Peabody Narrows Q3 Loss to $0.27 a Share as Seaborne Prices Rise and Centurion Hits Sales Target
Peabody narrowed its third-quarter loss and said every segment posted positive adjusted EBITDA as higher seaborne coal prices offset tough mining conditions at its new Centurion mine, according to its 8-K released Wednesday.
The coal producer reported a net loss attributable to common stockholders of $32.8 million, or $0.27 per diluted share, compared with a loss of $70.1 million, or $0.58, a year earlier. Adjusted EBITDA was $97.5 million, compared with $99.5 million in the prior-year quarter.
Seaborne prices help
Seaborne thermal adjusted EBITDA rose 26% from the second quarter to $65.5 million, and margin per ton increased to $21.05 on higher realized export prices. Revenue per ton in the segment climbed to $77.63 from $59.25 a year earlier, though tons sold fell to 3.1 million from 4.1 million.
Seaborne metallurgical returned to positive adjusted EBITDA of $5.2 million, with sales of 2.2 million tons exceeding targets.
Centurion faults
Centurion shipped 0.58 million tons and met its third-quarter sales target despite faulted geology that slowed advance rates and raised costs. "Looking ahead to the fourth quarter, our priorities remain operating safely, clearing the faulted zone at Centurion, and improving free cash flow as seaborne markets remain strong," said President and CEO Jim Grech.
Guidance changes
Peabody raised expected seaborne thermal export volume by 0.2 million tons for 2026 but cut seaborne metallurgical volume by 0.6 million tons, mainly because of lower Centurion output. Powder River Basin volume guidance was cut by an estimated 7.5 million tons, the company said, reflecting weaker U.S. coal burn. Capital spending guidance fell by $40 million, mostly from deferring development work at Centurion's Northern panels.
Capital returns
Peabody repurchased $38.9 million of 2028 convertible notes and issued a cash redemption notice for the remaining $39.9 million. It declared a quarterly dividend of $0.075 per share, payable Dec. 9 to holders of record Nov. 19.
By the numbers
- Q3 net loss: $32.8 million, or $0.27 per share
- Adjusted EBITDA: $97.5 million
- Seaborne thermal adjusted EBITDA: $65.5 million, up 26% from Q2
- Centurion shipments: 0.58 million tons
- Quarterly dividend: $0.075 per share
Sources
- Peabody Energy Form 8-K with third-quarter 2026 earnings release, filed Nov. 4, 2026 (accession 0001064728-26-000067)
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