Peabody (BTU) Q4 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Thu, February 5, 2026 astatine 11:09 AM CST 32 min read

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Feb. 5, 2026 astatine 11 a.m. ET

• President and Chief Executive Officer — James C. Grech

• Executive Vice President and Chief Financial Officer — Mark A. Spurbeck

• Chief Commercial Officer — Malcolm Roberts

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James C. Grech: Thanks, Kayla, and bully morning, everyone. I couldn't beryllium much arrogant of the enactment of our Peabody Energy Corporation squad which turned successful an fantabulous 4th and twelvemonth that was marked by a fig of achievements. We are besides seeing improving marketplace fundamentals and person a afloat docket of priorities for the caller year. Safety ever comes archetypal astatine our operations. And we turned successful different grounds information year. With an incidental complaint of 0.71 per 200,000 hours worked. That's 12% amended than our anterior all-time grounds acceptable conscionable a twelvemonth ago. It is inactive safer to enactment successful a Peabody Energy Corporation ember than a market store oregon buying mall, based connected nationalist incidental rates.

Peabody Energy Corporation besides prides itself connected biology excellence. As witnessed successful 2025, wherever we reclaim doubly arsenic galore acres arsenic we disturbed. This allows america to shrink our footprint and trim our fiscal obligations implicit time. We besides tied our all-time grounds debased for biology notices of violation. Operationally and financially, the 4th was close down the fairway successful gathering oregon surpassing expectations crossed cardinal metrics. Mark volition screen these results successful much item successful a fewer minutes. I'm pleased to denote that I was successful Australia past week. Where the squad was installing the precise past shield and the finishing touches connected the Centurion excavation successful beforehand of starting agelong partition mining. Well up of its archetypal schedule.

I person to accidental the civilization that had been built astatine Centurion is outstanding, and our squad is charged up and has started mining immoderate of the champion metallurgical ember successful the world. Let maine punctual you of immoderate of the extended benefits Centurion has connected the Peabody Energy Corporation portfolio. First, Centurion is expected to vessel an mean of 4.7 cardinal tons per twelvemonth of premium hard coking ember successful a satellite that we stay convinced is structurally abbreviated of that merchandise implicit time. We expect the excavation to present 3.5 cardinal tons successful 2026, ramping up to that 4.7 people by 2028.

Second, Centurion's merchandise is of the highest prime and coupled with proximity to cardinal request nodes successful Asia, results successful afloat benchmark pricing. Our realizations crossed our full met ember conception are expected to summation from 70% of the recognized benchmark successful 2025 to 80% this year. And arsenic volumes ramp to 4.7 cardinal tons, we expect it volition further transcend that 80%. Third, this excavation is simply a long-lived asset. Combined with the Wardswell acquisition successful 2024, that allows important improvement to the northbound Venturion accesses the coveted Goonyella mediate country and is expected to person a excavation beingness of 25 positive years with an integrated excavation program of 140 cardinal tons.