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Mar 31, 2025
Peabody Energy Q1 2025 Earnings Report
Peabody reported net income attributable to common stockholders of $34.4 million for the first quarter of 2025.
Key Takeaways
Peabody had a strong start to 2025, with solid volumes and good cost management mitigating the impact of cyclically low seaborne coal prices. All segments generated favorable Adjusted EBITDA, and U.S. operations benefited from positive policy backdrop and good supply/demand fundamentals.
Reported first quarter Adjusted EBITDA of $144 million and generated operating cash flow of $120 million.
Contained costs successfully with average costs per ton below guidance levels in Seaborne Thermal and Metallurgical segments, and near the low end of guidance in PRB and Other U.S. Thermal segments.
Remains on budget and ahead of planned development at the Centurion Mine, with the mine ahead of its target of 500,000 tons of sales in 2025 in advance of longwall production in the first quarter of 2026.
Signed a seven-year contract to provide seven to eight million tons of coal per year to Associated Electric Cooperative, Inc.
Revenue by Segment
Forward Guidance
For the second quarter of 2025, Seaborne Thermal volume is expected to be 4.0 million tons, with 2.5 million export tons. Seaborne Metallurgical volume is anticipated to be 2.2 million tons. PRB volume is expected to be 19 million tons, and Other U.S. Thermal volume is expected to be 3.3 million tons.
Positive Outlook
- Centurion Mine is ahead of its target of 500,000 tons of sales for the full year, with longwall production expected in Q1 2026.
- PRB segment cost performance was near the low end of company targets, with increased customer demand anticipated for the full year.
- Metallurgical coal prices have rebounded from their lows in March.
- Peabody is sold out for planned 2025 production in the Powder River Basin.
- The company anticipates increased customer demand for the full year in the U.S. coal market.
Challenges Ahead
- The second quarter is typically the lightest for demand given shoulder season effects on thermal coal demand.
- Issues involving the Moranbah North Mine, which remains inactive following a gas ignition event, may impact Peabody's planned acquisition of steelmaking coal assets from Anglo.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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