Peabody Energy Q3 revenue beats on stronger export coal prices

By Reuters News


Overview

  • U.S. coal producer's Q3 revenue rose and beat analyst expectations

  • Adjusted EBITDA for Q3 missed analyst expectations

  • Company repurchased $38.9 mln of convertible notes, reducing share count


Outlook

  • Company expects Q4 seaborne thermal volume of 3.6–3.8 mln tons, costs $46–$51/ton

  • Company raised 2026 seaborne thermal export volume guidance by 0.2 mln tons

  • Company lowered 2026 seaborne metallurgical volume guidance by 0.6 mln tons, costs up $15/ton


Result Drivers

  • SEABORNE THERMAL PRICING - Higher export prices drove margin expansion and improved segment results

  • METALLURGICAL RECOVERY - Improved realized pricing and strong production at Metropolitan led to positive segment results

  • CENTURION CHALLENGES - Company faced higher costs and slowed production at Centurion due to geological issues, but met sales targets


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$1.10 bln

$1.03 bln (6 Analysts)

Q3 Loss Per Share

$0.27

Q3 Net Loss Attributable

$32.80 mln

Q3 Adjusted EBITDA

Miss

$97.50 mln

$106.50 mln (4 Analysts)


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the coal peer group is "buy"

  • Wall Street's median 12-month price target for Peabody Energy Corp is $30.00, about 45.2% above its November 3 closing price of $20.66

  • The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 11 three months ago


Reuters Recommended Reads

  • Nov 2 - Indonesia sets coal benchmark prices for first half of November

  • Nov 3 - Ramaco Resources Q3 adjusted EBITDA misses estimates on higher costs; lowers FY production guidance

  • Nov 4 - Natural Resource Partners Q3 profit declines on lower soda ash pricing


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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