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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)

| ☑ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |  |
|  | For the quarterly period ended | March 31, 2025 |  |

or

| ☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |  |
|  | For the transition period from ____________ to ____________ |  |

Commission File Number: 1-16463
____________________________________________
PEABODY ENERGY CORPORATION
(Exact name of registrant as specified in its charter)

Delaware |  | 13-4004153
(State or other jurisdiction of incorporation or organization) |  | (I.R.S. Employer Identification No.)

| 701 Market Street, | St. Louis, | Missouri |  |  | 63101-1826
(Address of principal executive offices) |  | (Zip Code)

(314) 342-3400
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:

Title of each class | Trading Symbol(s) | Name of each exchange on which registered
Common Stock, par value $0.01 per share | BTU | New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act:
Large accelerated filer ☑ Accelerated filer ☐
Non-accelerated filer ☐ Smaller reporting company ☐
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑
There were 121.6 million shares of the registrant’s common stock (par value of $0.01 per share) outstanding at May 2, 2025.

TABLE OF CONTENTS

| Page
PART I — FINANCIAL INFORMATION |
Item 1. Financial Statements | 1
Unaudited Condensed Consolidated Statements of Operations | 1
Unaudited Condensed Consolidated Statements of Comprehensive Income | 2
Condensed Consolidated Balance Sheets | 3
Unaudited Condensed Consolidated Statements of Cash Flows | 4
Unaudited Condensed Consolidated Statements of Changes in Stockholders’ Equity | 6
Notes to Unaudited Condensed Consolidated Financial Statements | 7
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations | 24
Item 3. Quantitative and Qualitative Disclosures About Market Risk | 42
Item 4. Controls and Procedures | 43
PART II — OTHER INFORMATION |
Item 1. Legal Proceedings | 44
Item 1A. Risk Factors | 44
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds | 46
Item 4. Mine Safety Disclosures | 47
Item 5. Other Information | 47
Item 6. Exhibits | 47
EXHIBIT INDEX | 48
SIGNATURE | 49

Table of Contents
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements.
PEABODY ENERGY CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

|  |  | Three Months Ended March 31,
|  |  |  |  | 2025 |  | 2024
|  |  |  |  | (Dollars in millions, except per share data)
Revenue |  |  |  |  | $ | 937.0 |  |  | $ | 983.6 |
Costs and expenses |  |  |  |  |  |  |
Operating costs and expenses (exclusive of items shown separately below) |  |  |  |  | 770.2 |  |  | 814.2 |
Depreciation, depletion and amortization |  |  |  |  | 92.1 |  |  | 79.8 |
Asset retirement obligation expenses |  |  |  |  | 13.6 |  |  | 12.9 |
Selling and administrative expenses |  |  |  |  | 23.6 |  |  | 22.0 |
Restructuring charges |  |  |  |  | 1.7 |  |  | 0.1 |
Transaction costs related to business combinations |  |  |  |  | 2.4 |  |  | — |
Other operating (income) loss: |  |  |  |  |  |  |
Net gain on disposals |  |  |  |  | (5.2) |  |  | (2.1) |
Provision for NARM loss |  |  |  |  | — |  |  | 1.8 |
Loss from equity affiliates |  |  |  |  | 6.7 |  |  | 3.7 |
Operating profit |  |  |  |  | 31.9 |  |  | 51.2 |
Interest expense, net of capitalized interest |  |  |  |  | 11.5 |  |  | 14.7 |
Interest income |  |  |  |  | (15.4) |  |  | (19.2) |
Net periodic benefit credit, excluding service cost |  |  |  |  | (7.4) |  |  | (10.1) |
Income from continuing operations before income taxes |  |  |  |  | 43.2 |  |  | 65.8 |
Income tax provision |  |  |  |  | 4.9 |  |  | 20.1 |
Income from continuing operations, net of income taxes |  |  |  |  | 38.3 |  |  | 45.7 |
Loss from discontinued operations, net of income taxes |  |  |  |  | (0.3) |  |  | (0.7) |
Net income |  |  |  |  | 38.0 |  |  | 45.0 |
Less: Net income attributable to noncontrolling interests |  |  |  |  | 3.6 |  |  | 5.4 |
Net income attributable to common stockholders |  |  |  |  | $ | 34.4 |  |  | $ | 39.6 |
Income from continuing operations: |  |  |  |  |  |  |
Basic income per share |  |  |  |  | $ | 0.29 |  |  | $ | 0.32 |
Diluted income per share |  |  |  |  | $ | 0.27 |  |  | $ | 0.30 |
Net income attributable to common stockholders: |  |  |  |  |  |  |
Basic income per share |  |  |  |  | $ | 0.28 |  |  | $ | 0.31 |
Diluted income per share |  |  |  |  | $ | 0.27 |  |  | $ | 0.29 |

See accompanying notes to unaudited condensed consolidated financial statements.
1

Table of Contents
PEABODY ENERGY CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

|  |  | Three Months Ended March 31,
|  |  |  |  | 2025 |  | 2024
|  |  |  |  | (Dollars in millions)
Net income |  |  |  |  | $ | 38.0 |  |  | $ | 45.0 |
Postretirement plans (net of $0.0 tax provisions in each period) |  |  |  |  | (10.2) |  |  | (13.2) |
Foreign currency translation adjustment |  |  |  |  | 0.4 |  |  | (1.9) |
Other comprehensive loss, net of income taxes |  |  |  |  | (9.8) |  |  | (15.1) |
Comprehensive income |  |  |  |  | 28.2 |  |  | 29.9 |
Less: Net income attributable to noncontrolling interests |  |  |  |  | 3.6 |  |  | 5.4 |
Comprehensive income attributable to common stockholders |  |  |  |  | $ | 24.6 |  |  | $ | 24.5 |

See accompanying notes to unaudited condensed consolidated financial statements.
2

Table of Contents
PEABODY ENERGY CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS

| (Unaudited) |  |
| March 31, 2025 |  | December 31, 2024
| (Amounts in millions, except per share data)
ASSETS |  |  |
Current assets |  |  |
Cash and cash equivalents | $ | 696.5 |  |  | $ | 700.4 |
Accounts receivable, net of allowance for credit losses of $0.0 at March 31, 2025 and December 31, 2024 | 277.7 |  |  | 359.3 |
Inventories, net | 418.0 |  |  | 393.4 |
Other current assets | 280.2 |  |  | 327.6 |
Total current assets | 1,672.4 |  |  | 1,780.7 |
Property, plant, equipment and mine development, net | 3,058.0 |  |  | 3,081.5 |
Operating lease right-of-use assets | 84.1 |  |  | 119.3 |
Restricted cash and collateral | 815.3 |  |  | 809.8 |
Investments and other assets | 153.9 |  |  | 162.4 |
Total assets | $ | 5,783.7 |  |  | $ | 5,953.7 |
LIABILITIES AND STOCKHOLDERS’ EQUITY |  |  |
Current liabilities |  |  |
Current portion of long-term debt | $ | 16.0 |  |  | $ | 15.8 |
Accounts payable and accrued expenses | 691.6 |  |  | 811.7 |
Total current liabilities | 707.6 |  |  | 827.5 |
Long-term debt, less current portion | 331.2 |  |  | 332.3 |
Deferred income taxes | 37.0 |  |  | 40.9 |
Asset retirement obligations, less current portion | 669.6 |  |  | 667.8 |
Accrued postretirement benefit costs | 119.2 |  |  | 120.4 |
Operating lease liabilities, less current portion | 54.9 |  |  | 86.7 |
Other noncurrent liabilities | 149.1 |  |  | 169.3 |
Total liabilities | 2,068.6 |  |  | 2,244.9 |
Stockholders’ equity |  |  |
Preferred Stock — $0.01 per share par value; 100.0 shares authorized, no shares issued or outstanding as of March 31, 2025 and December 31, 2024 | — |  |  | — |
Series Common Stock — $0.01 per share par value; 50.0 shares authorized, no shares issued or outstanding as of March 31, 2025 and December 31, 2024 | — |  |  | — |
Common Stock — $0.01 per share par value; 450.0 shares authorized, 189.3 shares issued and 121.6 shares outstanding as of March 31, 2025 and 189.1 shares issued and 121.4 shares outstanding as of December 31, 2024 | 1.9 |  |  | 1.9 |
Additional paid-in capital | 3,993.4 |  |  | 3,990.5 |
Treasury stock, at cost — 67.7 common shares as of March 31, 2025 and December 31, 2024 | (1,927.3) |  |  | (1,926.5) |
Retained earnings | 1,470.9 |  |  | 1,445.8 |
Accumulated other comprehensive income | 129.0 |  |  | 138.8 |
Peabody Energy Corporation stockholders’ equity | 3,667.9 |  |  | 3,650.5 |
Noncontrolling interests | 47.2 |  |  | 58.3 |
Total stockholders’ equity | 3,715.1 |  |  | 3,708.8 |
Total liabilities and stockholders’ equity | $ | 5,783.7 |  |  | $ | 5,953.7 |

See accompanying notes to unaudited condensed consolidated financial statements.
3

Table of Contents

PEABODY ENERGY CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
| Three Months Ended March 31,
| 2025 |  | 2024
| (Dollars in millions)
Cash Flows From Operating Activities |  |  |
Net income | $ | 38.0 |  |  | $ | 45.0 |
Loss from discontinued operations, net of income taxes | 0.3 |  |  | 0.7 |
Income from continuing operations, net of income taxes | 38.3 |  |  | 45.7 |
Adjustments to reconcile income from continuing operations, net of income taxes to net cash provided by operating activities: |  |  |
Depreciation, depletion and amortization | 92.1 |  |  | 79.8 |
Noncash interest expense | 1.6 |  |  | 1.3 |
Deferred income taxes | (3.9) |  |  | 8.5 |
Noncash share-based compensation | 2.7 |  |  | 2.0 |
Net gain on disposals | (5.2) |  |  | (2.1) |
Loss from equity affiliates | 6.7 |  |  | 3.7 |
Unrealized (gains) losses on foreign currency option contracts | (4.3) |  |  | 5.7 |
Changes in current assets and liabilities: |  |  |
Accounts receivable | 84.5 |  |  | 46.8 |
Inventories | (24.6) |  |  | (52.6) |
Other current assets | 37.4 |  |  | 13.6 |
Accounts payable and accrued expenses | (89.7) |  |  | (169.5) |
Collateral arrangements | (0.4) |  |  | 151.3 |
Asset retirement obligations | 1.3 |  |  | 0.4 |
Postretirement benefit obligations | (11.4) |  |  | (15.4) |
Pension obligations | (4.9) |  |  | — |
Other, net | 0.3 |  |  | 1.1 |
Net cash provided by continuing operations | 120.5 |  |  | 120.3 |
Net cash used in discontinued operations | (0.6) |  |  | (1.3) |
Net cash provided by operating activities | 119.9 |  |  | 119.0 |

4

Table of Contents

PEABODY ENERGY CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - (Continued)
| Three Months Ended March 31,
| 2025 |  | 2024
| (Dollars in millions)
Cash Flows From Investing Activities |  |  |
Additions to property, plant, equipment and mine development | (70.4) |  |  | (61.4) |
Changes in accrued expenses related to capital expenditures | (38.6) |  |  | (6.8) |
Proceeds from disposal of assets, net of receivables | 7.2 |  |  | 2.4 |
Contributions to joint ventures | (138.3) |  |  | (202.8) |
Distributions from joint ventures | 150.8 |  |  | 193.2 |
Other, net | (0.3) |  |  | 0.2 |
Net cash used in investing activities | (89.6) |  |  | (75.2) |
Cash Flows From Financing Activities |  |  |
Repayments of long-term debt | (2.8) |  |  | (2.2) |
Payment of debt issuance and other deferred financing costs | (1.7) |  |  | (10.8) |
Common stock repurchases | — |  |  | (83.1) |
Repurchase of employee common stock relinquished for tax withholding | (0.8) |  |  | (3.4) |
Dividends paid | (9.1) |  |  | (9.7) |
Distributions to noncontrolling interests | (14.7) |  |  | (18.5) |
Net cash used in financing activities | (29.1) |  |  | (127.7) |
Net change in cash, cash equivalents and restricted cash | 1.2 |  |  | (83.9) |
Cash, cash equivalents and restricted cash at beginning of period (1) | 1,382.6 |  |  | 1,650.2 |
Cash, cash equivalents and restricted cash at end of period (2) | $ | 1,383.8 |  |  | $ | 1,566.3 |
(1) The following table provides a reconciliation of “Cash, cash equivalents and restricted cash at beginning of period”:
Cash and cash equivalents | $ | 700.4 |  |  |
Restricted cash included in “Restricted cash and collateral” | 682.2 |  |  |
Cash, cash equivalents and restricted cash at beginning of period | $ | 1,382.6 |  |  |
(2) The following table provides a reconciliation of “Cash, cash equivalents and restricted cash at end of period”:
Cash and cash equivalents | $ | 696.5 |  |  |
Restricted cash included in “Restricted cash and collateral” | 687.3 |  |  |
Cash, cash equivalents and restricted cash at end of period | $ | 1,383.8 |  |  |

See accompanying notes to unaudited condensed consolidated financial statements.
5

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PEABODY ENERGY CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

|  |  | Three Months Ended March 31,
|  |  |  |  | 2025 |  | 2024
|  |  |  |  | (Dollars in millions, except per share data)
Common Stock |  |  |  |  |  |  |
Balance, beginning of period |  |  |  |  | $ | 1.9 |  |  | $ | 1.9 |
Balance, end of period |  |  |  |  | 1.9 |  |  | 1.9 |
Additional paid-in capital |  |  |  |  |  |  |
Balance, beginning of period |  |  |  |  | 3,990.5 |  |  | 3,983.0 |
Dividend equivalent units on dividends declared |  |  |  |  | 0.2 |  |  | 0.1 |
Share-based compensation for equity-classified awards |  |  |  |  | 2.7 |  |  | 2.0 |
Balance, end of period |  |  |  |  | 3,993.4 |  |  | 3,985.1 |
Treasury stock |  |  |  |  |  |  |
Balance, beginning of period |  |  |  |  | (1,926.5) |  |  | (1,740.2) |
Common stock repurchases |  |  |  |  | — |  |  | (83.1) |
Net change in unsettled common stock repurchases |  |  |  |  | — |  |  | 2.6 |
Excise tax accrued on common stock repurchases |  |  |  |  | — |  |  | (0.7) |
Repurchase of employee common stock relinquished for tax withholding |  |  |  |  | (0.8) |  |  | (3.4) |
Balance, end of period |  |  |  |  | (1,927.3) |  |  | (1,824.8) |
Retained earnings |  |  |  |  |  |  |
Balance, beginning of period |  |  |  |  | 1,445.8 |  |  | 1,112.7 |
Net income attributable to common stockholders |  |  |  |  | 34.4 |  |  | 39.6 |
Dividends declared ($0.075 and $0.075 per share, respectively) |  |  |  |  | (9.3) |  |  | (9.8) |
Balance, end of period |  |  |  |  | 1,470.9 |  |  | 1,142.5 |
Accumulated other comprehensive income |  |  |  |  |  |  |
Balance, beginning of period |  |  |  |  | 138.8 |  |  | 189.6 |
Postretirement plans (net of $0.0 tax provisions in each period) |  |  |  |  | (10.2) |  |  | (13.2) |
Foreign currency translation adjustment |  |  |  |  | 0.4 |  |  | (1.9) |
Balance, end of period |  |  |  |  | 129.0 |  |  | 174.5 |
Noncontrolling interests |  |  |  |  |  |  |
Balance, beginning of period |  |  |  |  | 58.3 |  |  | 60.5 |
Net income attributable to noncontrolling interests |  |  |  |  | 3.6 |  |  | 5.4 |
Distributions to noncontrolling interests |  |  |  |  | (14.7) |  |  | (18.5) |
Balance, end of period |  |  |  |  | 47.2 |  |  | 47.4 |
Total stockholders’ equity |  |  |  |  | $ | 3,715.1 |  |  | $ | 3,526.6 |

See accompanying notes to unaudited condensed consolidated financial statements.
6

Table of Contents
PEABODY ENERGY CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(1) Basis of Presentation
The unaudited condensed consolidated financial statements include the accounts of Peabody Energy Corporation (PEC) and its consolidated subsidiaries and affiliates (along with PEC, the Company or Peabody). Interests in subsidiaries controlled by the Company are consolidated with any outside stockholder interests reflected as noncontrolling interests, except when the Company has an undivided interest in a joint venture. In those cases, the Company includes its proportionate share in the assets, liabilities, revenue and expenses of the jointly controlled entities within each applicable line item of the unaudited condensed consolidated financial statements. All intercompany transactions, profits and balances have been eliminated in consolidation.
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements and should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024. In the opinion of management, these financial statements reflect all normal, recurring adjustments necessary for a fair presentation. Balance sheet information presented herein as of December 31, 2024 has been derived from the Company’s audited consolidated balance sheet at that date. The Company’s results of operations for the three months ended March 31, 2025 are not necessarily indicative of the results that may be expected for future quarters or for the year ending December 31, 2025.
(2) Newly Adopted Accounting Standards and Accounting Standards Not Yet Implemented
Newly Adopted Accounting Standards
The Company did not adopt any new accounting standards that had a material impact on its unaudited condensed consolidated financial statements or disclosures.
Accounting Standards Not Yet Implemented
Income Taxes. In December 2023, Accounting Standards Update (ASU) 2023-09 was issued, which requires public entities to disclose more information primarily related to the income tax rate reconciliation and income taxes paid. The guidance also eliminates certain existing disclosure requirements related to uncertain tax positions and unrecognized deferred tax liabilities. The Company is required to adopt the amendments for fiscal years beginning after December 15, 2024. The amendments should be applied prospectively, with a retrospective option. Early adoption is permitted. The Company expects this ASU to only impact its disclosures with no impacts to its consolidated results of operations, cash flows and financial condition.
Expense Disaggregation. In November 2024, ASU 2024-03 was issued, which requires public entities to disclose additional information about specific expense categories in the notes to financial statements at interim and annual reporting periods. The Company is required to adopt the amendments for fiscal years beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027. The amendments should be applied prospectively, with a retrospective option. Early adoption is permitted. The Company expects this ASU to only impact its disclosures with no impacts to its consolidated results of operations, cash flows and financial condition.
Induced Conversions of Convertible Debt. In November 2024, ASU 2024-04 was issued, which clarifies the requirements for determining whether certain settlements of convertible debt instruments should be accounted for as an induced conversion. The amendments in this ASU affect entities that settle convertible debt instruments for which the conversion privileges were changed to induce conversion. The Company is required to adopt the amendments for fiscal years beginning after December 15, 2025 and interim reporting periods within those periods. The amendments should be applied prospectively, with a retrospective option. Early adoption is permitted. The Company will apply this guidance upon its adoption, as applicable.
(3) Revenue Recognition
Refer to Note 1. “Summary of Significant Accounting Policies” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, for the Company’s policies regarding “Revenue” and “Accounts receivable, net.”
7

Table of Contents
PEABODY ENERGY CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Disaggregation of Revenue
Revenue by product type and market is set forth in the following tables. With respect to its seaborne reportable segments, the Company classifies as “Export” certain revenue from domestically-delivered coal under contracts in which the price is derived on a basis similar to export contracts.

| Three Months Ended March 31, 2025
| Seaborne Thermal |  | Seaborne Metallurgical |  | Powder River Basin |  | Other U.S. Thermal |  | Corporate and Other (1) |  | Consolidated
| (Dollars in millions)
Thermal coal |  |  |  |  |  |  |  |  |  |  |
Domestic | $ | 37.7 |  |  | $ | — |  |  | $ | 275.5 |  |  | $ | 168.7 |  |  | $ | — |  |  | $ | 481.9 |
Export | 227.3 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 227.3 |
Total thermal | 265.0 |  |  | — |  |  | 275.5 |  |  | 168.7 |  |  | — |  |  | 709.2 |
Metallurgical coal |  |  |  |  |  |  |  |  |  |  |
Export | — |  |  | 219.7 |  |  | — |  |  | — |  |  | — |  |  | 219.7 |
Total metallurgical | — |  |  | 219.7 |  |  | — |  |  | — |  |  | — |  |  | 219.7 |
Other | 0.1 |  |  | 0.4 |  |  | 0.1 |  |  | — |  |  | 7.5 |  |  | 8.1 |
Revenue | $ | 265.1 |  |  | $ | 220.1 |  |  | $ | 275.6 |  |  | $ | 168.7 |  |  | $ | 7.5 |  |  | $ | 937.0 |

| Three Months Ended March 31, 2024
| Seaborne Thermal |  | Seaborne Metallurgical |  | Powder River Basin |  | Other U.S. Thermal |  | Corporate and Other (1) |  | Consolidated
| (Dollars in millions)
Thermal coal |  |  |  |  |  |  |  |  |  |  |
Domestic | $ | 40.6 |  |  | $ | — |  |  | $ | 254.1 |  |  | $ | 178.0 |  |  | $ | — |  |  | $ | 472.7 |
Export | 243.1 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 243.1 |
Total thermal | 283.7 |  |  | — |  |  | 254.1 |  |  | 178.0 |  |  | — |  |  | 715.8 |
Metallurgical coal |  |  |  |  |  |  |  |  |  |  |
Export | — |  |  | 244.0 |  |  | — |  |  | — |  |  | — |  |  | 244.0 |
Total metallurgical | — |  |  | 244.0 |  |  | — |  |  | — |  |  | — |  |  | 244.0 |
Other | 0.2 |  |  | 3.0 |  |  | — |  |  | 13.6 |  |  | 7.0 |  |  | 23.8 |
Revenue | $ | 283.9 |  |  | $ | 247.0 |  |  | $ | 254.1 |  |  | $ | 191.6 |  |  | $ | 7.0 |  |  | $ | 983.6 |

(1) Corporate and Other includes the following:

|  |  | Three Months Ended March 31,
|  |  |  |  | 2025 |  | 2024
|  |  |  |  | (Dollars in millions)
Revenue from physical sale of coal (2) |  |  |  |  | $ | 4.0 |  |  | $ | 2.1 |
Other |  |  |  |  | 3.5 |  |  | 4.9 |
Total Corporate and Other |  |  |  |  | $ | 7.5 |  |  | $ | 7.0 |

(2) Includes revenue recognized upon the physical sale of coal purchased from the Company’s operating segments and sold to customers through the Company’s coal trading business. Primarily represents the difference between the price contracted with the customer and the price allocated to the operating segment.
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PEABODY ENERGY CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Accounts Receivable
“Accounts receivable, net” at March 31, 2025 and December 31, 2024 consisted of the following:

| March 31, 2025 |  | December 31, 2024
| (Dollars in millions)
Trade receivables, net | $ | 220.4 |  |  | $ | 294.9 |
Miscellaneous receivables, net | 57.3 |  |  | 64.4 |
Accounts receivable, net | $ | 277.7 |  |  | $ | 359.3 |

None of the above receivables included allowances for credit losses at March 31, 2025 or December 31, 2024. No charges for credit losses were recognized during the three months ended March 31, 2025 or 2024.
(4) Inventories
“Inventories, net” as of March 31, 2025 and December 31, 2024 consisted of the following:

| March 31, 2025 |  | December 31, 2024
| (Dollars in millions)
Materials and supplies, net | $ | 160.1 |  |  | $ | 157.5 |
Raw coal | 107.5 |  |  | 109.6 |
Saleable coal | 150.4 |  |  | 126.3 |
Inventories, net | $ | 418.0 |  |  | $ | 393.4 |

Materials and supplies inventories, net presented above have been shown net of reserves of $3.5 million as of March 31, 2025 and December 31, 2024, respectively.
(5) Equity Method Investments
The Company’s equity method investments include its interests in Middlemount Coal Pty Ltd. (Middlemount), R3 Renewables LLC (R3), R3 Renewables II LLC (R3 II) and certain other equity method investments.
The table below summarizes the book value of those investments, which are reported in “Investments and other assets” in the condensed consolidated balance sheets, and the related “Loss from equity affiliates” in the unaudited condensed consolidated statements of operations:

|  |  | Loss from Equity Affiliates
| Book Value at |  | Three Months Ended March 31, |  |
| March 31, 2025 |  | December 31, 2024 |  | 2025 |  | 2024 |  |  |  |
| (Dollars in millions)
Equity method investment related to Middlemount | $ | 46.8 |  |  | $ | 52.7 |  |  | $ | 6.3 |  |  | $ | 0.4 |  |  |  |  |
Equity method investment related to R3 | — |  |  | — |  |  | — |  |  | 3.3 |  |  |  |  |
Equity method investment related to R3 II | 3.1 |  |  | 5.8 |  |  | 0.4 |  |  | — |  |  |  |  |
Total equity method investments | $ | 49.9 |  |  | $ | 58.5 |  |  | $ | 6.7 |  |  | $ | 3.7 |  |  |  |  |

R3 and R3 II
In March 2022, the Company entered into a joint venture with unrelated partners to form R3, an entity in which the Company held a 50% interest. R3 was formed with the intent of developing various sites, including certain reclaimed mining land held by the Company in the U.S., for utility-scale photovoltaic solar generation and battery storage. The Company contributed $4.5 million to R3 during the three months ended March 31, 2024.
In November 2024, R3 sold seven projects to an unrelated party and contributed its remaining three projects to a new entity (R3 II). The unrelated party purchased 75% of the equity in R3 II for cash and contingent consideration for the future obligation to pay seller’s milestone payments. R3 used the proceeds from the equity purchase of R3 II to repurchase shares from the other investors of R3, such that Peabody is the only remaining equity holder of R3, which has a 25% equity interest in R3 II.
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PEABODY ENERGY CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(6) Derivatives and Fair Value Measurements
Derivatives
From time to time, the Company may utilize various types of derivative instruments to manage its exposure to risks in the normal course of business, including (1) foreign currency exchange rate risk and the variability of cash flows associated with forecasted Australian dollar expenditures made in its Australian mining platform and (2) price risk of fluctuating coal prices related to forecasted sales or purchases of coal, or changes in the fair value of a fixed price physical sales contract. These risk management activities are actively monitored for compliance with the Company’s risk management policies.
On a limited basis, the Company engages in the direct and brokered trading of coal and freight-related contracts. Except those contracts for which the Company has elected to apply a normal purchases and normal sales exception, all derivative coal trading contracts are accounted for at fair value.
Foreign Currency
The Company utilizes options and collars to hedge currency risk associated with anticipated Australian dollar operating expenditures. As of March 31, 2025, the Company held average rate options with an aggregate notional amount of $449.0 million Australian dollars to hedge currency risk associated with anticipated Australian dollar operating expenditures over the nine-month period ending December 31, 2025. The instruments entitle the Company to receive payment on the notional amount should the quarterly average Australian dollar-to-U.S. dollar exchange rate exceed amounts ranging from $0.67 to $0.74 over the nine-month period ending December 31, 2025. As of March 31, 2025, the Company also held purchased collars with an aggregate notional amount of $540.0 million Australian dollars related to anticipated Australian dollar operating expenditures during the nine-month period ending December 31, 2025. The purchased collars have a floor ranging from approximately $0.57 to $0.62 and a ceiling ranging from $0.66 to $0.73, whereby the Company will incur a loss on the instruments for quarterly average Australian dollar-to-U.S. dollar exchange rates below the floor and a gain for quarterly average rates above the ceiling.
Derivative Contracts Related to Forecasted Sales
As of March 31, 2025, the Company had no coal derivative contracts related to its forecasted sales. Historically, such financial contracts have included futures and forwards.
Financial Trading Contracts
On a limited basis, the Company may enter coal or freight derivative contracts for trading purposes. Such financial contracts may include futures, forwards and options. The Company held no financial trading contracts as of March 31, 2025.
Tabular Derivatives Disclosures
The Company has master netting agreements with certain of its counterparties which allow for the settlement of contracts in an asset position with contracts in a liability position in the event of default or termination. Such netting arrangements reduce the Company’s credit exposure related to these counterparties. For classification purposes, the Company records the net fair value of all the positions with a given counterparty as a net asset or liability in the condensed consolidated balance sheets. As of March 31, 2025, the Company had an asset derivative comprised of foreign currency option contracts with a fair value of $0.8 million. As of December 31, 2024, the Company had a liability derivative comprised of foreign currency option contracts with a fair value of $3.6 million. The net amount of asset derivatives is included in “Other current assets” and the net amount of liability derivatives is included in “Accounts payable and accrued expenses” in the accompanying condensed consolidated balance sheets.
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PEABODY ENERGY CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Currently, the Company does not seek cash flow hedge accounting treatment for its derivative financial instruments and, thus, changes in fair value are reflected in current earnings. The tables below show the amounts of pretax gains and losses related to the Company’s derivatives and their classification within the accompanying unaudited condensed consolidated statements of operations.

|  | Three Months Ended March 31, 2025
|  | Total gain recognized in income |  | Loss realized in income on derivatives |  | Unrealized gain recognized in income on derivatives
Derivative Instrument | Classification |  |
|  | (Dollars in millions)
Foreign currency option contracts | Operating costs and expenses | $ | 3.6 |  |  | $ | (0.7) |  |  | $ | 4.3 |
Total |  | $ | 3.6 |  |  | $ | (0.7) |  |  | $ | 4.3 |
|  | Three Months Ended March 31, 2024
|  | Total loss recognized in income |  | Loss realized in income on derivatives |  | Unrealized loss recognized in income on derivatives
Derivative Instrument | Classification |  |
|  | (Dollars in millions)
Foreign currency option contracts | Operating costs and expenses | $ | (6.5) |  |  | $ | (0.8) |  |  | $ | (5.7) |
Total |  | $ | (6.5) |  |  | $ | (0.8) |  |  | $ | (5.7) |

The Company classifies derivative-related activity within the “Cash Flows From Operating Activities” section of the unaudited condensed consolidated statements of cash flows.
Fair Value Measurements
The Company uses a three-level fair value hierarchy that categorizes assets and liabilities measured at fair value based on the observability of the inputs utilized in the valuation. These levels include: Level 1 - inputs are quoted prices in active markets for the identical assets or liabilities; Level 2 - inputs are other than quoted prices included in Level 1 that are directly or indirectly observable through market-corroborated inputs; and Level 3 - inputs are unobservable, or observable but cannot be market-corroborated, requiring the Company to make assumptions about pricing by market participants.
The following tables set forth the hierarchy of the Company’s net asset (liability) positions for which fair value is measured on a recurring basis.

| March 31, 2025
| Level 1 |  | Level 2 |  | Level 3 |  | Total
| (Dollars in millions)
Foreign currency option contracts | $ | — |  |  | $ | 0.8 |  |  | $ | — |  |  | $ | 0.8 |
Total net assets | $ | — |  |  | $ | 0.8 |  |  | $ | — |  |  | $ | 0.8 |
| December 31, 2024
| Level 1 |  | Level 2 |  | Level 3 |  | Total
| (Dollars in millions)
Foreign currency option contracts | $ | — |  |  | $ | (3.6) |  |  | $ | — |  |  | $ | (3.6) |
Equity securities | 1.0 |  |  | — |  |  | — |  |  | 1.0 |
Total net assets (liabilities) | $ | 1.0 |  |  | $ | (3.6) |  |  | $ | — |  |  | $ | (2.6) |

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PEABODY ENERGY CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For Level 1 and 2 financial assets and liabilities, the Company utilizes both direct and indirect observable price quotes, including interest rate yield curves, exchange indices, broker/dealer quotes, published indices, issuer spreads, benchmark securities and other market quotes. In the case of certain debt securities, fair value is provided by a third-party pricing service. Below is a summary of the Company’s valuation techniques for Level 1 and 2 financial assets and liabilities:
•Foreign currency option contracts are valued utilizing inputs obtained in quoted public markets (Level 2) except when credit and non-performance risk is considered to be a significant input, then the Company classifies such contracts as Level 3.
•Investments in equity securities are based on unadjusted quoted prices in active markets (Level 1).
Other Financial Instruments. The following methods and assumptions were used by the Company in estimating fair values for other financial instruments as of March 31, 2025 and December 31, 2024:
•Cash and cash equivalents, restricted cash, accounts receivable, including those within the Company’s accounts receivable securitization program, notes receivable and accounts payable have carrying values which approximate fair value due to the short maturity or the liquid nature of these instruments.
•Long-term debt fair value estimates are based on observed prices for securities when available (Level 2), and otherwise on estimated borrowing rates to discount the cash flows to their present value (Level 3).
Market risk associated with the Company’s fixed-rate long-term debt relates to the potential reduction in the fair value from an increase in interest rates. The fair value of debt, shown below, is principally based on reported market values and estimates based on interest rates, maturities, credit risk, underlying collateral and completed market transactions.

| March 31, 2025 |  | December 31, 2024
| (Dollars in millions)
Total debt at par value | $ | 353.0 |  |  | $ | 354.4 |
Less: Unamortized debt issuance costs | (5.8) |  |  | (6.3) |
Net carrying amount | $ | 347.2 |  |  | $ | 348.1 |
Estimated fair value | $ | 363.8 |  |  | $ | 438.0 |

The Company’s risk management function, which is independent of the Company’s coal trading function, is responsible for valuation policies and procedures, with oversight from executive management. The fair value of the Company’s coal derivative assets and liabilities reflects adjustments for credit risk. The Company’s exposure to credit risk is substantially with electric utilities, energy marketers, steel producers and nonfinancial trading houses.
The Company had no transfers between Levels 1, 2 and 3 during the three months ended March 31, 2025 and 2024. The Company’s policy is to value all transfers between levels using the beginning of period valuation.
(7) Property, Plant, Equipment and Mine Development
The composition of property, plant, equipment and mine development, net, as of March 31, 2025 and December 31, 2024 is set forth in the table below:

| March 31, 2025 |  | December 31, 2024
| (Dollars in millions)
Land and coal interests | $ | 2,647.5 |  |  | $ | 2,648.5 |
Buildings and improvements | 738.5 |  |  | 726.7 |
Machinery and equipment | 2,128.8 |  |  | 2,078.8 |
Less: Accumulated depreciation, depletion and amortization | (2,456.8) |  |  | (2,372.5) |
Property, plant, equipment and mine development, net | $ | 3,058.0 |  |  | $ | 3,081.5 |

At-Risk Assets
The Company identified certain assets with an aggregate carrying value of approximately $75 million at March 31, 2025 in its Other U.S. Thermal segment whose recoverability is most sensitive to customer concentration risk.
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PEABODY ENERGY CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(8) Income Taxes
The Company's effective tax rate before remeasurement for the three months ended March 31, 2025 is based on the Company’s estimated full year effective tax rate, comprised of expected statutory tax provision, offset by foreign rate differential and changes in valuation allowance. The Company’s income tax provisions of $4.9 million and $20.1 million for the three months ended March 31, 2025 and 2024, respectively, included a tax provision of $0.5 million and a tax benefit of $5.8 million, respectively, related to the remeasurement of foreign income tax accounts. The Company’s estimated full year pretax income is expected to be generated in Australia and the U.S. Due to existing valuation allowances, the income tax expense will primarily be related to the Australian income.
(9) Long-term Debt
The Company’s total indebtedness as of March 31, 2025 and December 31, 2024 consisted of the following:

Debt Instrument (defined below, as applicable) | March 31, 2025 |  | December 31, 2024
| (Dollars in millions)
3.250% Convertible Senior Notes due March 2028 (2028 Convertible Notes) | $ | 320.0 |  |  | $ | 320.0 |
BUMA Loan Note | 9.5 |  |  | 9.3 |
Finance lease obligations | 23.5 |  |  | 25.1 |
Less: Debt issuance costs | (5.8) |  |  | (6.3) |
| 347.2 |  |  | 348.1 |
Less: Current portion of long-term debt | 16.0 |  |  | 15.8 |
Long-term debt | $ | 331.2 |  |  | $ | 332.3 |

2028 Convertible Notes
On March 1, 2022, through a private offering, the Company issued the 2028 Convertible Notes in the aggregate principal amount of $320.0 million. The 2028 Convertible Notes are senior unsecured obligations of the Company and are governed under an indenture.
The Company used the proceeds of the offering of the 2028 Convertible Notes and available cash to redeem its then-existing senior secured notes and to pay related premiums, fees and expenses relating to the offering and redemptions. The Company capitalized $11.2 million of debt issuance costs related to the offering, which are being amortized over the terms of the notes.
The 2028 Convertible Notes will mature on March 1, 2028, unless earlier converted, redeemed or repurchased in accordance with their terms. The 2028 Convertible Notes bear interest at a rate of 3.250% per year, payable semi-annually in arrears on March 1 and September 1 of each year.
The initial conversion rate for the 2028 Convertible Notes was 50.3816 shares of the Company’s common stock per $1,000 principal amount of 2028 Convertible Notes, which represented an initial conversion price of approximately $19.85 per share of the Company’s common stock. The terms of the indenture require conversion rate adjustments upon the payment of dividends to holders of the Company’s common stock once such cumulative dividends impact the conversion rate by at least 1%. Effective February 19, 2025, the conversion rate was increased to 51.7762 shares of the Company’s common stock per $1,000 principal amount of 2028 Convertible Notes, which represented an adjusted conversion price of approximately $19.31 per share. The conversion rate may be impacted prospectively, based upon cumulative dividends paid. The conversion rate is also subject to further adjustment under certain circumstances in accordance with the terms of the indenture.
During the first quarter of 2025, the Company’s reported common stock prices did not prompt the conversion feature of the 2028 Convertible Notes. As a result, the 2028 Convertible Notes will not be convertible at the option of the holders during the second quarter of 2025.
As of March 31, 2025, the if-converted value of the 2028 Convertible Notes did not exceed the principal amount.
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PEABODY ENERGY CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Revolving Credit Facility
The Company established a revolving credit facility with a maximum aggregate principal amount of $320.0 million in revolving commitments by entering into a credit agreement, dated as of January 18, 2024 (the 2024 Credit Agreement), by and among the Company, as borrower, certain subsidiaries of the Company party thereto, PNC Bank, National Association, as administrative agent, and the lenders party thereto. The Company paid aggregate debt issuance costs of $9.7 million.
The revolving commitments and any related loans, if applicable (any such loans, the Revolving Loans), established by the 2024 Credit Agreement terminate or mature, as applicable, on January 18, 2028, subject to certain conditions relating to the Company’s outstanding 2028 Convertible Notes. The Revolving Loans bear interest at a secured overnight financing rate (SOFR) plus an applicable margin ranging from 3.50% to 4.25%, depending on the Company’s total net leverage ratio (as defined under the 2024 Credit Agreement) or a base rate plus an applicable margin ranging from 2.50% to 3.25%, at the Company’s option. Letters of credit issued under the 2024 Credit Agreement incur a combined fee equal to an applicable margin ranging from 3.50% to 4.25% plus a fronting fee equal to 0.125% per annum. Unused capacity under the 2024 Credit Agreement bears a commitment fee of 0.50% per annum. On November 25, 2024, the Company amended the 2024 Credit Agreement to, among other things, permit (i) Peabody’s planned acquisition of multiple coal mines from Anglo American plc (Anglo) as further discussed in Note 11. “Other Events,” (ii) the related bridge loan facility and (iii) the incurrence of additional indebtedness to finance the acquisition, subject to compliance with certain pro forma financial covenants. The Company paid aggregate deferred financing costs of $0.9 million as part of the amendment.
As of March 31, 2025, the 2024 Credit Agreement had only been utilized for letters of credit, including $49.3 million outstanding as of March 31, 2025. These letters of credit support the Company’s reclamation bonding requirements, lease obligations, insurance policies and various other performance guarantees as further described in Note 13. “Financial Instruments and Other Guarantees.” Availability under the 2024 Credit Agreement was $270.7 million at March 31, 2025.
The 2024 Credit Agreement contains customary covenants that, among other things and subject to certain exceptions (including compliance with financial ratios), may limit the Company and its subsidiaries’ ability to incur additional indebtedness, make certain restricted payments or investments, sell or otherwise dispose of assets, enter into transactions with affiliates, create or incur liens, and merge, consolidate or sell all or substantially all of their assets. The 2024 Credit Agreement is secured by substantially all assets of the Company and its U.S. subsidiaries, as well as a pledge of two Australian subsidiaries.
BUMA Loan Note
The Company has agreed to, following the closing of the Anglo acquisition, sell a portion of the assets (the Dawson Assets) to Pt Bukit Makmur Mandiri Utama or one of its subsidiaries (BUMA). Accordingly, on November 25, 2024, concurrent with its entry into the purchase agreements for the Anglo acquisition, the Company entered into a loan note deed with BUMA pursuant to which BUMA will lend to the Company the funds required to purchase the Dawson Assets under the Anglo acquisition purchase agreements and fund certain other obligations in relation to the Dawson Assets (the BUMA Loan Note). The Company received $9.3 million in BUMA Loan Note proceeds during the year ended December 31, 2024 to fund a portion of the deposit to Anglo for the planned acquisition. The BUMA Loan Note bears interest at a coupon rate of 10% per year. During the period ended March 31, 2025, the Company capitalized $0.2 million interest expense to the BUMA Loan Note principal balance in accordance with the terms of the loan note deed.
Refer to Note 11. “Other Events” for additional information associated with the Anglo acquisition.
Bridge Loan Facility
Concurrently with its entry into definitive agreements to acquire the Anglo assets, the Company entered into a bridge loan facility commitment letter (the Bridge Commitment Letter and, the senior secured 364-day bridge facility provided for therein, the Bridge Facility), pursuant to which the lenders, agreed to provide the Bridge Facility to the Company in the amount of up to $2.075 billion in order to finance the planned acquisition in part. The Company expects to replace the Bridge Facility with permanent financing prior to the closing date, but there can be no assurance such financing will occur and any such expectation is subject to market conditions.
To the extent borrowings are made under the Bridge Facility, any loans would bear interest at a SOFR plus an applicable margin of 8.00% or a base rate plus an applicable margin of 7.00%, at the Company’s option. Such applicable margin would increase by an additional 0.75% on the date that is 90 days following the closing date of the planned acquisition. Any borrowings under the Bridge Facility would mature 364 days from the initial funding date, which would be on or around the closing date of the planned acquisition.
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PEABODY ENERGY CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The availability of borrowings under the Bridge Facility is subject to the satisfaction of certain customary conditions for transactions of this type. Any definitive financing documentation for the Bridge Facility will contain customary representations and warranties, covenants and events of defaults for transactions of this type. Upon execution of any definitive financing documentation for the Bridge Facility, the Bridge Facility will be guaranteed by substantially all U.S. subsidiaries of the Company and secured by substantially all assets of the Company, its U.S. subsidiaries and, subject to certain conditions, certain of the Company’s Australian subsidiaries.
Interest Charges
The following table presents the components of the Company’s interest expense related to its indebtedness and financial assurance instruments such as surety bonds and letters of credit. Additionally, the table sets forth the amount of cash paid for interest, net of capitalized interest and the amount of non-cash interest expense primarily related to the amortization of debt issuance costs.

|  |  | Three Months Ended March 31,
|  |  |  |  | 2025 |  | 2024
|  |  |  |  | (Dollars in millions)
2028 Convertible Notes |  |  |  |  | $ | 2.6 |  |  | $ | 2.6 |
Finance lease obligations |  |  |  |  | 0.4 |  |  | 0.4 |
Financial assurance instruments |  |  |  |  | 7.2 |  |  | 8.8 |
Amortization of debt issuance costs |  |  |  |  | 1.4 |  |  | 1.2 |
Receivables securitization program |  |  |  |  | 0.6 |  |  | 0.8 |
Capitalized interest |  |  |  |  | (2.2) |  |  | — |
Other |  |  |  |  | 1.5 |  |  | 0.9 |
Interest expense, net of capitalized interest |  |  |  |  | $ | 11.5 |  |  | $ | 14.7 |
Cash paid for interest, net of capitalized interest |  |  |  |  | $ | 9.9 |  |  | $ | 11.5 |
Non-cash interest expense |  |  |  |  | $ | 1.6 |  |  | $ | 1.3 |

Covenant Compliance
The Company was compliant with all relevant covenants under its debt and other finance agreements at March 31, 2025.
(10) Pension and Postretirement Benefit Costs
The components of net periodic pension, postretirement benefit and workers’ compensation costs, excluding the service cost for benefits earned, are included in “Net periodic benefit credit, excluding service cost” in the unaudited condensed consolidated statements of operations.
The Company sponsors a qualified pension plan. Annual contributions to the qualified plan are made in accordance with minimum funding standards and the Company’s agreement with the Pension Benefit Guaranty Corporation (PBGC). Funding decisions also consider certain funded status thresholds defined by the Pension Protection Act of 2006. As of March 31, 2025, the qualified plan was expected to be at or above the Pension Protection Act thresholds. The Company is not required to make any cash contributions to the qualified plan in 2025 based on minimum funding requirements. During the three months ended March 31, 2025, the Company made a discretionary cash contribution of $5.0 million to the qualified plan which allowed for termination of the Company’s agreement with the PBGC and resulted in the release of a $37.0 million letter of credit that had been maintained in favor of the PBGC.
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PEABODY ENERGY CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Net periodic postretirement benefit credit included the following components:

|  |  | Three Months Ended March 31,
|  |  |  |  | 2025 |  | 2024
|  |  |  |  | (Dollars in millions)
Service cost for benefits earned |  |  |  |  | $ | 0.1 |  |  | $ | 0.1 |
Interest cost on accumulated postretirement benefit obligation |  |  |  |  | 2.0 |  |  | 2.3 |
Expected return on plan assets |  |  |  |  | (0.1) |  |  | (0.1) |
Amortization of prior service credit |  |  |  |  | (10.2) |  |  | (13.2) |
Net periodic postretirement benefit credit |  |  |  |  | $ | (8.2) |  |  | $ | (10.9) |

The Company has established a Voluntary Employees’ Beneficiary Association (VEBA) trust to pre-fund a portion of benefits for non-represented retirees. The Company does not expect to make any discretionary contributions to the VEBA trust in 2025 and plans to utilize a portion of VEBA assets to make certain benefit payments.
(11) Other Events
Planned Anglo American Acquisition
On November 25, 2024, Peabody entered into definitive agreements (the Purchase Agreements), to acquire from Anglo a portion of the assets and businesses associated with Anglo’s metallurgical coal portfolio in Australia, including Anglo’s interests in the Moranbah North and Grosvenor mines, the Moranbah South development project, the Capcoal complex, the Roper Creek mine and the Dawson complex (comprising the Dawson Main/Central operating mine, the Dawson South operating mine, the Dawson South Exploration project and the Theodore South exploration project, collectively, the Dawson Assets). The Company has agreed to, following the prospective closing of the Anglo acquisition, sell the Dawson Assets to BUMA.
The Purchase Agreements required Peabody to acquire the balance, or a portion thereof, of the remaining interest in the Moranbah North and Grosvenor mines upon receipt of a tag-along notice from any joint venture participant (the Tag-Along Notice). On January 15, 2025, Peabody received a Tag-Along Notice pursuant to which Peabody acquired an additional 0.5% interest in the Moranbah North and Grosvenor mines for consideration of up to approximately $13 million.
The Purchase Agreements, as adjusted for the receipt of the Tag-Along Notice, contemplate an upfront cash payment of $2.058 billion, including a deposit of $75.0 million paid to Anglo upon execution of the Purchase Agreements, and fixed deferred cash payments totaling $726.0 million that will be payable in annual installments over a four-year period commencing on the first anniversary of the closing date of the acquisition, and additional contingent cash payments capped at $1.004 billion, comprised of (a) royalty payments contingent on the price of coal exceeding agreed-upon thresholds for each of the five years following the closing date of the acquisition and (b) payments contingent on the potential restart of the Grosvenor mine. The total consideration for the acquisition would be up to approximately $3.788 billion if the maximum amounts under the contingencies described above become payable.
On May 5, 2025, Peabody announced that it had notified Anglo and BUMA of a Material Adverse Change (MAC) impacting Peabody’s planned acquisition. The MAC relates to issues involving the Moranbah North Mine, which remains inactive following what was described as a gas ignition event on March 31, 2025. If the MAC is not resolved to Peabody’s satisfaction in the limited timeframe specified under the Purchase Agreements, Peabody may elect to terminate the Purchase Agreements.
(12) Earnings per Share (EPS)
Basic EPS is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted EPS is computed based on the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding. As such, the Company includes the 2028 Convertible Notes and share-based compensation awards in its potentially dilutive securities. Generally, dilutive securities are not included in the computation of loss per share when a company reports a net loss from continuing operations as the impact would be anti-dilutive.
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PEABODY ENERGY CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For all but performance units, the potentially dilutive impact of the Company’s share-based compensation awards is determined using the treasury stock method. Under the treasury stock method, awards are treated as if they had been exercised with any proceeds used to repurchase common stock at the average market price during the period. Any incremental difference between the assumed number of shares issued and purchased is included in the diluted share computation. For performance units, their contingent features result in an assessment for any potentially dilutive common stock by using the end of the reporting period as if it were the end of the contingency period for all units granted.
A conversion of the 2028 Convertible Notes may result in payment in the Company’s common stock. For diluted EPS purposes, the potentially dilutive common stock is assumed to have been converted at the beginning of the period (or at the time of issuance, if later). In periods where the potentially dilutive common stock is included in the computation of diluted EPS, the numerator will be adjusted to add back tax adjusted interest expense, which includes the amortization of debt issuance costs, related to the convertible debt.
The computation of diluted EPS excluded aggregate share-based compensation awards of 0.3 million and less than 0.1 million for the three months ended March 31, 2025 and 2024, respectively, because to do so would have been anti-dilutive for those periods. Because the potential dilutive impact of such share-based compensation awards is calculated under the treasury stock method, anti-dilution generally occurs when the exercise prices or unrecognized compensation cost per share of such awards are higher than the Company’s average stock price during the applicable period. Anti-dilution also occurs when a company reports a net loss from continuing operations, and the dilutive impact of all share-based compensation awards are excluded accordingly.
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PEABODY ENERGY CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The following illustrates the earnings allocation method utilized in the calculation of basic and diluted EPS.

|  |  | Three Months Ended March 31,
|  |  |  |  | 2025 |  | 2024
|  |  |  |  | (In millions, except per share data)
Basic EPS numerator: |  |  |  |  |  |  |
Income from continuing operations, net of income taxes |  |  |  |  | $ | 38.3 |  |  | $ | 45.7 |
Less: Net income attributable to noncontrolling interests |  |  |  |  | 3.6 |  |  | 5.4 |
Income from continuing operations attributable to common stockholders |  |  |  |  | 34.7 |  |  | 40.3 |
Loss from discontinued operations, net of income taxes |  |  |  |  | (0.3) |  |  | (0.7) |
Net income attributable to common stockholders |  |  |  |  | $ | 34.4 |  |  | $ | 39.6 |
Diluted EPS numerator: |  |  |  |  |  |  |
Income from continuing operations, net of income taxes |  |  |  |  | $ | 38.3 |  |  | $ | 45.7 |
Add: Tax adjusted interest expense related to 2028 Convertible Notes |  |  |  |  | 3.1 |  |  | 3.1 |
Less: Net income attributable to noncontrolling interests |  |  |  |  | 3.6 |  |  | 5.4 |
Income from continuing operations attributable to common stockholders |  |  |  |  | 37.8 |  |  | 43.4 |
Loss from discontinued operations, net of income taxes |  |  |  |  | (0.3) |  |  | (0.7) |
Net income attributable to common stockholders |  |  |  |  | $ | 37.5 |  |  | $ | 42.7 |
EPS denominator: |  |  |  |  |  |  |
Weighted average shares outstanding — basic |  |  |  |  | 121.7 |  |  | 128.1 |
Dilutive impact of share-based compensation awards |  |  |  |  | 0.6 |  |  | 0.6 |
Dilutive impact of 2028 Convertible Notes |  |  |  |  | 16.4 |  |  | 16.2 |
Weighted average shares outstanding — diluted |  |  |  |  | 138.7 |  |  | 144.9 |
Basic EPS attributable to common stockholders: |  |  |  |  |  |  |
Income from continuing operations |  |  |  |  | $ | 0.29 |  |  | $ | 0.32 |
Loss from discontinued operations |  |  |  |  | (0.01) |  |  | (0.01) |
Net income attributable to common stockholders |  |  |  |  | $ | 0.28 |  |  | $ | 0.31 |
Diluted EPS attributable to common stockholders: |  |  |  |  |  |  |
Income from continuing operations |  |  |  |  | $ | 0.27 |  |  | $ | 0.30 |
Loss from discontinued operations |  |  |  |  | — |  |  | (0.01) |
Net income attributable to common stockholders |  |  |  |  | $ | 0.27 |  |  | $ | 0.29 |

(13) Financial Instruments and Other Guarantees
In the normal course of business, the Company is a party to various guarantees and financial instruments that carry off-balance-she et risk and are not reflected in the accompanying condensed consolidated balance sheets. Such financial instruments provide support for the Company’s reclamation bonding requirements, lease obligations, insurance policies and various other performance guarantees. The Company periodically evaluates the instruments for on-balance-sheet treatment based on the amount of exposure under the instrument and the likelihood of required performance. The Company does not expect any material losses to result from these guarantees or off-balance-sheet instruments in excess of liabilities provided for in the accompanying condensed consolidated balance sheets.
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PEABODY ENERGY CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The following table summarizes the Company’s financial instruments that carry off-balance-sheet risk.

| March 31, 2025
| Reclamation Support |  | Other Support (1) |  | Total
| (Dollars in millions)
Surety bonds | $ | 931.8 |  |  | $ | 92.2 |  |  | $ | 1,024.0 |
Letters of credit (2) | 55.2 |  |  | 54.5 |  |  | 109.7 |
| 987.0 |  |  | 146.7 |  |  | 1,133.7 |
Less: Letters of credit in support of surety bonds (3) | (55.2) |  |  | (0.1) |  |  | (55.3) |
Obligations supported, net | $ | 931.8 |  |  | $ | 146.6 |  |  | $ | 1,078.4 |

(1) Instruments support obligations related to leases, health care plans, workers’ compensation, property and casualty insurance, customer and vendor contracts and certain restoration ancillary to prior mining activities.
(2) Amounts do not include cash-collateralized letters of credit.
(3) Certain letters of credit serve as collateral for surety bonds at the request of surety bond providers.
Surety Agreement Amendment and Collateral Requirements
In April 2023, the Company amended its existing agreement with the providers of its surety bond portfolio, dated November 6, 2020. Under the April 2023 amendment, the Company and its surety providers agreed to a maximum aggregate collateral amount based upon bonding levels which will vary prospectively as bonding levels increase or decrease. The amendment also extended the agreement through December 31, 2026. In order to maintain the maximum collateral agreement, the Company must remain compliant with a minimum liquidity test and a maximum net leverage ratio, as measured each quarter. The minimum liquidity test requires the Company to maintain liquidity at the greater of $400 million or the difference between the penal sum of all surety bonds and the amount of collateral posted in favor of surety providers, which was $499.0 million at March 31, 2025. The Company must also maintain a maximum net leverage ratio of 1.5 to 1.0, where the numerator consists of its funded debt, net of cash, and the denominator consists of its Adjusted EBITDA for the trailing twelve months. For purposes of calculating the ratio, only 50% of the outstanding principal amount of the Company’s 2028 Convertible Notes is deemed to be funded debt. The Company’s ability to pay dividends and make share repurchases is also subject to the quarterly minimum liquidity test. The Company is in compliance with such requirements at March 31, 2025.
At March 31, 2025, the Company’s maximum aggregate collateral amount was $525.0 million, which was comprised of $398.0 million in trust accounts and letters of credit of $127.0 million held for the benefit of certain surety providers.
Accounts Receivable Securitization
In 2017, the Company entered into the Sixth Amended and Restated Receivables Purchase Agreement, as amended from time to time. The receivables securitization program authorized under the agreement (Securitization Program) is subject to customary events of default. The Securitization Program provides up to $225.0 million of funding capacity which is accounted for as a secured borrowing, limited to the availability of eligible receivables, and may be secured by a combination of collateral and the trade receivables underlying the program. Funding capacity under the Securitization Program may also be utilized for letters of credit in support of other obligations, which has been the Company’s primary utilization. The accounts receivable securitization program was amended in January 2025 to extend its maturity to January 2028. During the three months ended March 31, 2025, the Company capitalized $1.7 million of debt issuance costs related to the amendment.
Borrowings under the Securitization Program bear interest at SOFR plus 2.1% per annum and remain outstanding throughout the term of the agreement, subject to the Company maintaining sufficient eligible receivables.
At March 31, 2025, the Company had no outstanding borrowings and $60.4 million of letters of credit outstanding under the Securitization Program. Availability under the Securitization Program, which is adjusted for certain ineligible receivables, was $119.8 million at March 31, 2025. The Company was not required to post cash collateral under the Securitization Program at March 31, 2025.
The Company incurred interest and fees associated with the Securitization Program of $0.6 million and $0.8 million during the three months ended March 31, 2025 and 2024, respectively, which have been recorded as “Interest expense, net of capitalized interest” in the accompanying unaudited condensed consolidated statements of operations.
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PEABODY ENERGY CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Credit Support Facilities
In February 2022, the Company entered into an agreement which provides up to $250.0 million of capacity for irrevocable standby letters of credit, primarily to support reclamation bonding requirements. The agreement requires the Company to provide cash collateral at a level of 103% of the aggregate amount of letters of credit outstanding under the arrangement (limited to $5.0 million total excess collateralization). Outstanding letters of credit bear a fixed fee in the amount of 0.75% per annum. The Company receives a variable deposit rate on the amount of cash collateral posted in support of letters of credit. The agreement has an initial expiration date of December 31, 2025. At March 31, 2025, letters of credit of $115.6 million were outstanding under the agreement, which were collateralized by cash of $119.1 million.
In December 2023, the Company established cash-backed bank guarantee facilities, primarily to support Australian reclamation bonding requirements. The Company receives a variable deposit rate on the amount of cash collateral posted in support of the bank guarantee facilities, which mature at various dates between 2026 and 2029. At March 31, 2025, the bank guarantee facilities were backed by cash of $170.2 million.
Restricted Cash and Collateral
The following table summarizes the Company’s “Restricted cash and collateral” in the accompanying condensed consolidated balance sheets. Restricted cash balances are held in controlled accounts with minimum balance requirements; withdrawals are subject to the approval of account beneficiaries, such as the Company’s surety providers, who have perfected security interests in the funds. The Company’s other cash collateral generally includes deposits held by regulatory authorities or financial institutions over which the Company has no control or ability to access. Portions of the restricted cash balances and deposits are held in accounts denominated in Australian dollars.

| March 31, 2025 |  | December 31, 2024
| (Dollars in millions)
Restricted cash (1) |  |  |
Surety trust accounts (2) | $ | 398.0 |  |  | $ | 394.6 |
Credit support facilities (2) (3) | 289.3 |  |  | 287.6 |
| 687.3 |  |  | 682.2 |
Other cash collateral (1) |  |  |
Deposits with regulatory authorities for reclamation and other obligations (3) | 128.0 |  |  | 127.6 |
Restricted cash and collateral | $ | 815.3 |  |  | $ | 809.8 |

(1) Restricted cash balances are combined with unrestricted cash and cash equivalents in the accompanying unaudited condensed consolidated statements of cash flows; changes between unrestricted cash and cash equivalents and restricted cash balances are thus not reflected in the operating, investing or financing activities therein. Changes in other cash collateral balances are reflected as operating activities therein.
(2) Surety trust accounts, the funding for collateralized letters of credit and cash supporting the bank guarantee facilities are comprised of highly liquid investments with original maturities of three months or less; interest and other earnings on such funds accrue to the Company.
(3) At March 31, 2025, the Australian dollar denominated balances supporting the bank guarantee facilities and the deposits with regulatory authorities were $271 million and $204 million, respectively. At December 31, 2024, the Australian dollar denominated balances supporting the bank guarantee facilities and the deposits with regulatory authorities were $271 million and $205 million, respectively.
(14) Commitments and Contingencies
Commitments
Unconditional Purchase Obligations
As of March 31, 2025, purchase commitments for capital expenditures were $61.1 million, all of which is obligated within the next 12 months.
There were no other material changes to the Company’s commitments from the information provided in Note 21. “Commitments and Contingencies” to the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.
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PEABODY ENERGY CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Contingencies
From time to time, the Company or its subsidiaries are involved in legal proceedings arising in the ordinary course of business or related to indemnities or historical operations. The Company believes it has recorded adequate reserves for these liabilities. The Company discusses its significant legal proceedings below, including ongoing proceedings and those that impacted the Company’s consolidated results of operations for the periods presented.
Litigation and Matters Relating to Continuing Operations
Metropolitan Mine Stormwater Discharge. Significantly high rainfall in New South Wales, including unprecedented rain totals at the Metropolitan Mine site resulted in stormwater being discharged from the mine site on several occasions in 2021 and 2022. On September 6, 2023, the New South Wales Environment Protection Authority commenced a prosecution for five breaches of the Protection of the Environment Operations Act 1997 (the Act) relating to the stormwater discharges. On March 15, 2024, the Metropolitan Collieries Pty Ltd (MCPL) pled guilty to two of the charges related to water pollution, and two charges related to a failure to adequately maintain plant and equipment were consolidated into one charge to which the MCPL also pled guilty. The remaining charge was discontinued. A sentencing hearing was held in November 2024 and the judgment was handed down in March 2025. MCPL was convicted of three separate offenses under the Act and fined a total monetary penalty of $0.1 million. MCPL was also ordered to pay costs in the amount of $0.2 million in addition to various publication orders that MCPL must comply with under the judgement.
At times, the Company becomes a party to other disputes, including those related to contract miner performance, claims, lawsuits, arbitration proceedings, regulatory investigations and administrative procedures in the ordinary course of business in the U.S., Australia and other countries where the Company does business. Based on current information, the Company believes that such other pending or threatened proceedings are likely to be resolved without a material adverse effect on its consolidated financial condition, results of operations or cash flows. The Company reassesses the probability and the ability to estimate contingent losses as new information becomes available.
(15) Segment Information
The Company reports its results of operations primarily through the following reportable segments: Seaborne Thermal, Seaborne Metallurgical, Powder River Basin, Other U.S. Thermal and Corporate and Other.
The Company’s chief operating decision maker (CODM), defined as the President and Chief Executive Officer, uses Adjusted EBITDA as the primary financial metric to measure each segment’s operating performance against expected results and to allocate resources, including capital investment in mining operations and potential expansions. Adjusted EBITDA is a non-GAAP financial measure defined as income from continuing operations before deducting net interest expense, income taxes, asset retirement obligation expenses and depreciation, depletion and amortization. Adjusted EBITDA is also adjusted for the discrete items that management excluded in analyzing the segments’ operating performance, as displayed in the reconciliations below. Management believes this non-GAAP measure is used by investors to measure the Company’s operating performance. Adjusted EBITDA is not intended to serve as an alternative to U.S. GAAP measures of performance and may not be comparable to similarly-titled measures presented by other companies.
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PEABODY ENERGY CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Segment results for the three months ended March 31, 2025 were as follows:

| Seaborne Thermal |  | Seaborne Metallurgical |  | Powder River Basin |  | Other U.S. Thermal |  | Corporate and Other |  | Consolidated
| (Dollars in millions)
Revenue | $ | 265.1 |  |  | $ | 220.1 |  |  | $ | 275.6 |  |  | $ | 168.7 |  |  | $ | 7.5 |  |  | $ | 937.0 |
Less Significant Segment Expenses: |  |  |  |  |  |  |  |  |  |  |
Labor costs | 35.1 |  |  | 55.0 |  |  | 49.8 |  |  | 50.2 |  |  |  |  |
Repair costs | 24.8 |  |  | 47.0 |  |  | 31.5 |  |  | 34.1 |  |  |  |  |
Outside services | 26.8 |  |  | 72.1 |  |  | 31.1 |  |  | 35.8 |  |  |  |  |
Commodities expense | 19.1 |  |  | 13.4 |  |  | 38.7 |  |  | 19.5 |  |  |  |  |
Sales related costs | 54.6 |  |  | 54.0 |  |  | 75.3 |  |  | 10.0 |  |  |  |  |
Other expenses (1) | 20.5 |  |  | (34.6) |  |  | 12.9 |  |  | (13.8) |  |  |  |  |
Adjusted EBITDA | 84.2 |  |  | 13.2 |  |  | 36.3 |  |  | 32.9 |  |  | (22.6) |  |  | 144.0 |
Additions to property, plant, equipment and mine development | 8.5 |  |  | 53.2 |  |  | 3.9 |  |  | 4.6 |  |  | 0.2 |  |  | 70.4 |
Loss from equity affiliates | — |  |  | — |  |  | — |  |  | — |  |  | 6.7 |  |  | 6.7 |

Segment results for the three months ended March 31, 2024 were as follows:

| Seaborne Thermal |  | Seaborne Metallurgical |  | Powder River Basin |  | Other U.S. Thermal |  | Corporate and Other |  | Consolidated
| (Dollars in millions)
Revenue | $ | 283.9 |  |  | $ | 247.0 |  |  | $ | 254.1 |  |  | $ | 191.6 |  |  | $ | 7.0 |  |  | $ | 983.6 |
Less Significant Segment Expenses: |  |  |  |  |  |  |  |  |  |  |
Labor costs | 37.7 |  |  | 49.3 |  |  | 51.8 |  |  | 52.9 |  |  |  |  |
Repair costs | 37.9 |  |  | 32.7 |  |  | 34.9 |  |  | 32.4 |  |  |  |  |
Outside services | 31.0 |  |  | 54.6 |  |  | 31.9 |  |  | 36.6 |  |  |  |  |
Commodities expense | 23.9 |  |  | 15.7 |  |  | 41.1 |  |  | 19.3 |  |  |  |  |
Sales related costs | 52.1 |  |  | 52.0 |  |  | 69.8 |  |  | 13.6 |  |  |  |  |
Other expenses (1) | 7.5 |  |  | (5.6) |  |  | 8.2 |  |  | (9.7) |  |  |  |  |
Adjusted EBITDA | 93.8 |  |  | 48.3 |  |  | 16.4 |  |  | 46.5 |  |  | (44.5) |  |  | 160.5 |
Additions to property, plant, equipment and mine development | 14.5 |  | 39.4 |  | 5.0 |  | 2.3 |  | 0.2 |  | 61.4
Loss from equity affiliates | — |  |  | — |  |  | — |  |  | — |  |  | 3.7 |  | 3.7 |

(1) Other expenses for the mining operations primarily include lease expense; non-sales related taxes; insurance expense; joint facility charges; and credits related to the capitalization of costs to the balance sheet.
Total assets are reflected at the division level only for the Company’s operating segments and are not allocated between each individual segment as such information is not regularly reviewed by the Company’s CODM. Further, some assets service more than one segment within the division and an allocation of such assets would not be meaningful or representative on a segment by segment basis. Assets related to closed, suspended or otherwise inactive mines are included within the Corporate and Other category.
The following table presents total assets at the division level:

| March 31, 2025 |  | December 31, 2024
| (Dollars in millions)
Seaborne | $ | 2,434.6 |  |  | $ | 2,465.3 |
U.S. Thermal | 1,315.0 |  |  | 1,346.9 |
Corporate and Other | 2,034.1 |  |  | 2,141.5 |
Total assets | $ | 5,783.7 |  |  | $ | 5,953.7 |

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PEABODY ENERGY CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
A reconciliation of consolidated income from continuing operations before income taxes to Adjusted EBITDA follows:

|  |  | Three Months Ended March 31,
|  |  |  |  | 2025 |  | 2024
|  |  |  |  | (Dollars in millions)
Income from continuing operations before incomes taxes |  |  |  |  | $ | 43.2 |  |  | $ | 65.8 |
Depreciation, depletion and amortization |  |  |  |  | 92.1 |  |  | 79.8 |
Asset retirement obligation expenses |  |  |  |  | 13.6 |  |  | 12.9 |
Restructuring charges |  |  |  |  | 1.7 |  |  | 0.1 |
Transaction costs related to business combinations |  |  |  |  | 2.4 |  |  | — |
Provision for NARM loss |  |  |  |  | — |  |  | 1.8 |
Changes in amortization of basis difference related to equity affiliates |  |  |  |  | (0.6) |  |  | (0.4) |
Interest expense, net of capitalized interest |  |  |  |  | 11.5 |  |  | 14.7 |
Interest income |  |  |  |  | (15.4) |  |  | (19.2) |
Unrealized (gains) losses on foreign currency option contracts |  |  |  |  | (4.3) |  |  | 5.7 |
Take-or-pay contract-based intangible recognition |  |  |  |  | (0.2) |  |  | (0.7) |
Total Adjusted EBITDA |  |  |  |  | $ | 144.0 |  |  | $ | 160.5 |

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
As used in this report, the terms “Peabody” or “the Company” refer to Peabody Energy Corporation or its applicable subsidiary or subsidiaries. Unless otherwise noted herein, disclosures in this Quarterly Report on Form 10-Q relate only to the Company’s continuing operations.
When used in this filing, the term “ton” refers to short or net tons, equal to 2,000 pounds (907.18 kilograms), while “tonne” refers to metric tons, equal to 2,204.62 pounds (1,000 kilograms).
Cautionary Notice Regarding Forward-Looking Statements
This report includes statements of the Company’s expectations, intentions, plans and beliefs that constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the Securities Act), and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), and are intended to come within the safe harbor protection provided by those sections. These statements relate to future events or the Company’s future financial performance. The Company uses words such as “anticipate,” “believe,” “expect,” “intend,” “may,” “forecast,” “project,” “should,” “estimate,” “goal,” “plan,” “outlook,” “target,” “likely,” “could,” “will,” “would,” “to be” or other similar words to identify forward-looking statements.
Without limiting the foregoing, all statements relating to the Company’s future operating results, anticipated capital expenditures, future cash flows and borrowings, and sources of funding are forward-looking statements and speak only as of the date of this report. These forward-looking statements are based on numerous assumptions and expectations that the Company believes in good faith to be reasonable, but are subject to a wide range of uncertainties and business risks, and actual results may differ materially from those discussed in these statements. These factors are difficult to accurately predict and may be beyond the Company’s control.
When considering these forward-looking statements, you should keep in mind the cautionary statements in this document and in the Company’s other Securities and Exchange Commission (SEC) filings, including, but not limited to, the more detailed discussion of these factors and other factors that could affect its results contained in Item 1A. “Risk Factors” of Part II of this Quarterly Report on Form 10-Q and Item 1A. “Risk Factors” and Item 3. “Legal Proceedings” of Part I of its Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on February 20, 2025. These forward-looking statements speak only as of the date on which such statements were made, and the Company undertakes no obligation to update these statements except as required by federal securities laws.
Non-GAAP Financial Measures
The following discussion of Peabody’s results of operations includes references to and analysis of Adjusted EBITDA and Total Segment Costs, which are financial measures not recognized in accordance with U.S. generally accepted accounting principles (U.S. GAAP). Adjusted EBITDA is used by the chief operating decision maker, defined as Peabody’s President and Chief Executive Officer, as the primary financial metric to measure each segment’s operating performance against expected results and to allocate resources, including capital investment in mining operations and potential expansions. Total Segment Costs is also used by management as a component of a metric to measure each segment’s operating performance.
Also included in the following discussion of Peabody’s results of operations are references to Revenue per Ton, Costs per Ton and Adjusted EBITDA Margin per Ton for each reporting segment. These metrics are used by management to measure each reporting segment’s operating performance. Management believes Costs per Ton and Adjusted EBITDA Margin per Ton best reflect controllable costs and operating results at the reporting segment level. The Company considers all measures reported on a per ton basis to be operating/statistical measures; however, the Company includes reconciliations of the related non-GAAP financial measures (Adjusted EBITDA and Total Segment Costs) in the “Reconciliation of Non-GAAP Financial Measures” section contained within this Item 2.
Peabody believes non-GAAP measures are used by investors to measure its operating performance. These measures are not intended to serve as alternatives to U.S. GAAP measures of performance and may not be comparable to similarly-titled measures presented by other companies. Refer to the “Reconciliation of Non-GAAP Financial Measures” section contained within this Item 2 for definitions and reconciliations to the most comparable measures under U.S. GAAP.
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Overview
Peabody is a leading producer of metallurgical and thermal coal. In 2024, Peabody produced and sold 118.1 million and 118.0 million tons of coal, respectively, from continuing operations. At March 31, 2025, the Company owned interests in 17 active coal mining operations located in the United States (U.S.) and Australia. Included in that count is Peabody’s 50% equity interest in Middlemount Coal Pty Ltd (Middlemount), which owns the Middlemount Mine in Queensland, Australia.
The Company reports its results of operations primarily through the following reportable segments: Seaborne Thermal, Seaborne Metallurgical, Powder River Basin, Other U.S. Thermal and Corporate and Other. Refer to Note 15. “Segment Information” to the accompanying unaudited condensed consolidated financial statements for further information regarding those segments and the components of the Company’s Corporate and Other segment.
Spot pricing for premium low-vol hard coking coal (Premium HCC), premium low-vol pulverized coal injection (Premium PCI) coal, Newcastle index thermal coal and API 5 index thermal coal, and prompt month pricing for PRB 8,880 Btu/Lb coal and Illinois Basin 11,500 Btu/Lb coal during the three months ended March 31, 2025 is set forth in the table below.
The seaborne pricing included in the table below is not necessarily indicative of the pricing the Company realized during the three months ended March 31, 2025 due to quality differentials and a portion of its seaborne sales being executed through annual and multi-year international coal supply agreements that contain provisions requiring both parties to renegotiate pricing periodically, with spot, index and quarterly sales arrangements also utilized. The Company’s typical practice is to negotiate pricing for seaborne metallurgical coal contracts on a quarterly, spot or index basis and seaborne thermal coal contracts on an annual, spot or index basis.
In the U.S., the pricing included in the table below is also not necessarily indicative of the pricing the Company realized during the three months ended March 31, 2025 since the Company generally sells coal under long-term contracts where pricing is determined based on various factors. Such long-term contracts in the U.S. may vary significantly in many respects, including price adjustment features, price reopener terms, coal quality requirements, quantity parameters, permitted sources of supply, treatment of environmental constraints, extension options, force majeure and termination and assignment provisions. Competition from alternative fuels such as natural gas and other fuel sources may also impact the Company’s realized pricing.

|  | High |  | Low |  | Average |  | March 31, 2025 |  | May 2, 2025
Premium HCC (1) |  | $ | 199.90 |  |  | $ | 166.00 |  |  | $ | 185.08 |  |  | $ | 169.00 |  |  | $ | 193.00 |
Premium PCI coal (1) |  | 153.00 |  |  | 126.50 |  |  | 141.08 |  |  | 129.00 |  |  | 139.50 |
Newcastle index thermal coal (1) |  | 120.97 |  |  | 93.93 |  |  | 105.37 |  |  | 94.98 |  |  | 95.13 |
API 5 index thermal coal (1) |  | 81.53 |  |  | 70.74 |  |  | 76.34 |  |  | 70.74 |  |  | 69.98 |
PRB 8,800 Btu/Lb coal (2) |  | 14.35 |  |  | 14.10 |  |  | 14.17 |  |  | 14.20 |  |  | 14.20 |
Illinois Basin 11,500 Btu/Lb coal (2) |  | 45.00 |  |  | 43.25 |  |  | 43.91 |  |  | 45.00 |  |  | 46.25 |

(1) Prices expressed per metric tonne.
(2) Prices expressed per short ton.
Within the global coal industry, supply and demand for its products and the supplies used for mining are being impacted by recent changes to trade policy, including tariff and customs regulations. As future developments related to trade policy, including additional or retaliatory tariffs, delays in implementing previously announced changes or ongoing negotiations between countries, are unknown, the global coal industry data for the three months ended March 31, 2025 presented herein may not be indicative of their ultimate impacts.
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Within the seaborne metallurgical coal market, metallurgical coal prices softened during the three months ended March 31, 2025. Seasonal steelmaking weakness in China and mixed steelmaking profit margins in other regions generally weighed on metallurgical coal demand. In China, ongoing challenges in the property sector contributed to softer domestic steel demand and to strong rates of steel exports. During the period, Chinese metallurgical coal stocks were reported to be relatively high and Chinese domestic coal prices generally remained below international seaborne prices. Outside of China, Japan experienced falling steel production and metallurgical coal imports due to sluggish domestic demand and weakening exports, while in contrast India’s increased steelmaking capacity supported higher metallurgical coal imports relative to the same period in 2024. Meanwhile, metallurgical coal supply was generally ample to meet spot demand during the period, despite notable wet season disruptions to Australian mining and logistics, as well as lower rates of U.S. and Russian seaborne exports. PCI relativity to coking coal was fairly stable during the three months ended March 31, 2025. Looking forward, the end of the typical Australian wet season may support additional coal supply to global markets, although this effect may be softened by a number of ongoing operational disruptions at prominent metallurgical coal mines globally. Meanwhile, metallurgical coal buyers may take a cautious approach to procurement in the near-term given an increasingly complex international trade environment. Overall, the market for metallurgical coal remains finely balanced and exposed to volatility, influenced by the rate of exports from Australia and Canada, evolving bilateral trade policies and the economic performance in China, India and elsewhere.
Within the seaborne thermal coal market, global thermal coal prices softened during the three months ended March 31, 2025, driven by weakening demand conditions and oversupply as seen by higher stockpiles in Asian markets. In China, overall total generation demand has remained relatively flat to start the year, while domestic coal production has been stronger. Combining stronger domestic coal production and relatively stable coal import demand against weaker demand has led to an increase in coal stockpiles in China through the three months ended March 31, 2025. In India, elevated domestic coal production, lower import demand and relatively flat coal generation has led to elevated coal stockpiles. Looking ahead, global thermal coal markets should begin to see stronger demand as summer restocking requirements in the Northern Hemisphere start; in addition, volatile global natural gas markets can impact global thermal coal markets.
In the U.S., overall electricity demand increased over 3% year-over-year. Through the three months ended March 31, 2025, electricity generation from thermal coal has increased year-over-year, driven by higher natural gas prices and stronger total generation. Coal’s share of electricity generation has increased to approximately 17% for the three months ended March 31, 2025, while wind and solar’s combined generation share is at 19% and the share of natural gas generation has declined to approximately 38%. U.S. coal inventories have declined through March 31, 2025, resulting in stockpiles declining more than 15 million tons below levels seen at the end of 2024.
Centurion Mine
Peabody’s development of the Centurion Mine, an underground longwall metallurgical coal mine in Queensland, Australia, continues to advance as planned. Centurion continues to make progress toward full-scale longwall production in the first quarter of 2026. At March 31, 2025, the mine had four continuous miner units in coal production and had shipped its second delivery of development coal. Peabody expects to begin producing continuous miner coal from Centurion North early in the third quarter of 2025, and targets combined production of 500 thousand tons for 2025.
Planned Acquisition
On November 25, 2024, Peabody entered into definitive agreements (the Purchase Agreements) with Anglo American plc (Anglo), to acquire a portion of the assets and businesses associated with Anglo’s metallurgical coal portfolio in Australia, including Anglo’s interests in the Moranbah North and Grosvenor mines, the Moranbah South development project, the Capcoal complex, the Roper Creek mine and the Dawson complex (comprising the Dawson Main/Central operating mine, the Dawson South operating mine, the Dawson South Exploration project and the Theodore South exploration project, collectively, the Dawson Assets). The Company has agreed to, following the prospective closing of the Anglo acquisition, sell the Dawson Assets to Pt Bukit Makmur Mandiri Utama or one of its subsidiaries (BUMA).
The Purchase Agreements required Peabody to acquire the balance, or a portion thereof, of the remaining interest in the Moranbah North and Grosvenor mines upon receipt of a tag-along notice from any joint venture participant (the Tag-Along Notice). On January 15, 2025, Peabody received a Tag-Along Notice pursuant to which Peabody acquired an additional 0.5% interest in the Moranbah North and Grosvenor mines.
Peabody has secured a bridge facility commitment to finance the acquisition. The Company intends to replace the bridge facility with permanent financing, including debt capacity, additional investment by existing joint venture partners and other financing to supplement as warranted.
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On May 5, 2025, Peabody announced that it had notified Anglo and BUMA of a Material Adverse Change (MAC) impacting Peabody’s planned acquisition. The MAC relates to issues involving the Moranbah North Mine, which remains inactive following what was described as a gas ignition event on March 31, 2025. If the MAC is not resolved to Peabody’s satisfaction in the limited timeframe specified under the Purchase Agreements, Peabody may elect to terminate the Purchase Agreements. See Note 9. “Long-term Debt” and Note 11. “Other Events” for further information.
Results of Operations
Three Months Ended March 31, 2025 Compared to the Three Months Ended March 31, 2024
Summary
The decrease in income from continuing operations, net of income taxes for the three months ended March 31, 2025 compared to the same period in the prior year ($7.4 million) was driven by lower revenue primarily due to lower seaborne coal pricing ($46.6 million) and higher depreciation, depletion and amortization expense ($12.3 million). This unfavorable variance was partially offset by lower operating costs and expenses ($44.0 million) and a lower year-over-year provision for taxes ($15.2 million).
Adjusted EBITDA for the three months ended March 31, 2025 reflected a year-over-year decrease of $16.5 million.
Tons Sold
The following table presents tons sold by operating segment:

| Three Months Ended March 31, |  | Increase (Decrease) to Volumes |  |  |  |
| 2025 |  | 2024 |  | Tons |  | % |  |  |  |  |  |  |  |
| (Tons in millions) |  |  |  |  |  |
Seaborne Thermal | 4.4 |  |  | 4.0 |  |  | 0.4 |  |  | 10 | % |  |  |  |  |  |  |  |
Seaborne Metallurgical | 1.8 |  |  | 1.4 |  |  | 0.4 |  |  | 29 | % |  |  |  |  |  |  |  |
Powder River Basin | 19.6 |  |  | 18.7 |  |  | 0.9 |  |  | 5 | % |  |  |  |  |  |  |  |
Other U.S. Thermal | 3.1 |  |  | 3.2 |  |  | (0.1) |  |  | (3) | % |  |  |  |  |  |  |  |
Total tons sold from operating segments | 28.9 |  |  | 27.3 |  |  | 1.6 |  |  | 6 | % |  |  |  |  |  |  |  |
Corporate and Other | — |  |  | 0.1 |  |  | (0.1) |  |  | (100) | % |  |  |  |  |  |  |  |
Total tons sold | 28.9 |  |  | 27.4 |  |  | 1.5 |  |  | 5 | % |  |  |  |  |  |  |  |

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Supplemental Financial Data
The following table presents supplemental financial data by operating segment:

| Three Months Ended March 31, |  | (Decrease) Increase |  |  |  |
| 2025 |  | 2024 |  | $ |  | % |  |  |  |  |  |  |  |
Revenue per Ton (1) |  |  |  |  |  |  |  |
Seaborne Thermal | $ | 60.64 |  |  | $ | 71.24 |  |  | $ | (10.60) |  |  | (15) | % |  |  |  |  |  |  |  |
Seaborne Metallurgical | 125.15 |  |  | 172.60 |  |  | (47.45) |  |  | (27) | % |  |  |  |  |  |  |  |
Powder River Basin | 14.02 |  |  | 13.62 |  |  | 0.40 |  |  | 3 | % |  |  |  |  |  |  |  |
Other U.S. Thermal | 54.32 |  |  | 59.75 |  |  | (5.43) |  |  | (9) | % |  |  |  |  |  |  |  |
Costs per Ton (1)(2) |  |  |  |  |  |  |  |
Seaborne Thermal | $ | 41.37 |  |  | $ | 47.71 |  |  | $ | (6.34) |  |  | (13) | % |  |  |  |  |  |  |  |
Seaborne Metallurgical | 117.66 |  |  | 138.83 |  |  | (21.17) |  |  | (15) | % |  |  |  |  |  |  |  |
Powder River Basin | 12.18 |  |  | 12.74 |  |  | (0.56) |  |  | (4) | % |  |  |  |  |  |  |  |
Other U.S. Thermal | 43.71 |  |  | 45.25 |  |  | (1.54) |  |  | (3) | % |  |  |  |  |  |  |  |
Adjusted EBITDA Margin per Ton (1)(2) |  |  |  |  |  |  |  |
Seaborne Thermal | $ | 19.27 |  |  | $ | 23.53 |  |  | $ | (4.26) |  |  | (18) | % |  |  |  |  |  |  |  |
Seaborne Metallurgical | 7.49 |  |  | 33.77 |  |  | (26.28) |  |  | (78) | % |  |  |  |  |  |  |  |
Powder River Basin | 1.84 |  |  | 0.88 |  |  | 0.96 |  |  | 109 | % |  |  |  |  |  |  |  |
Other U.S. Thermal | 10.61 |  |  | 14.50 |  |  | (3.89) |  |  | (27) | % |  |  |  |  |  |  |  |

(1)This is an operating/statistical measure not recognized in accordance with U.S. GAAP. Refer to the “Reconciliation of Non-GAAP Financial Measures” section below for definitions and reconciliations to the most comparable measures under U.S. GAAP.
(2)Includes revenue-based production taxes and royalties; excludes depreciation, depletion and amortization; asset retirement obligation expenses; selling and administrative expenses; restructuring charges; asset impairment; amortization of take-or-pay contract-based intangibles; insurance recoveries; and certain other costs related to post-mining activities.
Revenue
The following table presents revenue by reporting segment:

| Three Months Ended March 31, |  | (Decrease) Increase to Revenue |  |  |  |
| 2025 |  | 2024 |  | $ |  | % |  |  |  |  |  |  |  |
| (Dollars in millions) |  |  |  |  |  |
Seaborne Thermal | $ | 265.1 |  |  | $ | 283.9 |  |  | $ | (18.8) |  |  | (7) | % |  |  |  |  |  |  |  |
Seaborne Metallurgical | 220.1 |  |  | 247.0 |  |  | (26.9) |  |  | (11) | % |  |  |  |  |  |  |  |
Powder River Basin | 275.6 |  |  | 254.1 |  |  | 21.5 |  |  | 8 | % |  |  |  |  |  |  |  |
Other U.S. Thermal | 168.7 |  |  | 191.6 |  |  | (22.9) |  |  | (12) | % |  |  |  |  |  |  |  |
Corporate and Other | 7.5 |  |  | 7.0 |  |  | 0.5 |  |  | 7 | % |  |  |  |  |  |  |  |
Revenue | $ | 937.0 |  |  | $ | 983.6 |  |  | $ | (46.6) |  |  | (5) | % |  |  |  |  |  |  |  |

Seaborne Thermal. Segment revenue decreased during the three months ended March 31, 2025 compared to the same period in the prior year due to unfavorable realized prices ($80.6 million), offset by favorable volume and mix variances ($61.8 million).
Seaborne Metallurgical. Segment revenue decreased during the three months ended March 31, 2025 compared to the same period in the prior year due to unfavorable realized prices ($75.2 million), offset by favorable volume ($48.3 million).
Powder River Basin. Segment revenue increased during the three months ended March 31, 2025 compared to the same period in the prior year due to favorable volume ($17.7 million) and favorable realized prices ($3.8 million).
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Other U.S. Thermal. Segment revenue decreased during the three months ended March 31, 2025 compared to the same period in the prior year primarily due to decreased revenue from sales contract cancellation settlements ($13.5 million), unfavorable realized prices ($6.5 million) and unfavorable volume ($2.9 million).
Corporate and Other. Segment revenue for the three months ended March 31, 2025 was comparable to the same period in the prior year.
Segment Costs
The following table presents costs by reporting segment:

| Three Months Ended March 31, |  | (Decrease) Increase to Total Segment Costs |  |  |  |
| 2025 |  | 2024 |  | $ |  | % |  |  |  |  |  |  |  |
| (Dollars in millions) |  |  |  |  |  |
Seaborne Thermal | $ | 180.9 |  |  | $ | 190.1 |  |  | $ | (9.2) |  |  | (5) | % |  |  |  |  |  |  |  |
Seaborne Metallurgical | 206.9 |  |  | 198.7 |  |  | 8.2 |  |  | 4 | % |  |  |  |  |  |  |  |
Powder River Basin | 239.3 |  |  | 237.7 |  |  | 1.6 |  |  | 1 | % |  |  |  |  |  |  |  |
Other U.S. Thermal | 135.8 |  |  | 145.1 |  |  | (9.3) |  |  | (6) | % |  |  |  |  |  |  |  |
Corporate and Other | 4.4 |  |  | 27.5 |  |  | (23.1) |  |  | (84) | % |  |  |  |  |  |  |  |
Total Segment Costs (1) | $ | 767.3 |  |  | $ | 799.1 |  |  | $ | (31.8) |  |  | (4) | % |  |  |  |  |  |  |  |

(1)This is a financial measure not recognized in accordance with U.S. GAAP. Refer to the “Reconciliation of Non-GAAP Financial Measures” section below for definitions and reconciliations to the most comparable measures under U.S. GAAP.
Seaborne Thermal. Segment Costs decreased during the three months ended March 31, 2025 compared to the same period in the prior year due to lower costs for labor, repairs and outside services resulting from timing of maintenance and operational improvements ($19.9 million) and favorable commodity pricing ($4.8 million). These decreases were offset by higher variable expense ($19.1 million) due to higher volume (0.4 million tons).
Seaborne Metallurgical. Segment Costs increased during the three months ended March 31, 2025 compared to the same period in the prior year due to higher variable operational and sales related costs driven by increased volume (0.4 million tons).
Powder River Basin. Segment Costs increased during the three months ended March 31, 2025 compared to the same period in the prior year primarily due to higher sales related costs ($5.5 million) driven by favorable volume (0.9 million tons) and higher leasing costs ($2.8 million). These increases were offset by lower costs for labor, repairs and outside services ($6.2 million) due to mining in areas with less overburden.
Other U.S. Thermal. The decrease in Segment Costs during the three months ended March 31, 2025 compared to the same period in the prior year was driven by lower volume (0.1 million tons).
Corporate and Other. Segment Costs decreased during the three months ended March 31, 2025 compared to the same period in the prior year primarily due to favorable foreign currency rate changes.
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Adjusted EBITDA
The following table presents Adjusted EBITDA for each of the Company’s reporting segments:

| Three Months Ended March 31, |  | (Decrease) Increase to Segment Adjusted EBITDA |  |  |  |
| 2025 |  | 2024 |  | $ |  | % |  |  |  |  |  |  |  |
| (Dollars in millions) |  |  |  |  |  |
Seaborne Thermal | $ | 84.2 |  |  | $ | 93.8 |  |  | $ | (9.6) |  |  | (10) | % |  |  |  |  |  |  |  |
Seaborne Metallurgical | 13.2 |  |  | 48.3 |  |  | (35.1) |  |  | (73) | % |  |  |  |  |  |  |  |
Powder River Basin | 36.3 |  |  | 16.4 |  |  | 19.9 |  |  | 121 | % |  |  |  |  |  |  |  |
Other U.S. Thermal | 32.9 |  |  | 46.5 |  |  | (13.6) |  |  | (29) | % |  |  |  |  |  |  |  |
Corporate and Other | (22.6) |  |  | (44.5) |  |  | 21.9 |  |  | 49 | % |  |  |  |  |  |  |  |
Adjusted EBITDA (1) | $ | 144.0 |  |  | $ | 160.5 |  |  | $ | (16.5) |  |  | (10) | % |  |  |  |  |  |  |  |

(1)This is a financial measure not recognized in accordance with U.S. GAAP. Refer to the “Reconciliation of Non-GAAP Financial Measures” section below for definitions and reconciliations to the most comparable measures under U.S. GAAP.
Seaborne Thermal. Segment Adjusted EBITDA decreased during the three months ended March 31, 2025 compared to the same period in the prior year due to lower realized prices net of sales price sensitive costs ($78.6 million), offset by favorable operational costs ($32.2 million) and favorable volume and mix variances ($28.7 million).
Seaborne Metallurgical. Segment Adjusted EBITDA decreased during the three months ended March 31, 2025 compared to the same period in the prior year due to lower realized prices net of sales price sensitive costs ($63.6 million), offset by favorable operational costs ($35.8 million).
Powder River Basin. Segment Adjusted EBITDA increased during the three months ended March 31, 2025 compared to the same period in the prior year due to favorable volume ($7.5 million), decreased overburden removal costs ($5.6 million) and lower costs for materials, services, repairs and labor ($4.2 million).
Other U.S. Thermal. Segment Adjusted EBITDA decreased during the three months ended March 31, 2025 compared to the same period in the prior year primarily due to decreased sales contract cancellation settlements ($13.5 million).
Corporate and Other Adjusted EBITDA. The following table presents a summary of the components of Corporate and Other Adjusted EBITDA:

| Three Months Ended March 31, |  | (Decrease) Increase to Adjusted EBITDA |  |  |  |
| 2025 |  | 2024 |  | $ |  | % |  |  |  |  |  |  |  |
| (Dollars in millions) |  |  |  |  |  |
Middlemount (1) | $ | (6.9) |  |  | $ | (0.8) |  |  | $ | (6.1) |  |  | (763) | % |  |  |  |  |  |  |  |
Resource management activities (2) | 5.5 |  |  | 4.4 |  |  | 1.1 |  |  | 25 | % |  |  |  |  |  |  |  |
Selling and administrative expenses | (23.6) |  |  | (22.0) |  |  | (1.6) |  |  | (7) | % |  |  |  |  |  |  |  |
Other items, net (3) | 2.4 |  |  | (26.1) |  |  | 28.5 |  |  | 109 | % |  |  |  |  |  |  |  |
Corporate and Other Adjusted EBITDA | $ | (22.6) |  |  | $ | (44.5) |  |  | $ | 21.9 |  |  | 49 | % |  |  |  |  |  |  |  |

(1)Middlemount’s results are before the impact of related changes in amortization of basis difference.
(2)Includes gains (losses) on certain surplus coal reserve, coal resource and surface land sales and property management costs and revenue.
(3)Includes trading and brokerage activities, costs associated with post-mining activities, gains (losses) on certain asset disposals, minimum charges on certain transportation-related contracts, results from the Company’s equity method investment in renewable energy joint ventures, costs associated with suspended operations including the Centurion Mine, the impact of foreign currency remeasurement and expenses related to the Company’s other commercial activities.
Corporate and Other Adjusted EBITDA increased during the three months ended March 31, 2025 compared to the same period in the prior year primarily due to the favorable impact of foreign currency rate changes ($20.2 million) and lower costs at closed and suspended operations ($7.6 million). These favorable impacts were partially offset by unfavorable variances in Middlemount’s results driven by lower sales pricing and unfavorable production costs.
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Income From Continuing Operations, Net of Income Taxes
The following table presents income from continuing operations, net of income taxes:

| Three Months Ended March 31, |  | (Decrease) Increase to Income |  |  |  |
| 2025 |  | 2024 |  | $ |  | % |  |  |  |  |  |  |  |
| (Dollars in millions) |  |  |  |  |  |
Adjusted EBITDA (1) | $ | 144.0 |  |  | $ | 160.5 |  |  | $ | (16.5) |  |  | (10) | % |  |  |  |  |  |  |  |
Depreciation, depletion and amortization | (92.1) |  |  | (79.8) |  |  | (12.3) |  |  | (15) | % |  |  |  |  |  |  |  |
Asset retirement obligation expenses | (13.6) |  |  | (12.9) |  |  | (0.7) |  |  | (5) | % |  |  |  |  |  |  |  |
Restructuring charges | (1.7) |  |  | (0.1) |  |  | (1.6) |  |  | (1,600) | % |  |  |  |  |  |  |  |
Transaction costs related to business combinations | (2.4) |  |  | — |  |  | (2.4) |  |  | n.m. |  |  |  |  |  |  |  |
Provision for NARM loss | — |  |  | (1.8) |  |  | 1.8 |  |  | 100 | % |  |  |  |  |  |  |  |
Changes in amortization of basis difference related to equity affiliates | 0.6 |  |  | 0.4 |  |  | 0.2 |  |  | 50 | % |  |  |  |  |  |  |  |
Interest expense, net of capitalized interest | (11.5) |  |  | (14.7) |  |  | 3.2 |  |  | 22 | % |  |  |  |  |  |  |  |
Interest income | 15.4 |  |  | 19.2 |  |  | (3.8) |  |  | (20) | % |  |  |  |  |  |  |  |
Unrealized gains (losses) on foreign currency option contracts | 4.3 |  |  | (5.7) |  |  | 10.0 |  |  | 175 | % |  |  |  |  |  |  |  |
Take-or-pay contract-based intangible recognition | 0.2 |  |  | 0.7 |  |  | (0.5) |  |  | (71) | % |  |  |  |  |  |  |  |
Income tax provision | (4.9) |  |  | (20.1) |  |  | 15.2 |  |  | 76 | % |  |  |  |  |  |  |  |
Income from continuing operations, net of income taxes | $ | 38.3 |  |  | $ | 45.7 |  |  | $ | (7.4) |  |  | (16) | % |  |  |  |  |  |  |  |

(1)This is a financial measure not recognized in accordance with U.S. GAAP. Refer to the “Reconciliation of Non-GAAP Financial Measures” section below for definitions and reconciliations to the most comparable measures under U.S. GAAP.
Depreciation, Depletion and Amortization. The following table presents a summary of depreciation, depletion and amortization expense by reporting segment:

| Three Months Ended March 31, |  | (Decrease) Increase to Income |  |  |  |
| 2025 |  | 2024 |  | $ |  | % |  |  |  |  |  |  |  |
| (Dollars in millions) |  |  |  |  |  |
Seaborne Thermal | $ | (33.4) |  |  | $ | (27.6) |  |  | $ | (5.8) |  |  | (21) | % |  |  |  |  |  |  |  |
Seaborne Metallurgical | (28.8) |  |  | (21.8) |  |  | (7.0) |  |  | (32) | % |  |  |  |  |  |  |  |
Powder River Basin | (12.8) |  |  | (12.5) |  |  | (0.3) |  |  | (2) | % |  |  |  |  |  |  |  |
Other U.S. Thermal | (15.7) |  |  | (14.0) |  |  | (1.7) |  |  | (12) | % |  |  |  |  |  |  |  |
Corporate and Other | (1.4) |  |  | (3.9) |  |  | 2.5 |  |  | 64 | % |  |  |  |  |  |  |  |
Total | $ | (92.1) |  |  | $ | (79.8) |  |  | $ | (12.3) |  |  | (15) | % |  |  |  |  |  |  |  |

Additionally, the following table presents a summary of the Company’s weighted-average depletion rate per ton for active mines in each of its operating segments:

| Three Months Ended March 31, |  |
| 2025 |  | 2024 |  |  |  |
Seaborne Thermal | $ | 2.00 |  |  | $ | 2.10 |  |  |  |  |
Seaborne Metallurgical | 2.72 |  |  | 2.78 |  |  |  |  |
Powder River Basin | 0.31 |  |  | 0.38 |  |  |  |  |
Other U.S. Thermal | 1.82 |  |  | 1.55 |  |  |  |  |

Depreciation, depletion and amortization expense increased during the three months ended March 31, 2025 compared to the same period in the prior year primarily due to increased depreciation resulting from asset additions and shortened mine lives. The changes in the weighted-average depletion rate per ton for both the Powder River Basin and the Other U.S. Thermal segments during the three months ended March 31, 2025 compared to the same period in the prior year reflect the impact of volume and mix variances across the segments.
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Transaction Costs Related to Business Combinations. The charges recorded during the current year period relate to the planned acquisition of multiple metallurgical coal mines from Anglo which was announced during the fourth quarter of 2024. Refer to Note 11. “Other Events” in the accompanying unaudited condensed consolidated financial statements for further information regarding the planned Anglo acquisition.
Interest Expense, Net of Capitalized Interest. The decrease in expense during the three months ended March 31, 2025 compared to the same period in the prior year was driven by lower interest and fees for financial assurance instruments and the capitalization of interest related to the development of the Centurion Mine.
Interest Income. The decrease in income during the three months ended March 31, 2025 compared to the same period in the prior year was driven by lower average cash balances during the current period.
Unrealized Gains (Losses) on Foreign Currency Option Contracts. Unrealized gains (losses) primarily relate to mark-to-market activity on foreign currency option contracts. For additional information, refer to Note 6. “Derivatives and Fair Value Measurements” to the accompanying unaudited condensed consolidated financial statements.
Income Tax Provision. The decrease in the income tax provision during the three months ended March 31, 2025 compared to the same period in the prior year was primarily due to lower expected pretax income. Refer to Note 8. “Income Taxes” to the accompanying unaudited condensed consolidated financial statements for additional information.
Net Income Attributable to Common Stockholders
The following table presents net income attributable to common stockholders:

| Three Months Ended March 31, |  | (Decrease) Increase to Income |  |  |  |
| 2025 |  | 2024 |  | $ |  | % |  |  |  |  |  |  |  |
| (Dollars in millions) |  |  |  |  |  |
Income from continuing operations, net of income taxes | $ | 38.3 |  |  | $ | 45.7 |  |  | $ | (7.4) |  |  | (16) | % |  |  |  |  |  |  |  |
Loss from discontinued operations, net of income taxes | (0.3) |  |  | (0.7) |  |  | 0.4 |  |  | 57 | % |  |  |  |  |  |  |  |
Net income | 38.0 |  |  | 45.0 |  |  | (7.0) |  |  | (16) | % |  |  |  |  |  |  |  |
Less: Net income attributable to noncontrolling interests | 3.6 |  |  | 5.4 |  |  | (1.8) |  |  | (33) | % |  |  |  |  |  |  |  |
Net income attributable to common stockholders | $ | 34.4 |  |  | $ | 39.6 |  |  | $ | (5.2) |  |  | (13) | % |  |  |  |  |  |  |  |

Diluted Earnings per Share (EPS)
The following table presents diluted EPS:

| Three Months Ended March 31, |  | (Decrease) Increase to EPS |  |  |  |
| 2025 |  | 2024 |  | $ |  | % |  |  |  |  |  |  |  |
Diluted EPS attributable to common stockholders: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Income from continuing operations | $ | 0.27 |  |  | $ | 0.30 |  |  | $ | (0.03) |  |  | (10) | % |  |  |  |  |  |  |  |
Loss from discontinued operations | — |  |  | (0.01) |  |  | 0.01 |  |  | 100 | % |  |  |  |  |  |  |  |
Net income attributable to common stockholders | $ | 0.27 |  |  | $ | 0.29 |  |  | $ | (0.02) |  |  | (7) | % |  |  |  |  |  |  |  |

Diluted EPS is commensurate with the changes in results from continuing operations and discontinued operations during that period. Diluted EPS reflects weighted average diluted common shares outstanding of 138.7 million and 144.9 million for the three months ended March 31, 2025 and 2024, respectively.
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Reconciliation of Non-GAAP Financial Measures
Adjusted EBITDA is defined as income from continuing operations before deducting net interest expense, income taxes, asset retirement obligation expenses and depreciation, depletion and amortization. Adjusted EBITDA is also adjusted for the discrete items that management excluded in analyzing the segments’ operating performance, as displayed in the reconciliations below.

| Three Months Ended March 31, |  |
| 2025 |  | 2024 |  |  |  |
| (Dollars in millions)
Income from continuing operations, net of income taxes | $ | 38.3 |  |  | $ | 45.7 |  |  |  |  |
Depreciation, depletion and amortization | 92.1 |  |  | 79.8 |  |  |  |  |
Asset retirement obligation expenses | 13.6 |  |  | 12.9 |  |  |  |  |
Restructuring charges | 1.7 |  |  | 0.1 |  |  |  |  |
Transaction costs related to business combinations | 2.4 |  |  | — |  |  |  |  |
Provision for NARM loss | — |  |  | 1.8 |  |  |  |  |
Changes in amortization of basis difference related to equity affiliates | (0.6) |  |  | (0.4) |  |  |  |  |
Interest expense, net of capitalized interest | 11.5 |  |  | 14.7 |  |  |  |  |
Interest income | (15.4) |  |  | (19.2) |  |  |  |  |
Unrealized (gains) losses on foreign currency option contracts | (4.3) |  |  | 5.7 |  |  |  |  |
Take-or-pay contract-based intangible recognition | (0.2) |  |  | (0.7) |  |  |  |  |
Income tax provision | 4.9 |  |  | 20.1 |  |  |  |  |
Total Adjusted EBITDA | $ | 144.0 |  |  | $ | 160.5 |  |  |  |  |

Total Segment Costs is defined as operating costs and expenses adjusted for the discrete items that management excluded in analyzing each of its segments’ operating performance, as displayed in the reconciliations below.

| Three Months Ended March 31, |  |
| 2025 |  | 2024 |  |  |  |
| (Dollars in millions)
Operating costs and expenses | $ | 770.2 |  |  | $ | 814.2 |  |  |  |  |
Unrealized gains (losses) on foreign currency option contracts | 4.3 |  |  | (5.7) |  |  |  |  |
Take-or-pay contract-based intangible recognition | 0.2 |  |  | 0.7 |  |  |  |  |
Net periodic benefit credit, excluding service cost | (7.4) |  |  | (10.1) |  |  |  |  |
Total Segment Costs | $ | 767.3 |  |  | $ | 799.1 |  |  |  |  |

The following table presents Total Segment Costs by reporting segment:

| Three Months Ended March 31, |  |
| 2025 |  | 2024 |  |  |  |
| (Dollars in millions)
Seaborne Thermal | $ | 180.9 |  |  | $ | 190.1 |  |  |  |  |
Seaborne Metallurgical | 206.9 |  |  | 198.7 |  |  |  |  |
Powder River Basin | 239.3 |  |  | 237.7 |  |  |  |  |
Other U.S. Thermal | 135.8 |  |  | 145.1 |  |  |  |  |
Corporate and Other | 4.4 |  |  | 27.5 |  |  |  |  |
Total Segment Costs | $ | 767.3 |  |  | $ | 799.1 |  |  |  |  |

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Revenue per Ton and Adjusted EBITDA Margin per Ton are equal to revenue by segment and Adjusted EBITDA by segment (excluding insurance recoveries), respectively, divided by segment tons sold. Costs per Ton is equal to Revenue per Ton less Adjusted EBITDA Margin per Ton.
The following tables present tons sold, revenue, Total Segment Costs and Adjusted EBITDA by operating segment:

| Three Months Ended March 31, 2025
| Seaborne Thermal |  | Seaborne Metallurgical |  | Powder River Basin |  | Other U.S. Thermal
| (Amounts in millions, except per ton data)
Tons sold | 4.4 |  |  | 1.8 |  |  | 19.6 |  |  | 3.1 |
Revenue | $ | 265.1 |  |  | $ | 220.1 |  |  | $ | 275.6 |  |  | $ | 168.7 |
Total Segment Costs | 180.9 |  |  | 206.9 |  |  | 239.3 |  |  | 135.8 |
Adjusted EBITDA | $ | 84.2 |  |  | $ | 13.2 |  |  | $ | 36.3 |  |  | $ | 32.9 |
Revenue per Ton | $ | 60.64 |  |  | $ | 125.15 |  |  | $ | 14.02 |  |  | $ | 54.32 |
Costs per Ton | 41.37 |  |  | 117.66 |  |  | 12.18 |  |  | 43.71 |
Adjusted EBITDA Margin per Ton | $ | 19.27 |  |  | $ | 7.49 |  |  | $ | 1.84 |  |  | $ | 10.61 |

| Three Months Ended March 31, 2024
| Seaborne Thermal |  | Seaborne Metallurgical |  | Powder River Basin |  | Other U.S. Thermal
| (Amounts in millions, except per ton data)
Tons sold | 4.0 |  |  | 1.4 |  |  | 18.7 |  |  | 3.2 |
Revenue | $ | 283.9 |  |  | $ | 247.0 |  |  | $ | 254.1 |  |  | $ | 191.6 |
Total Segment Costs | 190.1 |  |  | 198.7 |  |  | 237.7 |  |  | 145.1 |
Adjusted EBITDA | $ | 93.8 |  |  | $ | 48.3 |  |  | $ | 16.4 |  |  | $ | 46.5 |
Revenue per Ton | $ | 71.24 |  |  | $ | 172.60 |  |  | $ | 13.62 |  |  | $ | 59.75 |
Costs per Ton | 47.71 |  |  | 138.83 |  |  | 12.74 |  |  | 45.25 |
Adjusted EBITDA Margin per Ton | $ | 23.53 |  |  | $ | 33.77 |  |  | $ | 0.88 |  |  | $ | 14.50 |

Regulatory Update
Other than as described in the following section, there were no significant changes to the Company’s regulatory or global climate matters subsequent to December 31, 2024. This section should be considered in connection with the Company’s regulatory and global climate matters as outlined in Part I, Item 1. “Business” in its Annual Report on Form 10-K for the year ended December 31, 2024.
Regulatory Matters - U.S.
Black Lung Benefits Act Self-Insurance Requirements. The Black Lung Benefits Act requires each coal mine operator to secure the payment of its potential benefits liability by either qualifying as a self-insurer or by purchasing and maintaining a commercial insurance contract. The Department of Labor’s (DOL) Office of Workers’ Compensation Programs (OWCP) is responsible for authorizing coal mine operators to self-insure and for setting the security amounts. As part of its ongoing efforts to reform the self-insurance program to ensure that operators are adequately securing their liabilities, the OWCP finalized a rule on December 12, 2024 to update its regulations for authorizing operators to self-insure and for determining appropriate security amounts. The changed requirements for security posted to self-insure black lung liabilities could result in the Company being required to post additional security for its obligations.
The Trump Administration recently issued letters to impacted companies that the 60-day deadline to provide information was no longer applicable and that no additional information was required at this time. They also announced that OWCP would provide additional guidance in due course.
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Recent Announcement by the U.S. Environmental Protection Agency (EPA). In response to an executive order issued by President Trump requiring agencies to identify regulations for regulatory roll back, the EPA announced on March 12, 2025, that it will reconsider several EPA actions, including:
•Regulation of greenhouse gas emissions from new and existing fossil fuel-fired electric generating units (EGUs), commonly known as “Clean Power Plan 2.0,” which could also impact the final 2015 New Source Performance Standards for fossil fuel-fired EGUs;
•National Ambient Air Quality Standards for fine particulate matter;
•Cross State Air Pollution Rule;
•Mercury and Air Toxic Standards;
•Implementation of the Regional Haze Program;
•Final September 2023 rule clarifying the scope of federal regulatory authority over wetland and non-navigable waters;
•Final rule regarding effluent limitations guidelines for the steam electric power generating industry; and
•Rules for disposal of coal combustion residuals.
Peabody will continue to monitor these items as changes could have significant impact on the U.S. coal mining industry, Peabody’s mining operations and its customers.
National Environmental Policy Act (NEPA). NEPA, signed into law in 1970, requires federal agencies to review the environmental impacts of their decisions and issue either an environmental assessment or an environmental impact statement. Peabody must provide information to agencies when it proposes actions that will be under the authority of the federal government. The NEPA process involves public participation and can involve lengthy timeframes. Since July 2020, the White House Council on Environmental Quality (CEQ) has revised its longstanding NEPA regulations on several occasions. On January 20, 2025, President Trump issued Executive Order 14154, which directed the CEQ to propose rescinding its NEPA regulations and to provide guidance to federal agencies on implementing NEPA and to coordinate the revision of the agencies’ own implementing regulations. On February 25, 2025, the CEQ published an Interim Final Rule removing all CEQ NEPA regulations from the Code of Federal Regulations. The CEQ has clarified that individual agencies are free to continue following or to amend their own NEPA implementation procedures, which largely conformed to the CEQ’s regulations.
SEC Climate-Related Disclosures. On March 6, 2024, the SEC adopted final rules it expected would enhance and standardize climate-related disclosures by public companies and in public offerings. Specifically, the final rules required disclosure of, among other things, climate-related risks that have had or are reasonably likely to have a material impact on a public company’s business strategy, results of operations or financial condition; certain greenhouse gas (GHG) emissions associated with a public company along with, in many cases, an attestation report by a GHG emissions attestation provider; and certain climate-related financial metrics to be included in a company’s audited financial statements. The final rules were challenged by multiple parties, and the cases were consolidated into a judicial review by the Eighth Circuit. On April 4, 2024, the SEC voluntarily stayed implementation of the final rules pending such judicial review. On March 27, 2025, the SEC announced that it would end its defense of the final rules.
Regulatory Matters - Australia
Industrial Relations Laws. A national industrial relations system, the Fair Work Act and National Employment Standards, applies to all private sector employers and employees where the employer is a corporation. The matters regulated under the national system include general employment conditions, unfair dismissal, enterprise bargaining, bullying claims, industrial action and resolution of workplace disputes. Most of the hourly workers employed in the Company’s mines are also covered by the Black Coal Mining Industry Award and company specific enterprise agreements approved under the national system.
In December 2022, the federal government passed The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022, which amends the Fair Work Act. The legislation introduced several changes to workplace laws in Australia including changes to enterprise agreement making and termination; when industrial action can be taken; and access to multi-employer bargaining or single interest employer authorizations. Following this amendment, the Wambo Underground Mine and four other mines in New South Wales (NSW) were served with an application for a single interest employer authorization which was granted by the Fair Work Commission against three employers including Peabody. The three employers appealed the authorization in a hearing held in March 2025. A decision on the appeal is expected in the second quarter of 2025.
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On December 7, 2023, the Fair Work Legislation Amendment (Closing Loopholes) Bill 2023 was passed by the Australian Federal Parliament. The legislation allows unions, employees and/or hosts to make application to the Fair Work Commission for a ‘regulated labour hire arrangement order’ that, if successful, requires labor hire employers to provide similar wages and conditions to regulated workers as those provided to employees of the host. The Fair Work Commission must make the order requested if it is satisfied that (1) the employer supplies (or will supply) employee(s) to a regulated host to perform work for the host; (2) the regulated host has 15 employees or more; and (3) the regulated host has an enterprise agreement that would apply to the regulated employees if they were directly employed by the host, unless the Fair Work Commission is satisfied that it is not fair and reasonable to do so. These orders do not apply to contactor arrangements, only labor hire. Various union applications for regulated labor hire arrangement orders to apply at Australian coal mining operations have been successfully made, and are currently being considered by Australia’s Fair Work Commission. Orders have been made in relation to three labor hire employers who provide labor to Peabody Energy Australia PCI Mine Management Pty Ltd (now a regulated host) at its Coppabella Mine. Additionally an application for a regulated labor hire arrangement order has been made at the Metropolitan Mine in relation to a labor hire employer which is currently progressing through the determination process.
The Australian Parliament has passed various other pieces of legislation changing the Australian industrial and employment landscape. This includes the Fair Work Legislation Amendment (Closing Loopholes No. 2) Bill 2023 which was passed on February 12, 2024 and made many changes, including to the definition of who is a casual employee and the definition of who is a contractor versus employee. The change to the casual employment definition was introduced to move away from a decision of the High Court of Australia in which an employee in the Australian coal mining industry who was rostered to work full-time hours on a 12-month roster was found to be employed on a casual basis pursuant to the terms of his contract of employment and therefore not entitled to receive the benefits that permanent employees receive (e.g. paid annual leave).
Native Title and Cultural Heritage Laws. Since 1992, the Australian courts have recognized that native title to lands and water, as recognized under the laws and customs of the Aboriginal inhabitants of Australia, may have survived the process of European settlement. These developments are supported by the federal Native Title Act which recognizes and protects native title, and under which a national register of native title claims has been established. Native title rights do not extend to minerals; however, native title rights can be affected by mining activities unless those rights have previously been extinguished, thereby requiring negotiation with the traditional owners (and potentially the payment of compensation) prior to the grant of certain mining tenements. There is also federal and state legislation to prevent damage to Aboriginal cultural heritage and archaeological sites.
Both NSW and Queensland have additional state specific legislation in place that enables Aboriginal people to claim freehold title to available land currently owned by the state government. If and when title to any claimable land is transferred to the relevant Aboriginal people, then ongoing consultation and compensation arrangements will need to be in place with the new landowner. There is claimable land within proximity to all Company operations in NSW and Queensland and accordingly, as and when any claims are processed by the respective state government, the Company will need to progress consultation and compensation arrangements to ensure that its access rights are maintained. The Company continues to monitor the progress of any claims that have the potential to impact on its operations.
Aboriginal and Torres Strait Islander Heritage Protection Act 1984 (ATSHIP). The purpose of the ATSIHP Act is to ensure the preservation and protection from harm or desecration of areas and objects in Australia and in Australian waters, that are of particular significance to Aboriginal people. Under the ATSIHP Act, the Commonwealth Minister for Indigenous Australians can make declarations in relation to areas or objects for the purposes of protecting Aboriginal and Torres Strait Islander heritage. Declarations are made in response to applications made by an Aboriginal person or group showing that the area or object is significant with respect to Aboriginal culture and is under threat of injury or desecration. Such a declaration may prevent any development being carried out on the relevant area of land. In 2024, the federal Minister made a declaration under the ATSIHP Act over an area that had been approved under state and federal environmental and planning laws for a gold mining project. The project proponent has indicated that the decision renders the mine project unviable and has initiated Federal Court proceedings seeking a judicial review of the decision-making process. The first hearing is scheduled for the second quarter of 2025.
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Metropolitan Mine Stormwater Discharge. Significantly high rainfall in New South Wales, including unprecedented rain totals at the Metropolitan Mine site resulted in stormwater being discharged from the mine site on several occasions in 2021 and 2022. On September 6, 2023, the New South Wales Environment Protection Authority commenced a prosecution for five breaches of the Protection of the Environment Operations Act 1997 (the Act) relating to the stormwater discharges. On March 15, 2024, the Metropolitan Collieries Pty Ltd (MCPL) pled guilty to two of the charges related to water pollution and two charges related to a failure to adequately maintain plant and equipment were consolidated into one charge to which the MCPL also pled guilty. The remaining charge was discontinued. A sentencing hearing was held in November 2024 and the judgment was handed down in March 2025. MCPL was convicted of three separate offenses under the Act and fined a total monetary penalty of $0.1 million. MCPL was also ordered to pay costs in the amount of $0.2 million. There are also various publication orders that MCPL must comply with under the judgement.
Risks and Regulations Related to Global Climate Change
Other than as described in the following section, there have been no significant changes to the Company’s global climate matters subsequent to December 31, 2024. Refer to Part I, Item 1. “Business” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 for information regarding the Company’s global climate matters.
Regulations Related to Global Climate Change
The Kyoto Protocol, adopted in December 1997 by the signatories to the 1992 United Nations Framework Convention on Climate Change (UNFCCC), established a binding set of GHG emission targets for developed nations. The U.S. signed the Kyoto Protocol but it has never been ratified by the U.S. Senate. Australia ratified the Kyoto Protocol in December 2007 and became a full member in March 2008. There were discussions to develop a treaty to replace the Kyoto Protocol after the expiration of its commitment period in 2012, including at the UNFCCC conferences in Cancun (2010), Durban (2011), Doha (2012) and Paris (2015). At the Durban conference, an ad hoc working group was established to develop a protocol, another legal instrument or an agreed outcome with legal force under the UNFCCC, applicable to all parties. At the Doha meeting, an amendment to the Kyoto Protocol was adopted, which included new commitments for certain parties in a second commitment period, from 2013 to 2020. In December 2012, Australia signed on to the second commitment period. During the UNFCCC conference in Paris, France in late 2015, an agreement was adopted calling for voluntary emissions reduction contributions after the second commitment period ends in 2020 (the Paris Agreement). The agreement was entered into force on November 4, 2016 after ratification and execution by more than 55 countries, including Australia, that account for at least 55% of global GHG emissions. On January 20, 2021, the U.S. reentered the Paris Agreement by accepting the agreement and all of its articles and clauses, after having announced its withdrawal from the agreement in November 2019. On January 20, 2025, pursuant to the Executive Order on Putting America First In International Environmental Agreements, President Trump directed the U.S. Ambassador to the United Nations to submit a formal notification withdrawing the United States from the Paris Agreement.
Liquidity and Capital Resources
Overview
The Company’s primary source of cash is proceeds from the sale of its coal production to customers. The Company has also generated cash from the sale of non-strategic assets, including coal reserves, coal resources and surface lands, and, from time to time, borrowings under its credit facilities and the issuance of securities. The Company’s primary uses of cash include the cash costs of coal production, capital expenditures, coal reserve lease and royalty payments, debt service costs, finance and operating lease payments, postretirement plans, take-or-pay obligations, post-mining reclamation obligations, dividends, share repurchases and selling and administrative expenses. The Company has also used cash for early debt retirements and acquisitions.
Any future determinations to return capital to stockholders, such as dividends or share repurchases, will depend on a variety of factors, including the Company’s net income or other sources of cash, liquidity position and potential alternative uses of cash, such as internal development projects or acquisitions, as well as economic conditions and expected future financial results. The Company’s ability to early retire debt, declare dividends or repurchase shares in the future will depend on its future financial performance, which in turn depends on the successful implementation of its strategy and on financial, competitive, regulatory, technical and other factors, general economic conditions, demand for and selling prices of coal and other factors specific to its industry, many of which are beyond the Company’s control.
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Liquidity
As of March 31, 2025, the Company’s cash and cash equivalents balances totaled $696.5 million, including approximately $389 million held by U.S. subsidiaries, approximately $296 million held by Australian subsidiaries and the remainder held by other foreign subsidiaries in accounts predominantly domiciled in the U.S. A significant majority of the cash held by the Company’s foreign subsidiaries is denominated in U.S. dollars. This cash is generally used to support non-U.S. liquidity needs, including capital and operating expenditures in Australia and payment of the foreign subsidiaries’ share of certain U.S. corporate expenditures. From time to time, the Company may repatriate profits from its foreign subsidiaries to the U.S. in the form of intercompany dividends. During the three months ended March 31, 2025, no profits from foreign subsidiaries were repatriated. If foreign-held cash is repatriated in the future, the Company does not expect restrictions or potential taxes will have a material effect to its near-term liquidity.
The Company’s available liquidity increased to $1,087.0 million as of March 31, 2025 from $1,072.5 million as of December 31, 2024. Available liquidity was comprised of the following:

|  |  | March 31, 2025 |  | December 31, 2024
|  |  | (Dollars in millions)
Cash and cash equivalents |  |  | $ | 696.5 |  |  | $ | 700.4 |
Revolving credit facility availability |  |  | 270.7 |  |  | 233.7 |
Accounts receivable securitization program availability |  |  | 119.8 |  |  | 138.4 |
Total liquidity |  |  | $ | 1,087.0 |  |  | $ | 1,072.5 |

Capital Returns to Shareholders
The Company paid dividends of $9.1 million during the three months ended March 31, 2025.
Surety Agreement Amendment and Collateral Requirements
In April 2023, the Company amended its existing agreement with the providers of its surety bond portfolio, dated November 6, 2020. Under the April 2023 amendment, the Company and its surety providers agreed to a maximum aggregate collateral amount based upon bonding levels which will vary prospectively as bonding levels increase or decrease. The amendment also extended the agreement through December 31, 2026. In order to maintain the maximum collateral agreement, the Company must remain compliant with a minimum liquidity test and a maximum net leverage ratio, as measured each quarter. The minimum liquidity test requires the Company to maintain liquidity at the greater of $400 million or the difference between the penal sum of all surety bonds and the amount of collateral posted in favor of surety providers, which was $499.0 million at March 31, 2025. The Company must also maintain a maximum net leverage ratio of 1.5 to 1.0, where the numerator consists of its funded debt, net of cash, and the denominator consists of its Adjusted EBITDA for the trailing twelve months. For purposes of calculating the ratio, only 50% of the outstanding principal amount of the Company’s 3.250% Convertible Senior Notes due March 2028 (the 2028 Convertible Notes) is deemed to be funded debt. The Company’s ability to pay dividends and make share repurchases is also subject to the quarterly minimum liquidity test. The Company is in compliance with such requirements at March 31, 2025.
At March 31, 2025, the Company’s maximum aggregate collateral amount was $525.0 million, which was comprised of $398.0 million in trust accounts and letters of credit of $127.0 million held for the benefit of certain surety providers.
Credit Support Facilities
In February 2022, the Company entered into an agreement which provides up to $250.0 million of capacity for irrevocable standby letters of credit, primarily to support reclamation bonding requirements. The agreement requires the Company to provide cash collateral at a level of 103% of the aggregate amount of letters of credit outstanding under the arrangement (limited to $5.0 million total excess collateralization). Outstanding letters of credit bear a fixed fee in the amount of 0.75% per annum. The Company receives a variable deposit rate on the amount of cash collateral posted in support of letters of credit. The agreement has an initial expiration date of December 31, 2025. At March 31, 2025, letters of credit of $115.6 million were outstanding under the agreement, which were collateralized by cash of $119.1 million.
In December 2023, the Company established cash-backed bank guarantee facilities, primarily to support Australian reclamation bonding requirements. The Company receives a variable deposit rate on the amount of cash collateral posted in support of the bank guarantee facilities, which mature at various dates between 2026 and 2029. At March 31, 2025, the bank guarantee facilities were backed by cash of $170.2 million.
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Revolving Credit Facility
The Company established a revolving credit facility with a maximum aggregate principal amount of $320.0 million in revolving commitments by entering into a credit agreement, dated as of January 18, 2024 (the 2024 Credit Agreement), by and among the Company, as borrower, certain subsidiaries of the Company party thereto, PNC Bank, National Association, as administrative agent, and the lenders party thereto.
The revolving commitments and any related loans, if applicable (any such loans, the Revolving Loans), established by the 2024 Credit Agreement terminate or mature, as applicable, on January 18, 2028, subject to certain conditions relating to the Company’s outstanding 2028 Convertible Notes. The Revolving Loans bear interest at a secured overnight financing rate (SOFR) plus an applicable margin ranging from 3.50% to 4.25%, depending on the Company’s total net leverage ratio (as defined under the 2024 Credit Agreement) or a base rate plus an applicable margin ranging from 2.50% to 3.25%, at the Company’s option. Letters of credit issued under the 2024 Credit Agreement incur a combined fee equal to an applicable margin ranging from 3.50% to 4.25% plus a fronting fee equal to 0.125% per annum. Unused capacity under the 2024 Credit Agreement bears a commitment fee of 0.50% per annum. On November 25, 2024, the Company amended the 2024 Credit Agreement to, among other things, permit (i) Peabody’s planned acquisition of multiple coal mines from Anglo as further discussed in Note 11. “Other Events,” (ii) the related bridge loan facility and (iii) the incurrence of additional indebtedness to finance the acquisition, subject to compliance with certain pro forma financial covenants.
As of March 31, 2025, the 2024 Credit Agreement had only been utilized for letters of credit, including $49.3 million outstanding as of March 31, 2025. These letters of credit support the Company’s reclamation bonding requirements, lease obligations, insurance policies and various other performance guarantees as further described in Note 13. “Financial Instruments and Other Guarantees.” Availability under the 2024 Credit Agreement was $270.7 million at March 31, 2025.
The 2024 Credit Agreement contains customary covenants that, among other things and subject to certain exceptions (including compliance with financial ratios), may limit the Company and its subsidiaries’ ability to incur additional indebtedness, make certain restricted payments or investments, sell or otherwise dispose of assets, enter into transactions with affiliates, create or incur liens, and merge, consolidate or sell all or substantially all of their assets. The 2024 Credit Agreement is secured by substantially all assets of the Company and its U.S. subsidiaries, as well as a pledge of two Australian subsidiaries.
Indebtedness
The Company’s total indebtedness as of March 31, 2025 and December 31, 2024 is presented in the table below.

Debt Instrument (defined below, as applicable) | March 31, 2025 |  | December 31, 2024
| (Dollars in millions)
3.250% Convertible Senior Notes due March 2028 (2028 Convertible Notes) | $ | 320.0 |  |  | $ | 320.0 |
BUMA Loan Note | 9.5 |  |  | 9.3 |
Finance lease obligations | 23.5 |  |  | 25.1 |
Less: Debt issuance costs | (5.8) |  |  | (6.3) |
| 347.2 |  |  | 348.1 |
Less: Current portion of long-term debt | 16.0 |  |  | 15.8 |
Long-term debt | $ | 331.2 |  |  | $ | 332.3 |

The Company’s indebtedness requires estimated contractual principal and interest payments, assuming interest rates in effect at March 31, 2025, of approximately $19 million in 2025, $18 million in 2026, $13 million in 2027, $326 million in 2028, less than $1 million in 2029 and $10 million thereafter.
Cash paid for interest, net of capitalized interest related to the Company’s indebtedness and financial assurance instruments amounted to $9.9 million and $11.5 million during the three months ended March 31, 2025 and 2024, respectively.
2028 Convertible Notes
On March 1, 2022, through a private offering, the Company issued the 2028 Convertible Notes in the aggregate principal amount of $320.0 million. The 2028 Convertible Notes are senior unsecured obligations of the Company and are governed under an indenture.
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The Company used the proceeds of the offering of the 2028 Convertible Notes and available cash to redeem its then-existing senior secured notes and to pay related premiums, fees and expenses relating to the offering and redemptions.
The 2028 Convertible Notes will mature on March 1, 2028, unless earlier converted, redeemed or repurchased in accordance with their terms. The 2028 Convertible Notes bear interest at a rate of 3.250% per year, payable semi-annually in arrears on March 1 and September 1 of each year.
During the first quarter of 2025, the Company’s reported common stock prices did not prompt the conversion feature of the 2028 Convertible Notes. As a result, the 2028 Convertible Notes will not be convertible during the second quarter of 2025.
Bridge Loan Facility
Concurrently with its entry into definitive agreements to acquire the Anglo assets, the Company entered into a bridge loan facility commitment letter (the Bridge Commitment Letter and, the senior secured 364-day bridge facility provided for therein, the Bridge Facility), pursuant to which the lenders, agreed to provide the Bridge Facility to the Company in the amount of up to $2.075 billion in order to finance the planned acquisition in part. The Company expects to replace the Bridge Facility with permanent financing prior to the closing date, but there can be no assurance such financing will occur and any such expectation is subject to market conditions.
To the extent borrowings are made under the Bridge Facility, any loans would bear interest at a SOFR plus an applicable margin of 8.00% or a base rate plus an applicable margin of 7.00%, at the Company’s option. Such applicable margin would increase by an additional 0.75% on the date that is 90 days following the closing date of the planned acquisition. Any borrowings under the Bridge Facility would mature 364 days from the initial funding date, which would be on or around the closing date of the planned acquisition.
The availability of borrowings under the Bridge Facility is subject to the satisfaction of certain customary conditions for transactions of this type. Any definitive financing documentation for the Bridge Facility will contain customary representations and warranties, covenants and events of defaults for transactions of this type. Upon execution of any definitive financing documentation for the Bridge Facility, the Bridge Facility will be guaranteed by substantially all U.S. subsidiaries of the Company and secured by substantially all assets of the Company, its U.S. subsidiaries and, subject to certain conditions, certain of the Company’s Australian subsidiaries.
Accounts Receivable Securitization Program
As described in Note 13. “Financial Instruments and Other Guarantees” of the accompanying unaudited condensed consolidated financial statements, the Company entered into an accounts receivable securitization program during 2017. The securitization program provides up to $225.0 million of funding capacity which is accounted for as a secured borrowing, limited to the availability of eligible receivables, and may be secured by a combination of collateral and the trade receivables underlying program. Funding capacity under the program may also be utilized for letters of credit in support of other obligations, which has been the Company’s primary utilization. At March 31, 2025, the Company had no outstanding borrowings and $60.4 million of letters of credit outstanding under the program. The Company was not required to post cash collateral under the securitization program at March 31, 2025.
The accounts receivable securitization program was amended in January 2025 to extend its maturity to January 2028.
Covenant Compliance
The Company was compliant with all relevant covenants under its debt and other finance agreements at March 31, 2025.
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Cash Flows
The following table summarizes the Company’s cash flows for the three months ended March 31, 2025 and 2024, as reported in the accompanying unaudited condensed consolidated financial statements.

| Three Months Ended March 31,
| 2025 |  | 2024
| (Dollars in millions)
Net cash provided by operating activities | $ | 119.9 |  |  | $ | 119.0 |
Net cash used in investing activities | (89.6) |  |  | (75.2) |
Net cash used in financing activities | (29.1) |  |  | (127.7) |
Net change in cash, cash equivalents and restricted cash | 1.2 |  |  | (83.9) |
Cash, cash equivalents and restricted cash at beginning of period | 1,382.6 |  |  | 1,650.2 |
Cash, cash equivalents and restricted cash at end of period | $ | 1,383.8 |  |  | $ | 1,566.3 |

Operating Activities. Net cash provided by operating activities for the three months ended March 31, 2025 was comparable to the same period in the prior year and primarily driven by a year-over-year increase in operating cash flow from working capital ($169.3 million), offset by a decrease in cash from collateral arrangements resulting from prior year collateral releases ($151.7 million) and lower cash generated from mining operations.
Investing Activities. The increase in net cash used in investing activities for the three months ended March 31, 2025 compared to the same period in the prior year was driven higher capital expenditures and payments of capital accruals ($40.8 million). These variances were partially offset by higher net distribution from joint ventures ($22.1 million).
Financing Activities. The decrease in net cash used by financing activities for the three months ended March 31, 2025 compared to the same period in the prior year was primarily driven by decreases in common stock repurchases ($83.1 million) and payment of debt issuance and other deferred financing costs ($9.1 million).
Off-Balance-Sheet Arrangements
In the normal course of business, the Company is a party to various guarantees and financial instruments that carry off-balance-she et risk and are not reflected in the accompanying condensed consolidated balance sheets. Such financial instruments provide support for the Company’s reclamation bonding requirements, lease obligations, insurance policies and various other performance guarantees. The Company periodically evaluates the instruments for on-balance-sheet treatment based on the amount of exposure under the instrument and the likelihood of required performance. The Company does not expect any material losses to result from these guarantees or off-balance-sheet instruments in excess of liabilities provided for in the accompanying condensed consolidated balance sheets.
The following table summarizes the Company’s financial instruments that carry off-balance-sheet risk.

| March 31, 2025
| Reclamation Support |  | Other Support (1) |  | Total
| (Dollars in millions)
Surety bonds | $ | 931.8 |  |  | $ | 92.2 |  |  | $ | 1,024.0 |
Letters of credit (2) | 55.2 |  |  | 54.5 |  |  | 109.7 |
| 987.0 |  |  | 146.7 |  |  | 1,133.7 |
Less: Letters of credit in support of surety bonds (3) | (55.2) |  |  | (0.1) |  |  | (55.3) |
Obligations supported, net | $ | 931.8 |  |  | $ | 146.6 |  |  | $ | 1,078.4 |

(1) Instruments support obligations related to leases, health care plans, workers’ compensation, property and casualty insurance, customer and vendor contracts and certain restoration ancillary to prior mining activities.
(2) Amounts do not include cash-collateralized letters of credit.
(3) Certain letters of credit serve as collateral for surety bonds at the request of surety bond providers.
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Not presented in the above table is $815.3 million of restricted cash and other balances serving as collateral which are included in the accompanying condensed consolidated balance sheets at March 31, 2025, as described in Note 13. “Financial Instruments and Other Guarantees” of the accompanying unaudited condensed consolidated financial statements. Such collateral is primarily in support of the financial instruments noted above, including in relation to the Company’s surety bond portfolio, its collateralized letter of credit agreement, its bank guarantee facilities and amounts held directly with beneficiaries which are not supported by surety bonds. The restricted cash and collateral balance increased $5.5 million during the three months ended March 31, 2025 due to an increase in bonding requirements and the impact of foreign currency rate changes.
At March 31, 2025, the Company had total asset retirement obligations of $725.4 million. Bonding requirement amounts may differ significantly from the re lated asset retirement obligation because such requirements are calculated under the assumption that reclamation begins currently, whereas the Company’s accounting liabilities are discounted from the end of a mine’s economic life (when final reclamation work would begin) to the balance sheet date.
At March 31, 2025, the Company’s reclamation bonding requirements were supported by approximately $710 million of restricted cash and other balances serving as collateral, which substantially supports the financial liability for final mine reclamation as calculated in accordance with U.S. GAAP.
Critical Accounting Policies and Estimates
The Company’s discussion and analysis of its financial condition, results of operations, liquidity and capital resources is based upon its financial statements, which have been prepared in accordance with U.S. GAAP. The Company is also required under U.S. GAAP to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses and related disclosure of contingent assets and liabilities. On an ongoing basis, the Company evaluates its estimates. The Company bases its estimates on historical experience and on various other assumptions that it believes are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.
At March 31, 2025, the Company identified certain assets with an aggregate carrying value of approximately $75 million in its Other U.S. Thermal segment whose recoverability is most sensitive to customer concentration risk.
The Company’s critical accounting policies and estimates are discussed in Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in its Annual Report on Form 10-K for the year ended December 31, 2024. The Company’s critical accounting policies remain unchanged at March 31, 2025, and there have been no material changes in the Company’s critical accounting estimates.
Newly Adopted Accounting Standards and Accounting Standards Not Yet Implemented
See Note 2. “Newly Adopted Accounting Standards and Accounting Standards Not Yet Implemented” to the Company’s unaudited condensed consolidated financial statements for a discussion of newly adopted accounting standards and accounting standards not yet implemented.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
Coal Pricing Risk
The Company predominantly manages its commodity price risk for its non-trading, long-term coal contract portfolio through the use of long-term coal supply agreements (those with terms longer than one year) to the extent possible, rather than through the use of derivative instruments. As of March 31, 2025, the Company had approximately 91 million tons of U.S. thermal coal priced and committed for 2025. This includes approximately 77 million tons of PRB coal and 14 million tons of other U.S. thermal coal. The Company has the flexibility to increase volumes should demand warrant. Peabody is estimating full year 2025 thermal coal sales volumes from its Seaborne Thermal segment of 14.2 million to 15.2 million tons comprised of thermal export volume of 8.8 million to 9.8 million tons and domestic volume of 5.4 million tons. Peabody is estimating full year 2025 metallurgical coal sales from its Seaborne Metallurgical segment of 8.0 million to 9.0 million tons. Sales commitments in the metallurgical coal market are typically not long-term in nature, and the Company is therefore subject to fluctuations in market pricing. The Company’s sensitivity to market pricing in thermal coal markets is dependent on the duration of contracts.
As of March 31, 2025, the Company had no coal derivative contracts related to its forecasted sales. Historically, such financial contracts have included futures and forwards.
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Foreign Currency Risk
The Company utilizes options and collars to hedge currency risk associated with anticipated Australian dollar operating expenditures. The accounting for these derivatives is discussed in Note 6. “Derivatives and Fair Value Measurements” to the accompanying unaudited condensed consolidated financial statements. As of March 31, 2025, the Company held average rate options with an aggregate notional amount of $449.0 million Australian dollars to hedge currency risk associated with anticipated Australian dollar operating expenditures over the nine-month period ending December 31, 2025. As of March 31, 2025, the Company also held purchased collars with an aggregate notional amount of $540.0 million Australian dollars related to anticipated Australian dollar operating expenditures during the nine-month period ending December 31, 2025. Assuming the Company had no foreign currency hedging instruments in place, its exposure in operating costs and expenses due to a $0.10 change in the Australian dollar/U.S. dollar exchange rate is approximately $200 million to $210 million for the next twelve months. Based upon the Australian dollar/U.S. dollar exchange rate at March 31, 2025, the currency option contracts outstanding at that date would limit the Company’s exposure to approximately $172 million with respect to a $0.10 increase in the exchange rate, while the Company would benefit by approximately $173 million with respect to a $0.10 decrease in the exchange rate for the next twelve months.
Although Peabody believes its Australian dollar monetary asset position acts as a hedge to lessen the impact on its results from operations, the Company may continue to use options and collars to hedge its cash flow exposure to currency risk associated with anticipated Australian dollar operating expenditures.
Diesel Fuel Price Risk
The Company expects to consume 90 to 100 million gallons of diesel fuel during the next twelve months. A $10 per barrel change in the price of crude oil (the primary component of a refined diesel fuel product) would increase or decrease its annual diesel fuel costs by approximately $23 million based on its expected usage.
As of March 31, 2025, the Company did not have any diesel fuel derivative instruments in place. The Company partially manages the price risk of diesel fuel through the use of cost pass-through contacts with certain customers.
Interest Rate Risk
Peabody’s objectives in managing exposure to interest rate changes are to limit the impact of interest rate changes on earnings and cash flows and to lower overall borrowing costs. Peabody is primarily exposed to interest rate risk as a result of its interest-earning cash balances.
Peabody’s interest-earning cash and restricted cash balances are primarily held in deposit accounts and investments with maturities of three months or less. Therefore, these balances are subject to interest rate fluctuations and could produce less income if interest rates fall. Based upon its interest-earning cash and restricted cash balances at March 31, 2025, a one percentage point decrease in interest rates would result in a decrease of approximately $14 million to interest income for the next twelve months.
Item 4. Controls and Procedures.
The Company’s disclosure controls and procedures are designed to, among other things, provide reasonable assurance that material information, both financial and non-financial, and other information required under the securities laws to be disclosed is accumulated and communicated to senior management, including its principal executive and financial officers, on a timely basis. The Company’s Chief Executive Officer and Chief Financial Officer have evaluated its disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934) as of March 31, 2025, and concluded that such controls and procedures were effective to provide reasonable assurance that the desired control objectives were achieved. Additionally, there have been no changes to the Company’s internal control over financial reporting during the most recent fiscal quarter that materially affected, or are reasonably likely to materially affect, its internal control over financial reporting.
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PART II - OTHER INFORMATION
Item 1. Legal Proceedings.
The Company is subject to various legal and regulatory proceedings. For a description of its significant legal proceedings refer to Note 14. “Commitments and Contingencies” to the unaudited condensed consolidated financial statements included in Part I, Item 1. “Financial Statements” of this Quarterly Report, which information is incorporated by reference herein.
Item 1A. Risk Factors.
The Company operates in a rapidly changing environment that involves a number of risks. The risk factor set forth below is in addition to the risk factors previously disclosed in Item 1A. “Risk Factors” of Part I of its Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on February 20, 2025.
Changes to trade policy, including tariff and customs regulations, or failure to comply with such regulations may have an adverse effect on the Company’s business, financial condition and results of operations.
Peabody, like many other multinational corporations, conducts a significant amount of business that would be impacted by changes to the trade policies of the U.S. and other countries (including governmental action related to tariffs, international trade agreements, or economic sanctions). Such changes have the potential to adversely impact the U.S. economy or certain sectors thereof; the economy of another country in which the Company conducts operations; or the coal industry and the global demand for coal. The Company cannot predict the extent to which the U.S. or other countries will impose new or additional quotas, duties, tariffs, taxes or other similar restrictions upon the import or export of its products in the future; nor can the Company predict future trade policy or the terms of any renegotiated trade agreements and their impact on its business. The continuing adoption or expansion of trade restrictions, the occurrence of a trade war, or other governmental action related to tariffs or trade agreements or policies has the potential to adversely impact demand for the Company’s coal, its costs, its customers and the economies in which the Company operates, which in turn could have a material adverse effect on the Company’s business, financial condition and results of operations.
For information regarding other factors that could affect the Company’s results of operations, financial condition and liquidity, see the risk factors disclosed in Item 1A. “Risk Factors” of Part I of its Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on February 20, 2025. In addition to the other information set forth in this Quarterly Report, including the information presented in Part I, Item 2. “Management's Discussion and Analysis of Financial Condition and Results of Operations,” you should carefully consider the risk factors disclosed in the aforementioned filings, which could materially affect the Company's results of operations, financial condition and liquidity.
Factors that could affect the Company’s results or an investment in the Company’s securities include, but are not limited to:
•the Company’s profitability depends upon the prices it receives for its coal;
•if a substantial number of the Company’s long-term coal supply agreements, including those with its largest customers, terminate, or if the pricing, volumes or other elements of those agreements materially adjust, its revenue and operating profits could suffer if the Company is unable to find alternate buyers willing to purchase its coal on comparable terms to those in its contracts;
•risks inherent to mining could increase the cost of operating the Company’s business, and events and conditions that could occur during the course of its mining operations could have a material adverse impact on the Company;
•the Company’s take-or-pay arrangements could unfavorably affect its profitability;
•the Company may not recover its investments in its mining, exploration and other assets, which may require the Company to recognize impairment charges related to those assets;
•the Company’s ability to operate effectively could be impaired if it loses key personnel or fails to attract qualified personnel;
•the Company could be negatively affected if it fails to maintain satisfactory labor relations;
•the Company could be adversely affected if it fails to appropriately provide financial assurances for its obligations;
•if the assumptions underlying the Company’s asset retirement obligations for reclamation and mine closures are materially inaccurate, its costs could be significantly greater than anticipated;
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•the Company’s mining operations are extensively regulated, which imposes significant costs on it, and future regulations and developments could increase those costs or limit its ability to produce coal;
•the Company’s operations may impact the environment or cause exposure to hazardous substances, and its properties may have environmental contamination, which could result in material liabilities to the Company;
•the Company may be unable to obtain, renew or maintain permits necessary for its operations, or the Company may be unable to obtain, renew or maintain such permits without conditions on the manner in which it runs its operations, which would reduce its production, cash flows and profitability;
•concerns about the impacts of coal combustion on global climate are increasingly leading to conditions that have affected and could continue to affect demand for the Company’s products or its securities and its ability to produce, including increased governmental regulation of coal combustion and unfavorable investment decisions by electricity generators;
•numerous activist groups are devoting substantial resources to anti-coal activities to minimize or eliminate the use of coal as a source of electricity generation, domestically and internationally, thereby further reducing the demand and pricing for coal, and potentially materially and adversely impacting the Company’s future financial results, liquidity and growth prospects;
•the Company’s trading and hedging activities do not cover certain risks and may expose it to earnings volatility and other risks;
•the Company’s future success depends upon its ability to continue acquiring and developing coal reserves and resources that are economically recoverable;
•the Company faces numerous uncertainties in estimating its coal reserves and resources and inaccuracies in its estimates could result in lower than expected revenue, higher than expected costs and decreased profitability;
•joint ventures, partnerships or non-managed operations may not be successful and may not comply with the Company’s operating standards;
•the Company’s expenditures for postretirement benefit obligations could be materially higher than it has predicted if its underlying assumptions prove to be incorrect;
•high inflation or imposed tariffs could result in higher costs and decreased profitability;
•changes to trade policy, including tariff and customs regulations, or failure to comply with such regulations may have an adverse effect on the Company’s business, financial condition and results of operations;
•the Company’s business, results of operations, financial condition and prospects could be materially and adversely affected by pandemics or other widespread illnesses and the related effects on public health;
•Peabody is exposed to risks associated with political or international conflicts;
•Peabody could be exposed to significant liability, reputational harm, loss of revenue, increased costs or other risks if it sustains cybersecurity attacks or other security breaches that disrupt its operations or result in the dissemination of proprietary or confidential information about the Company, its customers or other third-parties;
•Peabody’s information and operational technology systems may be adversely affected by disruptions, damage, failure and risks associated with implementation and integration, including of new technologies;
•the Company is subject to various general operating risks which may be fully or partially outside of its control;
•the Company may be able to incur more debt, including secured debt, which could increase the risks associated with its indebtedness;
•the terms of the agreements and instruments governing the Company’s debt and surety bonding obligations impose restrictions that may limit its operating and financial flexibility;
•the number and quantity of viable financing and insurance alternatives available to the Company may be significantly impacted by unfavorable lending and investment policies by financial institutions and insurance companies associated with concerns about environmental impacts of coal combustion, and negative views around its efforts with respect to environmental and social matters and related governance considerations could harm the perception of the Company by a significant number of investors or result in the exclusion of its securities from consideration by those investors;
•the price of Peabody’s securities may be volatile;
•Peabody’s common stock is subject to dilution and may be subject to further dilution in the future;
•there may be circumstances in which the interests of a significant stockholder could be in conflict with other stakeholders’ interests;
•the future payment of dividends on Peabody’s stock or future repurchases of its stock is dependent on a number of factors and cannot be assured;
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•acquisitions and divestitures are a potentially important part of the Company’s long-term strategy, subject to its investment criteria, and involve a number of risks, any of which could cause the Company not to realize the anticipated benefits;
•the Company may not be able to fully utilize its deferred tax assets;
•Peabody’s certificate of incorporation and by-laws include provisions that may discourage a takeover attempt;
•diversity in interpretation and application of accounting literature in the mining industry may impact the Company’s reported financial results; and
•other risks and factors detailed in this report, including, but not limited to, those discussed in “Legal Proceedings,” set forth in Part II, Item 1 of this Quarterly Report on Form 10-Q.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
Share Repurchase Program
On April 17, 2023, the Company announced that its Board of Directors authorized a new share repurchase program (2023 Repurchase Program) authorizing repurchases of up to $1.0 billion of its common stock.
Under the 2023 Repurchase Program, the Company may purchase shares of common stock from time to time at the discretion of management through open market purchases, privately negotiated transactions, block trades, accelerated or other structured share repurchase programs, or other means. The manner, timing and pricing of any share repurchase transactions will be based on a variety of factors, including market conditions, applicable legal requirements, the Company’s capital structure and alternative opportunities that the Company may have for the use or investment of capital. Through March 31, 2025, the Company had repurchased 23.8 million shares of its common stock under the 2023 Repurchase Program for $530.8 million, which included commissions paid of $0.4 million, leaving $469.6 million available for share repurchase.
Dividends
During the three months ended March 31, 2025, the Company declared a dividend per share of $0.075. On May 6, 2025, the Company declared an additional dividend per share of $0.075 to be paid on June 4, 2025 to shareholders of record as of May 15, 2025.
Share Relinquishments
The Company routinely allows employees to relinquish Common Stock to pay estimated taxes upon the vesting of restricted stock units and the payout of performance units that are settled in Common Stock under its equity incentive plans. The value of Common Stock tendered by employees is determined based on the closing price of the Company’s Common Stock on the dates of the respective relinquishments.
Purchases of Equity Securities
The following table summarizes all share purchases for the three months ended March 31, 2025:

Period |  | Total Number of Shares Purchased (1) |  | Average Price Paid per Share |  | Total Number of Shares Purchased as Part of Publicly Announced Program |  | Maximum Dollar Value that May Yet Be Used to Repurchase Shares Under the Publicly Announced Program (In millions)
January 1 through January 31, 2025 |  | 37,838 |  |  | $ | 20.57 |  |  | — |  |  | $ | 469.6 |
February 1 through February 28, 2025 |  | — |  |  | — |  |  | — |  |  | 469.6 |
March 1 through March 31, 2025 |  | — |  |  | — |  |  | — |  |  | 469.6 |
Total |  | 37,838 |  |  | 20.57 |  |  | — |  |  |

(1)Includes shares withheld to cover the withholding taxes upon the vesting of equity awards, which are not part of the publicly announced repurchase programs.
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Item 4. Mine Safety Disclosures.
Peabody’s “Safety and Sustainability Management System” has been designed to set clear and consistent expectations for safety, health and environmental stewardship across the Company’s business. It aligns to the National Mining Association’s CORESafety® framework and encompasses three fundamental areas: leadership and organization, risk management and assurance. Peabody also partners with other companies and certain governmental agencies to pursue new technologies that have the potential to improve its safety performance and provide better safety protection for employees.
Peabody continually monitors its safety performance and regulatory compliance. The information concerning mine safety violations or other regulatory matters required by SEC regulations is included in Exhibit 95 to this Quarterly Report on Form 10-Q.
Item 5. Other Information.
Securities Trading Plans of Directors and Executive Officers
During the three months ended March 31, 2025, none of Peabody’s directors or officers adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as these terms are defined in Item 408 of Regulation S-K of the Exchange Act.
Item 6. Exhibits.
See Exhibit Index on following pages.
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EXHIBIT INDEX
The exhibits below are numbered in accordance with the Exhibit Table of Item 601 of Regulation S-K.

Exhibit No. |  | Description of Exhibit
10.1 |  | Tenth Amendment to the Sixth Amended and Restated Receivables Purchase Agreement, dated as of January 28, 2025, by and among P&L Receivables Company, LLC, Peabody Energy Corporation, all Committed Purchasers listed on the signature pages thereto, all Purchaser Agents listed on the signature pages thereto, all LC Participants listed on the signature pages thereto, PNC Bank, National Association, as Administrator and as LC Bank and PNC Capital Markets LLC, as Structuring Agent (Incorporated by reference to Exhibit 10.1 of the Registrant’s Current Report on Form 8-K, filed January 31, 2025).
31.1† |  | Certification of periodic financial report by the Registrant’s Chief Executive Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2† |  | Certification of periodic financial report by the Registrant’s Chief Financial Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1† |  | Certification of periodic financial report pursuant to 18 U.S.C. Section 1350, adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, by the Registrant’s Chief Executive Officer.
32.2† |  | Certification of periodic financial report pursuant to 18 U.S.C. Section 1350, adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, by the Registrant’s Chief Financial Officer.
95† |  | Mine Safety Disclosure required by Item 104 of Regulation S-K.
101.INS |  | Inline XBRL Instance Document - the instance document does not appear in the interactive data file because XBRL tags are embedded within the Inline XBRL document
101.SCH |  | Inline XBRL Taxonomy Extension Schema Document
101.CAL |  | Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF |  | Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB |  | Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE |  | Inline XBRL Taxonomy Extension Presentation Linkbase Document
104 |  | Cover Page Interactive Data File (embedded within the Inline XBRL document).
† |  | Filed herewith.

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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

|  |  | PEABODY ENERGY CORPORATION
Date: | May 8, 2025 | By: | /s/ MARK A. SPURBECK
|  |  |  | Mark A. Spurbeck
|  |  |  | Executive Vice President and Chief Financial Officer (On behalf of the registrant and as Principal Financial Officer)

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