Peabody Energy (BTU) investor relations material

Executive summary

• Q2 2026 delivered key accomplishments, including Centurion Mine progress, strategic financial actions, and a DOE grant for Powder River Basin rare earth projects.

• Revenue for Q2 2026 was $1,003.2 million, up 13% year-over-year, but net loss attributable to common stockholders widened to $90.6 million ($0.74 per diluted share) from $27.6 million ($0.23 per diluted share) in Q2 2025 due to higher costs, induced conversion expense, and increased depreciation.

• Adjusted EBITDA was $24.0 million, down 74% year-over-year, reflecting higher operating costs and unfavorable segment performance, especially in Seaborne Metallurgical and Powder River Basin.

• Maintained strong safety focus and improved operational momentum, but faced near-term operating and cost challenges, particularly in U.S. thermal and Centurion commissioning.

• Completed significant financing transactions, including issuing $250 million of new convertible notes, repurchasing $241.2 million of existing notes, and reducing reclamation collateral requirements by $350 million.

Financial highlights

• Q2 2026 revenue increased by $113.1 million year-over-year to $1,003.2 million, driven by higher realized prices in Seaborne segments.

• Net loss attributable to common stockholders was $90.6 million, or $0.74 per diluted share.

• Adjusted EBITDA was $24.0 million, down from $93.3 million in Q2 2025.

• Seaborne thermal segment generated $52.1 million of adjusted EBITDA with a 23% margin; U.S. thermal segment contributed $19.8 million, and other U.S. thermal added $26.9 million.

• Cash and cash equivalents at June 30, 2026, were $526.3 million; total liquidity was $959.1 million.

Outlook and guidance

• Targeting 1.5–2.0 million tons of Centurion sales in H2 2026, with 500,000–700,000 tons in Q3.

• Seaborne thermal Q3 2026 volume expected at 3.0 million tons, costs improving to $52–$57/ton.

• Seaborne metallurgical Q3 2026 volume forecast at 1.9–2.1 million tons, costs to improve by $20/ton.

• PRB Q3 2026 volume expected at 22 million tons, average price $13.60/ton, costs $11.75–$12.25/ton.

• Full-year 2026 guidance: Seaborne thermal volume 12.4–13.0 million tons, metallurgical 8.8–10.3 million tons; expectation for stronger H2 and continued shareholder return program.