Peabody Energy Shares Rise After First-Quarter Earnings Beat Expectations
(InvestingNews) – Peabody Energy Corporation (NYSE: BTU), a leading U.S. coal producer, posted a 2.7% gain in its stock in early trading on Monday after reporting first-quarter 2025 financial results that beat analysts’ expectations.
Peabody reported adjusted earnings per share (EPS) of $0.27, significantly higher than the $0.20 forecast by Wall Street analysts. Although net revenue of $927 million fell short of expectations of $969.2 million, the company defended its profit margin amid cyclical weakness in coal prices thanks to cost control and steady seaborne thermal coal sales volumes.
Adjusted EBITDA was $144 million, down slightly from $160.5 million in the same period last year, while net income attributable to common stockholders was $34.4 million, down from $39.6 million in the first quarter of 2024.
Jim Grech, President and CEO of Peabody, said:
Peabody is off to a solid start in 2025, driven by strong cost control and steady sales volumes, particularly in the seaborne thermal segment, which has helped us withstand the pressure of low coal prices.
Q1 Highlights:
Seaborne thermal coal sales were 4.4 million tonnes, up from 4.0 million tonnes in the same period last year.
Average cost per tonne was $41.37, below internal targets, reflecting improved operating efficiency.
Cash flow from operations was $120 million, allowing the company to continue to maintain its dividend and invest in long-term growth.
Cash dividend: $0.075 per common share declared for the current period.
Q2 outlook and long-term strategy:
Peabody expects Q2 2025 seaborne thermal production to be 4.0 million tonnes, with expected costs ranging from $45–$50/tonne. The company also said it remains on track to develop the Centurion mine, with plans to begin commercial production in Q1 2026 – part of its strategy to expand its high-quality coal assets.
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