Peabody Energy Corp.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 5 May 2026: press release. Guidance figures: 11 raised, 4 lowered, 10 new, 8 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Net loss attributable to common stockholders: Net loss attributable to common stockholders was $32.4 million, or $0.27 per diluted share, against net income of $34.4 million in the prior-year quarter. Source
• Adjusted EBITDA fell from prior year: Adjusted EBITDA was $82.5 million, against $144.0 million in the prior-year quarter. Source
• Seaborne Thermal EBITDA lower year over year: Seaborne Thermal Adjusted EBITDA was $48.5 million, against $84.2 million a year earlier, on 3.0 million tons sold and margin per ton of $16.35. Source
• Seaborne Metallurgical loss tied to Centurion: Seaborne Metallurgical Adjusted EBITDA was a $7.0 million loss, including about $80 million of impact from Centurion, while average realized prices rose 13 percent on the prior quarter. Source
• U.S. thermal volume grew on power demand: Management cited growing electricity demand as the driver of higher U.S. thermal volume year over year. Source
• Commissioning slowed by equipment issues: Electrical and mechanical issues, now resolved, cut cutting speeds during initial longwall commissioning and contributed to roof challenges. Source
• Full-year Centurion volume cut: Full-year 2026 Centurion volume is now 2.5 million tons, against the original 3.5 million tons. Source

“Our first quarter results demonstrate the value of our diverse global platform and reflect the durability of coal’s role in providing reliable and affordable power.”

President and Chief Executive Officer Jim Grech

Guidance

What changed from last quarter

• Guidance lowered: Centurion full-year 2026 volume reduced to 2.5 million tons from 3.5 million, with the longwall move now expected in early 2027. Source
• Guidance lowered: Seaborne Metallurgical full-year volume range moved to 9.3 - 10.3 million short tons from 10.3 - 11.3 million. Source
• Guidance raised: Seaborne Metallurgical full-year cost range raised to $123.00 - $133.00 per short ton from $108.00 - $118.00. Source
• New guidance: Second-quarter 2026 segment volume, price and cost figures are given in this release; no prior-quarter Second-quarter figures were given. Source

Results and growth drivers

• Net loss attributable to common stockholders: Net loss attributable to common stockholders was $32.4 million, or $0.27 per diluted share, against net income of $34.4 million in the prior-year quarter. Source
• Adjusted EBITDA fell from prior year: Adjusted EBITDA was $82.5 million, against $144.0 million in the prior-year quarter. Source
• Revenue below prior quarter: Revenue was $973.3 million, against $1,022.3 million in the December quarter and $937.0 million a year earlier. Source
• Operating loss against last year's profit: Operating loss was $44.2 million, against operating profit of $31.9 million a year earlier; interest expense was $10.7 million. Source
• Germanium results in rare earth work: Rare earth and critical mineral work produced germanium concentration results from expanded drilling and sampling. Source
• Studies, partnerships and funding pursued: Management said it continued technical and economic studies, advanced commercial partnerships and pursued multiple federal and state funding pathways. Source

Seaborne thermal and metallurgical

• Seaborne Thermal EBITDA lower year over year: Seaborne Thermal Adjusted EBITDA was $48.5 million, against $84.2 million a year earlier, on 3.0 million tons sold and margin per ton of $16.35. Source
• Middle East conflict lifted Asian demand: Management linked increased Asian coal demand to higher prices of competing LNG products in March, as a result of the Middle East conflict. Source
• Seaborne Metallurgical loss tied to Centurion: Seaborne Metallurgical Adjusted EBITDA was a $7.0 million loss, including about $80 million of impact from Centurion, while average realized prices rose 13 percent on the prior quarter. Source
• Metallurgical volume below expectations: Metallurgical volume was 0.4 million tons lower than expected, from Centurion challenges and weather at Coppabella, partly offset by an accelerated longwall move at Metropolitan. Source

“While we have extended the Centurion commissioning period, due to temporary equipment and roof control challenges, we continue to advance toward full longwall production rates.”

President and Chief Executive Officer Jim Grech

U.S. thermal segments

• Powder River Basin EBITDA and volume: Powder River Basin Adjusted EBITDA was $23.7 million on 21.2 million tons sold, with sales volumes above guidance. Source
• U.S. thermal volume grew on power demand: Management cited growing electricity demand as the driver of higher U.S. thermal volume year over year. Source
• Other U.S. Thermal EBITDA and margin: Other U.S. Thermal Adjusted EBITDA was $37.8 million on 3.3 million tons, a margin of 20 percent, with volumes in line with expectations. Source

Centurion longwall ramp

• Commissioning slowed by equipment issues: Electrical and mechanical issues, now resolved, cut cutting speeds during initial longwall commissioning and contributed to roof challenges. Source
• Response plan and added staff: The response plan covered strata management, equipment optimization, and added technical and operational resources. Source
• Full-year Centurion volume cut: Full-year 2026 Centurion volume is now 2.5 million tons, against the original 3.5 million tons. Source

“While this was not the start we had anticipated, we quickly mobilized the most experienced engineering and operating personnel to address the challenges,”

President and Chief Executive Officer Jim Grech

Costs, pricing and margins

• Seaborne Thermal costs below guidance: Seaborne Thermal costs were $50.26 per ton, below the low end of guidance, on higher production at both Australian thermal mines. Source
• Powder River Basin costs above target: Powder River Basin costs were $12.53 per ton, modestly above target, from sales mix changes and equipment maintenance timing. Source
• Other U.S. Thermal costs below targets: Other U.S. Thermal costs were $44.37 per ton, below company targets, reflecting cost control and higher underground production. Source
• Higher seaborne price realizations: Price realizations rose year over year in both seaborne segments, while thermal volumes were higher and costs lower than expected. Source

Second quarter 2026 expectations

• Seaborne Thermal second-quarter volume: Seaborne Thermal volume is expected at 3.0 million tons in the second quarter, with costs of $57 to $62 per ton. Source
• Part of export volume priced: About 0.3 million export tons are priced near $64.60 per ton, while Newcastle and high ash product volumes remain unpriced. Source
• Metallurgical second-quarter volume and price: Seaborne Metallurgical volume is expected at 2.3 million tons, at about 75 percent of the premium hard coking coal index, with costs of $145 to $150 per ton. Source
• U.S. thermal second-quarter volumes: Powder River Basin volume is expected at 19 million tons at $13.50 per ton; Other U.S. Thermal at 3.4 million tons at $54.50 per ton. Source
• Centurion second-quarter sales: Centurion is expected to sell about 0.3 million tons in the second quarter. Source

Cash, capital and share count

• Operating cash flow fell sharply: Net cash provided by operating activities was $30.0 million, against $119.9 million a year earlier. Source
• Capital spending of $85.4 million: Additions to property, plant, equipment and mine development were $85.4 million, against $70.4 million a year earlier. Source
• Cash balance lower than year-end: Cash and cash equivalents were $492.5 million at March 31, 2026, down from $575.3 million at December 31, 2025. Source
• Diluted share count lower: Weighted average diluted shares were 122.0 million, against 138.7 million in the prior-year quarter. Source

Coming up, as management said on 5 May 2026

• Centurion commissioning completes in second quarter: Management expects to finish Centurion commissioning and production ramp-up in the second quarter, then run at full longwall rates through the second half of 2026. Source
• Longwall move moved to early 2027: The Centurion longwall move originally planned for the fourth quarter of 2026 is now expected in early 2027. Source
• Quarterly dividend payable June 8: The $0.075 quarterly dividend declared May 5, 2026 is payable June 8, 2026 to holders of record on May 19, 2026. Source

Figures management reported

Risks management discussed

• Operational: Electrical, mechanical and roof condition issues at Centurion extended commissioning, and the longwall move was moved to early 2027. Source
• Operational: Adverse weather at Coppabella reduced Seaborne Metallurgical volume in the quarter. Source
• Financial: Centurion accounted for about $80 million of impact on the Seaborne Metallurgical segment's Adjusted EBITDA in the quarter. Source
• External: A large share of second-quarter Seaborne Thermal volume is unpriced, so those tons are sold at prices set later. Source

Earlier plans management reported on

• Ahead: Seaborne Thermal benefited from 0.2 million export shipments above guidance in the quarter. Source
• Ahead: Powder River Basin sales volumes were above guidance in the quarter. Source
• On track: Other U.S. Thermal volumes were in line with expectations in the quarter. Source
• Missed: Seaborne Metallurgical volume came in 0.4 million tons below expectation. Source
• Delayed: Management said the Centurion commissioning period was extended. Source
• Not stated: Management now expects 2.5 million tons for 2026, compared with the original 3.5 million tons expectation. Source

Other quarters

• Q2 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 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.