Peabody Energy (BTU) Q1 2025 earnings summary

Executive summary

• Net income attributable to common stockholders was $34.4 million ($0.27 per diluted share) for Q1 2025, down from $39.6 million ($0.29 per share) year-over-year, with strong cost control and operational execution across all segments despite lower seaborne coal prices.

• Adjusted EBITDA was $144.0 million, a 10% decrease year-over-year, reflecting lower realized prices and higher depreciation, but all segments generated positive Adjusted EBITDA.

• Centurion Mine development is ahead of schedule and on budget, targeting 500,000 tons of sales in 2025 and longwall production in Q1 2026.

• Signed a major long-term supply agreement with Associated Electric Cooperative for 7–8 million tons/year for at least seven years.

• Notified Anglo American of a Material Adverse Change (MAC) impacting the planned acquisition of Australian steelmaking coal assets due to ongoing issues at Moranbah North mine.

Financial highlights

• Q1 2025 revenue was $937.0 million, down 5% year-over-year, mainly due to lower seaborne coal prices.

• Adjusted EBITDA margin for Seaborne Thermal was 32%, with costs per ton well below guidance.

• Cash and cash equivalents at March 31, 2025 were $696.5 million; total liquidity exceeded $1 billion.

• Net cash provided by operating activities was $119.9 million for Q1 2025.

• Declared a $0.075 per share dividend on May 6, 2025.

Outlook and guidance

• Seaborne Thermal Q2 2025 volume expected at 4.0 million tons, with costs per ton at $45–$50, aligning with full-year guidance.

• Seaborne Metallurgical Q2 volume projected at 2.2 million tons, with costs of $120–$130 per ton.

• PRB Q2 volume expected at 19 million tons, average price $13.80/ton, costs $12.50–$13.00/ton.

• Other U.S. Thermal Q2 volume expected at 3.3 million tons, average price $52.00/ton, costs $41–$45/ton.

• Full year 2025 thermal coal sales guidance: Seaborne Thermal 14.2–15.2 million tons, Seaborne Metallurgical 8.0–9.0 million tons; U.S. thermal coal sales commitments total approximately 91 million tons.