Peabody Energy (NYSE:BTU) shares slipped over 3% in premarket trading Thursday after the U.S. coal producer posted a larger-than-expected quarterly loss, even as revenue came in slightly ahead of forecasts.
The company reported a net loss of $70.1 million, or -$0.58 per diluted share, swinging from a profit of $101.3 million, or $0.74 per share, a year earlier. The latest results included $54 million in charges tied to a terminated acquisition.
Adjusted EBITDA dropped sharply to $99.5 million, less than half the $224.8 million reported in the same quarter last year, while revenue rose to $1.01 billion, narrowly topping analyst expectations of $995.36 million.
President and CEO Jim Grech praised operational resilience despite the weaker earnings performance:
“Peabody’s operations turned in another solid performance, highlighted by rising Powder River Basin shipments, better-than-anticipated seaborne thermal coal volumes and the lowest metallurgical coal costs in multiple years.”
He added that the company achieved these results “against a backdrop of outstanding U.S. thermal coal fundamentals and seaborne markets that have stabilized along the lower end of the pricing cycle.”
Operational Performance
The Powder River Basin unit was a standout, with shipments rising 14% quarter-over-quarter and costs per ton staying at the low end of targeted ranges.
Seaborne thermal coal volumes exceeded expectations, while metallurgical coal costs improved by more than $10 per ton from the prior quarter — an encouraging sign for the company’s export portfolio.
Outlook and Dividend
Looking ahead, Peabody said it is raising full-year 2025 guidance for several business segments and remains on schedule for its Centurion Mine to begin longwall operations in February 2026. The project, according to the company, represents “a transformative change that will improve our metallurgical coal volumes and realizations.”
Peabody also declared a quarterly dividend of $0.075 per share, payable on October 30, 2025, underscoring its commitment to shareholder returns despite near-term profit headwinds.