Peabody Energy 2025 Q3 Earnings Net Loss Widens 160% Amid Weak Revenue

Peabody Energy (BTU) reported its fiscal 2025 Q3 earnings on Nov 7, 2025, with results falling sharply below expectations. The company posted a net loss of $66.9 million, a 160% deterioration from a $111.5 million profit in 2024 Q3. Revenue declined 7% to $1.01 billion, driven by lower sales volumes and pricing pressures. Analysts at B. Riley reduced their FY2026 EPS estimate to $3.48 from $3.61, citing ongoing challenges.

Revenue

Peabody Energy’s total revenue dropped 7.0% to $1.01 billion in Q3 2025, compared to $1.09 billion in the prior-year period. The Seaborne Thermal segment contributed $242.7 million, while Seaborne Metallurgical added $258.9 million. The Powder River Basin segment accounted for $301.4 million, and Other U.S. Thermal revenue totaled $192.0 million. Corporate and Other segments generated $17.1 million. Collectively, these figures underscore a challenging market environment marked by mixed global coal prices and operational cost pressures.

Earnings/Net Income

The company swung to a loss of $0.58 per share, a 171.6% negative change from a $0.81 profit in 2024 Q3. A net loss of $66.9 million reflected higher operating expenses, acquisition-related costs, and reduced profitability. The EPS performance was notably worse than the consensus estimate of a $0.19 loss, signaling a significant earnings miss.

Post-Earnings Price Action Review

The strategy of buying BTU shares upon revenue beats and holding for 30 days shows promising potential based on historical data. Peabody’s recent quarterly loss of $0.58 per share, a stark negative surprise compared to the $0.19 loss estimate, suggests the stock may be oversold. Despite the net loss, strong thermal coal shipments and historically low metallurgical coal costs indicate operational resilience. The Centurion mine’s projected sevenfold production boost in 2026 could drive future profitability. Peabody’s $603 million cash position and $950 million liquidity further support its ability to generate free cash flow. Exploration into rare earth elements also presents diversification opportunities.

Additional News

B. Riley cut its FY2026 EPS estimate for Peabody Energy to $3.48 from $3.61, maintaining a “Buy” rating and $24 price target. The firm highlighted Peabody’s dual exposure to energy and steel markets but noted near-term challenges. Institutional investors, including State Street Corp and Geode Capital Management, increased holdings in Q2 2025, signaling confidence in the company’s long-term prospects. Peabody also announced a $0.075 per share dividend, payable Dec 3, with a payout ratio of -103.45%, reflecting financial flexibility despite the current loss.

Guidance

Peabody Energy did not provide specific forward-looking guidance in its Q3 2025 report. However, B. Riley analysts project FY2026 EPS of $3.48 and Q1 2027 EPS of $1.21, reflecting cautious optimism about coal price recovery and operational efficiencies.

CEO Commentary

While no direct quotes from the CEO were included in the provided data, the 10-Q report emphasized strategic priorities such as cost optimization, asset rationalization, and exploration of rare earth elements. The company highlighted its strong liquidity position and plans to leverage the Centurion mine’s production expansion to drive future growth.

Price Action

BTU’s stock surged 4.08% in the latest trading day and 10.83% over the past week, despite a 4.25% monthly decline. Analysts remain divided, with four “Buy” ratings, two “Hold,” and one “Sell,” reflecting uncertainty about near-term recovery.