February 5, 2026 - Peabody has reported fourth quarter net income attributable to common stockholders of $10.4 million, or $0.09 per diluted share, compared to $30.6 million, or $0.25 per diluted share, in the prior year quarter. Peabody had Adjusted EBITDA¹ of $118.1 million in the fourth quarter of 2025, compared to $176.7 million in the fourth quarter of 2024.

Full-year 2025 revenue totaled $3,861.5 million compared to $4,236.7 million in the prior year in the face of sharply lower seaborne coal prices. Full-year 2025 net income attributable to common stockholders totaled $(52.9) million, or $(0.43) per diluted share, compared to $370.9 million, or $2.70 per diluted share in the prior year. Adjusted EBITDA was $454.9 million compared to $871.7 million in the prior year.

"Peabody's continued strong operational performance in the fourth quarter capped an excellent year with record safety and environmental results, increased volumes and focused cost control," said Peabody President and Chief Executive Officer Jim Grech. "Against a new backdrop of rising seaborne metallurgical coal prices, we are pleased to announce the accelerated start of longwall operations this week at our flagship Centurion mine, which materially upgrades both the quantity and quality of our steelmaking coal production. And U.S. market conditions remain highly favorable for our thermal coal platform with growing interest in increased coal generation, expanding West Coast export capabilities and potential rare earth/critical mineral opportunities."

Fourth Quarter and Full Year Highlights

• Peabody reported full-year Adjusted EBITDA of $455 million, despite sharply lower seaborne coal prices in 2025. The company generated operating cash flow from continuing operations of $336 million and reported $575 million of Cash and Cash Equivalents at December 31, 2025. Peabody's full-year results met or exceeded original full-year guidance across seven of eight segment volume and cost metrics.
• Peabody's operations achieved a global TRIFR of 0.71 per 200,000 hours worked, setting an all-time record for the lowest incidence rate in the Company's history for the second consecutive year, surpassing the previous year's record low of 0.81. Peabody also reclaimed approximately two acres for every acre disturbed, continuing its track record of environmental excellence.
• Centurion's longwall is anticipated to begin cutting coal this week, two months ahead of schedule, marking a major milestone and strengthening Peabody's seaborne metallurgical segment with an estimated 3.5 million tons of premium low vol hard coking coal production in 2026, ramping up to 4.7 million tons in 2028.
• Mr. Grech was appointed Chair of the National Coal Council (NCC). A key priority of the NCC will be to advise the Administration on ways to expand use of coal?fueled generation, build new coal plants, and export greater quantities of U.S. coal.
• Supportive U.S. policy and market conditions including higher natural gas prices, and AI and data?center?driven demand for dispatchable power resulted in increased coal plant utilization and supported higher volumes across the U.S. thermal coal portfolio, led by 85 million tons from our Powder River Basin mines.
• The company advanced projects relating to evaluation of rare earth element and critical mineral potential, power generation from coal mine gas at Centurion, and development of 3 GW of renewable energy projects on former mined lands in the Midwest.
• Peabody declared a $0.075 per share dividend on Feb. 5, 2026, payable on Mar. 10, 2026 to shareholders of record on Feb. 23, 2026.

Fourth Quarter Segment Performance

Seaborne Thermal volumes totaled 3.3 million tons, ahead of expectations. The average export price per ton of $81.80 increased 7 percent from the prior quarter, despite the third-quarter closure of the Wambo Underground Mine. Costs per ton were better than expectations driven by higher-than-anticipated production. The segment delivered 31 percent Adjusted EBITDA margins on Adjusted EBITDA of $63.5 million, a 55 percent increase from the previous quarter.

Seaborne Metallurgical volumes came in ahead of expectations at 2.5 million tons, reflecting a 19 percent increase over the prior quarter. Costs per ton were in line with targets, despite an early start to wet summer weather in Queensland. The segment reported 8 percent Adjusted EBITDA margins on Adjusted EBITDA of $24.6 million.

Powder River Basin (PRB) shipped 22.3 million tons in the fourth quarter, finishing the year 4.9 million tons higher than 2024. PRB average realized price per ton for the quarter was above targets, with costs in line with expectations. The segment delivered 15 percent Adjusted EBITDA margins and Adjusted EBITDA of $44.8 million for the quarter and $175.8 million for 2025, a 27 percent increase over 2024.

Other U.S. Thermal shipped 3.7 million tons in the quarter, above company targets. Revenue per ton came in above expectations and costs per ton were modestly down quarter over quarter. The segment reported Adjusted EBITDA of $18.1 million for the quarter and $71.4 million for 2025.

Balance Sheet/Liquidity 

Peabody ended the year with a strong financial position, supported by $336 million of operating cash flow from continuing operations in 2025 and $575 million of Cash and Cash Equivalents at December 31, 2025. The Company maintained substantial liquidity throughout the year, ensuring the financial flexibility to support its shareholder return framework and advance strategic growth initiatives.

"Peabody has continued to demonstrate balance sheet strength while investing approximately $750 million in recent years to develop and expand Centurion, which will significantly increase our leverage to the premium hard coking coal segment of the metallurgical market," said Executive Vice President and Chief Financial Officer Mark Spurbeck. "With sustained higher met coal realizations and lower capital expenditures, Peabody will be better positioned to return additional free cash flow to shareholders, consistent with our established return framework."

Centurion Longwall Mining Ahead of Schedule

Longwall mining is anticipated to begin this week at Centurion, Peabody's flagship tier-one premium hard coking coal mine in Australia's Bowen Basin. The startup comes two months ahead of its original target and strengthens Peabody's position in the seaborne metallurgical coal market.

"With a low cost structure, premium price realizations and a long mine life, Centurion immediately vaults to the top of Peabody's coal operations and establishes a multi-decade foundation for shareholder value creation," said Peabody President and Chief Executive Officer Jim Grech. "Full operations at Centurion follow years of strategic investment, and investors will now begin to benefit from this premier addition to the portfolio."

Centurion will significantly enhance Peabody's metallurgical coal platform with an average annual production of 4.7 million tons at estimated costs of $105 per ton (2024 dollars) over a 25-year-plus mine life. The mine benefits from an expanded integrated mine plan of 140 million tons in the coveted Goonyella Middle Seam. Centurion is targeted to deliver 3.5 million tons in 2026, ramping to its targeted 4.7?million?ton annual run rate by 2028.

Centurion's product quality and proximity to key demand nodes in Asia results in full benchmark premium hard coking coal pricing. Peabody's segment?wide metallurgical coal realizations are expected to improve meaningfully from approximately 70 percent of benchmark in 2025 to 80 percent in 2026, with the potential to exceed that level as Centurion reaches full scale. The company now assesses Centurion's net present value at $2.1 billion at $225 per tonne benchmark pricing, an increase of more than 30 percent over the estimate of late 2024.

Rare Earth Elements and Critical Mineral Advancement

Peabody continues to pursue rare earth element (REE) and critical mineral (CM) opportunities from "unconventional" deposits, with substantial testing primarily at its Powder River Basin operations. In addition to the standard array of light rare earth elements, current assessments indicate that the company's large volumes of selective mining feedstock contain an attractive proportion of heavy rare earths including yttrium, dysprosium and terbium, as well as other critical minerals such as germanium, gallium and scandium.

Peabody has advanced multiple REE/CM workstreams since mid-2025:

• The company is conducting extensive testing to evaluate mineral types and concentrations. Analysis to date of the targeted PRB feedstocks indicates critical mineral oxide concentrations (CMOCs) ranging from 428 — 1,669 ppm (parts per million) on a dry-ash basis.
• Heavy rare earths account for an estimated 21 – 28 percent of CMOCs.
• Additionally, germanium and gallium concentrations in select mining areas are attractive.
• Peabody has been recommended by the Wyoming Energy Authority to receive funding of $6.25 million for a pilot plant using Peabody's PRB coal for REE/CM processing.
• Peabody is developing flowsheets in conjunction with technology partners to support techno-economic assessments and produce rare earth products.
• The company is continuing collaboration with government agencies and departments focused on accelerating timelines to production.

While Peabody's rare earth and critical minerals initiative is in early stages, the company is encouraged by the progress to date and has expanded the scope of activities to evaluate commercial potential.

Focus Areas for 2026

"As we begin 2026, Peabody continues to advance our transition to greater metallurgical coal production while building on our leadership position in U.S. energy coal," said Mr. Grech. "Our investment thesis is supported by a strengthened portfolio, disciplined capital allocation framework, and increasing opportunities across both steelmaking coal and U.S. energy markets. In 2026, we are focused on ramping up Centurion production, capitalizing on rising electricity demand and returning to free cash flow generation," said Mr. Grech.

Peabody's 2026 priorities include:

• Driving safe, reliable and efficient operations across the company
• Achieving full operational performance at Centurion
• Continuing the strong Adjusted EBITDA-to-capex margins from Peabody's high-cash-flowing thermal coal assets
• Preserving balance sheet strength and increasing free cash flow to support shareholder returns
• Progressing workstreams to maximize commercial opportunities using the company's land/coal resources

First Quarter 2026 Outlook 

Seaborne Thermal

• Seaborne Thermal volumes are expected to be 2.8 million tons, including 1.7 million export tons. 0.2 million export tons are priced at $101.05 per ton, and 0.7 million tons of Newcastle product and 0.8 million tons of high ash product are unpriced. Sales volume is expected to be lower in the first quarter due to sequencing at the Wilpinjong Mine, with segment costs anticipated to be $51-$56 per ton.

Seaborne Metallurgical

• Seaborne met volumes are expected to be 2.4 million tons and are expected to achieve approximately 75 percent of the premium hard coking coal price index. Costs are anticipated to be $117-$122 per ton. Longwall moves are planned at Metropolitan and Shoal Creek in the quarter.

U.S. Thermal

• PRB volume is expected to be approximately 21 million tons at an average price of $13.40 per ton and costs of approximately $11.75-$12.25 per ton.
• Other U.S. Thermal volume is expected to be approximately 3.3 million tons at an average price of $54.50 per ton and costs of approximately $45-$49 per ton.

Today's earnings call is scheduled for 10 a.m. CT and can be accessed via the company's website at PeabodyEnergy.com.

Peabody (NYSE: BTU) is a leading coal producer, providing essential products for the production of affordable, reliable energy and steel. Our commitment to sustainability underpins everything we do and shapes our strategy for the future. For further information, visit PeabodyEnergy.com. 

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