Peabody Energy Q2 revenue and Adjusted EBITDA miss estimates on lower volumes, higher costs

Overview

• U.S. coal producer's Q2 revenue and adjusted EBITDA missed analyst expectations

• Company posted net loss due to lower volumes and higher costs, especially at Centurion Mine

• Peabody refinanced convertible notes and reduced reclamation collateral by $350 mln

Outlook

• Peabody targets Centurion Mine sales of 2.0–2.5 mln tons for 2026

• Company expects seaborne thermal volume of 12.7 mln tons for 2026, up 200,000 tons

• Peabody raises Powder River Basin costs by $0.25 per ton for 2026

Result Drivers

• CENTURION COMMISSIONING COSTS - Higher-than-expected costs at Centurion Mine during commissioning weighed on results

• LOWER SALES VOLUMES - Reduced volumes in Powder River Basin and Other U.S. Thermal segments due to mild weather and operational disruptions

• HIGHER SEABORNE THERMAL PRICES - Seaborne Thermal segment benefited from higher realized prices, particularly in export markets

Company press release: ID:nPn2bV2Gva

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the coal peer group is "buy"

• Wall Street's median 12-month price target for Peabody Energy Corp is $32.00, about 37.7% above its July 28 closing price of $23.24

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads

• July 27 - Alliance Resource Partners Q2 revenue beats on higher oil gas royalties

• July 27 - Coal India misses profit view on weak volumes, higher costs

• July 28 - Whitehaven Coal logs 2026 output at top end of guidance, sees costs at low end

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)