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

Peabody Energy (NYSE:BTU) announced its quarterly earnings results on Wednesday. The coal producer reported ($0.74) earnings per share for the quarter, missing the consensus estimate of ($0.31) by ($0.43), Briefing.com reports. The business had revenue of $1 billion during the quarter, compared to the consensus estimate of $1.02 billion. Peabody Energy had a negative net margin of 4.56% and a negative return on equity of 5.22%. Peabody Energy’s revenue was up 12.7% compared to the same quarter last year. During the same period in the previous year, the business posted ($0.23) EPS.

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

Shares of NYSE:BTU traded down $0.26 during midday trading on Friday, reaching $21.14. The company had a trading volume of 843,102 shares, compared to its average volume of 3,301,895. The stock has a market cap of $2.57 billion, a P/E ratio of -14.16 and a beta of 0.38. The company’s 50 day moving average price is $24.74 and its 200 day moving average price is $29.51. The company has a current ratio of 2.01, a quick ratio of 1.37 and a debt-to-equity ratio of 0.10. Peabody Energy has a 52-week low of $14.25 and a 52-week high of $41.14.

Peabody Energy Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 3rd. Investors of record on Wednesday, August 12th will be issued a $0.075 dividend. This represents a $0.30 dividend on an annualized basis and a dividend yield of 1.4%. The ex-dividend date of this dividend is Wednesday, August 12th. Peabody Energy’s payout ratio is -30.30%.

Trending Headlines about Peabody Energy

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

• Positive Sentiment: Benchmark maintained a Buy rating despite lowering its price target from $40 to $36, implying substantial potential upside from recent levels. The company also declared a quarterly dividend of $0.075 per share, with an ex-dividend date of August 12. Benchmark price target update
• Positive Sentiment: Analysts see longer-term potential for Centurion, which produces high-quality hard-coking coal. A gradual production ramp could improve second-half results and eventually support Seaborne Metallurgical earnings, although execution remains critical. Peabody Energy Centurion outlook
• Neutral Sentiment: Several law firms reminded investors of an August 24, 2026 deadline to seek lead-plaintiff status in a securities class action covering investors who bought BTU shares between October 14, 2024, and May 4, 2026. These notices largely repeat existing allegations and do not represent a court finding of wrongdoing. Faruqi Peabody investor deadline notice Rosen Peabody investor deadline notice
• Negative Sentiment: Peabody reported a second-quarter loss of $0.74 per share, substantially worse than the $0.31 loss analysts expected. Revenue of approximately $1.0 billion also fell short of the $1.02 billion consensus estimate, contributing to the recent decline in BTU shares. Peabody second-quarter earnings report
• Negative Sentiment: The company reduced its metallurgical-coal volume expectations, while unexpected operational problems and a slower-than-expected ramp-up at Centurion hurt earnings and raised concerns about production reliability and future cash flow.
• Negative Sentiment: Multiple firms have announced or promoted a securities-fraud lawsuit alleging that Peabody and certain executives misrepresented Centurion’s operating condition and production capabilities. The litigation creates reputational, legal and potentially financial risks for the company. Centurion securities class action investigation
• Negative Sentiment: B. Riley lowered its price target from $30 to $29 and kept a Neutral rating, reflecting reduced near-term confidence after the earnings miss and Centurion setbacks. B. Riley price target update

Institutional Trading of Peabody Energy

Several hedge funds have recently added to or reduced their stakes in BTU. Bridgeway Capital Management LLC increased its stake in shares of Peabody Energy by 15.3% during the 3rd quarter. Bridgeway Capital Management LLC now owns 801,802 shares of the coal producer’s stock worth $21,264,000 after purchasing an additional 106,321 shares during the last quarter. Deutsche Bank AG lifted its stake in Peabody Energy by 0.8% in the fourth quarter. Deutsche Bank AG now owns 492,692 shares of the coal producer’s stock valued at $14,633,000 after purchasing an additional 4,064 shares during the last quarter. Regal Partners Ltd bought a new position in Peabody Energy during the fourth quarter valued at $6,309,000. Franklin Resources Inc. grew its holdings in Peabody Energy by 75.5% during the third quarter. Franklin Resources Inc. now owns 233,442 shares of the coal producer’s stock valued at $6,191,000 after purchasing an additional 100,460 shares during the period. Finally, Federated Hermes Inc. increased its position in Peabody Energy by 742.1% in the second quarter. Federated Hermes Inc. now owns 281,576 shares of the coal producer’s stock worth $3,779,000 after buying an additional 248,140 shares during the last quarter. Institutional investors own 87.44% of the company’s stock.

Wall Street Analyst Weigh In

A number of research analysts have recently weighed in on the company. Weiss Ratings lowered Peabody Energy from a “sell (d+)” rating to a “sell (d)” rating in a report on Tuesday, June 23rd. UBS Group decreased their price target on Peabody Energy from $32.00 to $30.50 and set a “neutral” rating for the company in a report on Wednesday, May 6th. B. Riley Financial dropped their price objective on Peabody Energy from $30.00 to $29.00 and set a “neutral” rating on the stock in a research note on Thursday. Zacks Research upgraded shares of Peabody Energy from a “strong sell” rating to a “hold” rating in a research note on Monday, June 29th. Finally, Benchmark lowered their target price on shares of Peabody Energy from $40.00 to $36.00 and set a “buy” rating for the company in a report on Thursday. Two research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $34.88.

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.