Financial Analysis

The Company currently provides health care and life insurance benefits to qualifying salaried and hourly retirees of its current and certain former subsidiaries and their dependents from benefit plans established by the Company. Plan coverage for health benefits is provided to future hourly and salaried retirees in accordance with the applicable plan document. Life insurance benefits are provided to future represented hourly retirees in accordance with the Companys benefit plans and any applicable labor agreement. Net periodic postretirement benefit credit included the following components: Year Ended December 31, 2025 2024 2023 (Dollars in millions) Service cost for benefits earned $ 0.3 $ 0.5 $ 0.5 Interest cost on accumulated postretirement benefit obligation 7.8 9.1 10.2 Expected return on plan assets (0.3) (0.4) (0.5) Amortization of prior service credit (40.8) (53.0) (53.8) Net actuarial gain (8.5) (17.0) (2.6) Net periodic postretirement benefit credit $ (41.5) $ (60.8) $ (46.2) The actuarial gain for all benefit plans in 2025 was primarily due to favorable impact of claims experience and favorable expected future claims costs, based upon recent Centers for Medicare and Medicaid Services direct subsidy announcements, offset by the decrease in discount rate used to measure the benefit obligation and increase in medical trend rate. The actuarial gain for all benefit plans in 2024 was primarily due to the increase in the discount rate used to measure the benefit obligatio …

CompensationAndEmployeeBenefitPlansTextBlock · excerpt; the full note is in the filing

Share-Based Compensation The Company has established the Peabody Energy Corporation 2017 Incentive Plan (the 2017 Incentive Plan) for employees, non-employee directors and consultants that allows for the issuance of share-based compensation in various forms including options (including non-qualified stock options and incentive stock options), stock appreciation rights, restricted stock, restricted stock units, deferred stock, performance units, dividend equivalents and cash incentive awards. Under the 2017 Incentive Plan, approximately 14 million shares of the Companys Common Stock were reserved for issuance. As of December 31, 2025, there are approximately 4.9 million shares of the Companys Common Stock available for grant. Share-Based Compensation Expense and Cash Flows The Companys share-based compensation expense is recorded in Operating costs and expenses and Selling and administrative expenses in the consolidated statements of operations. Share-based compensation expense and cash flow amounts were as follows: Year Ended December 31, 2025 2024 2023 (Dollars in millions) Share-based compensation expense $ 13.8 $ 7.3 $ 6.9 Tax benefit Share-based compensation expense, net of tax benefit $ 13.8 $ 7.3 $ 6.9 As of December 31, 2025, the total unrecognized compensation cost related to nonvested awards was $14.9 million, which is expected to be recognized over 2.0 years with a weighted-average period of 0.8 years. Deferred Stock Units During the years ended December 31, 2025, 2 …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Income Taxes (Loss) income from continuing operations before income taxes and income tax provision for the periods presented below consisted of the following: Year Ended December 31, 2025 2024 2023 (Dollars in millions) U.S. $ (62.7) $ 180.2 $ 77.8 Non-U.S. 29.2 335.9 1,047.0 (Loss) income from continuing operations before income taxes $ (33.5) $ 516.1 $ 1,124.8 Year Ended December 31, 2025 2024 2023 (Dollars in millions) Current: U.S. federal $ (0.1) $ (0.1) $ (0.1) Non-U.S. 25.6 96.7 225.9 State 0.1 Total current 25.5 96.6 225.9 Deferred: Non-U.S. (16.7) 12.2 82.9 Total deferred (16.7) 12.2 82.9 Income tax provision $ 8.8 $ 108.8 $ 308.8 The following is a reconciliation of the expected income tax provision at the U.S. federal statutory rate to the Companys income tax provision for the periods presented below: Year Ended December 31, 2025 2024 2023 Amount % Amount % Amount % (Dollars in millions) U.S. federal statutory rate $ (7.0) 21.0 % $ 108.4 21.0 % $ 236.2 21.0 % Foreign tax effects: Australia Statutory tax rate difference between Australia and U.S. 2.2 (6.6) % 30.2 5.9 % 94.4 8.4 % Permanent difference - remeasurement (6.8) 20.3 % 21.6 4.2 % 2.6 0.2 % Remeasurement of foreign tax accounts 2.5 (7.5) % (5.7) (1.1) % (0.9) (0.1) % Other 4.8 (14.3) % (0.3) (0.1) % (7.8) (0.7) % United Kingdom Deferred tax asset write-off due to liquidation 15.0 (44.8) % % % Change in valuation allowance (15.0) 44.8 % % % Other (0.8) 2.4 % % 0.4 % Changes in valuation allowance 18.9 (56.4) …

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Leases The Company has operating and finance leases for mining and non-mining equipment, office space and certain other facilities under various non-cancellable agreements. Historically, the majority of the Companys leases have been accounted for as operating leases. Refer to Note 1. Summary of Significant Accounting Policies for the Companys policies regarding Leases. The Company and certain of its subsidiaries have guaranteed other subsidiaries performance under various lease obligations. Certain lease agreements are subject to the restrictive covenants of the Companys credit facilities and include cross-acceleration provisions, under which the lessor could require remedies including, but not limited to, immediate recovery of the present value of any remaining lease payments. The Company typically agrees to indemnify lessors for the value of the property or equipment leased, should the property be damaged or lost during the course of the Companys operations. The Company expects that losses with respect to leased property, if any, may be covered by insurance (subject to deductibles). Aside from indemnification of the lessor for the value of the property leased, the Companys maximum potential obligations under its leases are equal to the respective future minimum lease payments, and the Company assumes that no amounts could be recovered from third parties. The components of lease expense for the periods presented below were as follows: Year Ended December 31, 2025 2024 2023 ( …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Long-term Debt The Companys total indebtedness as of December 31, 2025 and 2024 consisted of the following: December 31, Debt Instrument (defined below, as applicable) 2025 2024 (Dollars in millions) 3.250% Convertible Senior Notes due March 2028 (2028 Convertible Notes) $ 320.0 $ 320.0 BUMA Loan Note 9.3 Finance lease obligations 20.8 25.1 Less: Debt issuance costs (4.4) (6.3) 336.4 348.1 Less: Current portion of long-term debt 15.2 15.8 Long-term debt $ 321.2 $ 332.3 2028 Convertible Notes On March 1, 2022, through a private offering, the Company issued the 2028 Convertible Notes in the aggregate principal amount of $320.0 million. The 2028 Convertible Notes are senior unsecured obligations of the Company and are governed under an indenture. The Company used the proceeds of the offering of the 2028 Convertible Notes and available cash to redeem its then-existing senior secured notes and to pay related premiums, fees and expenses relating to the offering and redemptions. The Company capitalized $11.2 million of debt issuance costs related to the offering, which are being amortized over the terms of the notes. The 2028 Convertible Notes will mature on March 1, 2028, unless earlier converted, redeemed or repurchased in accordance with their terms. The 2028 Convertible Notes bear interest at a rate of 3.250% per year, payable semi-annually in arrears on March 1 and September 1 of each year. The 2028 Convertible Notes are convertible at the option of the holders only in the foll …

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Newly Adopted Accounting Standard Income Taxes . In December 2023, Accounting Standards Update (ASU) 2023-09 was issued, which requires public entities to disclose more information primarily related to the income tax rate reconciliation and income taxes paid. The guidance also eliminates certain existing disclosure requirements related to uncertain tax positions and unrecognized deferred tax liabilities. The Company adopted this ASU in the current year, and applied the amendments retrospectively to all prior periods presented in the consolidated financial statements. The adoption of this ASU impacted the Companys disclosures in Note 7. Income Taxes, with no impacts to its consolidated results of operations, cash flows and financial condition. Accounting Standards Not Yet Implemented Expense Disaggregation . In November 2024, ASU 2024-03 was issued, which requires public entities to disclose additional information about specific expense categories in the notes to financial statements at interim and annual reporting periods. The Company is required to adopt the amendments for fiscal years beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027. The amendments should be applied prospectively, with a retrospective option. Early adoption is permitted. The Company expects this ASU to only impact its disclosures with no impacts to its consolidated results of operations, cash flows and financial condition. Induced Conversions of Convertible D …

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Pension and Savings Plans The Company sponsors a defined benefit pension plan covering eligible employees who are represented by the United Mine Workers of America (UMWA) under the Kayenta Reclamation Agreement of 2024 (the Western Plan or the qualified plan). The Western Plan is actuarially evaluated, incorporating various assumptions such as the discount rate and the expected rate of return on plan assets. The funded status of the Western Plan, which is recorded in Other noncurrent liabilities on the consolidated balance sheets, is measured as the difference between the fair value of plan assets and the projected benefit obligation. As of December 31, 2025 and 2024, the fair value of plan assets was $106.5 million and $104.8 million, respectively, the projected benefit obligation and accumulated benefit obligation was $114.5 million and $117.6 million, respectively, and the under-funded status was $8.0 million and $12.8 million, respectively. Previously, the Company sponsored a defined benefit pension plan covering certain U.S. salaried employees and eligible hourly employees at certain subsidiaries (the Peabody Plan). During the year ended December 31, 2023, the Company settled $443.2 million of its pension obligations for active and deferred participants in the Peabody Plan with an equal amount paid from plan assets. As a result of the Peabody Plans over-funded status, $11.1 million was transferred to a Company sponsored employee retirement account (the Qualified Replacem …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

Revenue Recognition Disaggregation of Revenue Revenue by product type and market is set forth in the following tables. With respect to its seaborne reportable segments, the Company classifies as Export certain revenue from domestically-delivered coal under contracts in which the price is derived on a basis similar to export contracts. Year Ended December 31, 2025 Seaborne Thermal Seaborne Metallurgical Powder River Basin Other U.S. Thermal Corporate and Other (1) Consolidated (Dollars in millions) Thermal coal Domestic $ 136.0 $ $ 1,153.0 $ 707.5 $ $ 1,996.5 Export 771.8 771.8 Total thermal 907.8 1,153.0 707.5 2,768.3 Metallurgical coal Export 1,034.8 1,034.8 Total metallurgical 1,034.8 1,034.8 Other 0.7 1.8 (0.2) 56.1 58.4 Revenue $ 908.5 $ 1,036.6 $ 1,153.0 $ 707.3 $ 56.1 $ 3,861.5 Year Ended December 31, 2024 Seaborne Thermal Seaborne Metallurgical Powder River Basin Other U.S. Thermal Corporate and Other (1) Consolidated (Dollars in millions) Thermal coal Domestic $ 150.8 $ $ 1,096.4 $ 785.0 $ $ 2,032.2 Export 1,060.6 1,060.6 Total thermal 1,211.4 1,096.4 785.0 3,092.8 Metallurgical coal Export 1,049.5 1,049.5 Total metallurgical 1,049.5 1,049.5 Other 2.5 6.1 2.4 37.6 45.8 94.4 Revenue $ 1,213.9 $ 1,055.6 $ 1,098.8 $ 822.6 $ 45.8 $ 4,236.7 Year Ended December 31, 2023 Seaborne Thermal Seaborne Metallurgical Powder River Basin Other U.S. Thermal Corporate and Other (1) Consolidated (Dollars in millions) Thermal coal Domestic $ 136.4 $ $ 1,193.9 $ 867.7 $ $ 2,198.0 Export 1 …

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Segment and Geographic Information The Company reports its results of operations primarily through the following reportable segments: Seaborne Thermal, Seaborne Metallurgical, Powder River Basin and Other U.S. Thermal. The Companys seaborne operating platform is primarily export focused with customers spread across several countries, with a portion of its thermal and metallurgical coal sold within Australia. Generally, revenue from individual countries varies year by year based on electricity and steel demand, the strength of the global economy, governmental policies and several other factors, including those specific to each country. The Company classifies its seaborne mines within the Seaborne Thermal or Seaborne Metallurgical reportable segments based on the primary customer base and coal reserve type of each mining operation. A small portion of the coal mined by the Seaborne Thermal reportable segment is of a metallurgical grade. Similarly, a small portion of the coal mined by the Seaborne Metallurgical reportable segment is of a thermal grade. Additionally, the Company may market some of its metallurgical coal products as a thermal coal product from time to time depending on market conditions. The Companys Seaborne Thermal operations consist of mines in New South Wales, Australia. The mines in that reportable segment utilize surface extraction processes to mine low-sulfur, high Btu thermal coal. Prior to September 2025, when the Wambo Underground Mine ceased production, …

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Summary of Significant Accounting Policies Basis of Presentation The consolidated financial statements include the accounts of Peabody Energy Corporation (PEC) and its affiliates. The Company, or Peabody, are used interchangeably to refer to Peabody Energy Corporation, to Peabody Energy Corporation and its subsidiaries, or to such subsidiaries, as appropriate to the context. Interests in subsidiaries controlled by the Company are consolidated with any outside stockholder interests reflected as noncontrolling interests, except when the Company has an undivided interest in an unincorporated joint venture. In those cases, the Company includes its proportionate share in the assets, liabilities, revenue and expenses of the jointly controlled entities within each applicable line item of the consolidated financial statements. All intercompany transactions, profits and balances have been eliminated in consolidation. Certain prior period amounts in the consolidated statements of operations have been reclassified to conform with the current period presentation. These reclassifications were made to combine prior period items, including an asset impairment and provisions for non-recurring operational losses, with other discrete items as Other operating loss within the consolidated statements of operations. Description of Business The Company is engaged in the mining of thermal coal for sale primarily to electric utilities and industrial facilities and metallurgical coal for sale to steel …

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Stockholders Equity Common Stock In accordance with the Companys Fourth Amended and Restated Certificate of Incorporation, the Company has 450.0 million authorized shares of Common Stock, par value $0.01 per share. Holders of Common Stock are entitled to one vote per share on all matters to be voted upon by the stockholders. The holders of Common Stock do not have cumulative voting rights in the election of directors. Holders of Common Stock are entitled to receive ratably dividends if, as and when dividends are declared from time to time by the Board of Directors (the Board) out of funds legally available for that purpose, after payment of dividends required to be paid on any outstanding preferred stock or series common stock. Upon dissolution, liquidation or winding up of the Company, the holders of Common Stock are entitled to receive ratably the assets available for distribution to the stockholders after payment of liabilities and subject to the right of holders of any outstanding preferred stock or series common stock. The Common Stock has no preemptive or conversion rights and is not subject to further calls or assessment by the Company. There are no redemption or sinking fund provisions applicable to the Common Stock. The following table summarizes Common Stock activity during the periods presented below: Year Ended December 31, 2025 2024 2023 (In millions) Shares outstanding at the beginning of the period 121.4 128.7 143.9 Shares issued for vested restricted stock uni …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing