Peabody Energy (BTU) Q3 2024 earnings summary

Executive summary

• Net income attributable to common stockholders was $101.3 million ($0.74 per diluted share) for Q3 2024, down 16% year-over-year; Adjusted EBITDA was $224.8 million.

• Revenue for Q3 2024 was $1,088.0 million, up 1% year-over-year; nine-month revenue was $3,113.6 million, down 16%.

• Completed $100 million in share repurchases in Q3, totaling $180 million YTD; $0.075 per share dividend declared.

• Centurion development accelerated, with first customer shipment scheduled for Q4 and NPV estimated at $1.6 billion.

• Shoal Creek Mine insurance recovery of $109.5 million recognized in 2024, partially offsetting lower operating results.

Financial highlights

• Q3 2024 diluted EPS was $0.74, down from $0.82 in Q3 2023; nine-month diluted EPS was $2.44.

• Operating cash flow for Q3 2024 was $359.9 million; free cash flow for the quarter was $263.2 million.

• Cash and cash equivalents at September 30, 2024 were $772.9 million; total liquidity was $1,089.9 million.

• Capital expenditures increased, with $265.7 million spent in the first nine months of 2024.

• Weighted average diluted shares outstanding for Q3 2024 were 141.6 million.

Outlook and guidance

• Full year 2024 Seaborne Thermal sales expected at 16.0–16.4 million tons; Q4 volume at 4.1 million tons.

• Seaborne Metallurgical Q4 2024 volume expected at 2.3 million tons; full-year guidance 7.2–7.6 million tons.

• PRB Q4 2024 volume expected at 21.2 million tons, costs $11.50–$12.00/ton.

• Capital expenditure target for 2024 increased to $425 million, mainly for Centurion and Wambo.

• U.S. thermal coal sales for 2024 are approximately 100 million tons, with flexibility to increase if demand warrants.