- Peabody raises seaborne thermal coal guidance
- Seaborne coking coal sales rise but margins hit
Peabody Energy sold a total of 28.7 million tonnes (mnt) of coal in the second quarter of 2025 (Q2CY’25), up 12% from 25.6 mnt in the same quarter last year. However, on a q-o-q basis, sales dropped marginally by 1% against 28.9 mnt in Q1CY’25.
Peabody experienced a resilient Q2CY’25, driven by strong US thermal demand and improved operational efficiency. While seaborne thermal coal shipments faced port disruptions, performance rebounded swiftly, prompting an upward revision in guidance.
Seaborne thermal coal sales impacted by port disruptions
Seaborne thermal coal sales stood at 3.6 mnt in Q2CY’25, with 2.1 mnt exported and 1.5 mnt supplied to domestic markets. Volumes fell 18% q-o-q and 12% y-o-y. Port delays caused shipment losses, though July exports have already exceeded targets. This performance prompted Peabody to increase annual guidance by 200,000 tonnes (t).
Seaborne coking coal sales improve but face pricing woes
Peabody’s seaborne metallurgical coal sales saw a slight rise to 2.2 mnt in Q2CY’25 from 2 mnt in Q2CY’24. Despite higher volumes, weak global prices hurt margins.
PRB sales surge on strong demand
Peabody’s Powder River Basin (PRB) segment led Q2CY’25 coal sales, with 20 mnt, up 27% from 15.8 mnt in Q2CY’24. High demand from US power plants supported this strong output. The company also reduced its cost per tonne and raised full-year PRB guidance by 5 mnt.
Other US thermal coal segments see temporary dip
In its other US thermal coal segment, sales reached 2.9 mnt, slightly lower y-o-y and q-o-q due to rail issues at Bear Run and difficult mining at Twentymile. However, production is expected to rise in Q3CY’25 as longwall operations shift to a new panel in August.
Centurion mine progresses ahead of schedule
The Centurion mine in Australia continued rapid development. Peabody now plans to begin longwall operations by February 2026, earlier than expected. As of June, the mine had hired 260 out of 400 planned staff, and equipment installation will begin in November.
Outlook
While sales volume remained strong in key segments, Peabody posted a net loss of $27.6 million in Q2CY’25, largely due to falling coal prices. Looking ahead, management expects a better second half, with higher US demand and improved export flows.
CEO Jim Grech stated, “Looking ahead, we are pleased to increase our full-year volume guidance for Powder River Basin and seaborne thermal coal while reducing our full-year cost targets for three of the four segments.”
Peabody’s full-year coal guidance includes 13.2-13.8 mnt of seaborne thermal coal, 7.3-8.2 mnt seaborne metallurgical coal, 72.6-76.2 mnt PRB coal and 12.2-13 mnt other US thermal coal.
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