PEABODY ENERGY CORP
For the period ended Dec 31, 2025. Filed Feb 19, 2026.
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A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2025 · Filed Feb 19, 2026
BTU$17.03+6.2%Stored close · as of Nov 9, 2026
What changed in Risk Factors?
Read the current filingPrevious report: 10-K
Period ended 2024-12-31; filed 2025-02-20.
0001064728-25-000018
Item 1A. Risk FactorsCurrent report: 10-K
Period ended 2025-12-31; filed 2026-02-19.
0001064728-26-000006
Item 1A. Risk FactorsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 218 previous paragraphs and 228 current paragraphs.
103 unchanged; 92 reworded; 31 added; 21 removed; 2 previous and 2 current paragraphs rearranged.
Tables are not compared: 0 previous and 0 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (31)
Current report
•tariffs, quotas, duties or other adverse changes to trade policy;
Current report
•global economic conditions, including inflationary pressures and foreign currency exchange rates;
Current report
•limited availability, higher cost or unfavorable terms for new surety bonds, bank guarantees or letters of credit;
Current report
If litigation challenging “climate superfund” laws is unsuccessful, the Company may be required to make significant payments for alleged climate change damages.
Current report
Public and scientific attention to climate issues, including findings in reports such as the Sixth Assessment Report of the Intergovernmental Panel on Climate Change, has increased scrutiny of GHG emissions, particularly CO 2 emissions from coal-fueled power generation. As a result, governments in the U.S. and abroad are considering or implementing laws and regulations aimed at reducing such emissions.
Current report
These obligations are actuarially determined using assumptions regarding discount rates, future cost trends, mortality tables, demographics and expected rates of return on plan assets. The discount rate is based on a hypothetical bond portfolio designed to approximate the timing of future cash flows necessary to service its liabilities. A decrease in the discount rate could increase the present value of these obligations, thereby raising future costs. The Company also makes assumptions about future medical cost trends based on historical claims data. If these assumptions do not materialize as expected, actual cash expenditures and costs that it incurs could differ materially from its current estimates. Regulatory changes or modifications to government-provided healthcare benefits could further increase the Company’s obligation.
Current report
Changes to trade policy, including tariff and customs regulations, or failure to comply with such regulations may have an adverse effect on the Company’s business, financial condition and results of operations.
Current report
As a multinational corporation, Peabody conducts a significant amount of business that could be impacted by changes in U.S. or foreign trade policies, including tariffs, international trade agreements and economic sanctions. Such changes may adversely impact the U.S. economy or certain sectors thereof; the economy of another country in which the Company operates or certain sectors thereof; or the coal industry and the global demand for coal. The Company cannot predict the extent to which the U.S. or other countries will impose new or additional quotas, duties, tariffs, taxes or other similar restrictions upon the import or export of its products, nor can it predict the terms of future trade policies or renegotiated trade agreements. The continued adoption or expansion of trade restrictions, the emergence of a trade war or other governmental actions related to tariffs or trade agreements could adversely affect demand for the Company’s coal, increase its costs, impact its customers and weaken the economies in which the Company operates. Any of these developments could have a material adverse effect on the Company’s business, financial condition and results of operations.
Current report
Peabody initiated the process of upgrading its enterprise resource planning (ERP) system, which is expected to be completed during the first quarter of 2026. The upgraded ERP system may necessitate the implementation of new internal controls and modifications to existing internal control frameworks and procedures. Additionally, any disruptions in the upgrade process or operation of the upgraded ERP system could lead to business interruptions, negatively affecting the Company’s ability to serve customers and manage its operations efficiently, which could have a material adverse impact on the Company’s business, financial position and results of operations. Peabody has taken steps to mitigate these risks, including thorough testing and continuous monitoring of the upgrade process. However, there can be no assurance that these measures will be successful in preventing potential disruptions.
Current report
The Company is incorporating artificial intelligence technologies into its processes and these technologies may present business, compliance and reputational risks.
Current report
Peabody increasingly utilizes AI, machine learning, and automated decision-making to improve its processes. Issues arising from the development or use of these technologies, combined with an evolving and uncertain regulatory environment, may lead to increased governmental or regulatory scrutiny, litigation, confidentiality or security risks, reputational harm, liability, or other adverse consequences that could adversely affect the Company’s business, results of operations and financial condition.
Current report
AI and machine-learning technology may also be improperly used by employees without the Company’s knowledge. Such misuse could result in unauthorized use or disclosure of confidential or proprietary information, or the generation of content that appears accurate but is in fact incorrect, misleading, biased, or otherwise flawed. These outcomes could harm Peabody’s reputation and expose the Company to additional risks. As AI becomes more prominent in the Company’s operations, Peabody may need to invest additional resources to enhance digital security, train employees, deploy protective technologies and engage third-party experts. The Company may face challenges in anticipating or mitigating all potential harms associated with AI.
Current report
It is not possible to predict all risks related to the use of AI, machine-learning and automated decision-making. Changes in regulatory frameworks or stakeholder expectations may limit the Company’s ability to develop or use such technologies or subject Peabody to liability. Failure to successfully integrate AI into business processes or to keep pace with rapidly evolving AI technologies, including attracting and retaining talented data scientists, data engineers, and programmers, could place Peabody at a competitive disadvantage.
Current report
•trading activity by insiders or significant shareholders;
Current report
The outcome of arbitration proceedings related to the termination of agreements to acquire properties from Anglo American plc could adversely affect the Company’s business, results of operations, and its financial condition.
Current report
On November 25, 2024, Peabody entered into definitive agreements (the Purchase Agreements) with Anglo American plc, a United Kingdom public limited company (Anglo), to acquire a portion of the assets and businesses associated with Anglo’s metallurgical coal portfolio in Australia. On August 19, 2025, Peabody terminated the Purchase Agreements following Peabody’s prior delivery of a notice of a Material Adverse Change (MAC) as a result of an ignition event at the Moranbah North mine on March 31, 2025, which had led to the closure of the mine. Following Peabody’s termination of the Purchase Agreements, Anglo returned $29.0 million of the $75.0 million deposit previously paid by Peabody, and Peabody has demanded the outstanding portion of the deposit also be returned.
Current report
On September 23, 2025, various subsidiaries of Anglo initiated International Chamber of Commerce arbitration proceedings in London, United Kingdom, against Peabody and certain of its affiliates. Anglo’s complaint alleges, among other things, that Peabody wrongfully terminated the Purchase Agreements and seeks, among other things, declarations that the ignition event at the Moranbah North mine did not constitute a MAC, as well as damages for losses in an unspecified amount, plus costs and interest.
Current report
The outcome of these proceedings is inherently uncertain and may materially and adversely affect the Company’s business, results of operations, and/or its financial condition. While the Company remains confident that a MAC occurred, entitling the Company to terminate the Purchase Agreements, arbitration outcomes are unpredictable and may include monetary damages or other remedies unfavorable to the Company. Additionally, the costs associated with the arbitration process, including legal fees and potential settlement or award payments, could be significant. There can be no assurance as to the timing or final resolution of the arbitration proceedings.
Removed paragraphs (21)
Previous report
•the strength of the global economy, including the relative exchange rates of U.S. dollars for foreign currencies;
Previous report
•the unknown geopolitical consequences of current and future political and military conflicts, including between Russia and Ukraine;
Previous report
•lack of availability, higher expense or unfavorable market terms of new surety bonds, bank guarantees or letters of credit;
Previous report
Global climate issues continue to attract public and scientific attention. Numerous reports, such as the Sixth Assessment Report of the Intergovernmental Panel on Climate Change, have also engendered concern about the impacts of human activity, especially fossil fuel combustion, on global climate issues. In turn, increasing government attention has been paid to global climate issues and to emissions of GHGs, including emissions of CO 2 from coal combustion by power plants.
Previous report
•the effects of regulation by governmental agencies;
Previous report
•historical production from the area compared with production from other producing areas.
Previous report
High inflation or imposed tariffs could result in higher costs and decreased profitability.
Previous report
In recent years the Company has been adversely impacted by inflation, which has increased the cost of materials, labor, equipment, freight, fuel and other cost categories. Tariffs could also increase the cost of new equipment purchases as well as parts and components to service the Company’s equipment fleet.
Previous report
The Company’s efforts to recover inflation-based cost increases from its customers may be hampered as a result of the structure of its contracts and the contract bidding process as well as the competitive industries, economic conditions and countries in which the Company operates. Accordingly, substantial inflation or tariffs may result in a material adverse impact on the Company’s costs, profitability and financial results.
Previous report
The Company’s business, results of operations, financial condition and prospects could be materially and adversely affected by pandemics or other widespread illnesses and the related effects on public health.
Previous report
The Company’s operations are susceptible to widespread outbreaks of illness or other public health issues. Pandemic illnesses could have a material adverse effect on the Company’s business, results of operations, financial condition and prospects, including its ability to comply with restrictions and covenants under its debt and surety bonding obligations.
Previous report
Pandemics or other widespread illnesses could result in governmental mandates requiring shutdowns of facilities for indefinite periods; serious health issues and absenteeism within the workforce; and disruptions to supply chain and distribution channels impacting both vendors and customers. As a result, the Company could face increased costs or decreased sales. Adverse changes in the general domestic and global economic conditions and disrupted domestic and international credit markets, could negatively affect its customers’ ability to pay the Company as well as its ability to access capital that could negatively affect its liquidity. Despite its efforts to manage these potential impacts, their ultimate impact would also depend on factors beyond the Company’s knowledge or control, including the duration and severity of the pandemic as well as third-party actions taken to contain its spread and mitigate its public health effects. These factors could have a material adverse effect on its business, financial condition, results of operations and prospects.
Previous report
Additionally, in March 2022, the SEC proposed new rules relating to the disclosure of a range of climate-related risks and other information. To the extent this rule is finalized as proposed, the Company and/or its customers could incur increased costs related to the assessment and disclosure of climate-related information. Certain states, such as California, are also adopting or considering adopting climate change-related disclosure requirements. Enhanced climate disclosure requirements could also accelerate any trend by certain stakeholders and capital providers to restrict or seek more stringent conditions with respect to their financing of certain carbon intensive sectors.
Previous report
•general economic conditions within the U.S. and internationally, including inflationary pressures and changes in interest rates;
Previous report
•the purchase and sale of shares of its Common Stock by significant shareholders;
Reworded paragraphs (92)
Previous wording
The Company operates in a rapidly changing environment that involves a number of risks. The following discussion highlights some of these risks and others are discussed elsewhere in this report. These and other risks could materially and adversely affect the Company’s business, financial condition, prospects, operating results or cash flows. The following risk factors are not an exhaustive list of the risks associated with the Company’s business. New factors may emerge or changes to these risks could occur that could materially affect its business.
Current wording
The Company operates in a rapidly changing environment that involves a number of risks. The following highlights some of these risks and others are discussed elsewhere in this report. These and other risks could materially and adversely affect the Company’s business, financial condition, prospects, operating results or cash flows. The following risk factors are not an exhaustive list of the risks associated with the Company’s business. New factors may emerge or changes to these risks could occur that could materially affect its business.
Previous wording
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. Declines in coal prices could materially and adversely affect the Company’s operating results and profitability and the value of its coal reserves and resources.
Current wording
The coal industry is competitive, highly regulated and subject to periods of significant volatility. Declines in coal prices could materially and adversely affect the Company’s operating results and profitability and the value of its coal reserves and resources.
Previous wording
•the demand for electricity and capacity utilization of electricity generating units (whether coal or non-coal);
Current wording
•demand for electricity and capacity utilization of electricity generating units (whether coal or non-coal);
Previous wording
•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;
Current wording
•governmental regulations and taxes, including air emission or other environmental standards for coal-fueled power plants and renewable-energy mandates or subsidies;
Previous wording
•the demand for steel, which may lead to price fluctuations in the monthly and quarterly repricing of the Company’s metallurgical coal contracts;
Current wording
•demand for steel, which may lead to price fluctuations in the monthly and quarterly repricing of the Company’s metallurgical coal contracts;
Previous wording
•competing technologies used to make steel, some of which do not use coal as a manufacturing input, such as electric arc furnaces; and
Current wording
•competing steel-making technologies that do not use coal as a manufacturing input, such as electric arc furnaces;
Previous wording
•the global supply and production costs of thermal and metallurgical coal;
Current wording
•global supply levels and production costs of thermal and metallurgical coal;
Previous wording
•regulatory, administrative and judicial decisions, including those affecting future mining permits and leases;
Current wording
•regulatory, administrative and judicial decisions, including those affecting future mining permits and leases; and
Previous wording
•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.
Current wording
•technological developments related to alternative energy sources, coal-to-liquids or gas conversion processes and CCUS.
Previous wording
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.
Current wording
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.
Previous wording
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.
Current wording
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.
Previous wording
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. Foreign government policies related to coal production and consumption could also negatively impact pricing and demand for the Company’s products.
Current wording
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. Foreign government policies related to coal production and consumption could also negatively impact pricing and demand for the Company’s products.
Previous wording
Most of the Company’s sales are made under coal supply agreements, which are important to the stability and profitability of its operations. 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.
Current wording
Most of the Company’s sales are made under coal supply agreements, which are important to the stability and profitability of its operations. 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.
Previous wording
Many of the Company’s coal supply agreements contain provisions that permit the parties to adjust the contract price upward or downward at specified times. 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. The Company may experience reductions in coal prices in new long-term coal supply agreements replacing some of its expiring contracts. 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.
Current wording
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.
Previous wording
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.
Current wording
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
Previous wording
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.
Current wording
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.
Previous wording
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. These conditions include:
Current wording
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:
Current wording
•adverse weather, flooding and natural disasters;
Previous wording
•seismic activities, ground failures, rock bursts or structural cave-ins or slides;
Current wording
•seismic activity, ground failures, rock bursts or structural cave-ins or slides;
Previous wording
•supply chain constraints or unavailability of equipment or parts of the type, quantity and/or size needed to meet production expectations;
Current wording
•supply chain constraints or unavailability of equipment parts;
Previous wording
•unforeseen delays in implementation of mining technologies that are new to its operations.
Current wording
•unforeseen delays in implementation of mining technologies.
Previous wording
The Company maintains insurance policies that provide limited coverage for some of the risks referenced above, which may lessen the impact associated with these risks. However, there can be no assurance as to the amount or timing of recovery under its insurance policies in connection with losses associated with these risks.
Current wording
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.
Previous wording
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, that commit the Company to pay a minimum amount for the delivery of coal even if those commitments go unused. The take-or-pay provisions in these contracts sometimes allow the Company to apply amounts paid for subsequent deliveries, but these provisions have limitations and the Company may not be able to apply all such amounts so paid in all cases. Also, the Company may not be able to utilize the amount of capacity for which it has previously paid. Additionally, the Company may continue to deliver coal during times when it might otherwise be optimal to suspend operations because these take-or-pay provisions effectively convert a variable cost of selling coal to a fixed operating cost.
Current wording
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. Additionally, these arrangements can incentivize continued coal deliveries during times when suspending operations might otherwise be economically preferable, effectively converting variable costs into fixed operating costs.
Previous wording
The value of the Company’s assets have from time to time been adversely affected by numerous uncertain factors, some of which are beyond the Company’s control, including unfavorable changes in the economic environments in which it operates; declining coal-fired electricity generation; lower-than-expected coal pricing; technical and geological operating difficulties; an inability to economically extract its coal reserves and resources; and unanticipated increases in operating costs. These factors may trigger the recognition of additional impairment charges in the future, which could have a substantial impact on the Company’s results of operations.
Current wording
The value of the Company’s assets has periodically been affected by numerous uncertain factors, some of which are beyond the Company’s control, including adverse economic conditions; declining coal-fired electricity generation; lower-than-expected coal pricing; technical or geological operating difficulties; an inability to economically extract its coal reserves and resources; and unanticipated increases in operating costs. These factors may trigger the recognition of impairment charges in the future, which could have a substantial impact on the Company’s results of operations. Given the volatile and cyclical nature of coal markets, it is reasonably possible that the Company’s current estimates of projected future cash flows from its mining assets may change in the near term, which may result in the need for adjustments to the carrying value of its assets.
Previous wording
Peabody manages its business with a number of key personnel, the loss of whom could have a material adverse effect on the Company, absent the completion of an orderly transition. In addition, the Company believes that its future success will depend greatly on its continued ability to attract and retain highly skilled and qualified personnel in tight labor markets, particularly personnel with mining experience. Peabody cannot provide assurance that key personnel will continue to be employed by the Company or that it will be able to attract and retain qualified personnel in the future. Failure to retain key personnel or attract qualified personnel could have a material adverse effect on the Company.
Current wording
Peabody relies on a number of key personnel, and the loss of any such individuals, absent an orderly transition could have a material adverse effect. The Company believes that its future success also depends on its continued ability to attract and retain highly skilled and qualified personnel in tight labor markets, particularly those with mining experience. Peabody cannot provide assurance that key personnel will remain employed by the Company or that it will be able to attract and retain qualified personnel in the future. Failure to retain key personnel or attract qualified personnel could have a material adverse effect on the Company.
Previous wording
As of December 31, 2024, the Company had approximately 5,600 employees (excluding employees that were employed at operations classified as discontinued), which included approximately 4,300 hourly employees. The Company is party to labor agreements with various labor unions that represent certain of its employees. Such labor agreements are negotiated periodically, and, therefore, the Company is subject to the risk that these agreements may not be able to be renewed on reasonably satisfactory terms. Approximately 40% of its hourly employees were represented by organized labor unions and generated approximately 21% of its coal production for the year ended December 31, 2024. Relations with its employees and, where applicable, organized labor are important to the Company’s success. If some or all of its current non-union operations were to become unionized, the Company could incur an increased risk of work stoppages, reduced productivity and higher labor costs. Also, if the Company fails to maintain good relations or successfully negotiate contracts with its employees who are represented by unions, the Company could potentially experience labor disputes, strikes, work stoppages, slowdowns or other disruptions in production that could negatively impact its profitability.
Current wording
As of December 31, 2025, the Company employed approximately 5,400 people (excluding employees at discontinued operations), including approximately 4,200 hourly employees. Certain employees are represented by labor unions under collective bargaining agreements that are renegotiated periodically, creating a risk that future agreements may not be renewed on reasonably satisfactory terms. Approximately 39% of its hourly employees were represented by organized labor unions and generated approximately 18% of the Company’s 2025 coal production. Positive relations with employees and, where applicable, organized labor are important to the Company’s success. Unionization of currently non-union operations could increase the risk of work stoppages, reduced productivity and higher labor costs. Also, failure to maintain good relations or successfully negotiate union contracts could potentially result in labor disputes, strikes, work stoppages, slowdowns or other production disruptions that could negatively impact the Company’s profitability.
Previous wording
U.S. federal and state laws and Australian laws require the Company to provide financial assurances related to requirements to reclaim lands used for mining; to pay federal and state workers’ compensation, such as black lung liabilities; to provide financial assurances for coal lease obligations; and to satisfy other miscellaneous obligations. Historically, the primary methods the Company has used to meet those obligations are to provide a third-party surety bond or a letter of credit. In recent years, the Company has also utilized deposits with regulatory authorities or cash-backed bank guarantees. As of December 31, 2024, the Company had $1,017.5 million of outstanding surety bonds; $262.3 million of letters of credit with third parties; $168.5 million of cash-backed bank guarantees; and $127.6 million of deposits with regulatory authorities in order to provide required financial assurances for post-mining reclamation, workers’ compensation and other insurance obligations, coal lease-related and other obligations and performance guarantees, in addition to collateral for sureties. Under the Company’s agreement with the providers of its surety portfolio, the Company has $394.6 million in cash held in trust accounts for the benefit of certain surety providers as of December 31, 2024.
Current wording
U.S. federal and state laws and Australian laws require the Company to provide financial assurances for mine reclamation; payment of workers’ compensation obligations, such as black lung liabilities; coal lease obligations; and other miscellaneous obligations. The Company has historically satisfied these requirements through third-party surety bonds or letters of credit. In recent years, the Company has also utilized deposits with regulatory authorities or cash-backed bank guarantees. As of December 31, 2025, the Company had $997.2 million of outstanding surety bonds; $227.2 million of letters of credit; $208.7 million of cash-backed bank guarantees; and $134.9 million of deposits with regulatory authorities in order to provide required financial assurances for post-mining reclamation, workers’ compensation and other insurance obligations, coal lease-related and other obligations and performance guarantees, in addition to collateral for sureties. Under the Company’s agreement with the providers of its surety portfolio, the Company has $383.6 million in cash held in trust accounts for the benefit of certain surety providers as of December 31, 2025.
Previous wording
The Company’s financial assurance obligations may increase or become more costly due to a number of factors, and surety bonds and letters of credit may not be available to the Company, particularly in light of some banks and insurance companies’ announced unwillingness to support thermal coal producers and other fossil fuel companies. Alternative forms of financial assurance such as self-bonding have been severely restricted or terminated in most of the regions where its mines reside. The Company’s failure to retain, or inability to obtain, surety bonds, bank guarantees or letters of credit, or to provide a suitable alternative, could have a material adverse effect on it. That failure could result from a variety of factors including:
Current wording
The Company’s financial assurance obligations may increase or become more costly, and surety bonds or letters of credit may not be available to the Company, particularly as some banks and insurance companies have announced reduced support for thermal coal producers and other fossil fuel companies. Alternative forms of financial assurance such as self-bonding have been severely restricted or terminated in most of the regions where the Company operates. Failure to retain or obtain surety bonds, bank guarantees or letters of credit, or to provide suitable alternatives, could have a material adverse effect on the Company. That failure could result from a variety of factors including:
Previous wording
•inability to provide or fund collateral for current and future third-party issuers of surety bonds, bank guarantees or letters of credit; and
Previous wording
•lack of available fronting banks in certain countries where the Company must provide financial assurances but its primary surety providers are not licensed or admitted.
Current wording
•a lack of available fronting banks in certain countries where the Company must provide financial assurances but its primary surety providers are not licensed or admitted.
Previous wording
As further described in “Liquidity and Capital Resources” of Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” the Company has a surety transaction support agreement with the providers of its surety bond portfolio. The Company’s failure to provide adequate collateral, or abide by other terms in the agreement, could invalidate the agreement and materially and adversely affect its business and results of operations.
Current wording
As further described in “Liquidity and Capital Resources” of Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” the Company has a surety transaction support agreement with the providers of its surety bond portfolio that expires on December 31, 2026. The Company’s failure to provide adequate collateral, or abide by other terms in the agreement, could invalidate the agreement and materially and adversely affect its business and results of operations. Failure to maintain adequate bonding could invalidate the Company’s mining permits and halt mining operations, which could result in its inability to continue as a going concern.
Previous wording
The Company’s mining operations are extensively regulated, which imposes significant costs on it, and future regulations and developments could increase those costs or limit its ability to produce coal.
Current wording
The Company’s mining operations are extensively regulated, which imposes significant costs, and future regulations and developments or differing interpretations of existing regulations could increase those costs or limit its ability to produce coal.
Previous wording
Regulatory agencies have the authority under certain circumstances following significant health and safety incidents to order a mine to be temporarily or permanently closed. In the event that such agencies ordered the closing of one of the Company’s mines, its production and sale of coal would be disrupted and it may be required to incur cash outlays to re-open the mine. Any of these actions could have a material adverse effect on the Company’s financial condition, results of operations and cash flows.
Current wording
Regulatory agencies may order a mine to be temporarily or permanently closed following significant health or safety incidents. Any such closure of one of the Company’s mines would disrupt production and sales and could require substantial expenditures to resume operations, potentially resulting in a material adverse effect on the Company’s financial condition, results of operations and cash flows.
Previous wording
New legislation, regulations or orders related to the environment or employee health and safety may be adopted and may materially adversely affect the Company’s mining operations, its cost structure or its customers’ ability to use coal. New legislation, such as the “climate superfund” laws recently passed in New York and Vermont, or administrative regulations (or new interpretations by the relevant government of existing laws, regulations and approvals), including proposals related to the protection of the environment or the reduction of GHG emissions that would further regulate and tax the coal industry, may also require the Company or its customers to change operations significantly or incur increased costs. Some of the Company’s coal supply agreements contain provisions that allow a purchaser to terminate its contract if legislation is passed that either restricts the use or type of coal permissible at the purchaser’s plant or results in specified increases in the cost of coal or its use. These factors and legislation, if enacted, could have a material adverse effect on the Company’s financial condition and results of operations. If the Company is determined to be subject to “climate superfund” laws and related regulations, it may be required to make significant payments to the relevant governments. These payments may be material and could adversely affect the Company’s results of operations, financial condition or cash flows.
Current wording
New legislation, regulations or orders, as well as new administrative regulations or new interpretations by the relevant government of existing laws, regulations and approvals, related to royalty rates, employee health and safety or the environment may be adopted and may materially adversely affect the Company’s mining operations, its cost structure or its customers’ ability to use coal and may also require significant operational changes or increased costs for the Company or its customers. Some of the Company’s coal supply agreements contain provisions allowing a purchaser to terminate its contract if legislation is passed that either restricts the use or type of coal permissible at the purchaser’s plant or results in specified increases in the cost of coal or its use. These factors and legislation, if enacted, could have a material adverse effect on the Company’s financial condition and results of operations.
Previous wording
The Company’s operations currently use hazardous materials and generate limited quantities of hazardous wastes from time to time. A number of laws, including CERCLA and RCRA in the U.S. and similar laws in other countries where the Company operates, impose liability relating to contamination by hazardous substances. Such liability may involve the costs of investigating or remediating contamination and damages to natural resources, as well as claims seeking to recover for property damage or personal injury caused by hazardous substances. Such liability may arise from conditions at formerly, as well as currently, owned or operated properties, and at properties to which hazardous substances have been sent for treatment, disposal or other handling. Liability under RCRA, CERCLA and similar state statutes is without regard to fault, and typically is joint and several, meaning that a person may be held responsible for more than its share, or even all, of the liability involved.
Current wording
The Company uses hazardous materials in its operations and periodically generates limited quantities of hazardous waste. Various laws, including CERCLA and RCRA in the U.S. and similar laws in other countries where the Company operates, impose liability relating to contamination by hazardous substances. Such liability may include costs of investigating or remediating contamination and damages to natural resources, as well as claims seeking to recover for property damage or personal injury caused by hazardous substances. Such liability may arise from conditions at currently or formerly owned or operated properties, as well as sites where hazardous substances were sent for treatment, disposal or other handling. Liability under RCRA, CERCLA and similar state statutes is without regard to fault, and typically is joint and several, meaning that a person may be held responsible for more than its share, or even all, of the liability involved.
Previous wording
The Company may be unable to obtain, renew or maintain permits necessary for its operations, or the Company may be unable to obtain, renew or maintain such permits without conditions on the manner in which it runs its operations, which would reduce its production, cash flows and profitability.
Current wording
The Company may be unable to obtain, renew or maintain permits necessary for its operations, or may only be able to do so subject to conditions that limit the manner in which it runs its operations, which would reduce its production, cash flows and profitability.
Previous wording
Numerous governmental permits and approvals are required for mining operations. The permitting rules, and the interpretations of these rules, are complex, change frequently and are often subject to discretionary interpretations by regulators, all of which may make compliance more difficult or impractical. As part of this permitting process, when the Company applies for permits and approvals, it is required to prepare and present to governmental authorities data pertaining to the potential impact or effect that any proposed exploration for or production of coal may have upon the environment. The public, including non-governmental organizations, opposition groups and individuals, have statutory rights to comment upon and submit objections to requested permits and approvals (including modifications and renewals of certain permits and approvals) and otherwise engage in the permitting process, including bringing citizens’ lawsuits to challenge the issuance of permits, the validity of environmental impact statements or the performance of mining activities. In recent years, the permitting required for coal mining has been the subject of increasingly stringent regulatory and administrative requirements and extensive litigation by environmental groups.
Current wording
Mining operations require numerous governmental permits and approvals. The permitting rules (and the interpretations of these rules) are complex, frequently changing and often subject to discretionary interpretations by regulators, making compliance more difficult or impractical at times. As part of the permitting process, the Company is required to prepare and present to governmental authorities detailed information on the potential impacts of proposed exploration or mining activities. Members of the public, including non-governmental organizations and opposition groups, have statutory rights to comment upon, object to or legally challenge permit applications, environmental impact statements or mining activities. In recent years, the permitting required for coal mining has been the subject of increasingly stringent regulatory and administrative requirements and extensive litigation by environmental groups.
Previous wording
Additionally, the Company’s operations may be affected by sites within or near mining areas that have cultural heritage significance to indigenous peoples, and its mining permits may be rescinded or modified, or its mining plans may be voluntarily adjusted, to mitigate against adverse impacts to such sites.
Current wording
Additionally, the Company’s operations may be affected by sites of cultural heritage significance to indigenous peoples located within or near mining areas. Mining permits may be rescinded or modified, or the Company may voluntarily adjust its mining plans, to mitigate against adverse impacts to such sites.
Previous wording
The costs, liabilities and requirements associated with these permitting requirements and any related opposition may be extensive and time-consuming and may delay commencement or continuation of exploration or production which would adversely affect the Company’s coal production, cash flows and profitability. Further, required permits may not be issued or renewed in a timely fashion or at all, or permits issued or renewed may be conditioned in a manner that may restrict the Company’s ability to efficiently and economically conduct its mining activities, any of which would materially reduce its production, cash flows and profitability.
Current wording
The costs, liabilities and potential delays associated with permitting requirements and any related opposition may be substantial and could postpone or disrupt exploration or production, adversely affecting the Company’s coal production, cash flows and profitability. Further, required permits may not be issued or renewed in a timely fashion or at all, or may include conditions that restrict the Company’s ability to efficiently and economically conduct its mining activities, any of which would materially reduce its production, cash flows and profitability.
Previous wording
The enactment of future laws or the passage of regulations regarding emissions from the use of coal by the U.S., some of its states or other countries, and ongoing actions to limit such emissions, such as carbon taxes, could result in electricity generators switching from coal to other fuel sources. Further, policies limiting available financing for the development of new coal-fueled power stations could adversely impact the global demand for coal in the future. The potential financial impact on Peabody of such future laws, regulations or other policies will depend upon the degree to which any such laws or regulations force electricity generators to diminish their reliance on coal as a fuel source. That, in turn, will depend on a number of factors, including the specific requirements imposed by any such laws, regulations or other policies, the time periods over which those laws, regulations or other policies would be phased in, the state of development and deployment of CCUS technologies as well as acceptance of CCUS technologies to meet regulations and the alternative uses for coal. Higher-efficiency coal-fired power plants may also be an option for meeting laws or regulations related to emissions from coal use. Several countries, including major coal users such as China, India and Japan, included using higher-efficiency coal-fueled power plants in their plans under the Paris Agreement.
Current wording
Future legislation or regulations, such as carbon taxes or other emissions-reduction measures, could prompt electricity generators to shift from coal to other fuel sources. Policies that limit financing for the development of new coal-fueled power plants could adversely impact long-term global demand. The potential financial impact of these developments on Peabody will depend upon the degree to which any such laws or regulations reduce coal use, which in turn will be influenced by the specific requirements of any new laws or regulations, the timing of their implementation, the development and acceptance of CCUS technologies, and the availability of alternative uses for coal. Higher-efficiency coal-fired power plants may also be an option for meeting emissions-related requirements, and several major coal-using countries, including China, India and Japan, have incorporated such technologies into their plans under the Paris Agreement.
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Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Many of the Company’s coal supply agreements contain provisions that permit the parties to adjust the contract price upward or downward at specified times. 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. The Company may experience reductions in coal prices in new long-term coal supply agreements replacing some of its expiring contracts.
Current report — wording carried from elsewhere
If the Company becomes subject to “climate superfund” laws and related regulations such as those recently passed in New York and Vermont, it may be required to make significant payments to the relevant governments. These payments may be material and could adversely affect the Company’s results of operations, financial condition or cash flows.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
Because of the volatile and cyclical nature of coal markets, it is reasonably possible that the Company’s current estimates of projected future cash flows from its mining assets may change in the near term, which may result in the need for adjustments to the carrying value of its assets.
Previous report — wording carried elsewhere
The Company’s failure to maintain adequate bonding would invalidate its mining permits and prevent mining operations from continuing, which could result in its inability to continue as a going concern.