PEABODY ENERGY CORP

Previous wording

Peabody is a leading producer of metallurgical and thermal coal. In 2025, Peabody sold 122.0 million tons of coal. The Company owned interests in 17 active coal mining operations located in the United States (U.S.) and Australia at June 30, 2026. Included in that count is Peabody’s 50% equity interest in Middlemount Coal Pty Ltd (Middlemount), which owns the Middlemount Mine in Queensland, Australia.

Current wording

Peabody is a leading producer of metallurgical and thermal coal. In 2025, Peabody sold 122.0 million tons of coal. During the third quarter of 2026, the Moorvale Mine in the Seaborne Metallurgical Mining segment suspended production. As a result, the Company owned interests in 16 active coal mining operations located in the United States (U.S.) and Australia at September 30, 2026. Included in that count is Peabody’s 50% equity interest in Middlemount Coal Pty Ltd (Middlemount), which owns the Middlemount Mine in Queensland, Australia.

Previous wording

Within the global coal industry, supply and demand for its products and the supplies used for mining are being impacted by recent geopolitical events and changes to trade policy, including tariffs and customs regulations. As future developments related to geopolitical events and trade policy, including additional or retaliatory tariffs, delays in implementing previously announced changes or ongoing negotiations between countries, are unknown, the global coal industry data for the six months ended June 30, 2026 presented herein may not be indicative of their ultimate impacts.

Current wording

Within the global coal industry, supply and demand for its products and the supplies used for mining are being impacted by recent geopolitical events and changes to trade policy, including tariffs and customs regulations. As future developments related to geopolitical events and trade policy, including additional or retaliatory tariffs, delays in implementing previously announced changes or ongoing negotiations between countries, are unknown, the global coal industry data for the nine months ended September 30, 2026 presented herein may not be indicative of their ultimate impacts.

Previous wording

In the U.S., overall electricity demand increased just under 1% year-over-year through the six months ended June 30, 2026. Through the first six months of 2026, electricity generation from thermal coal decreased year-over-year, driven by lower natural gas prices, stronger renewable generation and milder spring temperatures in coal-heavy markets in the U.S. Coal’s share of electricity generation decreased to approximately 14% for the six months ended June 30, 2026, while wind and solar’s combined generation share increased to 22% and the share of natural gas generation remained stable at approximately 37%. U.S. coal inventories have increased almost 10 million tons compared to the end of 2025 through June 30, 2026.

Current wording

In the U.S., overall electricity demand increased 2.7% year-over-year through the nine months ended September 30, 2026. Through the first nine months of 2026, electricity generation from thermal coal decreased 5% year-over-year, driven by lower natural gas prices, stronger renewable generation and milder spring temperatures. Hot summer weather during the third quarter contributed to an increase in coal-fired generation of 3.0% compared to the third quarter of 2025. Coal’s share of electricity generation decreased to approximately 16% for the nine months ended September 30, 2026, while wind and solar’s combined generation share increased to 19% and the share of natural gas generation remained stable at approximately 40%. U.S. coal inventories have decreased almost 11 million tons compared to the end of 2025 through September 30, 2026.

Previous wording

During the second quarter of 2026, Peabody completed multiple financing transactions. The Company issued $250.0 million of new convertible senior unsecured notes and used the proceeds of the offering and available cash to purchase a capped call with a cap price of $50.61 per share and to repurchase $241.2 million of the existing convertible senior unsecured notes for cash consideration of $386.8 million. These transactions lowered the Company’s borrowing rates, extended debt maturities to 2031 and reduced potential common share dilution from the convertible notes by approximately 6.2 million shares to approximately 10.7 million potential shares. From an economic perspective, the $145.6 million premium paid above par value to repurchase the existing convertible senior notes was equivalent to repurchasing approximately 5.0 million shares at a weighted average price of $28.92 per share. The Company also entered into standard agreements with surety providers in the U.S. and Australia during the quarter, which reduced total reclamation collateral requirements and released formerly restricted cash and cash collateral. And finally, the Company amended its existing revolving credit facility to increase funding capacity, lower interest rates and extend the maturity date.

Current wording

During the second quarter of 2026, Peabody completed multiple financing transactions. The Company issued $250.0 million of convertible senior unsecured notes due 2031 and used the proceeds of the offering and cash to purchase a capped call with a cap price of $50.61 per share and to repurchase $241.2 million of the convertible senior unsecured notes due 2028 for cash consideration of $386.8 million. These transactions lowered the Company’s borrowing rates, extended debt maturities to 2031 and reduced potential common share dilution from the convertible notes. The Company also entered into standard agreements with surety providers in the U.S. and Australia during the second quarter, which reduced total reclamation collateral requirements and released formerly restricted cash and cash collateral. And finally, the Company amended its existing revolving credit facility to increase funding capacity, lower interest rates and extend the maturity date.

Previous wording

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. At that time, Anglo’s complaint alleged, among other things, that Peabody wrongfully terminated the Purchase Agreements and sought, 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. On June 5, 2026, Anglo filed its Statement of Claim, in which it purported to quantify, for the first time in the arbitration proceedings, the damages that it is demanding at approximately $755.0 million. This amount primarily consists of $628.4 million in claimed losses, representing what Anglo contends is the difference in value of the Assets between November 25, 2024 and August 19, 2025, with the remainder consisting of Anglo’s claimed additional costs and interest on such claimed losses and costs.

Current wording

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. At that time, Anglo’s complaint alleged, among other things, that Peabody wrongfully terminated the Purchase Agreements and sought, 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. On June 5, 2026, Anglo filed its Statement of Claim, in which it purported to quantify, for the first time in the arbitration proceedings, the damages that it is demanding at approximately $755.0 million. This amount primarily consists of $628.4 million in claimed losses, representing what Anglo contends is the difference in value of the Assets between November 25, 2024 and August 19, 2025, with the remainder consisting of Anglo’s claimed additional costs and interest on such claimed losses and costs. On October 2, 2026, Peabody filed its Statement of Defense and Counterclaim in the arbitration. In its filing, Peabody denied Anglo’s allegations, asserted various defenses and brought counterclaims against Anglo and certain of its affiliates.

Previous wording

The decrease in results from continuing operations, net of income taxes for the three and six months ended June 30, 2026 compared to the same periods in the prior year ($60.3 million and $124.0 million, respectively) was driven by higher operating costs and expenses ($164.5 million and $259.0 million, respectively), induced conversion expense recognized in the current year ($17.2 million, three and six months), higher depreciation, depletion and amortization ($14.1 million and $31.5 million, respectively), reduced net gains on disposals ($10.4 million and $3.9 million, respectively), increased losses from equity affiliates ($9.0 million and $8.0 million, respectively) and lower net periodic benefit credits ($7.1 million and $14.1 million, respectively). The unfavorable variances were partially offset by higher revenue ($113.1 million and $149.4 million, respectively) primarily driven by favorable pricing, increased tax benefits ($34.3 million and $55.2 million, respectively) and lower costs related to the terminated acquisition ($16.5 million and $15.9 million, respectively).

Current wording

The decrease in results from continuing operations, net of income taxes for the nine months ended September 30, 2026 compared to the same period in the prior year ($86.1 million) was driven by higher operating costs and expenses ($342.3 million), higher depreciation, depletion and amortization ($29.1 million) and induced conversion expense recognized in the current year ($20.5 million). The unfavorable variances were partially offset by higher revenue ($233.6 million) primarily driven by favorable pricing, lower costs related to the terminated acquisition ($66.0 million) and increased tax benefits ($56.3 million).

Previous wording

Adjusted EBITDA for the three and six months ended June 30, 2026 reflected a year-over-year decrease of $69.3 million and $130.8 million, respectively.

Current wording

Adjusted EBITDA for the three and nine months ended September 30, 2026 reflected a year-over-year decrease of $2.0 million and $132.8 million, respectively.

Previous wording

Seaborne Thermal. Segment revenue increased during the three months ended June 30, 2026 compared to the same period in the prior year due to favorable realized prices ($63.6 million), offset by unfavorable volume ($28.1 million) driven by reductions at the Wilpinjong Mine due to mine sequencing and the closure of the Wambo Underground Mine in September 2025. Segment revenue decreased during the six months ended June 30, 2026 compared to the same period in the prior year due to unfavorable volume, as previously described ($118.2 million), offset by favorable realized prices ($86.1 million).

Current wording

Seaborne Thermal. Segment revenue decreased during the three and nine months ended September 30, 2026 compared to the same periods in the prior year due to unfavorable volume ($65.6 million and $184.7 million, respectively) driven by reductions at the Wilpinjong Mine due to mine sequencing and the closure of the Wambo Underground Mine in September 2025, offset by favorable realized prices ($64.5 million and $151.5 million, respectively).

Previous wording

Seaborne Metallurgical. Segment revenue increased during the three and six months ended June 30, 2026 compared to the same periods in the prior year due to favorable realized prices ($77.3 million and $96.9 million, respectively) and favorable volume ($28.8 million and $72.1 million, respectively) driven largely by the start-up of the Centurion Mine.

Current wording

Seaborne Metallurgical. Segment revenue increased during the three and nine months ended September 30, 2026 compared to the same periods in the prior year due to favorable realized prices ($76.3 million and $173.8 million, respectively) and favorable volume ($30.8 million and $102.3 million, respectively) driven largely by the start-up of the Centurion Mine.

Previous wording

Powder River Basin. Segment revenue decreased during the three and six months ended June 30, 2026 compared to the same periods in the prior year due to unfavorable volume ($48.8 million and $26.2 million, respectively) resulting from decreased demand driven by mild weather in the U.S. and unfavorable realized prices ($3.1 million and $11.8 million, respectively) which were driven by the impact of adjustments to cost pass-through contracts with certain customers resulting from the federal royalty rate reduction included in the One Big Beautiful Bill Act of 2025 (OBBBA).

Current wording

Segment revenue decreased during the nine months ended September 30, 2026 compared to the same period in the prior year due to unfavorable volume ($64.3 million) as described above and unfavorable realized prices ($7.0 million) which were driven by the impact of adjustments to cost pass-through contracts with certain customers resulting from the federal royalty rate reduction included in the One Big Beautiful Bill Act of 2025 (OBBBA) which was enacted in the second half of 2025.

Previous wording

Corporate and Other. The increase in revenue during the three and six months ended June 30, 2026 compared to the same periods in the prior year was primarily driven by higher revenue from trading activities.

Current wording

Corporate and Other. The decrease in revenue during the three months ended September 30, 2026 compared to the same period in the prior year was primarily driven by lower revenue from trading activities, partially offset by higher royalty income. The increase in revenue during the nine months ended September 30, 2026 compared to the same period in the prior year was primarily driven by higher revenue from trading activities and higher royalty income.

Previous wording

Seaborne Thermal. Segment Costs increased during the three months ended June 30, 2026 compared to the same period in the prior year primarily due to increased commodities expense ($17.1 million) which was driven by higher fuel pricing. Segment Costs decreased during the six months ended June 30, 2026 compared to the same period in the prior year due to decreased volume (2.0 million tons) which drove both lower sales related costs ($17.2 million) and variable costs ($10.7 million). These decreases were offset by increased commodities expense ($19.1 million).

Current wording

Seaborne Thermal. Segment Costs decreased during the three and nine months ended September 30, 2026 compared to the same periods in the prior year primarily due to decreased volume (1.0 million tons and 3.0 million tons, respectively) which drove both lower variable costs ($27.5 million and $38.2 million, respectively) and sales related costs ($5.7 million and $22.9 million, respectively), offset by increased commodities expense ($11.1 million and $30.2 million, respectively) which was driven by higher fuel pricing.

Previous wording

Seaborne Metallurgical. Segment Costs increased during the three and six months ended June 30, 2026 compared to the same periods in the prior year due to higher costs for labor, repairs and outside services ($73.6 million and $136.8 million, respectively) driven by longwall commissioning activities at the Centurion Mine; higher sales related costs ($34.4 million and $49.4 million, respectively) resulting from increased volume (0.3 million tons and 0.5 million tons, respectively) and higher realized pricing; and increased commodities expense ($15.9 million and $15.7 million, respectively) which was primarily driven by higher fuel pricing.

Current wording

Seaborne Metallurgical. Segment Costs increased during the three and nine months ended September 30, 2026 compared to the same periods in the prior year due to higher costs for labor, repairs and outside services ($50.8 million and $187.6 million, respectively) driven by geological challenges encountered in a fault zone and longwall commissioning activities at the Centurion Mine; higher sales related costs ($30.1 million and $79.5 million, respectively) resulting from increased volume (0.1 million tons and 0.6 million tons, respectively); and higher realized pricing; higher variable costs ($29.2 million, three months) and increased commodities expense ($6.9 million and $22.6 million, respectively) which was primarily driven by higher fuel pricing.

Previous wording

Powder River Basin. Segment Costs decreased during the three months ended June 30, 2026 compared to the same period in the prior year due to lower sales related costs ($25.3 million) which were largely driven by the federal royalty rate reduction on coal production included in the OBBBA and lower volume (3.6 million tons), offset by increased commodities expense ($17.0 million) driven by higher fuel pricing and increased leasing expense ($3.9 million). Segment Costs increased during the six months ended June 30, 2026 compared to the same period in the prior year due to increased commodities expense ($29.2 million) driven by higher fuel pricing; higher costs for labor, repairs and outside services ($23.3 million) as the result of planned equipment outages and increased in-pit inventory; and increased leasing expense ($6.5 million). These increases were offset by lower sales related costs ($36.8 million) which were largely driven by the federal royalty rate reduction on coal production included in the OBBBA and lower volume (2.0 million tons).

Current wording

Segment Costs increased during the nine months ended September 30, 2026 compared to the same period in the prior year due to increased commodities expense ($47.2 million), higher costs for labor and outside services ($21.0 million) as the result of planned equipment outages and increased in-pit inventory; and increased leasing expense ($9.7 million). These increases were offset by lower sales related costs ($44.8 million) which were largely driven by the federal royalty rate reduction on coal production included in the OBBBA, as described above, and lower volume (5.0 million tons).

Previous wording

Other U.S. Thermal. Segment Costs decreased during the three months ended June 30, 2026 compared to the same period in the prior year primarily due to lower costs for repairs and outside services ($11.7 million), offset by increased commodities expense ($7.8 million) driven by higher fuel pricing. Segment Costs increased during the six months ended June 30, 2026 compared to the same period in the prior year due to higher commodities expense ($11.2 million), higher variable operational costs ($5.1 million) and higher sales related costs ($4.7 million) driven by increased volume (0.3 million tons), offset by lower costs for repairs and outside services ($16.5 million).

Current wording

Other U.S. Thermal. Segment Costs decreased during the three months ended September 30, 2026 compared to the same period in the prior year primarily due to lower costs for labor, repairs and outside services ($19.5 million), offset by increased commodities expense ($10.8 million) driven by higher fuel pricing and higher sales related costs ($3.2 million).

Previous wording

Corporate and Other. The increase to Segment Costs during the three and six months ended June 30, 2026 compared to the same periods in the prior year was primarily driven by higher expenses related to trading and brokerage activities ($16.4 million and $23.4 million, respectively), the unfavorable remeasurement of foreign currency ($15.1 million and $8.5 million, respectively) and lower net periodic benefit credit, excluding service cost due to the final amortization in the prior year of a previously established prior service credit ($7.1 million and $14.1 million, respectively).

Current wording

The increase to Segment Costs during the nine months ended September 30, 2026 compared to the same period in the prior year was primarily driven by higher expenses related to the Company’s coal trading business ($15.7 million); lower net periodic benefit credit, excluding service cost driven by the final amortization in the prior year of a previously established prior service credit which more than offset the impact of the current year changes ($9.5 million); and reduced foreign currency gains in the current year ($4.3 million).

Previous wording

Seaborne Thermal. Segment Adjusted EBITDA increased during the three months ended June 30, 2026 compared to the same period in the prior year due to higher realized prices net of sales sensitive costs ($64.3 million), offset by unfavorable production costs ($20.3 million) driven by mine sequencing at the Wilpinjong Mine, higher commodities expense as described above and the unfavorable impact of higher foreign exchange rates on expenses ($8.5 million). Segment Adjusted EBITDA decreased during the six months ended June 30, 2026 compared to the same period in the prior year due to unfavorable production costs ($49.4 million) primarily driven by mine sequencing at the Wilpinjong Mine, unfavorable volume ($28.8 million), higher commodities expense as described above and the unfavorable impact of higher foreign exchange rates on expenses ($19.0 million). These decreases were offset by higher realized prices net of sales sensitive costs ($94.5 million).

Current wording

Segment Adjusted EBITDA increased during the nine months ended September 30, 2026 compared to the same period in the prior year due to higher realized prices net of sales sensitive costs ($158.2 million); offset by unfavorable production costs ($66.5 million) primarily driven by mine sequencing at the Wilpinjong Mine, unfavorable volume ($34.5 million), higher commodities expense as described above and the unfavorable impact of higher foreign exchange rates on expenses ($27.1 million).

Previous wording

Seaborne Metallurgical. Segment Adjusted EBITDA decreased during the three and six months ended June 30, 2026 compared to the same periods in the prior year due to unfavorable production costs ($61.4 million and $102.3 million, respectively) primarily driven by longwall commissioning activities at the Centurion Mine, the unfavorable impact of higher foreign exchange rates on expenses ($16.4 million and $28.6 million, respectively) and higher commodities expense as described above. These decreases were offset by higher realized prices net of sales sensitive costs ($54.0 million and $69.6 million, respectively) and favorable volume ($26.3 million and $41.5 million, respectively).

Current wording

Seaborne Metallurgical. Segment Adjusted EBITDA decreased during the three and nine months ended September 30, 2026 compared to the same periods in the prior year due to unfavorable production costs ($86.4 million and $189.5 million, respectively) primarily driven by geological challenges encountered in a fault zone and longwall commissioning activities at the Centurion Mine, the unfavorable impact of higher foreign exchange rates on expenses ($11.3 million and $39.9 million, respectively) and higher commodities expense as described above. These decreases were offset by higher realized prices net of sales sensitive costs ($53.0 million and $122.6 million, respectively) and favorable volume ($28.4 million and $70.6 million, respectively).

Previous wording

Powder River Basin. Segment Adjusted EBITDA decreased for the three and six months ended June 30, 2026 compared to the same periods in the prior year due to unfavorable volume ($28.0 million and $14.8 million, respectively), higher commodity pricing and usage as described above, increased in-pit inventory as the workforce focused on preparatory efforts in light of reduced customer demand ($11.4 million and $14.9 million, respectively) and higher leasing expense and costs for labor, repairs and outside services as described above. These decreases were offset by lower sales related costs as described above.

Current wording

Segment Adjusted EBITDA decreased during the nine months ended September 30, 2026 compared to the same period in the prior year due to higher commodity pricing as described above, unfavorable volume ($37.5 million), higher costs for labor and outside services as described above, increased in-pit inventory as the workforce focused on preparatory efforts in light of reduced customer demand ($20.6 million) and higher leasing expense as described above. These decreases were offset by lower sales related costs as described above.

Previous wording

Other U.S. Thermal. Segment Adjusted EBITDA increased during the three and six months ended June 30, 2026 compared to the same periods in the prior year primarily due to lower costs for repairs and outside services as described above and favorable volume ($10.4 million and $16.5 million, respectively), offset by higher commodity pricing and usage as described above.

Current wording

Segment Adjusted EBITDA increased during the nine months ended September 30, 2026 compared to the same period in the prior year primarily due to lower costs for labor, repairs and outside services as described above and higher realized prices net of sales sensitive costs ($29.9 million), offset by higher commodity pricing and usage as described above.

Previous wording

Corporate and Other Adjusted EBITDA decreased during the three months ended June 30, 2026 compared to the same period in the prior year due to unfavorable variances in Middlemount’s results driven by lower production and higher fuel costs, partially offset by higher sales pricing; and lower gains on equipment and land sales ($10.4 million). The decrease in other items was driven by unfavorable remeasurement of foreign currency denominated monetary assets, substantially comprised of Australian dollar denominated restricted cash and cash collateral ($15.1 million) and lower net periodic benefit credit, excluding service cost, as described above ($7.1 million).

Current wording

Corporate and Other Adjusted EBITDA increased during the three months ended September 30, 2026 compared to the same period in the prior year due to an increase in other items driven by a higher net periodic benefit credit, excluding service cost, as described above ($4.6 million), prior year holding costs associated with the Centurion Mine ($4.6 million), and higher remeasurement gains of foreign currency denominated monetary assets, substantially comprised of Australian dollar denominated restricted cash and cash collateral ($4.4 million).

Previous wording

Corporate and Other Adjusted EBITDA decreased during the six months ended June 30, 2026 compared to the same period in the prior year due to unfavorable variances in Middlemount’s results driven by lower production and higher fuel costs, partially offset by higher sales pricing; and higher selling and administrative expenses. The decrease in other items was driven by lower net periodic benefit credit, excluding service cost, as described above ($14.1 million) and the unfavorable remeasurement of foreign currency denominated monetary assets, substantially comprised of Australian dollar denominated restricted cash and cash collateral ($8.5 million).

Current wording

Corporate and Other Adjusted EBITDA decreased during the nine months ended September 30, 2026 compared to the same period in the prior year due to unfavorable variances in Middlemount’s results driven by lower production and higher fuel costs, partially offset by higher sales pricing; and higher selling and administrative expenses primarily resulting from consulting and legal fees. The decrease in other items was driven by a lower net periodic benefit credit, excluding service cost, as described above ($9.5 million).

Previous wording

Depreciation, depletion and amortization expense increased during the three and six months ended June 30, 2026 compared to the same periods in the prior year primarily due to increased depreciation and amortization resulting from shortened mine lives. The decrease in the weighted-average depletion rate per ton for the Seaborne Thermal segment during the three and six months ended June 30, 2026 compared to the same periods in the prior year reflects the increased quantity of proven and probable coal reserves at the Wilpinjong Mine resulting from the conversion of coal resources to proven and probable reserves. The increase in the weighted-average depletion rate per ton for the Seaborne Metallurgical segment during the three and six months ended June 30, 2026 compared to the same periods in the prior year reflects the impact of volume and mix variances across the segment. The decrease in the weighted-average depletion rate per ton for the Other U.S. Thermal segment during the three and six months ended June 30, 2026 compared to the same periods in the prior year reflects the impact of volume and mix variances across the segment.

Current wording

Depreciation, depletion and amortization expense increased during the nine months ended September 30, 2026 compared to the same period in the prior year primarily due to increased depreciation and amortization resulting from shortened mine lives. The decrease in the weighted-average depletion rate per ton for the Seaborne Thermal segment during the three and nine months ended September 30, 2026 compared to the same periods in the prior year reflects the increased quantity of proven and probable coal reserves at the Wilpinjong Mine resulting from the conversion of coal resources to proven and probable reserves. The increase in the weighted-average depletion rate per ton for the Seaborne Metallurgical segment during the nine months ended September 30, 2026 compared to the same period in the prior year reflects the impact of volume and mix variances across the segment. The decrease in the weighted-average depletion rate per ton for the Other U.S. Thermal segment during the nine months ended September 30, 2026 compared to the same period in the prior year reflects the impact of volume and mix variances across the segment.

Previous wording

Costs Related to Terminated Acquisition. These costs relate to the terminated acquisition of certain assets and businesses associated with Anglo’s metallurgical coal portfolio. In addition to typical costs, such as legal and professional fees, the prior year charges included a $10.4 million duration fee on a now-terminated bridge loan facility. Refer to Note 13. “Commitments and Contingencies” to the accompanying unaudited condensed consolidated financial statements for further information.

Current wording

Costs Related to Terminated Acquisition. These costs relate to the terminated acquisition of certain assets and businesses associated with Anglo’s metallurgical coal portfolio. In addition to typical costs, such as legal and professional fees, the prior year charges included commitment and duration fees on a now-terminated bridge loan facility of $36.3 million and $46.7 million for the three and nine months ended September 30, 2025, respectively. Refer to Note 13. “Commitments and Contingencies” to the accompanying unaudited condensed consolidated financial statements for further information.

Previous wording

Induced Conversion Expense. During the current year, the Company repurchased $241.2 million aggregate principal amount of its outstanding 3.250% Convertible Senior Notes due March 2028 for consideration of $386.8 million. The repurchase of the existing notes was accounted for as an induced conversion, and a portion of the consideration in excess of the amount issuable pursuant to the original conversion terms, $17.2 million, was recognized as expense. Refer to Note 9. “Long-term Debt” to the accompanying unaudited condensed consolidated financial statements for additional information.

Current wording

Induced Conversion Expense. During the current year, the Company repurchased $280.1 million aggregate principal amount of its outstanding 2028 Convertible Notes for consideration of $444.9 million. The repurchase of the existing notes was accounted for as an induced conversion, and a portion of the consideration in excess of the amount issuable pursuant to the original conversion terms, $20.5 million, was recognized as expense. Refer to Note 9. “Long-term Debt” to the accompanying unaudited condensed consolidated financial statements for additional information.

Previous wording

Interest Income. The decrease in income during the three and six months ended June 30, 2026 compared to the same periods in the prior year was driven by lower average cash balances during the current period.

Current wording

Interest Income. The decrease in income during the three and nine months ended September 30, 2026 compared to the same periods in the prior year was driven by lower average cash balances during the current period.

Previous wording

Unrealized (Losses) Gains on Foreign Currency Option Contracts. Unrealized (losses) gains primarily relate to mark-to-market activity on foreign currency option contracts. For additional information, refer to Note 6. “Derivatives and Fair Value Measurements” to the accompanying unaudited condensed consolidated financial statements.

Current wording

Unrealized Gains (Losses) on Foreign Currency Option Contracts. Unrealized gains (losses) primarily relate to mark-to-market activity on foreign currency option contracts. For additional information, refer to Note 6. “Derivatives and Fair Value Measurements” to the accompanying unaudited condensed consolidated financial statements.

Previous wording

Income Tax Benefit (Provision). The increase in the income tax benefit during the three months ended June 30, 2026 compared to the same period in the prior year was primarily due to lower expected pretax income. The increase in the income tax benefit recorded during the six months ended June 30, 2026 compared to the same period in the prior year was driven by expected pretax losses in the current year compared to expected pretax income in the prior year. Refer to Note 8. “Income Taxes” to the accompanying unaudited condensed consolidated financial statements for additional information.

Current wording

Income Tax Benefit. The increase in the income tax benefit during the three and nine months ended September 30, 2026 compared to the same periods in the prior year was primarily due to lower expected pretax income. Refer to Note 8. “Income Taxes” to the accompanying unaudited condensed consolidated financial statements for additional information.

Previous wording

Net (Loss) Income Attributable to Common Stockholders

Current wording

Net Loss Attributable to Common Stockholders

Previous wording

The following table presents net (loss) income attributable to common stockholders:

Current wording

The following table presents net loss attributable to common stockholders:

Previous wording

Net Income Attributable to Noncontrolling Interests. The increase in net income attributable to noncontrolling interests during the three and six months ended June 30, 2026 compared to the same periods in the prior year was primarily driven by income associated with Peabody’s majority-owned Wambo operations in which there is an outside non-controlling interest.

Current wording

Net Income Attributable to Noncontrolling Interests. The increase in net income attributable to noncontrolling interests during the three and nine months ended September 30, 2026 compared to the same periods in the prior year was primarily driven by income associated with Peabody’s majority-owned Wambo operations in which there is an outside non-controlling interest.

Previous wording

Diluted EPS is commensurate with the changes in results from continuing operations and discontinued operations during that period. Diluted EPS reflects weighted average diluted common shares outstanding of 122.0 million and 121.7 million for the three months ended June 30, 2026 and 2025, respectively, and 122.0 million and 122.3 million for the six months ended June 30, 2026 and 2025, respectively.

Current wording

Diluted EPS is commensurate with the changes in results from continuing operations and discontinued operations during that period. Diluted EPS reflects weighted average diluted common shares outstanding of 122.1 million and 121.7 million for the three months ended September 30, 2026 and 2025, respectively, and 122.0 million and 121.7 million for the nine months ended September 30, 2026 and 2025, respectively.

Previous wording

Adjusted EBITDA is defined as (loss) income from continuing operations before deducting net interest expense, income taxes, asset retirement obligation expenses and depreciation, depletion and amortization. Adjusted EBITDA is also adjusted for the discrete items that management excluded in analyzing the reportable segments’ operating performance, as displayed in the reconciliations below.

Current wording

Adjusted EBITDA is defined as loss from continuing operations before deducting net interest expense, income taxes, asset retirement obligation expenses and depreciation, depletion and amortization. Adjusted EBITDA is also adjusted for the discrete items that management excluded in analyzing the reportable segments’ operating performance, as displayed in the reconciliations below.

Previous wording

National Ambient Air Quality Standards (NAAQS). The Clean Air Act (CAA) requires the U.S. Environmental Protection Agency (EPA) to review national ambient air quality standards every five years to determine whether revisions to current standards are appropriate. On March 6, 2024, the EPA revised the level of the primary standard for fine particulate matter (PM 2.5), lowering the annual standard from 12.0 µg/m 3 to 9.0 µg/m 3. The revised PM 2.5 standard was challenged in the U.S. Court of Appeals for the District of Columbia Circuit (D.C. Circuit) in Kentucky v. EPA, (D.C. Cir., No. 24-1050) and subsequently upheld by that court on June 26, 2026. Under the CAA, once a NAAQS is revised states are required to take several actions to implement the revised standards. Such actions could require fossil fuel-fired electric generating units (EGUs) and non-EGUs to install additional emission control technologies or operate in a different manner. Such actions could potentially increase the cost of utilizing fossil fuels for electric generation and industrial uses.

Current wording

National Ambient Air Quality Standards (NAAQS). The CAA requires the EPA to review national ambient air quality standards every five years to determine whether revisions to current standards are appropriate. On March 6, 2024, the EPA revised the level of the primary standard for fine particulate matter (PM 2.5), lowering the annual standard from 12.0 µg/m 3 to 9.0 µg/m 3. The revised PM 2.5 standard was challenged in the U.S. Court of Appeals for the District of Columbia Circuit (D.C. Circuit) in Kentucky v. EPA, (D.C. Cir., No. 24-1050) and subsequently upheld by that court on June 26, 2026. The Commonwealth of Kentucky and the Chamber of Commerce subsequently filed petitions for writs of certiorari with the U.S. Supreme Court. Nos. 26-277. 26-298 (2026).

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On March 6, 2023, the EPA issued a final rule which reaffirmed its determination to regulate coal- and oil-fired EGUs under CAA section 112, including the regulation of HAPs from EGUs after considering cost. On May 7, 2024, the EPA finalized a MATS rule which significantly tightened the filterable PM emissions limit for existing coal-fired EGU’s, lowering the standard from 0.030 lb/MMBtu to 0.010 lb/MMBtu for all coal-fired power plants and lowered the mercury emission standard for lignite-fired EGUs. The EPA, however, subsequently repealed both the lower filterable PM emission limits and the lower mercury standards for lignite plants. 91. Fed. Reg 9088 (February 24, 2026). This rule became effective on April 27, 2026. The rule has been challenged in the U.S. Court of Appeals for the D.C. Circuit. Air Alliance Houston v. EPA, No. 26-1070 (and consolidated case) (D.C. Cir. filed March 30, 2026).

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On March 6, 2023, the EPA issued a final rule which reaffirmed its determination to regulate coal- and oil-fired EGUs under CAA section 112, including the regulation of HAPs from EGUs after considering cost. On May 7, 2024, the EPA finalized a MATS rule which significantly tightened the filterable PM emissions limit for existing coal-fired EGU’s, lowering the standard from 0.030 lb/MMBtu to 0.010 lb/MMBtu for all coal-fired power plants and lowered the mercury emission standard for lignite-fired EGUs. The EPA, however, subsequently repealed both the lower filterable PM emission limits and the lower mercury standards for lignite plants. 91. Fed. Reg 9088 (February 24, 2026). This rule became effective on April 27, 2026. The rule has been challenged in the D.C. Circuit. Air Alliance Houston v. EPA, No. 26-1070 (and consolidated case) (D.C. Cir. filed March 30, 2026).

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Clean Water Act (CWA) Water Quality Certification Rule. The EPA issued a final rule in 2020 that would have limited state and tribal regulators’ certification authority under CWA Section 401 by allowing the EPA to certify projects over state or tribal regulator objections in some circumstances. On September 27, 2023, the EPA finalized a superseding rule that would expand state and tribal regulators’ authority to review activities that require federal permits or licenses and to impose conditions they believe are necessary to ensure compliance with water quality requirements. That rule took effect on November 27, 2023. Challenges to the 2023 rule remain pending in the U.S. District Court for the Western District of Louisiana. On January 15, 2026, the EPA published proposed revisions to the 2023 rule in the Federal Register, and the EPA announced that it planned to finalize changes later in 2026.

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CWA Water Quality Certification Rule. The EPA issued a final rule in 2020 that would have limited state and tribal regulators’ certification authority under CWA Section 401 by allowing the EPA to certify projects over state or tribal regulator objections in some circumstances. On September 27, 2023, the EPA finalized a superseding rule that would expand state and tribal regulators’ authority to review activities that require federal permits or licenses and to impose conditions they believe are necessary to ensure compliance with water quality requirements. That rule took effect on November 27, 2023. Challenges to the 2023 rule remain pending in the U.S. District Court for the Western District of Louisiana. On January 15, 2026, the EPA published proposed revisions to the 2023 rule in the Federal Register, and the EPA announced that it planned to finalize changes later in 2026.

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Effluent Limitations Guidelines for the Steam Electric Power Generating Industry. In 2015, the EPA published a final rule setting requirements for wastewater discharge from EGUs. In 2020, the EPA finalized revisions to certain requirements in the 2015 rule. On May 9, 2024, the EPA published a final rule that would have established more stringent standards for flue gas desulfurization wastewater, bottom ash transport water, combustion residual leachate and legacy wastewater discharged from certain surface impoundments. The final revised effluent limitations guidelines would have significantly increased costs for many coal-fueled steam electric power plants. In addition, the finalized final rule allowed EGUs that commit to ceasing coal combustion by December 31, 2034, to comply with less stringent wastewater discharge requirements during the interim. The final rule remains subject to numerous legal challenges that have been consolidated in the U.S. Court of Appeals for the Eighth Circuit (Eighth Circuit); due to the reconsideration process currently ongoing, however (see below), the proceedings are currently being held in abeyance. If the Eighth Circuit affirms the final rule, it could influence fuel switching or additional coal generating unit retirements by the end of 2034. On December 31, 2025, the EPA published a final Deadline Extensions Rule that extends seven compliance deadlines in the 2024 rule. The EPA is allowing EGUs six additional years (until December 31, 2031) to determine whether to submit a notice of planned participation for the permanent cessation of coal combustion. The EPA further extended the deadlines by five years (to December 31, 2034) for direct discharging EGUs to comply with zero-discharge limitations for flue gas desulfurization wastewater, bottom ash transport water and combustion residual leachate. Finally, the EPA is allowing EGUs that discharge to wastewater treatment plants an additional year-and-a-half to seven-and-a-half years to comply with zero-discharge limitations for those same wastestreams. The Deadline Extensions Rule has been challenged by multiple parties, with the litigation consolidated in the U.S. Court of Appeals for the Second Circuit. A motion to transfer the consolidated petitions to the Eighth Circuit is pending. If the Deadline Extensions Rule is vacated, the 2024 rule’s deadlines could become operative again. The EPA also issued a No Action Assurance memorandum announcing it will not pursue enforcement actions for certain permit violations by EGUs not yet in compliance with permit requirements related to the 2020 and 2024 rules, if those EGUs satisfy certain conditions. On May 18, 2026, the EPA published a proposed rule to clarify applicability of unmanaged combustion residual leachate limitations. 91 Fed. Reg. 28487 (May 18, 2026).

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Effluent Limitations Guidelines for the Steam Electric Power Generating Industry. In 2015, the EPA published a final rule setting requirements for wastewater discharge from EGUs. In 2020, the EPA finalized revisions to certain requirements in the 2015 rule. On May 9, 2024, the EPA published a final rule that would have established more stringent standards for flue gas desulfurization wastewater, bottom ash transport water, combustion residual leachate and legacy wastewater discharged from certain surface impoundments. The final revised effluent limitations guidelines would have significantly increased costs for many coal-fueled steam electric power plants. In addition, the final rule allowed EGUs that commit to ceasing coal combustion by December 31, 2034, to comply with less stringent wastewater discharge requirements during the interim. The final rule remains subject to numerous legal challenges that have been consolidated in the U.S. Court of Appeals for the Eighth Circuit (Eighth Circuit); due to the reconsideration process currently ongoing, however (see below), the proceedings are currently being held in abeyance. If the Eighth Circuit affirms the final rule, it could influence fuel switching or additional coal generating unit retirements by the end of 2034. On December 31, 2025, the EPA published a final Deadline Extensions Rule that extends seven compliance deadlines in the 2024 rule. The EPA is allowing EGUs six additional years (until December 31, 2031) to determine whether to submit a notice of planned participation for the permanent cessation of coal combustion. The EPA further extended the deadlines by five years (to December 31, 2034) for direct discharging EGUs to comply with zero-discharge limitations for flue gas desulfurization wastewater, bottom ash transport water and combustion residual leachate. Finally, the EPA is allowing EGUs that discharge to wastewater treatment plants an additional year-and-a-half to seven-and-a-half years to comply with zero-discharge limitations for those same wastestreams. The Deadline Extensions Rule has been challenged by multiple parties, with the litigation consolidated in the U.S. Court of Appeals for the Second Circuit. If the Deadline Extensions Rule is vacated, the 2024 rule’s deadlines could become operative again. The EPA also issued a No Action Assurance memorandum announcing it will not pursue enforcement actions for certain permit violations by EGUs not yet in compliance with permit requirements related to the 2020 and 2024 rules, if those EGUs satisfy certain conditions. On May 18, 2026, the EPA published a proposed rule to clarify applicability of unmanaged combustion residual leachate limitations. 91 Fed. Reg. 28487 (May 18, 2026).

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Rules for Disposal of Coal Combustion Residuals (CCR) from Electric Utilities; Federal CCR Permit Program and Revisions to Closure Requirements. On February 20, 2020, as required by the Water Infrastructure Improvements for the Nation Act, the EPA proposed a federal permitting program for the disposal of CCR in surface impoundments and landfills. Under the proposal, the EPA would directly implement the permit program in Indian Country and at CCR units located in states that have not submitted their own CCR permit program for approval. The proposal includes requirements for federal CCR permit applications, content and modification, as well as procedural requirements. The comment period for the EPA’s proposal ended on April 20, 2020. The EPA has not yet issued a final rule, but it has indicated that it plans to reopen the comment period for that proposal in a future action. Separately, on August 28, 2020 and November 12, 2020, the EPA finalized two sets of amendments to its 2015 CCR rule to partially address the D.C. Circuit’s 2018 decision holding that certain provisions of that rule were not sufficiently protective. On November 28, 2025, the EPA proposed to extend, by three years, the compliance deadline in the 2020 amendments for owners and operators to complete closure of unlined impoundments larger than 40 acres. On May 8, 2024, the EPA published a final rule containing additional amendments to the 2015 CCR rule that further address aspects of the D.C. Circuit’s 2018 decision. On February 10, 2026, the EPA published a final rule that provides additional time to meet certain requirements in the May 2024 Rule. Finally, on April 9, 2026, the EPA published a proposed rule to amend several provisions governing the disposal of CCR in landfills and surface impoundments and the benefit use for CCR.

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Rules for Disposal of Coal Combustion Residuals (CCR) from Electric Utilities; Federal CCR Permit Program and Revisions to Closure Requirements. On February 20, 2020, as required by the Water Infrastructure Improvements for the Nation Act, the EPA proposed a federal permitting program for the disposal of CCR in surface impoundments and landfills. Under the proposal, the EPA would directly implement the permit program in Indian Country and at CCR units located in states that have not submitted their own CCR permit program for approval. The proposal includes requirements for federal CCR permit applications, content and modification, as well as procedural requirements. The comment period for the EPA’s proposal ended on April 20, 2020, but the EPA reopened the comment period on May 28, 2026. Separately, on August 28, 2020 and November 12, 2020, the EPA finalized two sets of amendments to its 2015 CCR rule to partially address the D.C. Circuit’s 2018 decision holding that certain provisions of that rule were not sufficiently protective. On November 28, 2025, the EPA proposed to extend, by three years, the compliance deadline in the 2020 amendments for owners and operators to complete closure of unlined impoundments larger than 40 acres. On May 8, 2024, the EPA published a final rule containing additional amendments to the 2015 CCR rule that further address aspects of the D.C. Circuit’s 2018 decision. On February 10, 2026, the EPA published a final rule that provides additional time to meet certain requirements in the May 2024 Rule. On April 9, 2026, the EPA published a proposed rule to amend several provisions governing the disposal of CCR in landfills and surface impoundments and the benefit use for CCR. Finally, on July 14, 2026, the EPA published an advance notice of proposed rulemaking soliciting comment on potential development of a general permit to allow owners and operators of CCR facilities to obtain temporary permit coverage pending issuance of an individual permit by the EPA or an approved state. 91 Fed. Reg. 43051.

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SEC Climate-Related Disclosures. On March 6, 2024, the SEC adopted final rules intended to enhance and standardize climate-related disclosures by public companies and in public offerings. Specifically, the final rules required disclosure of, among other things, climate-related risks that have had or are reasonably likely to have a material impact on a public company’s business strategy, results of operations or financial condition; certain greenhouse gas (GHG) emissions associated with a public company along with, in many cases, an attestation report by a GHG emissions attestation provider; and certain climate-related financial metrics to be included in a company’s audited financial statements. The final rules were challenged by multiple parties, and the cases were consolidated into a judicial review by the Eighth Circuit. On April 4, 2024, the SEC voluntarily stayed implementation of the final rules pending such judicial review. On May 29, 2026, the SEC proposed to rescind the final rules, and is accepting comments for 60 days following Federal Register Publication.

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SEC Climate-Related Disclosures. On March 6, 2024, the SEC adopted final rules intended to enhance and standardize climate-related disclosures by public companies and in public offerings. Specifically, the final rules required disclosure of, among other things, climate-related risks that have had or are reasonably likely to have a material impact on a public company’s business strategy, results of operations or financial condition; certain GHG emissions associated with a public company along with, in many cases, an attestation report by a GHG emissions attestation provider; and certain climate-related financial metrics to be included in a company’s audited financial statements. The final rules were challenged by multiple parties, and the cases were consolidated into a judicial review by the Eighth Circuit. On April 4, 2024, the SEC voluntarily stayed implementation of the final rules pending such judicial review. On May 29, 2026, the SEC proposed to rescind the final rules and accepted public comments thereafter.

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Complaints Filed Against “Climate Superfund Laws” and Announced State Actions. On April 30 and May 1, 2025, respectively, the U.S. Department of Justice (DOJ) filed complaints for declaratory and injunctive relief against the states of Michigan and Hawaii regarding alleged liability of fossil fuel companies for past GHG emissions and against New York and Vermont for “climate superfund” laws. On May 4, 2026, the DOJ filed a complaint against the state of Minnesota to halt that state’s climate lawsuit against major energy companies with parallels to the Michigan and Hawaii suits. These complaints allege that existing litigation and state laws interfere with federal law, including the CAA, and with interstate and foreign commerce. The Company will monitor this litigation and its potential impact on the U.S. coal mining industry, its mining operations and customers.

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Complaints Filed Against “Climate Superfund Laws” and Announced State Actions. On April 30 and May 1, 2025, respectively, the U.S. Department of Justice (DOJ) filed complaints for declaratory and injunctive relief against the states of Michigan and Hawaii regarding alleged liability of fossil fuel companies for past GHG emissions and against New York and Vermont for “climate superfund” laws. On May 4, 2026, the DOJ filed a complaint against the state of Minnesota to halt that state’s climate lawsuit against major energy companies with parallels to the Michigan and Hawaii suits. These complaints allege that existing litigation and state laws interfere with federal law, including the CAA, and with interstate and foreign commerce. On September 23, 2026, summary judgment was granted to the United States on the basis that New York’s climate law is preempted by federal law. United States v. State of New York, No. 25-cv-3656 (S.D.N.Y. 2026). In addition, on August 31, 2026, in two consolidated actions challenging New York’s climate superfund law brought by a coalition of states and industry groups, the U.S. District Court for the Northern District of New York granted summary judgment to the plaintiffs, holding that the law is preempted by federal law, and on September 24, 2026, entered judgment enjoining New York from implementing and enforcing the law. State of West Virginia v. James, No. 1:25-cv-00168 (N.D.N.Y. 2026); Chamber of Commerce of the United States of America v. James, No. 1:25-cv-01307 (N.D.N.Y. 2026). The Company will monitor this litigation and its potential impact on the U.S. coal mining industry, its mining operations and customers.