Peabody Energy (NYSE:BTU) Issues Earnings Results, Misses Expectations By $0.43 EPS

Peabody Energy (NYSE:BTU) announced its quarterly earnings data on Wednesday. The coal producer reported ($0.74) EPS for the quarter, missing the consensus estimate of ($0.31) by ($0.43), Briefing.com reports. Peabody Energy had a negative return on equity of 2.80% and a negative net margin of 3.07%.The firm’s revenue was up 12.7% on a year-over-year basis. During the same quarter in the prior year, the business posted ($0.23) earnings per share.

Here are the key takeaways from Peabody Energy’s conference call:

• Second-quarter results were weak: Peabody reported a $90.6 million net loss attributable to common stockholders and $24 million of adjusted EBITDA, pressured by lower U.S. thermal volumes, elevated fuel costs and commissioning expenses at Centurion.
• Centurion is moving into production mode: Shield realignment issues have been resolved, the longwall is operating, and management targets 1.5–2.0 million tons of sales in the second half, including 500,000–700,000 tons in the third quarter. Costs are expected to improve as production becomes more consistent.
• Coal market fundamentals remained supportive: Second-quarter premium hard coking coal prices averaged $238 per ton and Newcastle thermal coal averaged $137 per ton, with supply disruptions in China and Indonesia supporting seaborne pricing and demand.
• Financial flexibility and shareholder returns improved: Peabody reduced interest expense, repurchased the economic equivalent of more than 5 million shares through a convertible-note transaction, unlocked $350 million of restricted cash and collateral, and extended and expanded its credit facility.
• Management expects a stronger second half: Third-quarter guidance calls for higher PRB shipments of 22 million tons at approximately $12 per ton, improved seaborne metallurgical costs of $130–$140 per ton, and continued execution of the shareholder-return program. Rare-earth and germanium initiatives also provide longer-term, capital-light growth optionality.

Peabody Energy Stock Performance

BTU stock traded down $2.32 during midday trading on Wednesday, reaching $20.92. 3,739,307 shares of the company’s stock traded hands, compared to its average volume of 3,296,432. The firm has a market capitalization of $2.55 billion, a PE ratio of -21.09 and a beta of 0.38. The company has a 50-day moving average price of $24.85 and a two-hundred day moving average price of $29.68. Peabody Energy has a 52 week low of $14.25 and a 52 week high of $41.14. The company has a debt-to-equity ratio of 0.09, a quick ratio of 1.37 and a current ratio of 1.87.

Peabody Energy Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Monday, June 8th. Shareholders of record on Tuesday, May 19th were issued a dividend of $0.075 per share. The ex-dividend date of this dividend was Tuesday, May 19th. This represents a $0.30 dividend on an annualized basis and a yield of 1.4%. Peabody Energy’s payout ratio is presently -30.30%.

Key Peabody Energy News

Here are the key news stories impacting Peabody Energy this week:

• Positive Sentiment: Peabody declared a quarterly dividend of $0.075 per share, payable September 3 to shareholders of record August 12. The payout may support investor confidence and signals continued capital returns. Peabody Board Declares Dividend on Common Stock
• Positive Sentiment: Second-quarter revenue increased 12.7% year over year and was broadly in line with or ahead of expectations. Higher seaborne thermal coal pricing and multiple strategic financial actions also helped strengthen the company’s capital structure. Peabody said Centurion is progressing toward targeted production rates. Peabody Reports Results for the Quarter Ended June 30, 2026
• Neutral Sentiment: The company’s low leverage and solid liquidity remain supportive, with a debt-to-equity ratio of 0.09, current ratio of 1.87 and quick ratio of 1.37. However, the latest quarterly results leave full-year profitability expectations vulnerable if coal prices or mine production weaken.
• Negative Sentiment: Peabody reported a second-quarter loss of $0.74 per diluted share, missing the consensus loss estimate of $0.31 by $0.43 and worsening from a $0.23 loss a year earlier. Net income attributable to common shareholders was negative $90.6 million, while the company posted negative net margin and return on equity.
• Negative Sentiment: Several law firms are promoting a securities class action covering investors who bought BTU shares from October 14, 2024, through May 4, 2026. The lawsuit alleges Peabody misled investors about equipment problems, production capabilities and the ramp-up of its Centurion metallurgical coal mine. The allegations have not been proven, but potential litigation costs and reputational damage add uncertainty. The lead-plaintiff deadline is August 24, 2026. Peabody Energy Securities Class Action

Institutional Trading of Peabody Energy

A number of hedge funds and other institutional investors have recently made changes to their positions in BTU. Sourcerock Group LLC purchased a new stake in Peabody Energy during the 2nd quarter worth about $28,092,000. State Street Corp grew its holdings in Peabody Energy by 19.3% during the 2nd quarter. State Street Corp now owns 9,208,031 shares of the coal producer’s stock valued at $123,572,000 after buying an additional 1,487,531 shares in the last quarter. Balyasny Asset Management L.P. increased its position in shares of Peabody Energy by 308.5% during the fourth quarter. Balyasny Asset Management L.P. now owns 607,336 shares of the coal producer’s stock valued at $18,038,000 after buying an additional 898,635 shares during the period. Merewether Investment Management LP bought a new stake in shares of Peabody Energy during the third quarter valued at about $15,151,000. Finally, Forest Avenue Capital Management LP lifted its holdings in shares of Peabody Energy by 63.5% in the fourth quarter. Forest Avenue Capital Management LP now owns 1,174,262 shares of the coal producer’s stock worth $34,876,000 after buying an additional 455,962 shares in the last quarter. 87.44% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on BTU. Zacks Research upgraded shares of Peabody Energy from a “strong sell” rating to a “hold” rating in a research note on Monday, June 29th. B. Riley Financial lowered Peabody Energy from a “buy” rating to a “neutral” rating and reduced their price objective for the company from $42.00 to $30.00 in a report on Thursday, April 30th. UBS Group decreased their target price on Peabody Energy from $32.00 to $30.50 and set a “neutral” rating for the company in a research report on Wednesday, May 6th. Finally, Weiss Ratings lowered Peabody Energy from a “sell (d+)” rating to a “sell (d)” rating in a research note on Tuesday, June 23rd. Two analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, Peabody Energy presently has a consensus rating of “Hold” and an average target price of $34.12.

About Peabody Energy

Peabody Energy Corporation is one of the world’s largest private-sector coal companies, engaged primarily in the production and sale of metallurgical and thermal coal. The company’s operations span surface and underground mines, serving utilities, steel mills and other industrial customers that rely on coal as an essential component in power generation and steelmaking. Peabody’s product portfolio includes high-energy thermal coal for electricity generation and low-volatile metallurgical coal used in steel production, reflecting its diverse end-market reach.

Founded in 1883, Peabody Energy has grown from a regional mining concern into a global energy supplier.