Peabody Energy Shares Sink on Wider 2Q Loss

Dow Jones07-29
 

Shares of Peabody Energy fell after the company's loss widened during the recent quarter, hurt by lower volumes and higher costs.

The stock declined 16%, to $19.50, in premarket trading Wednesday. Through Tuesday's close, shares have lost roughly a quarter of their value year to date.

The coal producer before the bell posted a loss of $90.6 million, or 74 cents a share, for its June-ended quarter, compared with a loss of $27.6 million, or 23 cents, a year earlier.

Analysts polled by FactSet expected a quarterly loss of 38 cents a share.

Adjusted Ebitda--or earnings before interest, taxes, depreciation and amortization--fell to $24 million from $93.3 million last year.

Revenue rose 13% to $1 billion, just below Wall Street models for $1.02 billion.

Chief Executive Jim Grech said Peabody's second-quarter results reflected temporarily lower volumes and higher costs. Looking forward, though, those impacts are starting to mitigate, he added.

"We expect improved results in the second half of the year as performance at our flagship Centurion Mine achieves targeted production rates," Grech said. "We're targeting strong cash generation for the second half of 2026, fueled by our seaborne metallurgical and thermal segments."

 
 

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