Peabody Energy (NYSE:BTU) Releases Quarterly Earnings Results, Misses Estimates By $0.43 EPS

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

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 Price Performance

Peabody Energy stock traded down $2.63 during mid-day trading on Wednesday, hitting $20.61. The company’s stock had a trading volume of 3,883,577 shares, compared to its average volume of 3,297,582. The company has a quick ratio of 1.37, a current ratio of 1.87 and a debt-to-equity ratio of 0.09. The stock has a market capitalization of $2.51 billion, a P/E ratio of -21.09 and a beta of 0.38. Peabody Energy has a twelve month low of $14.25 and a twelve month high of $41.14. The stock’s fifty day moving average price is $24.85 and its two-hundred day moving average price is $29.68.

Peabody Energy Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, June 8th. Investors of record on Tuesday, May 19th were issued a dividend of $0.075 per share. This represents a $0.30 dividend on an annualized basis and a yield of 1.5%. The ex-dividend date was Tuesday, May 19th. Peabody Energy’s dividend payout ratio (DPR) is presently -30.30%.

Analyst Upgrades and Downgrades

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

Key Headlines Impacting Peabody Energy

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 Investors Weigh In On Peabody Energy

Several large investors have recently modified their holdings of the stock. Smartleaf Asset Management LLC raised its position in shares of Peabody Energy by 104.3% during the second quarter. Smartleaf Asset Management LLC now owns 2,006 shares of the coal producer’s stock worth $25,000 after purchasing an additional 1,024 shares during the period. Caitong International Asset Management Co. Ltd acquired a new position in shares of Peabody Energy in the 4th quarter valued at $37,000. Tidal Investments LLC purchased a new position in Peabody Energy in the 2nd quarter worth about $142,000. Quadrant Capital Group LLC purchased a new position in Peabody Energy in the 3rd quarter worth about $157,000. Finally, Wexford Capital LP acquired a new stake in Peabody Energy during the 3rd quarter worth about $159,000. 87.44% of the stock is owned by institutional investors.

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.