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CLOSED · 08:50 ET
Market ClerkRecap
Sun Oct 25 · markets closed1 signal on Oct 2494 insider buys this week · $48.3MCIRO short report next: Oct 31The week ahead

BTU

PEABODY ENERGY CORP
NYSE · ENERGY · BITUMINOUS COAL & LIGNITE SURFACE MINING
22.89
+0.46 +2.05%
USD · close Oct 23
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Work order
36
FLAG · shorts 36
Insiders, 90 days
0
no open-market filings in 90 days
Congress, 90 days
0 / 0
no disclosures naming it
Big money
0 / 15
none of the tracked funds disclose it
Calls on record
0
nobody we score has called it yet
MKT CAP $2.8BP/E —DIV YIELD 1.31%FCF YIELD —REV TTM $4B −0.7%NET INCOME −$172.3M −200.6%NET CASH $200.8M52W 20.82 – 39.50SEC XBRL · TTM TO Invalid Date

How BTU rewrote its risk factors

10-K ITEM 1A · FY2024 → FY2025
Text kept
20%
of sentences unchanged
Added
206
new sentences
Dropped
209
sentences removed
Length
−782
words, now 10,103

New in FY2025

  • The following highlights some of these risks and others are discussed elsewhere in this report.
  • The coal industry is competitive, highly regulated and subject to periods of significant volatility.
  • Coal prices are dependent upon factors beyond the Company’s control, including: • demand for electricity and capacity utilization of electricity generating units (whether coal or non-coal); • changes in the fuel consumption and dispatch patterns of electric power generators, whether based on economic or non-economic factors; • competition with, and the availability, quality and price of coal and alternative fuels, including natural gas, fuel oil, nuclear, hydroelectric, wind, biomass and solar power; • governmental regulations and taxes, including air emission or other environmental standards for coal-fueled power plants and renewable-energy mandates or subsidies; • demand for steel, which may lead to price fluctuations in the monthly and quarterly repricing of the Company’s metallurgical coal contracts; • competing steel-making technologies that do not use coal as a manufacturing input, such as electric arc furnaces; • the proximity, capacity and cost of transportation and terminal facilities; • global supply levels and production costs of thermal and metallurgical coal; • tariffs, quotas, duties or other adverse changes to trade policy; • global economic conditions, including inflationary pressures and foreign currency exchange rates; • geopolitical developments and conflicts; • weather patterns, severe weather and natural disasters; • regulatory, administrative and judicial decisions, including those affecting future mining permits and leases; and • technological developments related to alternative energy sources, coal-to-liquids or gas conversion processes and CCUS.
  • Thermal coal represented the majority of the Company’s coal sales by volume during 2025 and 2024, with most of these sales to electric power generators.
  • The demand for coal used in electricity generation is affected by many of the factors described above, but primarily by (i) overall demand for electricity; (ii) the availability, quality and price of competing fuels; (iii) utilization of all electricity generating units and the relative cost of producing electricity from multiple fuels, including coal; (iv) environmental and other governmental regulations, including those related to permitting; (v) litigation and judicial decisions; (vi) sociopolitical views on coal; and (vii) the coal inventories of utilities.
  • Gas-fueled generation has displaced and could continue to displace coal-fueled generation (particularly at older, less efficient units) as regulatory costs and other factors, such as declines in the price of natural gas, impact the operating decisions of electric power generators.
  • Some electric power generators have elected to close coal-fueled generation units given ongoing pressure to shift away from coal generation.
  • Many new U.S. power plants are being fueled by natural gas because gas-fired plants have been less expensive to construct and operate, are easier to permit based on emissions profiles and face fewer public and governmental objections.
  • Increasingly stringent regulations and stagnant electricity demand in recent years have further reduced the number of new power plants being built.
  • In recent years, these trends have lowered demand for coal consumed by electric power generators and could continue to reduce the volume of thermal coal that the Company sells and the prices that it receives, thereby reducing its revenue and adversely impacting its earnings and the value of its coal reserves and resources.
  • The Company also produces metallurgical coal for the global steel industry, which accounted for approximately 27% and 25% of its revenue in 2025 and 2024, respectively.
  • Changes in governmental policies, regulations and steel industry conditions, including steel demand, could reduce demand for the Company’s metallurgical coal.
  • The demand for foreign-produced steel both in international and U.S. markets is influenced in part by tariff rates on steel.
  • Tariffs may affect the Company’s customers to the extent their steel imports are curtailed as a result of imposed tariffs.
  • Demand for metallurgical coal is also affected by the cyclical nature of the steel industry, technological developments in the steel-making process and the availability of substitutes for steel, such as aluminum, composites and plastics.
  • The steel industry continues to adopt production methods that do not use coal, such as electric arc furnaces.
  • Lower international demand for metallurgical coal would reduce the volume of metallurgical coal Peabody sells and the prices that it receives, thereby reducing revenues and adversely impacting earnings and the value of its coal reserves.
  • If a substantial number of the Company’s long-term coal supply agreements, including those with its largest customers, terminate, or if the pricing, volumes or other elements of those agreements materially adjust, its revenue and operating profits could suffer if the Company is unable to find alternate buyers willing to purchase its coal on comparable terms to those in its contracts.
  • These agreements often form the basis for developing the coal reserves and resources required to meet contractual commitments, particularly in the U.S.
  • For the year ended December 31, 2025, 25% of the Company’s revenue was derived from coal supply agreements with its five largest customers, which were primarily supplied under 19 coal supply agreements (excluding trading and brokerage transactions) expiring at various times from 2025 to 2028.
  • Prices may be revised based on inflation or deflation, price indices and/or changes in the factors affecting production costs, such as taxes, fees, royalties and changes in the laws regulating the mining, production, sale or use of coal.
  • In a limited number of contracts, failure to reach an agreement on price adjustments may allow either party to terminate the contract.
  • Coal supply agreements typically include force majeure provisions allowing temporary suspension of performance by the Company or the customer during specified events beyond the parties’ control.
  • Some coal supply agreements allow customers to vary required purchase volumes during a particular period, and where coal supply agreements do not explicitly allow such variation, customers sometimes request amendments to allow for such variation.
  • Most of the Company’s coal supply agreements contain provisions requiring the delivery of coal meeting quality thresholds for certain characteristics such as Btu, sulfur content, ash content, volatile matter, coking properties, grindability and ash fusion temperature.
  • Failure to meet these specifications could result in penalties, including price adjustments, rejection of deliveries or contract termination.
  • Moreover, certain agreements allow the Company’s customers to terminate their contracts if regulatory changes restrict the use or type of coal permissible at the customer’s plant or increase the price of coal beyond specified limits.
  • On an ongoing basis, the Company discusses the extension of existing agreements or new long-term agreements with various customers, but these negotiations may not be successful and customers may not continue purchasing coal from the Company under long-term supply agreements The profitability the Company realizes from its coal supply agreements depends on a variety of factors, and price adjustment mechanisms may increase its exposure to short-term coal price volatility.
  • If a substantial portion of the Company’s coal supply agreements were modified or terminated, the Company could be materially adversely affected if it cannot secure alternate buyers at comparable profitability levels.
  • Coal prices can vary by mining region and country, and the Company cannot predict future market conditions or ensure that expiring long-term coal supply agreements will be replaced at similar prices or profit margins.
  • In addition, the Company’s revenue could be adversely affected by a decline in customer purchases (including contractually obligated purchases) due to lack of demand, oversupply, cost of competing fuels or environmental and other governmental regulations.
  • Risks inherent to mining could increase the cost of operating the Company’s business, and events and conditions that could occur during the course of its mining operations could have a material adverse impact on the Company.
  • The Company’s mining operations are subject to conditions that can impact workforce safety, delay coal deliveries or increase costs at particular mines for varying lengths of time.
  • These conditions include: • elevated gas levels; • fires and explosions, including from methane gas or coal dust; • accidental mine water discharges; • adverse weather, flooding and natural disasters; • hazardous events such as roof falls and high wall or tailings dam failures; • seismic activity, ground failures, rock bursts or structural cave-ins or slides; • key equipment failures; • supply chain constraints or unavailability of equipment parts; • variations in coal seam thickness, coal quality, the amount of rock and soil overlying coal deposits and geologic conditions impacting mine sequencing; • delays in moving longwall equipment; • unexpected maintenance problems; and • unforeseen delays in implementation of mining technologies.
  • The Company maintains insurance policies that provide limited coverage for certain of these risks, which may mitigate their impact.
  • However, there can be no assurance as to the amount or timing of any insurance recovery related to such losses.
  • The Company has substantial take-or-pay arrangements with its port access and rail transportation providers, predominately in Australia, totaling $1.0 billion, with terms ranging up to 19 years.
  • These agreements require the Company to pay a minimum amount for the delivery of coal regardless of actual usage.
  • Although certain contracts allow previously paid amounts to be applied to future deliveries, these provisions have limitations and the Company may be unable to apply all such amounts so paid.
  • The Company may also be unable to use all capacity for which it has previously paid.

and 166 more.

Gone since FY2024

  • The following discussion highlights some of these risks and others are discussed elsewhere in this report.
  • The Company operates in a competitive and highly regulated industry that has at times experienced strong headwinds.
  • Current pricing levels of both seaborne and domestic coal products may not be sustainable in the future.
  • Tab le of Contents Coal prices are dependent upon factors beyond the Company’s control, including: • the demand for electricity and capacity utilization of electricity generating units (whether coal or non-coal); • changes in the fuel consumption and dispatch patterns of electric power generators, whether based on economic or non-economic factors; • the proximity, capacity and cost of transportation and terminal facilities; • competition with and the availability, quality and price of coal and alternative fuels, including natural gas, fuel oil, nuclear, hydroelectric, wind, biomass and solar power; • governmental regulations and taxes, including tariffs or other trade restrictions as well as those establishing air emission standards for coal-fueled power plants or mandating or subsidizing increased use of electricity from renewable energy sources; • the strength of the global economy, including the relative exchange rates of U.S. dollars for foreign currencies; • the unknown geopolitical consequences of current and future political and military conflicts, including between Russia and Ukraine; • the global supply and production costs of thermal and metallurgical coal; • the demand for steel, which may lead to price fluctuations in the monthly and quarterly repricing of the Company’s metallurgical coal contracts; • weather patterns, severe weather and natural disasters; • regulatory, administrative and judicial decisions, including those affecting future mining permits and leases; • competing technologies used to make steel, some of which do not use coal as a manufacturing input, such as electric arc furnaces; and • technological developments, including those related to alternative energy sources, those intended to convert coal-to-liquids or gas and those aimed at capturing, using and storing carbon dioxide.
  • Thermal coal accounted for the majority of the Company’s coal sales by volume during 2024 and 2023, with the vast majority of these sales to electric power generators.
  • The demand for coal consumed for electric power generation is affected by many of the factors described above, but primarily by (i) the overall demand for electricity; (ii) the availability, quality and price of competing fuels, such as natural gas, nuclear, fuel oil and alternative energy sources; (iii) utilization of all electricity generating units (whether using coal or not), including the relative cost of producing electricity from multiple fuels, including coal; (iv) stringent environmental and other governmental regulations; (v) other sociopolitical views on coal; and (vi) the coal inventories of utilities.
  • Gas-fueled generation has displaced and could continue to displace coal-fueled generation (particularly from older, less efficient coal-fueled generation units) as current and potentially increasing regulatory costs and other factors, such as declines in the price of natural gas, impact the operating decisions of electric power generators.
  • In addition, some electric power generators have made decisions to close coal-fueled generation units given ongoing pressure to shift away from coal generation.
  • Many of the new power plants in the U.S. are being fueled by natural gas because gas-fired plants have been less expensive to construct and operate, permits to construct these plants are easier to obtain based on emissions profiles and electric power generators may face public and governmental pressure to generate a larger portion of their electricity from natural gas-fueled units and alternative energy sources.
  • Increasingly stringent regulations along with stagnant electricity demand in recent years have also reduced the number of new power plants being built.
  • In recent years, these trends have reduced demand for the Company’s coal and the related prices.
  • Lower demand for coal consumed by electric power generators has reduced and could continue to reduce the volume of thermal coal that the Company sells and the prices that it receives for the thermal coal, thereby reducing its revenue and adversely impacting its earnings and the value of its coal reserves and resources.
  • The Company produces metallurgical coal that is used in the global steel industry.
  • Metallurgical coal accounted for approximately 25% and 26% of its revenue in 2024 and 2023, respectively.
  • Changes in governmental policies and regulations and changes in the steel industry, including the demand for steel, could reduce the demand for the Company’s metallurgical coal.
  • The demand for foreign-produced steel both in foreign markets and in the U.S. market depends in part on factors such as tariff rates on steel.
  • The Company’s customers may be affected by imposed tariffs to the extent their imports into other countries are curtailed as a result of tariffs.
  • In addition, the steel industry’s demand for metallurgical coal is affected by a number of factors, including the variable nature of that industry’s business, technological developments in the steel-making process and the availability of substitutes for steel, such as aluminum, composites and plastics.
  • The steel industry increasingly relies on processes to make steel that do not use coal as a manufacturing input, such as electric arc furnaces.
  • Lower demand for metallurgical coal in international markets would reduce the amount of metallurgical coal that Peabody sells and the prices that it receives for it, thereby reducing revenues and adversely impacting earnings and the value of its coal reserves.
  • Tab le of Contents If a substantial number of the Company’s long-term coal supply agreements, including those with its largest customers, terminate, or if the pricing, volumes or other elements of those agreements materially adjust, its revenue and operating profits could suffer if the Company is unable to find alternate buyers willing to purchase its coal on comparable terms to those in its contracts.
  • The execution of a satisfactory coal supply agreement is frequently the basis on which the Company undertakes the development of coal reserves and resources required to be supplied under the contract, particularly in the U.S.
  • For the year ended December 31, 2024, the Company derived 27% of its revenue from coal supply agreements from its five largest customers.
  • Those five customers were supplied primarily from 16 coal supply agreements (excluding trading and brokerage transactions) expiring at various times from 2024 to 2028.
  • The Company may adjust these contract prices based on inflation or deflation, price indices and/or changes in the factors affecting the cost of producing coal, such as taxes, fees, royalties and changes in the laws regulating the mining, production, sale or use of coal.
  • In a limited number of contracts, failure of the parties to agree on a price under those provisions may allow either party to terminate the contract.
  • Coal supply agreements also typically contain force majeure provisions allowing temporary suspension of performance by the Company or the customer during the duration of specified events beyond the control of the affected party.
  • Some coal supply agreements allow customers to vary the volumes of coal that they are required to purchase during a particular period, and where coal supply agreements do not explicitly allow such variation, customers sometimes request that the Company amend the agreements to allow for such variation.
  • Most of its coal supply agreements contain provisions requiring the Company to deliver coal meeting quality thresholds for certain characteristics such as Btu, sulfur content, ash content, volatile matter, coking properties, grindability and ash fusion temperature.
  • Failure to meet these specifications could result in economic penalties, including price adjustments, the rejection of deliveries or termination of the contracts.
  • Moreover, some of these agreements allow the Company’s customers to terminate their contracts in the event of changes in regulations affecting the coal industry that restrict the use or type of coal permissible at the customer’s plant or increase the price of coal beyond specified limits.
  • On an ongoing basis, the Company discusses the extension of existing agreements or entering into new long-term agreements with various customers, but these negotiations may not be successful and these customers may not continue to purchase coal from the Company under long-term supply agreements.
  • The operating profits the Company realizes from coal sold under supply agreements depend on a variety of factors.
  • In addition, price adjustment and other contract provisions may increase its exposure to short-term coal price volatility.
  • If a substantial portion of the Company’s coal supply agreements were modified or terminated, it could be materially adversely affected to the extent that it is unable to find alternate buyers for its coal at the same level of profitability.
  • Prices for coal vary by mining region and country.
  • As a result, the Company cannot predict the future strength of the coal industry overall or by mining region and cannot provide assurance that it will be able to replace existing long-term coal supply agreements at the same prices or with similar profit margins when they expire.
  • In addition, the Company’s revenue could be adversely affected by a decline in customer purchases (including contractually obligated purchases) due to lack of demand and oversupply, cost of competing fuels and environmental and other governmental regulations.
  • Tab le of Contents Risks inherent to mining could increase the cost of operating the Company’s business, and events and conditions that could occur during the course of its mining operations could have a material adverse impact on the Company.
  • The Company’s mining operations are subject to conditions that can impact the safety of its workforce, delay coal deliveries or increase the cost of mining at particular mines for varying lengths of time.

and 169 more.

Sentence-level comparison of Item 1A in the two most recent 10-Ks (FY2024 ↗, FY2025 ↗). A reworded sentence counts as one dropped and one added, so heavy edits read as low “kept”. Headings and page furniture are stripped; nothing is summarised by a model.

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