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- **Centurion Expansion**: 3.5M tons in 2026, 80% met coal benchmark realizations. U.S. coal demand could rise 250M tons/yr with 72% plant utilization.
- **Financial Strength**: $603M cash, $950M liquidity. Q3 EBITDA up 20% YoY to $99.8M, PRB margins +39%.
- **Rare Earth Potential**: PRB coal shows competitive rare earth concentrations, with drilling and lab testing ongoing.
- **Risk Management**: $75M Anglo deal charges, $5M/year arbitration costs. No immediate M&A plans.


**【CEO Summary Section】**
- **Centurion Mine Expansion**: Shipments expected to expand sevenfold to 3.5 million tons in 2026, with average met coal realizations rising to 80% of benchmark from 70% in 2025. The mine is projected to be the lowest-cost metallurgical coal operation over its 25-year life.
- **U.S. Thermal Coal Demand**: U.S. coal burn up 11% year-to-date, driven by natural gas prices averaging $3.45/MMBtu and expected to rise to $4/MMBtu in 2026. U.S. coal plants ran at 42% capacity in 2024, with potential to increase to 72% utilization, adding 250 million tons of demand.
- **Rare Earth Element Potential**: Preliminary data shows similar or better rare earth element concentrations in PRB coal compared to peers. Drilling and lab testing ongoing, with updates expected in Q4 2025.
- **Safety Performance**: Near all-time record safety performance for the year.

**【CFO Financial Commentary】**
- **Q3 2025 Results**: GAAP net loss of $70.1 million ($0.58 per share) due to $54 million Anglo termination costs. Adjusted EBITDA of $99.8 million, up from Q2, driven by higher PRB shipments and lower met coal costs.
- **Segment Performance**: 
  - **Seaborne Thermal**: $41 million EBITDA (17% margin), 500,000 tons volume beat, Newcastle coal recovery.
  - **Seaborne Met**: $28 million EBITDA, 6% revenue/ton improvement, $112.50/ton cost beat.
  - **U.S. Thermal**: $59 million EBITDA, PRB shipments up 10% YoY, margins +39%.
- **Cash Position**: $603 million cash, $950 million liquidity. Full year guidance updated for PRB volumes (+3 million tons) and costs (-$0.25/ton).
- **Anglo Deal Impact**: $75 million year-to-date charges (financing, legal fees). Anticipated $5 million/year arbitration costs moving forward.

**【Q&A Highlights】**
- **PRB Capacity**: Running at max capacity in 2025, with 10 million ton increase YoY. Additional production will depend on multi-year customer contracts and price signals.
- **Centurion Costs**: 2026 met coal costs expected to be $115/ton (midpoint), with 2025 full year met costs improved by $2.50/ton.
- **Rare Earth Partnerships**: Discussions with U.S. government agencies and technology partners. PRB scale (80 million tons/yr coal, 400 million cu yd earth moved) provides unique advantage.
- **M&A Strategy**: Focus on organic growth via Centurion, with no immediate M&A plans in met coal.
- **Arbitration Timeline**: Years-long process with high confidence in Peabody's position. $29 million deposit return pending, with $46 million remaining.


Peabody Energy Corporation (BTU) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

BTU

BTU fundamentals

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