Yahoo Finance

• Net Income: $34 million, or $0.27 per diluted share.

• Adjusted EBITDA: $144 million.

• Free Cash Flow: $30 million, net of $47 million development at Centurion.

• Cash and Liquidity: Nearly $700 million in cash and over $1 billion in liquidity.

• Dividend: Declared $0.75 per share.

• Seaborne Thermal Segment EBITDA: $84 million with 32% margins.

• Seaborne Metallurgical Segment EBITDA: $13 million.

• US Thermal Mines EBITDA: $69 million.

• PRB Mines Shipments: 19.6 million tons.

• PRB Segment EBITDA: $36 million.

• Other US Thermal Mines EBITDA: $33 million.

• Seaborne Thermal Volumes (Q2 Forecast): 4 million tons, including 2.5 million export tons.

• Seaborne Met Volumes (Q2 Forecast): 2.2 million tons.

• PRB Shipments (Q2 Forecast): 19 million tons.

• Other US Thermal Shipments (Q2 Forecast): 3.3 million tons.

• Warning! GuruFocus has detected 4 Warning Sign with BTU.

Release Date: May 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Peabody Energy Corp (NYSE:BTU) demonstrated strong cost control in Q1 2025, with costs coming in below expectations across multiple segments.

• The company is on budget and ahead of schedule for the Centurion mine, with production ramp-up slated for early next year.

• Peabody signed a significant agreement with Associated Electric Cooperative to supply coal for two plants in Missouri, totaling more than 50 million tons over seven years.

• The company recorded net income of $34 million and adjusted EBITDA of $144 million, showcasing strong financial performance amid challenging market conditions.

• Peabody's diversified global coal portfolio and strong balance sheet continue to deliver value for shareholders, with nearly $700 million in cash and over $1 billion in liquidity.

Negative Points

• Peabody issued a material adverse change notice related to the Moranbah North mine acquisition from Anglo American, creating uncertainty around the deal.

• Seaborne thermal coal markets have been well supplied, leading to four-year low prices in March, impacting revenue potential.

• The Seaborne Metallurgical segment reported only $13 million of adjusted EBITDA due to weak market conditions and increased stockpiles.

• The company faces challenges with the Moranbah North mine, including no known timetable for resuming longwall production and potential delays due to safety reviews.

• Peabody's acquisition financing is on hold due to uncertainties surrounding the Moranbah North mine, impacting strategic growth plans.

Q & A Highlights

Q: With the notification of a material adverse change (MAC) related to Moranbah North, what is the process moving forward, and is there a risk of the mine being permanently sealed? A: James Grech, President and CEO, explained that Anglo has 10 days to respond to the MAC notice, followed by up to 90 days to work through a cure period. The timeline for resuming longwall production is uncertain, and significant technical analysis suggests the potential for a prolonged impact. The mine's future operations remain uncertain, and Peabody may terminate the agreement if the MAC is not resolved satisfactorily.