Peabody Energy 2025 Q3 Earnings Severe Net Loss Amid Revenue Decline

Peabody Energy (BTU) reported Q3 2025 earnings on Nov 7, 2025, delivering a sharp decline in profitability amid falling coal demand and pricing pressures. The company swung to a $0.58 per-share loss, far worse than the $0.19 loss expected, and revenue dropped 7% year-over-year to $1.01 billion. Analysts cut FY2026 EPS estimates, and the stock faced volatility despite resilient revenue performance.

Revenue

Peabody Energy’s total revenue fell to $1.01 billion in Q3 2025, a 7.0% decline from $1.09 billion in the same period last year. Segment-wise, Seaborne Thermal generated $242.7 million in revenue, while Seaborne Metallurgical contributed $258.9 million. The Powder River Basin segment accounted for $301.4 million, and Other U.S. Thermal added $192.0 million to the total. The decline stemmed from lower sales volumes and pricing, compounded by global coal market challenges.

Earnings/Net Income

Peabody Energy swung to a $0.58 per-share loss in Q3 2025, a 171.6% negative change from a $0.81 profit in Q3 2024. Net loss expanded to $66.9 million, a 160.0% deterioration from $111.5 million in net income a year earlier. The results were driven by higher operating expenses, acquisition-related costs, and weaker demand. The EPS shortfall of $0.39 below expectations highlights significant underperformance.

Post-Earnings Price Action Review

The earnings report revealed a -205.26% earnings surprise, as the $0.58 loss far exceeded the $0.19 loss forecast, signaling a severe miss. However, revenue of $1.012 billion exceeded 2024’s $1.088 billion, reflecting resilience despite declining volumes. The stock initially dropped post-earnings but showed short-term gains, with a 4.08% daily rise and 10.83% weekly jump. Peabody’s strong thermal coal shipments and low metallurgical coal costs offer some optimism, though risks like acquisition costs and pricing volatility persist. The company’s $603 million cash position and $950 million liquidity cushion support near-term stability, but long-term success hinges on navigating market headwinds.

CEO Commentary

Peabody CEO Glenn Kellow emphasized navigating “unprecedented headwinds” in global coal demand and pricing while advancing cost discipline and asset rationalization. He highlighted progress in transitioning to lower-cost production and renewable partnerships, though near-term challenges remain.

Additional News

1. EPS Estimate Cut: B. Riley lowered FY2026 EPS estimates to $3.48 from $3.61, maintaining a “Buy” rating and $24 price target.

2. Dividend Announcement: Peabody declared a $0.075 per-share quarterly dividend, payable Dec 3. The payout ratio of -103.45% signals reliance on liquidity.

3. Institutional Activity: State Street Corp and American Century increased holdings, with Peabody’s stock now 87.44% owned by institutional investors.

Guidance

Peabody did not provide updated guidance, but B. Riley’s reduced FY2026 EPS estimate and analysts’ mixed ratings (four “Buy,” two “Hold,” one “Sell”) reflect uncertainty.