Peabody Energy Corp.: Q3 FY2026 earnings call

What management said about Q3 FY2026, from the documents filed with the SEC on 4 November 2026: press release. Guidance figures: 10 raised, 4 lowered, 4 narrowed, 12 new, 5 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Net loss narrowed from prior year: Net loss attributable to common stockholders was $(32.8) million, or $(0.27) per diluted share, against $(70.1) million, or $(0.58), a year earlier. Source
• Adjusted EBITDA rose from second quarter: Adjusted EBITDA was $97.5 million, against $24.0 million in the second quarter and $99.5 million a year earlier. Management attributed the increase to thermal operations and higher seaborne pricing. Source
• Seaborne Thermal earnings rose sharply: Seaborne Thermal Adjusted EBITDA was $65.5 million, up from $52.1 million in the second quarter and $41.0 million a year earlier. Source
• Metallurgical back to positive EBITDA: Seaborne Metallurgical Adjusted EBITDA was $5.2 million, against $(17.0) million in the second quarter, with margin per ton at $2.38. Source
• Late-quarter faulting slowed longwall: Faulting across several panel areas late in the quarter constrained production and equipment performance, management said. Source
• Metallurgical costs above company expectations: Seaborne Metallurgical costs were $162.45 per ton, up from $155.08 in the second quarter and above the $130 - $140 range set for the quarter. Source
• Convertible notes bought back: Repurchased $38.9 million of 2028 notes for $58.1 million in cash, effectively repurchasing 0.7 million shares; 5.7 million shares were effectively repurchased in 2026. Source

“The third quarter demonstrated improving momentum across the portfolio with all segments reporting positive Adjusted EBITDA while our seaborne operations benefited from higher pricing.”

Jim Grech, President and Chief Executive Officer

Guidance

What changed from last quarter

• New guidance: Fourth-quarter 2026 segment guidance provided; the prior release gave third-quarter segment guidance. Source
• Guidance raised: Full-year Seaborne Thermal export volume raised by 0.2 million tons. Source
• Guidance lowered: Full-year Seaborne Metallurgical volume lowered by 0.6 million tons. Source
• Guidance raised: Full-year Seaborne Metallurgical costs raised by about $15 per ton. Source
• Guidance lowered: Full-year PRB sales volume reduced by about 7.5 million tons. Source
• Guidance raised: Full-year PRB costs raised by about $1 per ton. Source
• Guidance lowered: Full-year Other U.S. Thermal volume reduced by 0.2 million tons. Source
• Guidance lowered: Full-year Seaborne Thermal domestic volume lowered. Source
• Guidance lowered: Full-year capital expenditure guidance reduced, with the reduction mainly from deferred Northern panel development capital. Source
• Guidance kept: Full-year SG&A and ARO cash spend guidance unchanged. Source
• New: Convertible note repurchases during the quarter and a cash redemption notice for the remaining 2028 notes. Source
• New: Targeted engineering modifications identified for the Centurion longwall configuration. Source

Quarter results and headline figures

• Net loss narrowed from prior year: Net loss attributable to common stockholders was $(32.8) million, or $(0.27) per diluted share, against $(70.1) million, or $(0.58), a year earlier. Source
• Adjusted EBITDA rose from second quarter: Adjusted EBITDA was $97.5 million, against $24.0 million in the second quarter and $99.5 million a year earlier. Management attributed the increase to thermal operations and higher seaborne pricing. Source
• Revenue rose from second quarter: Revenue was $1,096.3 million, against $1,003.2 million in the second quarter and $1,012.1 million a year earlier. Source

Seaborne thermal and metallurgical segments

• Seaborne Thermal earnings rose sharply: Seaborne Thermal Adjusted EBITDA was $65.5 million, up from $52.1 million in the second quarter and $41.0 million a year earlier. Source
• Export prices lifted thermal margin: Export realized price was $100.37 per ton, against $95.87 in the second quarter; margin per ton reached $21.05, against $16.92. Source
• Metallurgical back to positive EBITDA: Seaborne Metallurgical Adjusted EBITDA was $5.2 million, against $(17.0) million in the second quarter, with margin per ton at $2.38. Source
• Metallurgical sales ran above expectations: Metallurgical sales of 2.2 million tons were above expectations, helped by Metropolitan production after a longwall move. Source

“Looking ahead to the fourth quarter, our priorities remain operating safely, clearing the faulted zone at Centurion, and improving free cash flow as seaborne markets remain strong.”

Jim Grech, President and Chief Executive Officer

Powder River Basin and other U.S. thermal

• PRB sales below company targets: PRB sold 19.6 million tons, below company targets on lower-than-anticipated coal burn; Adjusted EBITDA was $15.0 million, against $(7.1) million in the second quarter. Source
• PRB margin turned positive: PRB margin per ton was $0.77, against $(0.43) in the second quarter, with revenue per ton of $13.71. Source
• Other U.S. Thermal volume below expectations: Other U.S. Thermal delivered 3.4 million tons, below expectations; revenue per ton rose 8 percent to $59.53, and Adjusted EBITDA was $25.5 million. Source

Centurion longwall update

• Centurion met third-quarter sales target: Centurion shipped 0.58 million tons and achieved its targeted third quarter sales volume while working through geological challenges. Source
• Late-quarter faulting slowed longwall: Faulting across several panel areas late in the quarter constrained production and equipment performance, management said. Source
• October output near 45,000 tons: Longwall output in October was about 45,000 tons as geological complexity affected performance. Source
• Engineering changes identified: Management identified a base-lift power increase and a two-stage flipper aimed at the current longwall configuration in these conditions. Source

“These opportunistic actions reflect our continued focus on shareholder value,”

Mark Spurbeck, Chief Financial Officer

Costs, margins and pricing

• Metallurgical costs above company expectations: Seaborne Metallurgical costs were $162.45 per ton, up from $155.08 in the second quarter and above the $130 - $140 range set for the quarter. Source
• Thermal costs in line with expectations: Seaborne Thermal costs were $56.58 per ton, against $57.93 in the second quarter, in line with management expectations. Source
• PRB cost per ton improved: PRB costs improved 8 percent to $12.94 per ton from $14.06 in the second quarter; higher diesel prices and lower shipments continued to affect costs. Source
• Other thermal revenue per ton rose: Other U.S. Thermal revenue per ton rose 8 percent from the second quarter to $59.53; costs per ton were $52.18. Source

Demand and tons sold

• Tons sold up from second quarter: Tons sold were 28.3 million, against 24.9 million in the second quarter and 32.5 million a year earlier. Source
• Lower 2026 US coal burn cited: Management tied the reduced PRB and Other U.S. Thermal full-year volumes to lower 2026 US coal burn. Source
• Some thermal tons remain unpriced: About 1.6 million tons of Newcastle product and 0.8 million tons of high ash product remain unpriced for the fourth quarter. Source

Cash, debt and capital returns

• Cash and liquidity at quarter end: Cash was $434 million and liquidity $887 million at September 30, 2026. Source
• Operating cash flow negative in quarter: Operating cash flow was $(1.4) million in the quarter, against $122.0 million a year earlier; additions to property, plant and equipment were $59.8 million. Source
• Convertible notes bought back: Repurchased $38.9 million of 2028 notes for $58.1 million in cash, effectively repurchasing 0.7 million shares; 5.7 million shares were effectively repurchased in 2026. Source
• Repurchase charge recorded: The repurchase resulted in a $3.3 million charge to third-quarter earnings, and a $7.2 million mark-to-market gain on the derivative liability was recorded. Source

Equity affiliates, capital plan and recognition

• Middlemount loss narrowed: Middlemount Adjusted EBITDA was $(4.1) million, against $(10.1) million in the second quarter. Source
• Reclamation award from federal regulator: The Office of Surface Mining Reclamation and Enforcement recognized the company with the 2026 national reclamation award. Source
• Northern panel development capital deferred: Capital guidance was reduced mainly by deferring development capital for the Northern panels. Source

Coming up, as management said on 4 November 2026

• Convertible notes redemption in November: Redemption of the remaining $39.9 million of 2028 convertible notes to be completed in November 2026, with any conversion obligation settled in cash. Source
• Dividend payable December 9: Quarterly dividend of $0.075 per share declared, payable December 9, 2026, to holders of record November 19, 2026. Source
• Base-lift work in scheduled maintenance: The base-lift power increase is to be completed during scheduled maintenance in the current panel. Source
• Next longwall move expected 2027: The two-stage flipper is to be installed during the next longwall move, now expected in the third quarter of 2027. Source

Figures management reported

Risks management discussed

• Operational: Faulting limits Centurion production and equipment performance while the operation works through these conditions. Source
• External: Higher diesel prices and lower shipments continue to affect PRB costs. Source
• Demand: Management cites lower 2026 US coal burn as the reason for reduced PRB and Other U.S. Thermal full-year volumes. Source

Earlier plans management reported on

• Met: Centurion reached its targeted third quarter sales volume. Source
• Ahead: Metallurgical sales of 2.2 million tons exceeded targets. Source
• Ahead: Seaborne Thermal shipments were 0.1 million tons above the level anticipated. Source
• Met: Seaborne Thermal costs per ton were in line with expectations. Source
• Not stated: Seaborne Metallurgical costs per ton were above company expectations, attributed to faulted conditions at Centurion. Source
• Not stated: PRB sales volume was below company targets. Source
• Not stated: Management said the cash settlement continues its policy of returning capital to shareholders. Source

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 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.