Peabody dropped their 2Q result overnight and they were a clear miss. Adjusted EBITDA came in well below expectations, driven by a loss-making Seaborne Metallurgical segment on persistent Centurion mine commissioning issues, a weak Powder River Basin performance, and elevated costs across the business. The stock fell more than 10% by the session’s end.
Key Highlights:
- EPS loss of -$0.74, well below the consensus estimate of -$0.52.
- Adjusted EBITDA of $24.0M, missing the $41.9M consensus estimate by 43%.
- Seaborne Thermal EBITDA of $52.1M, beating the $40.6M estimate — the standout segment.
- Seaborne Metallurgical EBITDA of -$17.0M, versus a +$9.0M estimate — driven by elevated Centurion commissioning costs of $155/t, above guidance.
- Centurion 2026 annual sales target cut to 2.0–2.5Mt, down from 2.5Mt cited at Q1 and well below the original 3.5Mt forecast.
This was a very disappointing result, and we are reviewing our position in the International Equities Portfolio.
MM is likely to cut BTU after the poor result
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