Peabody Energy Corp (NYSE:BTU) Reports Q3 2025 Earnings Miss, Stock Falls in Pre-Market Trading

Peabody Energy Corp (NYSE:BTU) reported its financial results for the third quarter of 2025, delivering a performance that notably deviated from analyst expectations on profitability, triggering a negative response in pre-market trading. The company’s revenue exceeded forecasts, but a substantial miss on earnings per share appears to be the primary focus for investors.

Earnings and Revenue Versus Estimates

The company's top-line performance demonstrated strength during the quarter, while its bottom line revealed significant pressures.

• Revenue: The company reported revenue of $1.01 billion, which came in above the analyst consensus estimate of $1.00 billion.
• Earnings Per Share (EPS): Peabody reported a non-GAAP EPS of -$0.58. This fell sharply short of the analyst estimate for a loss of $0.096 per share.

This divergence highlights a quarter where the company was able to generate higher sales but faced considerable challenges in translating that revenue into profitability. The magnitude of the EPS miss has likely overshadowed the revenue beat in the eyes of the market.

Market Reaction

The immediate market reaction to the earnings report was decisively negative. In pre-market trading, Peabody's stock was down approximately 4.9%. This sell-off suggests that investors are heavily weighing the significant earnings miss and its implications for near-term profitability over the positive revenue surprise. The stock's performance over recent weeks has also been weak, declining about 4.5% over the past month.

Operational Highlights and Outlook

According to the company’s press release, the quarter was characterized by several operational positives that set the stage for the final quarter of the year. Adjusted EBITDA reportedly improved compared to the second quarter, driven by higher volumes from the Powder River Basin and seaborne thermal coal operations, coupled with lower costs in its metallurgical coal segment.

Looking ahead, management expressed optimism, stating it is "improving Q4 targets for Seaborne Met, Seaborne Thermal and PRB." This forward-looking guidance suggests the company anticipates stronger operational performance in the current quarter. This internal outlook can be contrasted with analyst estimates for the fourth quarter, which currently project a narrowed loss of $0.133 per share on sales of $958.3 million.

Summary of Press Release

The key takeaways from the earnings announcement include a reported net loss attributable to common stockholders of $70.1 million, which included $54.0 million of specific, undisclosed costs. Despite the net loss, the company highlighted sequential improvement in its key profitability metric, Adjusted EBITDA. In a separate but concurrent announcement, Peabody's board demonstrated a commitment to shareholder returns by declaring a quarterly cash dividend of $0.075 per share.

For a detailed breakdown of historical earnings, future estimates, and analyst projections, you can review the data available on the BTU earnings and estimates page.

Disclaimer: This article is for informational purposes only and is not intended as investment advice. The analysis is based on publicly available data and should not be construed as a recommendation to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.