Peabody Third-Quarter Adjusted EBITDA Rebounds to $97.5 Million

The Tip Desk · November 4, 2026 · 4 min read

Third-quarter 2026 Adjusted EBITDA rose to $97.5 million as seaborne thermal margin per ton reached $21.05 and every reportable segment posted positive Adjusted EBITDA.

Peabody Energy Corporation (BTU) reported Adjusted EBITDA of $97.5 million for the quarter ended September 30, 2026, up from $24.0 million in the second quarter; it was $82.5 million in the first quarter. Net income attributable to common stockholders was a loss of $32.8 million, or $0.27 a share, compared with a $70.1 million loss, or $0.58 a share, a year earlier.

The coal producer said all segments reported positive Adjusted EBITDA, with seaborne operations benefiting from higher pricing. President and Chief Executive Officer Jim Grech said the quarter showed improving momentum across the portfolio and that the company worked through higher-cost faulted conditions at Centurion, which slowed advance rates even as the mine reached third-quarter sales targets.

The segment generated $65.5 million of Adjusted EBITDA, up 26 percent from $52.1 million in the second quarter. Margin per ton rose to $21.05 from $16.92. Revenue per ton increased to $77.63 from $74.85, and the average realized export price per ton rose to $100.37 from $95.87. Sales were 3.1 million tons, including 2.0 million export tons. The company said shipments were 0.1 million tons higher than anticipated and costs per ton of $56.58 were in line with expectations.

Seaborne Metallurgical returned to positive Adjusted EBITDA of $5.2 million after a $17.0 million loss in the second quarter. Realized pricing improved nearly $17 a ton. Revenue per ton rose to $164.83 from $148.04. Sales of 2.2 million tons exceeded targets, which the company attributed to strong production at Metropolitan after a longwall move. Costs per ton of $162.45 were above company expectations because of higher-cost faulted conditions at Centurion.

Powder River Basin Adjusted EBITDA turned positive at $15.0 million from a $7.1 million loss, with margin per ton of $0.77 versus a $0.43 loss. Sales volumes of 19.6 million tons were below company targets due to lower-than-anticipated coal burn. Costs per ton improved 8 percent to $12.94, though the company said higher diesel prices and lower-than-expected shipments continued to affect costs. Other U.S. Thermal produced $25.5 million of Adjusted EBITDA on 3.4 million tons, with revenue per ton up 8 percent to $59.53 and costs per ton of $52.18.

Centurion shipped 0.58 million tons and met third-quarter sales targets. Late in the quarter the longwall encountered more problematic faulting than anticipated across multiple areas of the panel, constraining production and equipment performance. October production was approximately 45,000 tons. The company expects fourth-quarter sales volume between 0.3 and 0.5 million tons and has identified engineering modifications, including a base-lift power increase estimated at $1.5 million to $2 million during scheduled maintenance and a two-stage flipper estimated at $5 million to $10 million during the next longwall move, now expected in the third quarter of 2027.

During the quarter Peabody repurchased $38.9 million of 2028 convertible notes for cash consideration of $58.1 million, effectively repurchasing 0.7 million shares, and issued a cash redemption notice for the remaining $39.9 million of those notes. Together with a second-quarter repurchase, the company has effectively repurchased 5.7 million shares in 2026. The repurchase produced a $3.3 million charge to third-quarter earnings. The cash-settlement commitment resulted in a $20.7 million derivative liability and corresponding debt discount. Results also included about $4.4 million of interest expense related to debt discount amortization and a $7.2 million mark-to-market gain on the derivative liability. At September 30, cash was $434 million and liquidity was $887 million.

For the fourth quarter, the company expects Seaborne Thermal volume of 3.6 million to 3.8 million tons, including 2.5 million to 2.7 million export tons, with costs of $46 to $51 a ton. Seaborne Metallurgical volume is expected at 2.2 million to 2.4 million tons with costs of $150 to $160 a ton. Full-year 2026 guidance was updated to increase expected Seaborne Thermal export volume by 0.2 million tons, lower Seaborne Metallurgical volume 0.6 million tons with costs expected to increase about $15 a ton, cut Powder River Basin sales volume by approximately 7.5 million tons, reduce Other U.S. Thermal volume by 0.2 million tons, and lower capital expenditure guidance by $40 million, including about $30 million at Centurion.