Peabody ramps Centurion longwall early, boosting metallurgical coal output; declares quarterly dividend

Centurion longwall accelerates Peabody’s steelmaking output

ST. LOUIS, Feb 5 (Reuters) — Peabody Energy is moving to materially boost its steelmaking coal supply after the Centurion longwall begins cutting two months ahead of schedule, the company says. Management expects the longwall to produce about 3.5 million tons of premium low‑volatile hard coking coal in 2026, ramping to roughly 4.7 million tons by 2028, which it characterises as an upgrade in both quantity and quality of metallurgical coal available to global steelmakers.

The early start at Centurion comes amid a broader operational push that emphasises safety and environmental performance. Peabody reports a global total recordable injury frequency rate of 0.71 per 200,000 hours worked, improving on 2024, and says it reclaims roughly two acres for every acre disturbed. Executive comments frame these achievements as central to sustaining longwall production and scaling Centurion output while meeting ESG commitments.

Company leadership contextualises Centurion’s ramp-up within market and logistical trends, including stronger U.S. thermal coal market conditions and expanded West Coast export capabilities that support moving higher‑grade coking coal to international steelmakers. Peabody also highlights disciplined capital allocation and cost control as priorities, and signals exploratory activity in rare earth and critical mineral opportunities to diversify future cash flows and reduce exposure to coal market volatility.

Board declares quarterly dividend

Peabody’s board declares a quarterly common‑stock dividend of $0.075 per share, payable March 10, 2026 to shareholders of record on Feb. 23, 2026. The company notes that any future dividend declarations remain at the board’s discretion and will depend on financial results, cash flow, capital needs and other factors.

Financial performance, cash flow and forward‑looking cautions

Peabody reports weaker fourth‑quarter and full‑year 2025 results versus a year earlier, with Q4 net income attributable to common stockholders of $10.4 million and full‑year net loss of $52.9 million, amid sharply lower seaborne coal prices; full‑year adjusted EBITDA falls to $454.9 million. The company nevertheless generates $336 million of operating cash flow from continuing operations and holds $575 million of cash at year‑end, saying results meet or exceed guidance across most operational metrics. Peabody also reiterates standard forward‑looking cautionary language, warning that actual outcomes depend on economic, regulatory and market risks and referring readers to its SEC filings for further disclosures.