Peabody Energy 2025 Q3 Earnings Net Loss Widens 160% to $66.9M

Peabody Energy (BTU) reported a net loss of $66.9M in Q3 2025, a 160% decline from the prior year. Revenue fell 7% to $1.01B, missing analyst estimates by $20.2M. The earnings shortfall, driven by higher operating expenses and a terminated acquisition, highlights ongoing operational challenges.

Revenue

Peabody Energy's Q3 2025 revenue decreased by 7% to $1.01 billion, with all major segments contributing to the decline. The Seaborne Thermal segment generated $242.70 million, while Seaborne Metallurgical coal revenue reached $258.90 million. Meanwhile, the Powder River Basin segment accounted for $301.40 million of the total revenue, and Other U.S. Thermal operations added $192 million. Corporate and Other expenses amounted to $17.10 million, rounding out the consolidated total of $1.01 billion.

Earnings/Net Income

Peabody Energy swung to a loss of $0.58 per share in Q3 2025 from a profit of $0.81 per share in 2024 Q3 (171.6% negative change). The company reported a net loss of $-66.90 million in 2025 Q3, reflecting a 160.0% deterioration from the net income of $111.50 million achieved in 2024 Q3. Peabody Energy's Q3 2025 earnings reflected a significant downturn, with a $0.58 per share loss and a $66.9 million net loss, marking a 160% deterioration from the previous year's profit.

Price Action

The stock price of Peabody Energy has climbed 4.08% during the latest trading day, has jumped 10.83% during the most recent full trading week, and has dropped 4.25% month-to-date.

Post-Earnings Price Action Review

The strategy of buying Peabody Energy shares following a revenue beat and holding for 30 days presents a mixed outlook. While a positive market reaction to the Q3 2025 revenue beat could yield a 5.9% return based on the median 12-month price target of $28.70, the stock's inherent volatility and long-term challenges, such as strategic uncertainties and legal disputes, introduce significant risks. Although the initial 30-day holding period may capture short-term gains, the lack of dividends and the potential for sustained downward pressure suggest this approach is more suitable for speculative investors. Traders should closely monitor market sentiment and the company's strategic initiatives to adjust their strategies accordingly.

Additional News

Recent developments at Peabody Energy include B. Riley lowering its FY2026 EPS estimate to $3.48 from $3.61, while maintaining a "Buy" rating. The company announced a quarterly dividend of $0.075 per share, despite a negative payout ratio of -103.45%. Additionally, the Centurion Mine in Australia is on track for full-scale production by February 2026, and labor relations at the Metropolitan Mine were resolved in September 2025 following industrial action. Institutional investors have also increased their holdings, with State Street Corp and others boosting their positions in the coal producer.