Peabody Energy Corp.: Q3 FY2025 earnings call

What management said about Q3 FY2025, from the documents filed with the SEC on 30 October 2025: press release. Guidance figures: 9 raised, 6 lowered, 12 new, 8 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Adjusted EBITDA rose from second quarter: Adjusted EBITDA was $99.5 million, up from $93.3 million in the second quarter and down from $224.8 million a year earlier. Revenue rose 14 percent over the second quarter. Source
• Acquisition costs drove the net loss: Costs related to the terminated acquisition were $54.0 million in the quarter and $75.2 million for nine months. Net loss attributable to common stockholders was $(70.1) million, or $(0.58) per diluted share, against $0.74 a year earlier. Source
• PRB Adjusted EBITDA up 20 percent: Powder River Basin Adjusted EBITDA was $51.7 million, up 20 percent from the second quarter. Volumes and margin per ton were both higher than in the second quarter. Source
• Seaborne Metallurgical unit costs fell: Seaborne Metallurgical costs were $108.31 per ton, down from $118.97 in the second quarter. Revenue per ton was $121.34, up from $114.79, on a higher product quality mix. Source
• Centurion shipped 210,000 tons: The Centurion mine shipped 210,000 tons in the third quarter. Source
• Cash and liquidity totals: Cash was $603.3 million at September 30, 2025, and total liquidity exceeded $950 million. Source
• Seaborne Thermal and PRB volume targets raised: Full-year Seaborne Thermal and PRB volume targets were raised, and the Seaborne Metallurgical priced volume target was raised; its cost target was lowered. Source

“Peabody’s operations turned in another solid performance, highlighted by rising Powder River Basin shipments, better-than-anticipated seaborne thermal coal volumes and the lowest metallurgical coal costs in multiple years,”

Jim Grech, President and Chief Executive Officer

Guidance

What changed from last quarter

• Guidance raised: Full-year Seaborne Thermal total volume, priced volume and average pricing targets were raised; the cost target was kept. Source
• Guidance raised: Full-year PRB total and priced volume targets were raised. Source
• Guidance raised: Full-year Seaborne Metallurgical priced volume target was raised. Source
• Guidance lowered: Full-year Seaborne Metallurgical cost target was lowered. Source
• Guidance lowered: Full-year PRB cost target was lowered. Source
• Guidance lowered: Full-year Other U.S. Thermal volume target was lowered; its cost target was raised. Source
• Guidance kept: Full-year SG&A, total capital expenditure and ARO cash spend targets were kept. Source
• New guidance: Fourth-quarter 2025 volume, price and cost targets were given for all segments. Source
• New: Peabody is progressing its PRB rare earth initiative and plans characterization of rare earth elements and critical minerals in its feedstock. Source
• New: Federal policy items cited: executive orders and funding for coal plants, plus a royalty reduction and production tax credit from the July act. Source
• Ended: The statements label the acquisition as terminated; a loan note related to it was repaid in the quarter. Source

Results and growth drivers

• Adjusted EBITDA rose from second quarter: Adjusted EBITDA was $99.5 million, up from $93.3 million in the second quarter and down from $224.8 million a year earlier. Revenue rose 14 percent over the second quarter. Source
• Acquisition costs drove the net loss: Costs related to the terminated acquisition were $54.0 million in the quarter and $75.2 million for nine months. Net loss attributable to common stockholders was $(70.1) million, or $(0.58) per diluted share, against $0.74 a year earlier. Source
• Revenue and tons sold rose: Revenue was $1,012.1 million on 32.5 million tons sold, compared with $890.1 million on 28.7 million tons in the second quarter. Source

Segment results

• Seaborne Thermal volumes recovered: Seaborne Thermal Adjusted EBITDA was $41.0 million, up from $33.5 million, as volumes rose and Newcastle shipping queues normalized after second-quarter disruption. Source
• Seaborne Metallurgical Adjusted EBITDA turned positive: Seaborne Metallurgical Adjusted EBITDA was $27.8 million, compared with a loss of $9.2 million in the second quarter. Source
• PRB Adjusted EBITDA up 20 percent: Powder River Basin Adjusted EBITDA was $51.7 million, up 20 percent from the second quarter. Volumes and margin per ton were both higher than in the second quarter. Source
• Other U.S. Thermal Adjusted EBITDA fell: Other U.S. Thermal Adjusted EBITDA was $6.9 million, against $13.5 million in the second quarter. The planned Twentymile longwall move was completed, and the new panel restarted in late October. Source

“Peabody’s substantial liquidity and cash-positive net-debt position ensures protection against short-term market volatility while allowing the full benefit of substantial free cash flow in better pricing environments to fully accrue to our shareholders.”

Mark Spurbeck, Executive Vice President and Chief Financial Officer

Costs, margins and pricing

• Seaborne Metallurgical unit costs fell: Seaborne Metallurgical costs were $108.31 per ton, down from $118.97 in the second quarter. Revenue per ton was $121.34, up from $114.79, on a higher product quality mix. Source
• Seaborne Thermal margin per ton: Seaborne Thermal Adjusted EBITDA margin per ton was $10.02, against $9.12 in the second quarter. Revenue per ton was $59.25 and costs per ton were $49.23. Source
• PRB costs at low end of range: Powder River Basin costs per ton were $11.07, against $11.66 in the second quarter, and margin per ton was $2.29. Source
• Seaborne Thermal export prices higher: Export realized price was $76.54 per ton, against $72.86 in the second quarter. Domestic realized price was $24.62 per ton. Source

Demand and markets

• PRB shipments up year to date: Powder River Basin year-to-date shipments are up 10 percent, which management ties to PRB coal demand. Source
• Seaborne markets at lower end of cycle: Management described seaborne markets as stabilized along the lower end of the pricing cycle and cited U.S. thermal coal fundamentals alongside them. Source
• AI and data center demand cited: Management expects benefit from AI and data center growth, a rising coal share of the U.S. electricity mix and administration coal policies. Source

“Looking ahead, we are strengthening our full-year 2025 targets for seaborne met, seaborne thermal and PRB segments, and we are now in our last quarter before Centurion Mine begins longwall operations”

Jim Grech, President and Chief Executive Officer

Centurion mine progress

• Centurion shipped 210,000 tons: The Centurion mine shipped 210,000 tons in the third quarter. Source
• Over $680 million invested in Centurion: Management said more than $680 million of investment has been completed to develop and expand Centurion, which it expects to raise operating leverage to premium hard coking coal. Source
• Centurion to lift metallurgical volumes: Management said longwall operations at Centurion will improve metallurgical coal volumes and realizations. Source

Cash, liquidity and shareholder returns

• Operating cash flow of $122 million: Operating cash flow was $122 million, against $23.2 million in the second quarter. Additions to property, plant, equipment and mine development were $116.2 million. Source
• Cash and liquidity totals: Cash was $603.3 million at September 30, 2025, and total liquidity exceeded $950 million. Source
• Deposit returned and loan note repaid: A $29.0 million deposit related to the terminated acquisition was returned in the quarter, and a $9.3 million loan note was repaid. Source
• Quarterly dividend declared: The company declared a $0.075 per share dividend and paid $9.2 million of dividends in the quarter. Source

Full-year and fourth-quarter targets

• Seaborne Thermal and PRB volume targets raised: Full-year Seaborne Thermal and PRB volume targets were raised, and the Seaborne Metallurgical priced volume target was raised; its cost target was lowered. Source
• Fourth-quarter targets given for all segments: Fourth-quarter 2025 volume, price and cost targets were given for each segment; the second-quarter release gave full-year targets only. Source
• Annual SG&A and capital budget unchanged: Full-year SG&A, capital expenditure, sustaining capital and ARO cash spend targets were kept at the same levels. Source

Coming up, as management said on 30 October 2025

• Rare earth characterization in coming months: Management intends to advance characterization of rare earth elements and critical minerals in its feedstock in the coming months. Source
• Critical minerals talks with administration: Management plans to continue discussions with the U.S. administration on critical minerals policies and priorities. Source
• Centurion longwall start in February 2026: Longwall production at Centurion is scheduled to start in February 2026, on the accelerated timeline. Source

Figures management reported

Risks management discussed

• Operational: Other U.S. Thermal costs came in modestly above target because of a five-week dragline outage at Bear Run. The dragline has been repaired and returned to service. Source
• Demand: Management cited ongoing pricing pressure in seaborne thermal coal. Source

Earlier plans management reported on

• On track: Management said Centurion development remains on plan and on schedule for longwall startup. Source
• Met: Seaborne Thermal costs per ton were in line with company targets. Source
• Ahead: The recovery in Seaborne Thermal shipments was ahead of company expectations. Source
• Met: PRB costs per ton were at the low end of targeted ranges. Source

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.