Peabody Energy Comm (PBE) Q3 2026 Earnings Report

The call was broadly constructive, supported by stronger seaborne coal pricing, positive adjusted EBITDA across all operating segments, improved liquidity, shareholder returns, and several longer-term growth initiatives. However, the sentiment was tempered by significant Centurion production and cost challenges, reduced metallurgical coal guidance, lower US thermal demand and volumes, and the absence of 2027 guidance. Overall, the positive developments slightly outweighed the operational and market challenges.

Peabody revised Centurion’s fourth quarter sales volume expectations to a range of 300 thousand to 500 thousand tons, with October production just over 450 thousand tons, and expects full capacity potential after the next longwall move, with the 1 million ton run rate expected when the longwall move occurs in 3Q of next year; fourth quarter seaborne thermal volume is expected to be 3.6 million to 3.8 million tons, including 2.5 million to 2.7 million export tons, with costs between $46 and $51 per ton, approximately 65% Newcastle and 35% higher ash coal, while seaborne metallurgical volume is expected to be 2.2 million to 2.4 million tons at approximately 70% of the premium hard coking coal index and costs of $150 to $160 per ton; Powder River Basin shipments are expected to be 19.5 million to 21.5 million tons at approximately $13.75 per ton and costs of $13 to $13.50 per ton, and other US thermal volume is expected to be 3.6 million to 4 million tons at approximately $59 and costs of $48 to $52 per ton; full year seaborne thermal export volume guidance increased by 200 thousand tons, full year seaborne metallurgical volume was reduced by 600 thousand tons and costs increased $15 per ton, Powder River Basin full year volume was lowered by 7.5 million tons and costs increased by $1 per ton, other US thermal volume guidance was lowered by 200 thousand tons, and capital expenditure guidance was reduced by $40 million.