.01 per share par value; 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 June 30, 2026 or December 31, 2025 — — Common Stock — $ 0.01 per share par value; 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 1.9 1.9 Additional paid-in capital 3,865.8 4,004.8 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 ) Retained earnings 1,214.4 1,355.9 Accumulated other comprehensive income 97.1 101.1 Peabody Energy Corporation stockholders’ equity 3,248.6 3,536.4 Noncontrolling interests 49.3 45.8 Total stockholders’ equity 3,297.9 3,582.2 Total liabilities and stockholders’ equity $ 5,449.1 $ 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 Six Months Ended June 30, 2026 2025 (Dollars in millions) Cash Flows From Operating Activities Net (loss) income $ ( 111.8 ) $ 12.0 Loss from discontinued operations, net of income taxes 0.5 0.7 (Loss) income from continuing operations, net of income taxes ( 111.3 ) 12.7 Adjustments to reconcile (loss) income from continuing operations, net of income taxes to net cash provided by operating activities: Depreciation, depletion and amortization 217.0 185.5 Noncash interest expense, net 2.8 3.3 Deferred income taxes ( 67.5 ) ( 2.4 ) 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 losses (gains) on foreign currency option contracts 3.6 ( 8.4 ) Changes in current assets and liabilities: Accounts receivable ( 1.5 ) 51.3 Inventories ( 57.1 ) ( 24.2 ) Other current assets ( 38.5 ) 23.7 Accounts payable and accrued expenses ( 7.4 ) ( 60.2 ) Collateral arrangements 75.8 ( 5.3 ) Asset retirement obligations ( 0.4 ) 5.0 Workers’ compensation obligations ( 0.5 ) — Postretirement benefit obligations ( 6.9 ) ( 22.9 ) Pension obligations 0.1 ( 4.9 ) Other, net ( 3.6 ) ( 1.8 ) Net cash provided by continuing operations 29.9 144.3 Net cash used in discontinued operations ( 1.3 ) ( 1.2 ) Net cash provided by operating activities 28.6 143.1 4 Table of Contents PEABODY ENERGY CORPORATION UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - (Continued) Six Months Ended June 30, 2026 2025 (Dollars in millions) Cash Flows From Investing Activities Additions to property, plant, equipment and mine development ( 143.8 ) ( 164.6 ) Changes in accrued expenses related to capital expenditures ( 38.6 ) ( 42.0 ) Proceeds from disposal of assets, net of receivables 5.4 12.5 Contributions to joint ventures ( 337.7 ) ( 291.3 ) Distributions from joint ventures 333.7 306.7 Other, net ( 3.1 ) ( 2.0 ) Net cash used in investing activities ( 184.1 ) ( 180.7 ) 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 ) Dividends paid ( 18.3 ) ( 18.3 ) Distributions to noncontrolling interests ( 7.7 ) ( 14.7 ) Net cash used in financing activities ( 202.0 ) ( 44.9 ) Net change in cash, cash equivalents and restricted cash ( 357.5 ) ( 82.5 ) 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) $ 927.0 $ 1,300.1 (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 $ 526.3 Restricted cash included in “Restricted cash and collateral” 400.7 Cash, cash equivalents and restricted cash at end of period $ 927.0 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 June 30, Six Months Ended June 30, 2026 2025 2026 2025 (Dollars in millions, except per share data) Common Stock Balance, beginning of period $ 1.9 $ 1.9 $ 1.9 $ 1.9 Balance, end of period 1.9 1.9 1.9 1.9 Additional paid-in capital Balance, beginning of period 4,010.3 3,993.4 4,004.8 3,990.5 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 Treasury stock Balance, beginning of period ( 1,930.6 ) ( 1,927.3 ) ( 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 ) ( 1,930.6 ) ( 1,927.3 ) Retained earnings Balance, beginning of period 1,314.2 1,470.9 1,355.9 1,445.8 Net (loss) income attributable to common stockholders ( 90.6 ) ( 27.6 ) ( 123.0 ) 6.8 Dividends declared ($ 0.075 , $ 0.075 , $ 0.150 and $ 0.150 per share, respectively) ( 9.2 ) ( 9.2 ) ( 18.5 ) ( 18.5 ) Balance, end of period 1,214.4 1,434.1 1,214.4 1,434.1 Accumulated other comprehensive income Balance, beginning of period 99.4 129.0 101.1 138.8 Postretirement plans (net of $ 0.0 tax provisions in each period) ( 2.9 ) ( 10.2 ) ( 5.7 ) ( 20.4 ) Foreign currency translation adjustment 0.6 1.8 1.7 2.2 Balance, end of period 97.1 120.6 97.1 120.6 Noncontrolling interests Balance, beginning of period 44.9 47.2 45.8 58.3 Net income attributable to noncontrolling interests 4.4 1.6 11.2 5.2 Distributions to noncontrolling interests — — ( 7.7 ) ( 14.7 ) Balance, end of period 49.3 48.8 49.3 48.8 Total stockholders’ equity $ 3,297.9 $ 3,674.1 $ 3,297.9 $ 3,674.1 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 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 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. 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 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 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. 7 Table of Contents 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 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.” 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 June 30, 2026 Seaborne Thermal Seaborne Metallurgical Powder River Basin Other U.S. Thermal Corporate and Other (1) Consolidated (Dollars in millions) Thermal coal Domestic $ 40.2 $ — $ 222.3 $ 163.2 $ — $ 425.7 Export 190.4 — 1.5 — — 191.9 Total thermal 230.6 — 223.8 163.2 — 617.6 Metallurgical coal Export — 358.2 — — — 358.2 Total metallurgical — 358.2 — — — 358.2 Other — 0.1 — — 27.3 27.4 Revenue $ 230.6 $ 358.3 $ 223.8 $ 163.2 $ 27.3 $ 1,003.2 Three Months Ended June 30, 2025 Seaborne Thermal Seaborne Metallurgical Powder River Basin Other U.S. Thermal Corporate and Other (1) Consolidated (Dollars in millions) Thermal coal Domestic $ 35.8 $ — $ 275.7 $ 155.0 $ — $ 466.5 Export 159.3 — — — — 159.3 Total thermal 195.1 — 275.7 155.0 — 625.8 Metallurgical coal Export — 251.9 — — — 251.9 Total metallurgical — 251.9 — — — 251.9 Other — 0.3 — 0.1 12.0 12.4 Revenue $ 195.1 $ 252.2 $ 275.7 $ 155.1 $ 12.0 $ 890.1 8 Table of Contents 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) Consolidated (Dollars in millions) Thermal coal 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) Consolidated (Dollars in millions) Thermal coal 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 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 Total Corporate and Other $ 27.3 $ 12.0 $ 46.1 $ 19.5 (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. Accounts Receivable “Accounts receivable, net” at June 30, 2026 and December 31, 2025 consisted of the following: June 30, 2026 December 31, 2025 (Dollars in millions) Trade receivables, net $ 270.3 $ 267.0 Miscellaneous receivables, net 58.5 47.9 Accounts receivable, net $ 328.8 $ 314.9 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. 9 Table of Contents PEABODY ENERGY CORPORATION NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued) (4) Inventories “Inventories, net” as of June 30, 2026 and December 31, 2025 consisted of the following: June 30, 2026 December 31, 2025 (Dollars in millions) Materials and supplies, net $ 180.2 $ 161.6 Saleable coal 183.8 126.0 Raw coal 76.3 95.6 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 June 30, 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 June 30, Six Months Ended June 30, June 30, 2026 December 31, 2025 2026 2025 2026 2025 (Dollars in millions) Equity method investment related to Middlemount $ 35.3 $ 47.5 $ 9.3 $ 0.5 $ 13.8 $ 6.8 Other equity method investments — — 0.6 0.4 1.8 0.8 Total equity method investments $ 35.3 $ 47.5 $ 9.9 $ 0.9 $ 15.6 $ 7.6 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. On a limited basis, the Company engages in the direct and brokered trading of coal and freight-related contracts. Except those contracts for which the Company has elected to apply a normal purchases and normal sales exception, all derivative coal trading contracts are accounted for at fair value. 10 Table of Contents PEABODY ENERGY CORPORATION NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued) Foreign Currency The Company utilizes options and collars to hedge currency risk associated with anticipated Australian dollar operating expenditures. As of 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 $ 0.77 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. 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 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. 11 Table of Contents PEABODY ENERGY CORPORATION NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued) The Company does not seek cash flow hedge accounting treatment for its derivative financial instruments and, thus, changes in fair value are reflected in current earnings. The tables below show the amounts of pretax gains and losses related to the Company’s derivatives and their classification within the accompanying unaudited condensed consolidated statements of operations. Three Months Ended 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 $ ( 1.7 ) $ 2.2 $ ( 3.9 ) Total $ ( 1.7 ) $ 2.2 $ ( 3.9 ) Three 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 $ 3.6 $ ( 0.5 ) $ 4.1 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. Fair Value Measurements The Company uses a three-level fair value hierarchy that categorizes assets and liabilities measured at fair value based on the observability of the inputs utilized in the valuation. These levels include: Level 1 - inputs are quoted prices in active markets for the identical assets or liabilities; Level 2 - inputs are other than quoted prices included in Level 1 that are directly or indirectly observable through market-corroborated inputs; and Level 3 - inputs are unobservable, or observable but cannot be market-corroborated, requiring the Company to make assumptions about pricing by market participants. 12 Table of Contents PEABODY ENERGY CORPORATION NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued) The following tables set forth the hierarchy of the Company’s net (liability) asset positions for which fair value is measured on a recurring basis. June 30, 2026 Level 1 Level 2 Level 3 Total (Dollars in millions) Foreign currency option contracts $ — $ ( 1.0 ) $ — $ ( 1.0 ) Total net liabilities $ — $ ( 1.0 ) $ — $ ( 1.0 ) 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 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. • 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. June 30, 2026 December 31, 2025 (Dollars in millions) Total debt at par value $ 346.5 $ 340.8 Less: Unamortized debt issuance costs ( 7.5 ) ( 4.4 ) Net carrying amount $ 339.0 $ 336.4 Estimated fair value $ 353.7 $ 557.8 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. 13 Table of Contents PEABODY ENERGY CORPORATION NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued) (7) Property, Plant, Equipment and Mine Development The composition of property, plant, equipment and mine development, net, as of June 30, 2026 and December 31, 2025 is set forth in the table below: June 30, 2026 December 31, 2025 (Dollars in millions) Land and coal interests $ 2,689.7 $ 2,691.2 Buildings and improvements 771.6 758.8 Machinery and equipment 2,442.2 2,377.1 Less: Accumulated depreciation, depletion and amortization ( 2,821.6 ) ( 2,673.8 ) Property, plant, equipment and mine development, net $ 3,081.9 $ 3,153.3 At-Risk Assets 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 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 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) 3.250 % Convertible Senior Notes due March 2028 (2028 Convertible Notes) $ 78.8 $ 320.0 0.50 % Convertible Senior Notes due June 2031 (2031 Convertible Notes) 250.0 — Finance lease obligations 17.7 20.8 Less: Debt issuance costs ( 7.5 ) ( 4.4 ) 339.0 336.4 Less: Current portion of long-term debt 13.5 15.2 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. 14 Table of Contents 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, 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. 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 2028 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 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 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. 15 Table of Contents 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. 16 Table of Contents 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 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. 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 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. The 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. 17 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 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 Financial assurance instruments 6.2 6.4 12.9 13.6 Amortization of debt issuance costs 1.4 1.4 2.8 2.8 Receivables securitization program 0.6 0.6 1.2 1.2 Capitalized interest — ( 1.7 ) ( 2.1 ) ( 3.9 ) Other 2.0 1.5 3.2 3.0 Interest expense, net of capitalized interest $ 12.7 $ 11.1 $ 23.4 $ 22.6 Cash paid for interest, net of capitalized interest $ 23.4 $ 14.2 $ 33.3 $ 24.1 Non-cash interest expense $ 1.4 $ 1.7 $ 2.8 $ 3.3 Covenant Compliance 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 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 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 June 30, Six Months Ended June 30, 2026 2025 2026 2025 (Dollars in millions) Service cost for benefits earned $ 0.1 $ 0.1 $ 0.1 $ 0.2 Interest cost on accumulated postretirement benefit obligation 1.7 1.9 3.3 3.9 Expected return on plan assets ( 0.1 ) ( 0.1 ) ( 0.1 ) ( 0.2 ) Amortization of prior service credit ( 2.9 ) ( 10.2 ) ( 5.7 ) ( 20.4 ) Net periodic postretirement benefit credit $ ( 1.2 ) $ ( 8.3 ) $ ( 2.4 ) $ ( 16.5 ) 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. 18 Table of Contents PEABODY ENERGY CORPORATION 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) 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, 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. 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 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. 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. 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. 19 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 June 30, Six Months Ended June 30, 2026 2025 2026 2025 (In millions, except per share data) Basic EPS numerator: (Loss) income from continuing operations, net of income taxes $ ( 85.9 ) $ ( 25.6 ) $ ( 111.3 ) $ 12.7 Less: Net income attributable to noncontrolling interests 4.4 1.6 11.2 5.2 (Loss) income from continuing operations attributable to common stockholders ( 90.3 ) ( 27.2 ) ( 122.5 ) 7.5 Loss from discontinued operations, net of income taxes ( 0.3 ) ( 0.4 ) ( 0.5 ) ( 0.7 ) Net (loss) income attributable to common stockholders $ ( 90.6 ) $ ( 27.6 ) $ ( 123.0 ) $ 6.8 Diluted EPS numerator: (Loss) income from continuing operations, net of income taxes $ ( 85.9 ) $ ( 25.6 ) $ ( 111.3 ) $ 12.7 Add: Tax adjusted interest expense related to convertible notes — — — — Less: Net income attributable to noncontrolling interests 4.4 1.6 11.2 5.2 (Loss) income from continuing operations attributable to common stockholders ( 90.3 ) ( 27.2 ) ( 122.5 ) 7.5 Loss from discontinued operations, net of income taxes ( 0.3 ) ( 0.4 ) ( 0.5 ) ( 0.7 ) Net (loss) income attributable to common stockholders $ ( 90.6 ) $ ( 27.6 ) $ ( 123.0 ) $ 6.8 EPS denominator: Weighted average shares outstanding — basic 122.0 121.7 122.0 121.7 Dilutive impact of share-based compensation awards — — — 0.6 Weighted average shares outstanding — diluted 122.0 121.7 122.0 122.3 Basic EPS attributable to common stockholders: (Loss) income from continuing operations $ ( 0.74 ) $ ( 0.22 ) $ ( 1.00 ) $ 0.06 Loss from discontinued operations — ( 0.01 ) ( 0.01 ) — Net (loss) income attributable to common stockholders $ ( 0.74 ) $ ( 0.23 ) $ ( 1.01 ) $ 0.06 Diluted EPS attributable to common stockholders: (Loss) income from continuing operations $ ( 0.74 ) $ ( 0.22 ) $ ( 1.00 ) $ 0.06 Loss from discontinued operations — ( 0.01 ) ( 0.01 ) — Net (loss) income attributable to common stockholders $ ( 0.74 ) $ ( 0.23 ) $ ( 1.01 ) $ 0.06 (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. 20 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. June 30, 2026 Reclamation Support Other Support (1) Total (Dollars in millions) Surety bonds $ 1,194.0 $ 82.4 $ 1,276.4 Letters of credit (2) 62.3 57.9 120.2 1,256.3 140.3 1,396.6 Less: Letters of credit in support of surety bonds (3) ( 62.3 ) ( 1.9 ) ( 64.2 ) Obligations supported, net $ 1,194.0 $ 138.4 $ 1,332.4 (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. 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. 21 Table of Contents PEABODY ENERGY CORPORATION NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued) 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 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 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 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. 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. 22 Table of Contents PEABODY ENERGY CORPORATION NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued) 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. June 30, 2026 December 31, 2025 (Dollars in millions) Restricted cash (1) Surety trust accounts (2) $ 309.4 $ 383.6 Credit support facilities (2) (3) 91.3 325.6 400.7 709.2 Other cash collateral (1) Deposits with regulatory authorities for reclamation and other obligations (3) 59.1 134.9 Restricted cash and collateral $ 459.8 $ 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 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. (13) Commitments and Contingencies Commitments Unconditional Purchase Obligations 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. 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 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. 23 Table of Contents 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 $ 46.0 million 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. 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. 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. 24 Table of Contents PEABODY ENERGY CORPORATION NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued) The Company’s chief operating decision maker (CODM), defined as the President and Chief Executive Officer, uses Adjusted EBITDA as the primary financial metric to measure each segment’s operating performance against expected results and to allocate resources, including capital investment in mining operations and potential expansions. Adjusted EBITDA is a non-GAAP financial measure defined as (loss) income from continuing operations before deducting net interest expense, income taxes, asset retirement obligation expenses and depreciation, depletion and amortization. Adjusted EBITDA is also adjusted for the discrete items that management excluded in analyzing the reportable segments’ operating performance, as displayed in the reconciliations below. Management believes this non-GAAP measure is used by investors to measure the Company’s operating performance. Adjusted EBITDA is not intended to serve as an alternative to U.S. GAAP measures of performance and may not be comparable to similarly-titled measures presented by other companies. 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 25 Table of Contents 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 Reportable Segment Totals (Dollars in millions) Revenue $ 428.1 $ 641.3 $ 513.3 $ 347.7 $ 1,930.4 Less Significant Segment Expenses: Labor costs 72.8 149.7 116.0 100.0 Repair costs 60.4 134.5 65.5 61.8 Outside services 55.0 215.2 68.5 68.8 Commodities expense 58.1 41.7 103.7 48.4 Sales related costs 82.2 162.1 112.4 24.1 Other expenses (1) ( 1.0 ) ( 37.9 ) 30.6 ( 20.1 ) Adjusted EBITDA 100.6 ( 24.0 ) 16.6 64.7 157.9 Additions to property, plant, equipment and mine development 18.2 85.7 25.8 10.7 140.4 Six Months Ended June 30, 2025 Seaborne Thermal Seaborne Metallurgical Powder River Basin Other U.S. Thermal Reportable Segment Totals (Dollars in millions) Revenue $ 460.2 $ 472.3 $ 551.3 $ 323.8 $ 1,807.6 Less Significant Segment Expenses: Labor costs 72.8 116.3 102.7 99.1 Repair costs 53.8 88.4 64.1 73.7 Outside services 53.7 157.9 59.9 73.4 Commodities expense 39.0 26.0 74.5 37.2 Sales related costs 99.4 112.7 149.2 19.4 Other expenses (1) 23.8 ( 33.0 ) 21.6 ( 25.4 ) Adjusted EBITDA 117.7 4.0 79.3 46.4 247.4 Additions to property, plant, equipment and mine development 18.1 126.1 9.4 10.0 163.6 (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: June 30, 2026 December 31, 2025 (Dollars in millions) Seaborne $ 2,345.6 $ 2,543.4 U.S. Thermal 1,334.2 1,301.7 Corporate and Other 1,769.3 1,962.1 Total assets $ 5,449.1 $ 5,807.2 26 Table of Contents PEABODY ENERGY CORPORATION NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued) A reconciliation of reportable segment totals follows: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (Dollars in millions) Revenue from reportable segments $ 975.9 $ 878.1 $ 1,930.4 $ 1,807.6 Reconciling items Corporate and Other 27.3 12.0 46.1 19.5 Revenue $ 1,003.2 $ 890.1 $ 1,976.5 $ 1,827.1 Adjusted EBITDA from reportable segments $ 54.9 $ 80.8 $ 157.9 $ 247.4 Reconciling items Corporate and Other (1) ( 30.9 ) 12.5 ( 51.4 ) ( 10.1 ) Depreciation, depletion and amortization ( 107.5 ) ( 93.4 ) ( 217.0 ) ( 185.5 ) Asset retirement obligation expenses ( 13.8 ) ( 13.8 ) ( 27.4 ) ( 27.4 ) Restructuring charges ( 2.3 ) ( 3.5 ) ( 3.4 ) ( 5.2 ) Costs related to terminated acquisition ( 2.3 ) ( 18.8 ) ( 5.3 ) ( 21.2 ) Changes in amortization of basis difference related to equity affiliates 0.7 0.8 1.3 1.4 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 (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 (Loss) income from continuing operations before incomes taxes $ ( 122.9 ) $ ( 28.3 ) $ ( 164.3 ) $ 14.9 Additions to property, plant, equipment and mine development from reportable segments $ 56.2 $ 93.4 $ 140.4 $ 163.6 Reconciling items Corporate and Other 2.2 0.8 3.4 1.0 Additions to property, plant, equipment and mine development $ 58.4 $ 94.2 $ 143.8 $ 164.6 (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. 27 Table of Contents