BTU US Equity☆

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The Company’s discussion and analysis of the year ended December 31, 2025 compared to the year ended December 31, 2024 is included herein. For discussion and analysis of the year ended December 31, 2024 compared to the year ended December 31, 2023, please refer to Item 7 of Part II, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Peabody’s Annual Report on Form 10-K for the year ended December 31, 2024, which was filed with the SEC on February 20, 2025 and is incorporated by reference herein.

Non-GAAP Financial Measures

The following discussion of Peabody’s results of operations includes references to and analysis of Adjusted EBITDA and Total Segment Costs, which are financial measures not recognized in accordance with U.S. generally accepted accounting principles (U.S. GAAP). Adjusted EBITDA is used by the chief operating decision maker, defined as Peabody’s President and Chief Executive Officer, as the primary financial metric to measure each segment’s operating performance against expected results and to allocate resources, including capital investment in mining operations and potential expansions. Total Segment Costs is also used by management as a component of a metric to measure each segment’s operating performance.

Also included in the following discussion of Peabody’s results of operations are references to Revenue per Ton, Costs per Ton and Adjusted EBITDA Margin per Ton for each reportable segment. These metrics are used by management to measure each reportable segment’s operating performance. Management believes Costs per Ton and Adjusted EBITDA Margin per Ton best reflect controllable costs and operating results at the reportable segment level. The Company considers all measures reported on a per ton basis to be operating/statistical measures; however, the Company includes reconciliations of the related non-GAAP financial measures (Adjusted EBITDA and Total Segment Costs) in the “Reconciliation of Non-GAAP Financial Measures” section contained within this Item 7.

Peabody Energy Corporation 2025 Form 10-K 56

Table of Contents

Peabody believes non-GAAP measures are used by investors to measure its operating performance. These measures are not intended to serve as alternatives to U.S. GAAP measures of performance and may not be comparable to similarly-titled measures presented by other companies. Refer to the “Reconciliation of Non-GAAP Financial Measures” section contained within this Item 7 for definitions and reconciliations to the most comparable measures under U.S. GAAP.

Overview

In 2025, Peabody sold 122.0 million tons of coal. As of December 31, 2025, the Company reports its results of operations primarily through the following reportable segments: Seaborne Thermal, Seaborne Metallurgical, Powder River Basin and Other U.S. Thermal.

The Company’s seaborne operating platform is primarily export focused with customers spread across several countries, with a portion of its thermal and metallurgical coal sold within Australia. Generally, revenue from individual countries varies year by year based on electricity and steel demand, the strength of the global economy, governmental policies and several other factors, including those specific to each country. The Company classifies its seaborne mines within the Seaborne Thermal or Seaborne Metallurgical reportable segments based on the primary customer base and coal reserve type of each mining operation. A small portion of the coal mined by the Seaborne Thermal reportable segment is of a metallurgical grade. Similarly, a small portion of the coal mined by the Seaborne Metallurgical reportable segment is of a thermal grade. Additionally, the Company may market some of its metallurgical coal products as a thermal coal product from time to time depending on market conditions. Peabody’s Seaborne Thermal and Seaborne Metallurgical reportable segments contributed approximately 53% of the Company’s total Adjusted EBITDA from its mining operations during the year ended December 31, 2025.

The Company’s Seaborne Thermal operations consist of mines in New South Wales, Australia. The mines in that reportable segment utilize surface extraction processes to mine low-sulfur, high Btu thermal coal. Prior to September 2025, when the Wambo Underground Mine ceased production, the reportable segment also used underground extraction processes.

The Company’s Seaborne Metallurgical operations consist of mines in Queensland, Australia, one in New South Wales, Australia and one in Alabama, USA. The mines in that reportable segment utilize both surface and underground extraction processes to mine various qualities of metallurgical coal. The metallurgical coal qualities include hard coking coal, semi-hard coking coal, semi-soft coking coal and pulverized coal injection coal.

The Company’s thermal operations in the U.S. are focused on the mining, preparation and sale of thermal coal, sold primarily to electric utilities in the U.S. under long-term contracts, with a relatively small portion sold as international exports as conditions warrant. The Company’s Powder River Basin operations consist of its mines in Wyoming. The mines in that reportable segment are characterized by surface mining extraction processes, coal with a lower sulfur content and Btu and higher customer transportation costs (due to longer shipping distances). The Company’s Other U.S. Thermal operations reflect the aggregation of its Illinois, Indiana, New Mexico and Colorado mining operations. The mines in that reportable segment are characterized by a mix of surface and underground mining extraction processes, coal with a higher sulfur content and Btu and lower customer transportation costs (due to shorter shipping distances). Geologically, the Company’s Powder River Basin operations mine sub-bituminous coal deposits and its Other U.S. Thermal operations mine both bituminous and sub-bituminous coal deposits. Peabody’s Powder River Basin and Other U.S. Thermal reportable segments contributed approximately 47% of the Company’s total Adjusted EBITDA from its mining operations during the year ended December 31, 2025.

Corporate and Other includes selling and administrative expenses, results from equity method investments, trading and brokerage activities, minimum charges on certain transportation-related contracts, the closure of inactive mining sites, the impact of foreign currency remeasurement and certain commercial matters.

Resource Management. As of December 31, 2025, Peabody controlled approximately 2.0 billion tons of proven and probable coal reserves, 3.5 billion tons of coal resources and approximately 335,000 acres of surface property through ownership and lease agreements. The Company has an ongoing asset optimization program whereby its property management group regularly reviews these coal reserves, coal resources and surface properties for opportunities to generate earnings and cash flow through the sale or exchange of non-strategic coal reserves, coal resources and surface lands. These surface lands include acres where Peabody has completed post-mining reclamation. In addition, the Company generates revenue through royalties from coal reserves and oil and gas rights leased to third parties, farm income from surface lands under third-party contracts and lease income from surface lands under contracts with renewable energy ventures.

Peabody Energy Corporation 2025 Form 10-K 57

Table of Contents

Middlemount Mine. Peabody owns a 50% equity interest in Middlemount, which owns the Middlemount Mine in Queensland, Australia. The mine predominantly produces semi-hard coking coal and low-volatile pulverized coal injection (LV PCI) coal for sale into seaborne coal markets through Abbot Point Coal Terminal, with some capacity also secured at Dalrymple Bay Coal Terminal. Mining operations first commenced at the Middlemount Mine in late 2011. During the years ended December 31, 2025 and 2024, the mine sold 1.5 million and 1.3 million tons of coal, respectively (on a 50% basis).

Summary

Pricing during the year ended December 31, 2025 is set forth in the table below.

(1) Spot pricing expressed per metric tonne.

(2) Prompt month pricing expressed per short ton.

The seaborne pricing included in the table above is not necessarily indicative of the pricing the Company realized during the year ended December 31, 2025 due to quality differentials and a portion of its seaborne sales being executed through annual and multi-year international coal supply agreements that contain provisions requiring both parties to renegotiate pricing periodically, with spot, index and quarterly sales arrangements also utilized. The Company’s typical practice is to negotiate pricing for seaborne metallurgical coal contracts on a quarterly, spot or index basis and seaborne thermal coal contracts on an annual, spot or index basis.

In the U.S., the pricing included in the table above is also not necessarily indicative of the pricing the Company realized during the year ended December 31, 2025 since the Company generally sells coal under long-term contracts where pricing is determined based on various factors. Such long-term contracts in the U.S. may vary significantly in many respects, including price adjustment features, price reopener terms, coal quality requirements, quantity parameters, permitted sources of supply, treatment of environmental constraints, extension options, force majeure and termination and assignment provisions. Competition from alternative fuels such as natural gas and other fuel sources may also impact the Company’s realized pricing.

Within the global coal industry, supply and demand for its products and the supplies used for mining are being impacted by recent changes to trade policy, including tariffs and customs regulations. As future developments related to 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 year ended December 31, 2025 presented herein may not be indicative of their ultimate impacts.

Within the seaborne metallurgical coal market, metallurgical coal prices were mixed during the year ended December 31, 2025. Globally, both steel production and pig iron production (which predominantly utilizes metallurgical coal) declined during the period. In China, lower domestic steel consumption constrained output, while producers in most other countries experienced competitive pressure from increased Chinese steel exports. India was an exception, expanding its steel making capabilities and increasing pig iron output versus the prior year. Metallurgical coal prices were influenced by lower global steel output in 2025, with premium hard coking coal prices averaging lower in 2025 than 2024. However, metallurgical coal supply curtailment events, such as wet weather disruptions in Australia and changing rates of Chinese coal production, at times contributed to seaborne metallurgical coal price support. In addition, geopolitical trends and trade policies, including tariff regimes, continue to influence global metallurgical trade flows. Looking forward, the seaborne metallurgical coal price may remain volatile based on China’s coal production policies, the pace of growth of the Indian steel industry, changing global trade policies and global supply curtailment actions.

Peabody Energy Corporation 2025 Form 10-K 58

Table of Contents

Within the seaborne thermal coal market, global thermal coal prices were mixed during the year ended December 31, 2025. In China, power generation increased year-over-year through December 31, 2025, however the share of renewables in the generation mix continued to grow, pressuring coal generation. In addition, domestic coal production increased slightly year-over-year, which led to weaker coal import demand through the year ended December 31, 2025. In India, steady domestic coal production, lower import demand and declining coal generation led to stable coal stockpiles. Looking forward, seaborne thermal coal prices may remain volatile based on the outcomes of China’s supply reforms, winter re-stocking activity in the Northern Hemisphere and volatility in global natural gas markets which can impact global thermal coal markets.

In the U.S., overall electricity demand increased over 2% year-over-year. Through the year ended December 31, 2025, electricity generation from thermal coal increased year-over-year, driven by higher natural gas prices and stronger total generation. Coal’s share of electricity generation increased to approximately 16% for the year ended December 31, 2025, while wind and solar’s combined generation share was at 19% and the share of natural gas generation declined to approximately 40%. U.S. coal inventories have declined through December 31, 2025, driven by stronger coal utilization, resulting in stockpiles declining 20 million tons below levels seen at the end of 2024.

Centurion Mine

During 2025, Peabody continued to advance the development of the Centurion Mine, an underground longwall metallurgical coal mine in Queensland, Australia. Full-scale longwall production commenced in February 2026. The mine is expected to enhance both the quantity and quality of the Company’s production from the Seaborne Metallurgical reportable segment.

Arbitration Relating to Terminated Anglo Acquisition

On November 25, 2024, Peabody entered into Purchase Agreements with Anglo, to acquire a portion of the assets and businesses associated with Anglo’s metallurgical coal portfolio in Australia, including Anglo’s interests in the Moranbah North and Grosvenor mines, the Moranbah South development project, the Capcoal complex, the Roper Creek mine and the Dawson complex (comprising the Dawson Main/Central operating mine, the Dawson South operating mine, the Dawson South Exploration project and the Theodore South exploration project, collectively, the Dawson Assets). The Company agreed to, following the prospective closing of the Anglo acquisition, sell the Dawson Assets to Pt Bukit Makmur Mandiri Utama or one of its subsidiaries (BUMA).

On August 19, 2025, Peabody terminated the Purchase Agreements. The termination of the Purchase Agreements followed Peabody’s prior delivery of a notice of a 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. See Note 1. “Summary of Significant Accounting Policies” and Note 20. “Commitments and Contingencies” to the accompanying consolidated financial statements for further information.

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. Peabody remains confident that a MAC occurred, and that it was entitled to terminate the Purchase Agreements.

Potential Recovery of Rare Earth Elements

Peabody has been evaluating the potential recovery of REEs and CMs, with substantial testing at its Powder River Basin operations. The Company is progressing its REE/CM initiative by conducting testing to evaluate mineral types and concentrations; developing flowsheets in conjunction with technology partners to support technical and economic assessments and produce rare earth products; and collaborating with governmental agencies and departments at the state and federal level. In February 2026, the Wyoming Energy Authority awarded Peabody funding of $6.25 million for a pilot plant using Peabody’s Powder River Basin coal for REE/CM processing.

Results of Operations

Year Ended December 31, 2025 Compared to Year Ended December 31, 2024

The decrease in results from continuing operations, net of income taxes for the year ended December 31, 2025 compared to the prior year ($449.6 million) was primarily driven by lower revenue ($375.2 million) due to lower seaborne coal pricing, the prior year insurance recovery at the Shoal Creek Mine ($109.5 million) and increased costs related to the terminated Anglo acquisition ($68.6 million). These unfavorable variances were partially offset by a lower income tax provision ($100.0 million) and lower operating costs and expenses ($86.0 million).

Peabody Energy Corporation 2025 Form 10-K 59

Table of Contents

Adjusted EBITDA for the year ended December 31, 2025 reflected a year-over-year decrease of $416.8 million.

Tons Sold

The following table presents tons sold:

(Decrease) Increase

Year Ended December 31, to Volumes

(Tons in millions)

Total tons sold from reportable segments 121.9 117.9 4.0 3.4 %

Corporate and Other 0.1 0.1 — — %

Supplemental Financial Data

The following table presents supplemental financial data by reportable segment:

Year Ended December 31, (Decrease) Increase

Revenue per Ton (1)

Costs per Ton (1) (2)

Adjusted EBITDA Margin per Ton (1) (2)

(1)This is an operating/statistical measure not recognized in accordance with U.S. GAAP. Refer to the “Reconciliation of Non-GAAP Financial Measures” section below for definitions and reconciliations to the most comparable measures under U.S. GAAP.

(2)Includes revenue-based production taxes and royalties; excludes depreciation, depletion and amortization; asset retirement obligation expenses; selling and administrative expenses; restructuring charges; asset impairment; amortization of take-or-pay contract-based intangibles; insurance recoveries; and certain other costs related to post-mining activities.

Peabody Energy Corporation 2025 Form 10-K 60

Table of Contents

Revenue

The following table presents revenue by reportable segment:

(Decrease) Increase

Year Ended December 31, to Revenue

(Dollars in millions)

Seaborne Thermal. The decrease in segment revenue during the year ended December 31, 2025 compared to the prior year was due to unfavorable realized prices ($245.0 million) and unfavorable volume ($60.4 million) due in part to reductions at the Wilpinjong Mine.

Seaborne Metallurgical. Segment revenue decreased during the year ended December 31, 2025 compared to the prior year due to unfavorable realized prices ($219.2 million), offset by favorable volume ($200.2 million) from the Shoal Creek and Centurion Mines.

Powder River Basin. Segment revenue increased during the year ended December 31, 2025 compared to the prior year due to favorable volume ($72.7 million) resulting from increased demand, offset by unfavorable realized prices ($18.5 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 OBBBA.

Other U.S. Thermal. The decrease in segment revenue during the year ended December 31, 2025 compared to the prior year was due to unfavorable volume ($43.2 million) resulting from decreased demand, dragline outages at the Bear Run Mine and challenging geological conditions at the Twentymile Mine; decreased revenue from sales contract cancellation settlements ($37.7 million); and unfavorable realized prices ($34.4 million).

Corporate and Other. Segment revenue increased during the year ended December 31, 2025 compared to the prior year due to higher results from trading activities ($7.6 million).

Segment Costs

The following table presents costs by reportable segment:

(Decrease) Increase

Year Ended December 31, to TotalSegment Costs

(Dollars in millions)

(1)This is a financial measure not recognized in accordance with U.S. GAAP. Refer to the “Reconciliation of Non-GAAP Financial Measures” section below for definitions and reconciliations to the most comparable measures under U.S. GAAP.

Seaborne Thermal. The decrease in Segment Costs during the year ended December 31, 2025 compared to the prior year was due to lower costs for labor, repairs and outside services ($73.9 million) resulting from timing of maintenance and operational improvements, lower sales related costs ($28.0 million) driven by both lower realized prices and volume, lower leasing expense ($9.0 million) and favorable commodity pricing ($8.0 million); offset by higher recognized costs resulting from sales volume outpacing production volume ($26.0 million).

Peabody Energy Corporation 2025 Form 10-K 61

Table of Contents

Seaborne Metallurgical. Segment Costs increased during the year ended December 31, 2025 compared to the prior year due to higher variable operational and sales related costs driven by increased volume (1.3 million tons).

Powder River Basin. The increase in Segment Costs during the year ended December 31, 2025 compared to the prior year was primarily due to higher costs for labor, repairs and outside services ($26.7 million) due in part to unplanned dragline outages, haul truck repairs and increased volume (4.9 million tons), offset by lower sales related costs ($16.4 million) which were largely driven by the federal royalty rate reduction on coal production included in the OBBBA.

Other U.S. Thermal. The decrease in Segment Costs during the year ended December 31, 2025 compared to the prior year was driven by lower volume (1.2 million tons) and lower costs for labor ($13.3 million).

Corporate and Other. Segment costs decreased during the year ended December 31, 2025 compared to the prior year primarily due to favorable remeasurement of foreign currency denominated monetary assets, substantially comprised of Australian dollar denominated restricted cash and cash collateral, offset by higher expense from trading activities and lower amortization of prior service credit.

Adjusted EBITDA

The following table presents Adjusted EBITDA for each of the Company’s reportable segments:

(Decrease) Increase to

Year Ended December 31, Adjusted EBITDA

(Dollars in millions)

(1)This is a financial measure not recognized in accordance with U.S. GAAP. Refer to the “Reconciliation of Non-GAAP Financial Measures” section below for definitions and reconciliations to the most comparable measures under U.S. GAAP.

Seaborne Thermal. Segment Adjusted EBITDA decreased during the year ended December 31, 2025 compared to the same period in the prior year as a result of lower realized prices net of sales price sensitive costs ($227.7 million) and unfavorable volume ($59.5 million), offset by favorable operational costs as described above.

Seaborne Metallurgical. Segment Adjusted EBITDA decreased during the year ended December 31, 2025 compared to the same period in the prior year due to lower realized prices net of sales price sensitive costs ($168.8 million) and the prior year Shoal Creek insurance recovery ($80.8 million), offset by favorable volume.

Powder River Basin. Segment Adjusted EBITDA increased during the year ended December 31, 2025 compared to the same period in the prior year as a result of favorable volume ($38.9 million); lower sales related costs ($16.4 million) as described above; and decreased overburden removal costs ($6.4 million). The increases were offset by higher costs for labor, repairs and outside services as described above.

Other U.S. Thermal. Segment Adjusted EBITDA decreased during the year ended December 31, 2025 compared to the same period in the prior year due to decreased sales contract cancellation settlements ($37.7 million) and lower realized prices net of sales price sensitive costs ($29.8 million).

Peabody Energy Corporation 2025 Form 10-K 62

Table of Contents

Corporate and Other Adjusted EBITDA. The following table presents a summary of the components of Corporate and Other Adjusted EBITDA:

(Decrease) Increase

Year Ended December 31, to Income

(Dollars in millions)

Selling and administrative expenses (105.0) (91.0) (14.0) (15.4) %

Corporate and Other Adjusted EBITDA $ (70.9) $ (90.2) $ 19.3 21.4 %

(1)Middlemount’s results are before the impact of related changes in amortization of basis difference.

(2)Includes gains (losses) on certain surplus coal reserve, coal resource and surface land sales and property management costs and revenue.

(3)Includes trading and brokerage activities, costs associated with post-mining activities, gains (losses) on certain asset disposals, minimum charges on certain transportation-related contracts, results from the Company’s equity method investment in renewable energy joint ventures, costs associated with suspended operations, holding costs associated with the Centurion Mine, the impact of foreign currency remeasurement and expenses related to the Company’s other commercial activities.

Corporate and Other Adjusted EBITDA increased during the year ended December 31, 2025 compared to the same period in the prior year. Unfavorable variances in Middlemount’s results driven by lower sales pricing and higher selling and administrative expenses were partially offset by higher gains on equipment and land sales ($17.9 million). The increase in other items was driven by the favorable remeasurement of foreign currency denominated monetary assets, substantially comprised of Australian dollar denominated restricted cash and cash collateral ($62.7 million), offset by the lower amortization of prior service credit ($10.9 million) and unfavorable trading results ($6.5 million).

(Loss) Income From Continuing Operations, Net of Income Taxes

The following table presents (loss) income from continuing operations, net of income taxes:

(Decrease) Increase to Income

Year Ended December 31,

(Dollars in millions)

Depreciation, depletion and amortization (384.5) (343.0) (41.5) (12.1) %

Asset retirement obligation expenses (36.5) (48.9) 12.4 25.4 %

Costs related to terminated acquisition (78.9) (10.3) (68.6) (666.0) %

Shoal Creek insurance recovery - property damage — 28.7 (28.7) (100.0) %

Other operating loss (5.6) (3.7) (1.9) (51.4) %

Interest expense, net of capitalized interest (43.9) (46.9) 3.0 6.4 %

Take-or-pay contract-based intangible recognition 1.0 3.0 (2.0) (66.7) %

(1)This is a financial measure not recognized in accordance with U.S. GAAP. Refer to the “Reconciliation of Non-GAAP Financial Measures” section below for definitions and reconciliations to the most comparable measures under U.S. GAAP.

Peabody Energy Corporation 2025 Form 10-K 63

Table of Contents

Depreciation, Depletion and Amortization. The following table presents a summary of depreciation, depletion and amortization expense by reportable segment:

Decrease

Year Ended December 31, to Income

(Dollars in millions)

Additionally, the following table presents a summary of the Company’s weighted-average depletion rate per ton for active mines in each of its reportable segments:

Year Ended December 31,

Seaborne Metallurgical 3.37 2.89

Depreciation, depletion and amortization expense increased during the year ended December 31, 2025 compared to the same period in the prior year primarily due to increased depreciation resulting from asset additions and increased depletion expense primarily due to increased volume from the Shoal Creek and Centurion Mines. The changes in the weighted-average depletion rate per ton for the Seaborne Thermal, the Seaborne Metallurgical and the Other U.S. Thermal segments during the year ended December 31, 2025 compared to the same period in the prior year reflect the impact of volume and mix variances across the segments.

Asset Retirement Obligation Expenses. Asset retirement obligation expenses decreased during the year ended December 31, 2025 compared to the same period in the prior year due to favorable revisions to the estimates for closed mines.

Costs Related to Terminated Acquisition. These costs relate to the terminated acquisition of multiple metallurgical coal mines from Anglo. In addition to typical costs, such as legal and professional fees, the charges include commitment and duration fees on the bridge loan facility of $20.8 million and $25.9 million, respectively, during the year ended December 31, 2025. Refer to Note 1. “Summary of Significant Accounting Policies” and Note 20. “Commitments and Contingencies” to the accompanying consolidated financial statements for further information regarding the acquisition, which information is incorporated herein by reference.

Shoal Creek Insurance Recovery - Property Damage. During June 2024, the Company reached a settlement related to the Shoal Creek losses and recorded a $109.5 million insurance recovery, as discussed in Note 16. “Other Events” in the accompanying consolidated financial statements. Of this amount, Adjusted EBITDA excludes an allocated amount applicable to losses recognized at the time of the insurance recovery related to longwall development and equipment deemed inoperable within the affected area of the mine, which consisted of $28.7 million recognized during the year ended December 31, 2023. The remaining $80.8 million, applicable to incremental costs and business interruption recoveries, was included in Adjusted EBITDA for the year ended December 31, 2024.

Interest Income. The decrease in interest income during the year ended December 31, 2025 compared to the prior year was driven by lower average cash balances during the current period.

Net Mark-to-Market Adjustment on Actuarially Determined Liabilities. The gain recorded during the year ended December 31, 2025 was driven by the favorable impacts of changes for the postretirement benefit plans related to updated claims experience and favorable expected future claims costs, based upon recent Centers for Medicare and Medicaid Services direct subsidy announcements ($15.1 million) and mark-to-market gains on pension plan assets ($2.1 million). These increases were offset by negative adjustments to Peabody’s black lung compensation liabilities resulting from increased claims ($4.5 million), decreases to the discount rates for all actuarially determined liabilities ($3.9 million) and unfavorable impacts of medical trend updates for the postretirement benefit plans ($3.8 million).

Peabody Energy Corporation 2025 Form 10-K 64

Table of Contents

The gain recorded during the year ended December 31, 2024 was driven by the favorable impacts of changes for the postretirement benefit plans related to updated claims experience ($12.4 million) and increases to the discount rates for all actuarially determined liabilities ($5.7 million). These increases were offset by negative adjustments to Peabody’s black lung and traumatic workers’ compensation liabilities resulting from increased claims ($8.8 million) and mark-to-market losses on pension plan assets ($5.4 million).

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 5. “Derivatives and Fair Value Measurements” to the accompanying consolidated financial statements.

Income Tax Provision. The decrease in the income tax provision recorded during the year ended December 31, 2025 compared to the prior year period was primarily due to lower pretax income from the Company’s tax-paying foreign jurisdictions. Refer to Note 7. “Income Taxes” to the accompanying consolidated financial statements for additional information.

Net (Loss) Income Attributable to Common Stockholders

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

(Decrease) Increase

Year Ended December 31, to Income

(Dollars in millions)

Loss from discontinued operations, net of income taxes (0.2) (3.8) 3.6 94.7 %

Net Income Attributable to Noncontrolling Interests. The decrease in net income attributable to noncontrolling interests during the year ended December 31, 2025 compared to the prior year period was primarily due to a decline in the financial results of Peabody’s majority-owned Wambo operation in which there is an outside non-controlling interest.

Diluted Earnings per Share (EPS)

The following table presents diluted EPS:

(Decrease) Increase

Year Ended December 31, to EPS

Diluted EPS attributable to common stockholders:

(Loss) income from continuing operations $ (0.43) $ 2.73 $ (3.16) (115.8) %

Loss from discontinued operations — (0.03) 0.03 100.0 %

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 121.8 million and 141.9 million for the years ended December 31, 2025 and 2024, respectively.

Peabody Energy Corporation 2025 Form 10-K 65

Table of Contents

Reconciliation of Non-GAAP Financial Measures

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.

Year Ended December 31,

(Dollars in millions)

(Loss) income from continuing operations, net of income taxes $ (42.3) $ 407.3

Depreciation, depletion and amortization 384.5 343.0

Asset retirement obligation expenses 36.5 48.9

Restructuring charges 9.5 4.4

Costs related to terminated acquisition 78.9 10.3

Shoal Creek insurance recovery - property damage — (28.7)

Other operating loss 5.6 3.7

Interest expense, net of capitalized interest 43.9 46.9

Net mark-to-market adjustment on actuarially determined liabilities (5.4) (6.1)

Unrealized (gains) losses on foreign currency option contracts (6.0) 9.0

Take-or-pay contract-based intangible recognition (1.0) (3.0)

Total Segment Costs is defined as operating costs and expenses adjusted for the discrete items that management excluded in analyzing each of its reportable segments’ operating performance, as displayed in the reconciliations below:

Year Ended December 31,

(Dollars in millions)

Unrealized gains (losses) on foreign currency option contracts 6.0 (9.0)

Take-or-pay contract-based intangible recognition 1.0 3.0

Net periodic benefit credit, excluding service cost (29.7) (40.6)

Revenue per Ton and Adjusted EBITDA Margin per Ton are equal to revenue by segment and Adjusted EBITDA by segment (excluding insurance recoveries), respectively, divided by segment tons sold. Costs per Ton is equal to Revenue per Ton less Adjusted EBITDA Margin per Ton.

Peabody Energy Corporation 2025 Form 10-K 66

Table of Contents

The following tables present tons sold, revenue, Total Segment Costs and Adjusted EBITDA by reportable segment:

Seaborne Thermal Seaborne Metallurgical Powder River Basin Other U.S. Thermal

(Amounts in millions, except per ton data)

Seaborne Thermal Seaborne Metallurgical Powder River Basin Other U.S. Thermal

(Amounts in millions, except per ton data)

Shoal Creek insurance recovery - business interruption — 80.8 — —

Liquidity and Capital Resources

Overview

The Company’s primary source of cash is proceeds from the sale of its coal production to customers. The Company has also generated cash from the sale of non-strategic assets, including coal reserves, coal resources and surface lands, and, from time to time, borrowings under its credit facilities and the issuance of securities. The Company’s primary uses of cash include the cash costs of coal production, capital expenditures, coal reserve lease and royalty payments, debt service costs, finance and operating lease payments, early debt retirements, postretirement plans, take-or-pay obligations, post-mining reclamation obligations, collateral requirements, dividends, share repurchases and selling and administrative expenses.

Any future determinations to return capital to stockholders, such as dividends or share repurchases, will depend on a variety of factors, including the Company’s net income or other sources of cash, liquidity position and potential alternative uses of cash, such as internal development projects or acquisitions, as well as economic conditions and expected future financial results. The Company’s ability to early retire debt, declare dividends or repurchase shares in the future will depend on its future financial performance, which in turn depends on the successful implementation of its strategy and on financial, competitive, regulatory, technical and other factors, general economic conditions, demand for and selling prices of coal and other factors specific to its industry, many of which are beyond the Company’s control.

Peabody Energy Corporation 2025 Form 10-K 67

Table of Contents

Liquidity

As of December 31, 2025, the Company’s cash and cash equivalents balances totaled $575.3 million, including approximately $413 million held by U.S. subsidiaries, approximately $150 million held by Australian subsidiaries and the remainder held by other foreign subsidiaries in accounts predominantly domiciled in the U.S. A significant majority of the cash held by the Company’s foreign subsidiaries is denominated in U.S. dollars. This cash is generally used to support non-U.S. liquidity needs, including capital and operating expenditures in Australia and payment of the foreign subsidiaries’ share of certain U.S. corporate expenditures. From time to time, the Company may repatriate profits from its foreign subsidiaries to the U.S. in the form of intercompany dividends. During the year ended December 31, 2025, no profits from foreign subsidiaries were repatriated. If foreign-held cash is repatriated in the future, the Company does not expect restrictions or potential taxes will have a material effect to its near-term liquidity.

The Company’s available liquidity decreased to $942.1 million as of December 31, 2025 from $1,072.5 million as of December 31, 2024. Available liquidity was comprised of the following:

December 31,

(Dollars in millions)

Cash and cash equivalents $ 575.3 $ 700.4

Revolving credit facility availability 270.8 233.7

Accounts receivable securitization program availability 96.0 138.4

Capital Returns to Shareholders

The Company paid dividends of $36.5 million during the year ended December 31, 2025.

Surety Agreement Amendment and Collateral Requirements

In April 2023, the Company amended its existing agreement with the providers of its surety bond portfolio, dated November 6, 2020. Under the April 2023 amendment, the Company and its surety providers agreed to a maximum aggregate collateral amount based upon bonding levels which will vary prospectively as bonding levels increase or decrease. The amendment also extended the agreement through December 31, 2026. In order to maintain the maximum collateral agreement, the Company must remain compliant with a minimum liquidity test and a maximum net leverage ratio, as measured each quarter. The minimum liquidity test requires the Company to maintain liquidity at the greater of $400 million or the difference between the penal sum of all surety bonds and the amount of collateral posted in favor of surety providers, which was $487.3 million at December 31, 2025. The Company must also maintain a maximum net leverage ratio of 1.5 to 1.0, where the numerator consists of its funded debt, net of cash, and the denominator consists of its Adjusted EBITDA for the trailing twelve months. For purposes of calculating the ratio, only 50% of the outstanding principal amount of the Company’s 3.250% Convertible Senior Notes due March 2028 (the 2028 Convertible Notes) is deemed to be funded debt. The Company’s ability to pay dividends and make share repurchases is also subject to the quarterly minimum liquidity test. The Company is in compliance with such requirements at December 31, 2025.

At December 31, 2025, the Company’s maximum aggregate collateral amount was $509.9 million, which was comprised of $383.6 million in trust accounts and letters of credit of $126.3 million held for the benefit of certain surety providers.

Credit Support Facilities

In February 2022, the Company entered into an agreement, which provides up to $250.0 million of capacity for irrevocable standby letters of credit, primarily to support reclamation bonding requirements. The initial agreement required the Company to provide cash collateral at a level of 103% of the aggregate amount of letters of credit outstanding under the arrangement (limited to $5.0 million total excess collateralization.) Outstanding letters of credit bear a fixed fee in the amount of 0.75% per annum. The Company receives a variable deposit rate on the amount of cash collateral posted in support of letters of credit. The agreement was amended on November 3, 2025, to (i) extend the expiration date to December 31, 2030 and (ii) reduce the required minimum cash collateral amount to 102% of the aggregate amount of letters of credit outstanding under the agreement, provided that in the event the Company’s credit rating falls below certain thresholds, the minimum collateral amount shall increase to 103%. At December 31, 2025, letters of credit of $114.6 million were outstanding under the agreement, which were collateralized by cash of $116.9 million.

Peabody Energy Corporation 2025 Form 10-K 68

Table of Contents

In December 2023, the Company established cash-backed bank guarantee facilities, primarily to support Australian reclamation bonding requirements. The Company receives a variable deposit rate on the amount of cash collateral posted in support of the bank guarantee facilities, which mature at various dates between 2026 and 2029. At December 31, 2025, the bank guarantee facilities were backed by cash of $208.7 million.

Revolving Credit Facility

The Company established a revolving credit facility with a maximum aggregate principal amount of $320.0 million in revolving commitments by entering into a credit agreement, dated as of January 18, 2024 (the 2024 Credit Agreement), by and among the Company, as borrower, certain subsidiaries of the Company party thereto, PNC Bank, National Association, as administrative agent, and the lenders party thereto.

The revolving commitments and any related loans, if applicable (any such loans, the Revolving Loans), established by the 2024 Credit Agreement terminate or mature, as applicable, on January 18, 2028, subject to certain conditions relating to the Company’s outstanding 2028 Convertible Notes. The Revolving Loans bear interest at a secured overnight financing rate plus an applicable margin ranging from 3.50% to 4.25%, depending on the Company’s total net leverage ratio (as defined under the 2024 Credit Agreement) or a base rate plus an applicable margin ranging from 2.50% to 3.25%, at the Company’s option. Letters of credit issued under the 2024 Credit Agreement incur a combined fee equal to an applicable margin ranging from 3.50% to 4.25% plus a fronting fee equal to 0.125% per annum. Unused capacity under the 2024 Credit Agreement bears a commitment fee of 0.50% per annum. On November 25, 2024, the Company amended the 2024 Credit Agreement to, among other things, permit (i) Peabody’s then-planned acquisition of multiple coal mines from Anglo, (ii) the related bridge loan facility and (iii) the incurrence of additional indebtedness to finance the acquisition, subject to compliance with certain pro forma financial covenants. As further discussed in Note 1. “Summary of Significant Accounting Policies,” Peabody terminated the acquisition with Anglo on August 19, 2025.

As of December 31, 2025, the 2024 Credit Agreement had only been utilized for letters of credit, including $49.2 million outstanding as of December 31, 2025. These letters of credit support the Company’s reclamation bonding requirements, lease obligations, insurance policies and various other performance guarantees as further described in Note 19. “Financial Instruments, Guarantees With Off-Balance-Sheet Risk and Other Guarantees.” Availability under the 2024 Credit Agreement was $270.8 million at December 31, 2025.

The 2024 Credit Agreement contains customary covenants that, among other things and subject to certain exceptions (including compliance with financial ratios), may limit the Company and its subsidiaries’ ability to incur additional indebtedness, make certain restricted payments or investments, sell or otherwise dispose of assets, enter into transactions with affiliates, create or incur liens, and merge, consolidate or sell all or substantially all of their assets. The 2024 Credit Agreement is secured by substantially all assets of the Company and its U.S. subsidiaries, as well as a pledge of two Australian subsidiaries.

Capital Expenditures

For 2026, the Company is targeting total capital expenditures of approximately $340 million.

Indebtedness

The Company’s total indebtedness as of December 31, 2025 and 2024 is presented in the table below.

December 31,

Debt Instrument (defined below, as applicable) 2025 2024

(Dollars in millions)

BUMA Loan Note — 9.3

Finance lease obligations 20.8 25.1

Less: Debt issuance costs (4.4) (6.3)

Less: Current portion of long-term debt 15.2 15.8

The Company’s indebtedness requires estimated contractual principal and interest payments, assuming interest rates in effect at December 31, 2025, of approximately $25 million in 2026, $16 million in 2027, $327 million in 2028 and less than $1 million in 2029 and thereafter.

Peabody Energy Corporation 2025 Form 10-K 69

Table of Contents

The Company paid cash of $39.5 million, $37.6 million and $61.9 million during the years ended December 31, 2025, 2024, and 2023, respectively, for interest, net of capitalized interest, related to the Company’s indebtedness and financial assurance instruments.

2028 Convertible Notes

On March 1, 2022, through a private offering, the Company issued the 2028 Convertible Notes in the aggregate principal amount of $320.0 million. The 2028 Convertible Notes are senior unsecured obligations of the Company and are governed under an indenture.

The Company used the proceeds of the offering of the 2028 Convertible Notes and available cash to redeem its then-existing senior secured notes and to pay related premiums, fees and expenses relating to the offering and redemptions.

The 2028 Convertible Notes will mature on March 1, 2028, unless earlier converted, redeemed or repurchased in accordance with their terms. The 2028 Convertible Notes bear interest at a rate of 3.250% per year, payable semi-annually in arrears on March 1 and September 1 of each year.

During the fourth quarter of 2025, the Company’s reported common stock prices prompted the conversion feature of the 2028 Convertible Notes. As a result, the 2028 Convertible Notes are convertible at the option of the holders during the first quarter of 2026. It is the Company’s current intent and policy to settle any conversions of the 2028 Convertible Notes through shares of its common stock. As such, the 2028 Convertible Notes are not classified as a current obligation in the accompanying consolidated balance sheets. Through February 18, 2026, the Company has not received any conversion requests and does not anticipate receiving any conversion requests in the near term as the market value of the 2028 Convertible Notes exceeds their conversion value.

Accounts Receivable Securitization Program

As described in Note 19. “Financial Instruments, Guarantees With Off-Balance-Sheet Risk and Other Guarantees” of the accompanying consolidated financial statements, the Company entered into an accounts receivable securitization program during 2017. The securitization program provides up to $225.0 million of funding capacity which is accounted for as a secured borrowing, limited to the availability of eligible receivables, and may be secured by a combination of collateral and the trade receivables underlying the program. Funding capacity under the program may also be utilized for letters of credit in support of other obligations, which has been the Company’s primary utilization. At December 31, 2025, the Company had no outstanding borrowings and $63.4 million of letters of credit outstanding under the program. The Company was not required to post cash collateral under the securitization program at December 31, 2025.

The accounts receivable securitization program was amended in January 2025 to extend its maturity to January 2028.

Other Requirements

The Company will incur significant future cash outflows for certain liabilities related to its prior mining activities and former employees. Such cash flows pertain to postretirement benefit plans, work-related injuries and illnesses, defined benefit pension plans, mine reclamation and end-of-mine closure costs and exploration obligations and are estimated to amount to approximately $110 million in 2026, $90 million in 2027, $85 million in 2028, $65 million in 2029, $75 million in 2030 and $1,318 million thereafter.

The Company has various short- and long-term take-or-pay arrangements in Australia and the U.S. associated with rail and port commitments for the delivery of coal, including amounts relating to export facilities. The estimated future cash flows associated with such arrangements are approximately $113 million in 2026, $115 million in 2027, $105 million in 2028, $75 million in 2029, $55 million in 2030 and $540 million thereafter.

The Company’s operating lease commitments, excluding potential contingent rental amounts, will require cash payments of approximately $41 million in 2026, $35 million in 2027, $29 million in 2028, $19 million in 2029, $12 million in 2030 and $3 million thereafter.

Covenant Compliance

The Company was compliant with all relevant covenants under its debt and other finance agreements at December 31, 2025.

Peabody Energy Corporation 2025 Form 10-K 70

Table of Contents

Cash Flows

The following table summarizes the Company’s cash flows for the years ended December 31, 2025 and 2024, as reported in the accompanying consolidated financial statements.

Year Ended December 31,

(Dollars in millions)

Net cash provided by operating activities $ 333.7 $ 606.5

Net cash used in investing activities (346.6) (598.1)

Net cash used in financing activities (85.2) (276.0)

Net change in cash, cash equivalents and restricted cash (98.1) (267.6)

Cash, cash equivalents and restricted cash at end of period $ 1,284.5 $ 1,382.6

Operating Activities. The decrease in net cash provided by operating activities for the year ended December 31, 2025 compared to the prior year was driven by a year-over-year decrease in cash from collateral arrangements resulting from prior year collateral releases ($156.4 million), costs related to the terminated Anglo acquisition ($68.6 million) and lower cash from mining operations. These decreases were partially offset by a year-over-year increase in operating cash flow from working capital ($302.3 million), primarily attributable to changes in accounts payable and accrued expenses ($195.2 million) driven by prior year income tax payments.

Investing Activities. The decrease in net cash used in investing activities for the year ended December 31, 2025 compared to the prior year was driven by a decrease due to the prior year Wards Well acquisition ($143.8 million), the prior year deposit related to the terminated acquisition ($75.0 million) and the returned deposit related to the terminated acquisition ($29.0 million).

Financing Activities. The decrease in net cash used in financing activities for the year ended December 31, 2025 compared to the prior year was primarily driven by decreases in common stock repurchases ($183.1 million).

Off-Balance-Sheet Arrangements

In the normal course of business, the Company is a party to various guarantees and financial instruments that carry off-balance-sheet risk and are not reflected in the accompanying consolidated balance sheets. Such financial instruments provide support for the Company’s reclamation bonding requirements, lease obligations, insurance policies and various other performance guarantees. The Company periodically evaluates the instruments for on-balance-sheet treatment based on the amount of exposure under the instrument and the likelihood of required performance. The Company does not expect any material losses to result from these guarantees or off-balance-sheet instruments in excess of liabilities provided for in the accompanying consolidated balance sheets.

The following table summarizes the Company’s financial instruments that carry off-balance-sheet risk:

Reclamation Support Other Support (1) Total

(Dollars in millions)

Less: Letters of credit in support of surety bonds (3) (53.6) (1.6) (55.2)

(1) Instruments support obligations related to leases, health care plans, workers’ compensation, property and casualty insurance, customer and vendor contracts and certain restoration ancillary to prior mining activities.

(2) Amounts do not include cash-collateralized letters of credit.

(3) Certain letters of credit serve as collateral for surety bonds at the request of surety bond providers.

Peabody Energy Corporation 2025 Form 10-K 71

Table of Contents

Not presented in the above table is $844.1 million of restricted cash and collateral which are included in the accompanying consolidated balance sheets at December 31, 2025, as described in Note 19. “Financial Instruments, Guarantees With Off-Balance-Sheet Risk and Other Guarantees” of the accompanying consolidated financial statements. Such collateral is primarily in support of the financial instruments noted above, including in relation to the Company’s surety bond portfolio, its collateralized letter of credit agreement, its bank guarantee facilities and amounts held directly with beneficiaries which are not supported by surety bonds. The restricted cash and collateral balance increased $34.3 million during the year ended December 31, 2025 due to a net increase in bonding requirements and the impact of foreign currency rate changes.

At December 31, 2025, the Company had total asset retirement obligations of $754.9 million. Bonding requirement amounts may differ significantly from the related asset retirement obligation because such requirements are calculated under the assumption that reclamation begins currently, whereas the Company’s accounting liabilities are discounted from the end of a mine’s economic life (when final reclamation work would begin) to the balance sheet date.

At December 31, 2025, the Company’s reclamation bonding requirements were supported by approximately $740 million of restricted cash and other balances serving as collateral, which substantially supports the financial liability for final mine reclamation as calculated in accordance with U.S. GAAP.

Guarantees and Other Financial Instruments with Off-Balance Sheet Risk. See Note 19. “Financial Instruments, Guarantees With Off-Balance-Sheet Risk and Other Guarantees” to the accompanying consolidated financial statements for a discussion of the Company’s accounts receivable securitization program and guarantees and other financial instruments with off-balance sheet risk.

Critical Accounting Policies and Estimates

The Company’s discussion and analysis of its financial condition, results of operations, liquidity and capital resources is based upon its consolidated financial statements, which have been prepared in accordance with U.S. GAAP. The Company is also required under U.S. GAAP to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, the Company evaluates its estimates. The Company bases its estimates on historical experience and on various other assumptions that it believes are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

Asset Retirement Obligations. The Company’s asset retirement obligations primarily consist of spending estimates for surface land reclamation and support facilities at both surface and underground mines in accordance with applicable reclamation laws and regulations in the U.S. and Australia as defined by each mining permit. Asset retirement obligations are determined for each mine using various estimates and assumptions including, among other items, estimates of disturbed acreage as determined from engineering data, estimates of future costs to reclaim the disturbed acreage and the timing of these cash flows, escalated for inflation and then discounted using a credit-adjusted, risk-free rate. As changes in estimates occur (such as mine plan revisions, changes in estimated costs or changes in timing of the performance of reclamation activities), the revisions to the obligation and asset are recognized at the appropriate credit-adjusted, risk-free rate. If the Company’s assumptions do not materialize as expected, actual cash expenditures and costs that it incurs could be materially different than currently estimated. Moreover, regulatory changes could increase its obligation to perform reclamation and mine closing activities. Amortization associated with the Company’s asset retirement obligation assets of $25.0 million for the year ended December 31, 2025 was included in “Depreciation, depletion and amortization” in the Company’s consolidated statements of operations. Asset retirement obligation expense, consisting of both accretion expense and changes in estimates for the Company’s inactive locations, for the year ended December 31, 2025 was $36.5 million and payments totaled $51.2 million. See Note 11. “Asset Retirement Obligations” to the accompanying consolidated financial statements for additional information regarding the Company’s asset retirement obligations.

Peabody Energy Corporation 2025 Form 10-K 72

Table of Contents

Impairment of Long-Lived Assets. The Company evaluates its long-lived assets held and used in operations for impairment as events and changes in circumstances indicate that the carrying amount of such assets might not be recoverable. Factors that would indicate potential impairment to be present include, but are not limited to, a sustained history of operating or cash flow losses, an unfavorable change in earnings and cash flow outlook, prolonged adverse industry or economic trends and a significant adverse change in the extent or manner in which a long-lived asset is being used or in its physical condition. The Company generally does not view short-term declines in thermal and metallurgical coal prices as an indicator of impairment for conducting impairment tests because of historic price volatility. However, the Company generally views a sustained trend of depressed coal pricing (for example, over periods exceeding one year) as a potential indicator of impairment. Because of the volatile and cyclical nature of coal prices and demand, it is reasonably possible that coal prices may decrease and/or fail to improve in the near term, which, absent sufficient mitigation such as an offsetting reduction in the Company’s operating costs, may result in the need for future adjustments to the carrying value of its long-lived mining assets and mining-related investments.

Assets are grouped at the lowest level for which there are identifiable cash flows that are largely independent of the cash flows of other groups of assets. For its active mining operations, the Company generally groups such assets at the mine level, or the mining complex level for mines that share infrastructure. For its development and exploration properties and portfolio of surface land and coal reserve and resource holdings, the Company considers several factors to determine whether to evaluate those assets individually or on a grouped basis for purposes of impairment testing. Such factors include geographic proximity to one another, the expectation of shared infrastructure upon development based on future mining plans and whether it would be most advantageous to bundle such assets in the event of a sale to a third-party.

When indicators of impairment are present, the Company evaluates its long-lived assets for recoverability by comparing the estimated undiscounted cash flows in the LOM plan expected to be generated by those assets under various assumptions to their carrying amounts. If such undiscounted cash flows indicate that the carrying value of the asset group is not recoverable, impairment losses are measured by comparing the estimated fair value of the asset group to its carrying amount. As quoted market prices are unavailable for the Company’s individual mining operations, fair value is determined through the use of an expected present value technique based on the income approach, except for non-strategic coal reserves and resources, surface lands and undeveloped coal properties excluded from its long-range mine planning. In those cases, a market approach is utilized based on the most comparable market multiples available. The estimated future cash flows and underlying assumptions used to assess recoverability and, if necessary, measure the fair value of the Company’s long-lived mining assets are derived from those developed in connection with its planning and budgeting process. The Company believes its assumptions to be consistent with those a market participant would use for valuation purposes. The most critical assumptions underlying its projections and fair value estimates include those surrounding future tons sold, coal prices for unpriced coal, production costs (including costs for labor, commodity supplies and contractors), transportation costs, foreign currency exchange rates and a risk-adjusted, cost of capital (all of which generally constitute unobservable Level 3 inputs under the fair value hierarchy), in addition to market multiples for non-strategic coal reserves and resources, surface lands and undeveloped coal properties excluded from the Company’s long-range mine planning (which generally constitute Level 2 inputs under the fair value hierarchy).

No impairment charges related to long-lived assets were recorded for the year ended December 31, 2025. When necessary, the assumptions used are based on the Company’s best knowledge at the time it prepares its analysis but can vary significantly due to the volatile and cyclical nature of coal prices and demand, regulatory issues, unforeseen mining conditions, commodity prices and cost of labor. These factors may cause the Company to be unable to recover all or a portion of the carrying value of its long-lived assets.

The Company identified certain assets with an aggregate carrying value of approximately $64 million at December 31, 2025 in its Other U.S. Thermal segment whose recoverability is most sensitive to customer concentration risk.

Income Taxes. The Company recognizes deferred tax assets and liabilities for the temporary difference between the consolidated financial carrying amounts of existing assets and liabilities and their respective tax bases and consideration of operating loss and tax credit carryforwards. Deferred income taxes are measured using enacted rates in effect for the year in which temporary differences are expected to be recovered or settled. The impact on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. Valuation allowances are provided to reduce deferred tax assets to the amount that will be more likely than not realized. The Company makes judgments and estimates regarding the amount and timing of the reversal of taxable temporary differences, the impact of tax planning strategies and expected future taxable income.

Uncertainty exists regarding tax positions taken in previously filed tax returns which remain subject to examination, along with positions expected to be taken in future returns. The Company recognizes the tax benefit from uncertain tax positions when it is more likely than not that the tax position will be sustained upon examination by the taxing authorities based on the technical merits of the position. Adjustments are made to the uncertain tax positions when facts and circumstances change, such as the closing of a tax audit; change in applicable tax laws, including tax case rulings and legislative guidance; or expiration of the applicable statute of limitations.

Peabody Energy Corporation 2025 Form 10-K 73

Table of Contents

See Note 7. “Income Taxes” to the accompanying consolidated financial statements for additional information regarding valuation allowances and unrecognized tax benefits.

Contingent liabilities. From time to time, Peabody is subject to legal and environmental matters related to its continuing and discontinued operations and certain historical, non-coal producing operations. In connection with such matters, the Company is required to assess the likelihood of any adverse judgments or outcomes, as well as potential ranges of probable losses.

A determination of the amount of reserves required for these matters is made after considerable analysis of each individual issue. Peabody accrues for legal and environmental matters when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. If a range of possible loss exists and no anticipated loss within the range is more likely than any other anticipated loss, the Company records the accrual at the low end of the range, in accordance with Accounting Standards Codification 450, “Contingencies.”

Peabody provides disclosure surrounding loss contingencies when it believes that it is at least reasonably possible that a material loss may be incurred or an exposure to loss in excess of amounts already accrued may exist. Adjustments to contingent liabilities are made when additional information becomes available that affects the amount of estimated loss, which information may include changes in facts and circumstances, changes in interpretations of law in the relevant courts, the results of new or updated environmental remediation cost studies and the ongoing consideration of trends in environmental remediation costs.

Accrued contingent liabilities exclude claims against third parties and are not discounted. The current portion of these accruals is included in “Accounts payables and accrued expenses” and the long-term portion is included in “Other noncurrent liabilities” in the Company’s consolidated balance sheets. In general, legal fees related to environmental remediation and litigation are charged to expense as incurred. The Company includes the interest component of any litigation-related penalties within “Interest expense” in its consolidated statements of operations. See Note 20. “Commitments and Contingencies” to the accompanying consolidated financial statements for further discussion of the Company’s contingent liabilities.

Newly Adopted Accounting Standards and Accounting Standards Not Yet Implemented

See Note 1. “Summary of Significant Accounting Policies” to the accompanying consolidated financial statements for a discussion of newly adopted accounting standards and accounting standards not yet implemented.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk.

The potential for changes in the market value of the Company’s coal and freight-related trading, crude oil, diesel fuel and foreign currency contract portfolios, as applicable, and exposure to interest rate changes is referred to as “market risk.” The Company attempts to manage market price risks through diversification, controlling position sizes and executing hedging strategies. Due to a lack of quoted market prices and the long-term, illiquid nature of the positions, the Company has not quantified market price risk related to its non-trading, long-term coal supply agreement portfolio.

Coal Trading Activities and Related Commodity Price Risk

Peabody engages in direct and brokered trading of physical coal and freight-related commodities in over-the-counter (OTC) markets. These activities give rise to commodity price risk, which represents the potential loss that can be caused by an adverse change in the market value of a particular commitment. Peabody actively measures, monitors, manages and hedges market price risk due to current and anticipated trading activities to remain within risk limits prescribed by management. Peabody also uses its coal trading and brokerage platform to support various coal production-related activities. These transactions may involve coal to be produced from its mines, coal sourcing arrangements with third-party mining companies, joint venture positions with producers or offtake agreements with producers. While the support activities (such as the forward sale of coal to be produced and/or purchased) may ultimately involve instruments sensitive to market price risk, the sourcing of coal in these arrangements does not involve market risk sensitive instruments.

Peabody also monitors other types of risk associated with its coal trading activities, including credit, market liquidity and counterparty nonperformance.

Peabody Energy Corporation 2025 Form 10-K 74

Table of Contents

Credit and Nonperformance Risk

The Company’s exposure is substantially with electric utilities, energy marketers, steel producers and nonfinancial trading houses. Its policy is to independently evaluate each counterparty’s creditworthiness prior to entering into transactions and to regularly monitor exposures. Peabody manages its counterparty risk from its hedging activities related to foreign currency and fuel exposures, as applicable, through established credit standards, diversification of counterparties, utilization of investment grade commercial banks, adherence to established tenor limits based on counterparty creditworthiness and continual monitoring of that creditworthiness. If the Company engages in a transaction with a counterparty that does not meet its credit standards, the Company seeks to protect its position by requiring the counterparty to provide an appropriate credit enhancement. Also, when appropriate (as determined by its credit management function), Peabody has taken steps to reduce its exposure to customers or counterparties whose credit has deteriorated and who may pose a higher risk of failure to perform under their contractual obligations. These steps include obtaining letters of credit or cash collateral (margin), requiring prepayments for shipments or the creation of customer trust accounts held for Peabody’s benefit to serve as collateral in the event of a failure to pay or perform. The fair values of Peabody’s derivative instruments utilized for corporate hedging and coal trading activities reflect adjustments for credit risk, as necessary. To reduce its credit exposure related to trading and brokerage activities, Peabody seeks to enter into netting agreements with counterparties that permit it to offset asset and liability positions with such counterparties and, to the extent required, Peabody will post or receive margin amounts associated with exchange-cleared and certain OTC positions. Peabody also continually monitors counterparty and contract nonperformance risk, if present, on a case-by-case basis.

Foreign Currency Risk

The Company utilizes options and collars to hedge currency risk associated with anticipated Australian dollar operating expenditures. The accounting for these derivatives is discussed in Note 5. “Derivatives and Fair Value Measurements” to the accompanying consolidated financial statements. As of December 31, 2025, the Company held average rate options with an aggregate notional amount of $550.0 million Australian dollars to hedge currency risk associated with anticipated Australian dollar operating expenditures over the nine-month period ending September 30, 2026. As of December 31, 2025, the Company also held purchased collars with an aggregate notional amount of $554.0 million Australian dollars related to anticipated Australian dollar operating expenditures during the nine-month period ending September 30, 2026. Assuming the Company had no foreign currency hedging instruments in place, its exposure in operating costs and expenses due to a $0.10 change in the Australian dollar/U.S. dollar exchange rate is approximately $200 to $210 million for the next twelve months. Based upon the Australian dollar/U.S. dollar exchange rate at December 31, 2025, the currency option contracts outstanding at that date would limit the Company’s exposure to approximately $134 million with respect to a $0.10 increase in the exchange rate, while the Company would benefit by approximately $189 million with respect to a $0.10 decrease in the exchange rate for the next twelve months.

Although Peabody believes its Australian dollar monetary asset position acts as a hedge to offset the impact on its results from operations, the Company may continue to use options and collars to hedge its cash flow exposure to currency risk associated with anticipated Australian dollar operating expenditures.

Coal Pricing Risk

The Company predominantly manages its commodity price risk for its non-trading, long-term coal contract portfolio through the use of long-term coal supply agreements (those with terms longer than one year) to the extent possible, rather than through the use of derivative instruments. Sales under such agreements comprised approximately 87%, 90% and 92% of its worldwide sales from its mining operations (by volume) for the years ended December 31, 2025, 2024 and 2023, respectively. As of December 31, 2025, the Company had approximately 91 million tons of U.S. thermal coal priced and committed for 2026. This includes approximately 78 million tons of PRB coal and 13 million tons of Other U.S. thermal coal. The Company has the flexibility to increase volumes should demand warrant. Peabody is estimating full year 2026 thermal coal sales volumes from its Seaborne Thermal segment of 12.0 million to 13.0 million tons comprised of thermal export volume of 7.5 million to 8.5 million tons and domestic volume of 4.5 million tons. Peabody is estimating full year 2026 metallurgical coal sales from its Seaborne Metallurgical segment of 10.3 million to 11.3 million tons. Sales commitments in the metallurgical coal market are typically not long-term in nature, and the Company is therefore subject to fluctuations in market pricing. The Company’s sensitivity to market pricing in thermal coal markets is dependent on the duration of contracts.

As of December 31, 2025, the Company had no coal derivative contracts related to its forecasted sales. Historically, such financial contracts have included futures and forwards.

Peabody Energy Corporation 2025 Form 10-K 75

Table of Contents

Diesel Fuel Price Risk

The Company expects to consume 90 to 100 million gallons of diesel fuel during the next twelve months. A $10 per barrel change in the price of crude oil (the primary component of a refined diesel fuel product) would increase or decrease its annual diesel fuel costs by approximately $22 million based on its expected usage.

As of December 31, 2025, the Company did not have any diesel fuel derivative instruments in place. The Company partially manages the price risk of diesel fuel through the use of cost pass-through contracts with certain customers.

Interest Rate Risk

Peabody’s objectives in managing exposure to interest rate changes are to limit the impact of interest rate changes on earnings and cash flows and to lower overall borrowing costs. Peabody is primarily exposed to interest rate risk as a result of its interest-earning cash balances.

Peabody’s interest-earning cash and restricted cash balances are primarily held in deposit accounts and investments with maturities of three months or less. Therefore, these balances are subject to interest rate fluctuations and could produce less income if interest rates fall. Based upon its interest-earning cash and restricted cash balances at December 31, 2025, a one percentage point decrease in interest rates would result in a decrease of approximately $13 million to interest income for the next twelve months.

Item 8. Financial Statements and Supplementary Data.

See Part IV, Item 15. “Exhibits and Financial Statement Schedules” of this report for the information required by this Item 8, which information is incorporated by reference herein.

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.

None.

Item 9A. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

Peabody’s disclosure controls and procedures are designed to, among other things, provide reasonable assurance that material information, both financial and non-financial, and other information required under the securities laws to be disclosed is accumulated and communicated to senior management, including the principal executive officer and principal accounting officer, on a timely basis. As of December 31, 2025, the end of the period covered by this Annual Report on Form 10-K, the Company carried out an evaluation of the effectiveness of the design and operation of its disclosure controls and procedures. Based upon that evaluation, Peabody’s Chief Executive Officer and Chief Financial Officer have concluded that such disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act as of December 31, 2025 were effective to provide reasonable assurance that the desired control objectives were achieved.

Changes in Internal Control Over Financial Reporting

Peabody periodically reviews its internal control over financial reporting as part of its efforts to ensure compliance with the requirements of Section 404 of the Sarbanes-Oxley Act of 2002. In addition, Peabody routinely reviews its system of internal control over financial reporting to identify potential changes to its processes and systems that may improve controls and increase efficiency, while ensuring that the Company maintains an effective internal control environment. Changes may include such activities as implementing new systems; consolidating the activities of acquired business units; migrating certain processes to its shared services organizations and/or managed third parties; formalizing and refining policies, procedures and control documentation requirements; improving segregation of duties and adding monitoring controls. In addition, when Peabody acquires new businesses, it incorporate its controls and procedures into the acquired business as part of its integration activities.

There have been no changes in Peabody’s internal control over financial reporting that occurred during the three months ended December 31, 2025 that have materially affected, or are reasonably likely to materially affect, its internal control over financial reporting.

Peabody Energy Corporation 2025 Form 10-K 76

Table of Contents

Management’s Report on Internal Control Over Financial Reporting

Management is responsible for establishing and maintaining adequate internal control over financial reporting. An evaluation of the effectiveness of the design and operation of the Company’s internal control over financial reporting, as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act, as of the end of the period covered by this report was performed under the supervision and with the participation of management, including its Chief Executive Officer and Chief Financial Officer. This evaluation is performed to determine if the Company’s internal controls over financial reporting provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.

Because of inherent limitations, any system of internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Management conducted an assessment of the effectiveness of the Company’s internal control over financial reporting using the criteria set by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control - Integrated Framework (2013). Based on this assessment, management concluded that the Company’s internal control over financial reporting was effective to provide reasonable assurance that the desired control objectives were achieved as of December 31, 2025.

Peabody’s independent registered public accounting firm, Ernst & Young LLP, has audited the consolidated financial statements included in this annual report and issued an attestation report on Peabody’s internal control over financial reporting, as included herein.

/s/ James C. Grech /s/ Mark A. Spurbeck

February 19, 2026

Peabody Energy Corporation 2025 Form 10-K 77

Table of Contents

Report of Independent Registered Public Accounting Firm

To the Stockholders and the Board of Directors of Peabody Energy Corporation

Opinion on Internal Control Over Financial Reporting

We have audited Peabody Energy Corporation’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, Peabody Energy Corporation (the Company) maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2025 and 2024, the related consolidated statements of operations, comprehensive income, changes in stockholders’ equity and cash flows for each of the three years in the period ended December 31, 2025, and the related notes and financial statement schedule listed in the Index at Item 15(a) (collectively referred to as the “financial statements”) and our report dated February 19, 2026 expressed an unqualified opinion thereon.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ Ernst & Young LLP

St. Louis, Missouri

February 19, 2026

Peabody Energy Corporation 2025 Form 10-K 78

Table of Contents

Item 9B. Other Information.

Securities Trading Plans of Directors and Executive Officers

During the three months ended December 31, 2025, none of Peabody’s directors or officers adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as these terms are defined in Item 408 of Regulation S-K of the Exchange Act.

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections.

Not applicable.

PART III

Item 10.Directors, Executive Officers and Corporate Governance.

The information required by Item 401 of Regulation S-K is included under the caption Proposal 1 - “Election of Directors” in Peabody’s 2026 Proxy Statement and in Part I, Item 1. “Business” of this report under the caption “Information About Our Executive Officers.” The information required by Items 405, 406 and 407(c)(3), (d)(4) and (d)(5) of Regulation S-K is included under the captions “Stock Ownership,” “Additional Information Concerning the Board of Directors - Corporate Governance - Code of Business Conduct and Ethics” and “Additional Information Concerning the Board of Directors - Committee Overview - Audit Committee” in Peabody’s 2026 Proxy Statement. Such information is incorporated herein by reference.

Item 11.Executive Compensation.

The information required by Items 402 and 407(e)(4) and (e)(5) of Regulation S-K is included under the captions “Additional Information Concerning the Board of Directors - Director Compensation,” “Compensation Discussion and Analysis,” “Compensation Committee Interlocks and Insider Participation,” “Compensation Committee Report,” “Risk Assessment in Compensation Programs,” “Executive Compensation Tables,” “Pay Ratio Disclosure” and “Pay Versus Performance Disclosure” in Peabody’s 2026 Proxy Statement and is incorporated herein by reference.

Item 12.Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.

The information required by Item 403 of Regulation S-K is included under the caption “Stock Ownership - Security Ownership of Directors and Management and Certain Beneficial Owners” in Peabody’s 2026 Proxy Statement and is incorporated herein by reference.

Peabody Energy Corporation 2025 Form 10-K 79

Table of Contents

Equity Compensation Plan Information

As required by Item 201(d) of Regulation S-K, the following table provides information regarding Peabody’s equity compensation plans as of December 31, 2025:

Plan Category

Equity compensation plans not approved by security holders — — —

(1)Shares issuable pursuant to outstanding performance units and vested but not issued deferred stock units. Performance units are shown at target and could change based on actual metrics achieved.

(2)The weighted-average exercise price shown in the table does not take into account outstanding deferred stock units or performance awards.

Refer to Note 15. “Share-Based Compensation” to the accompanying consolidated financial statements for additional information regarding the material features of Peabody’s current equity compensation plans.

Item 13.Certain Relationships and Related Transactions, and Director Independence.

The information required by Items 404 and 407(a) of Regulation S-K is included under the captions “Review of Related Person Transactions” and “Additional Information Concerning the Board of Directors - Board Independence” in Peabody’s 2026 Proxy Statement and is incorporated herein by reference.

Item 14.Principal Accountant Fees and Services.

The information required by Item 9(e) of Schedule 14A is included under the caption “Audit Fees” in Peabody’s 2026 Proxy Statement and is incorporated herein by reference.

PART IV

Item 15.Exhibits and Financial Statement Schedules.

(a) Documents Filed as Part of the Report

(1) Financial Statements.

The following consolidated financial statements of Peabody Energy Corporation and the report thereon of the independent registered public accounting firm are included herein on the pages indicated:

Page

Report of Independent Registered Public Accounting Firm (PCAOB ID: 42) F-1

Consolidated Balance Sheets — December 31, 2025 and 2024 F-5

Notes to Consolidated Financial Statements F-9

Peabody Energy Corporation 2025 Form 10-K 80

Table of Contents

(2) Financial Statement Schedules.

The following financial statement schedule of Peabody Energy Corporation is at the page indicated:

Page

Valuation and Qualifying Accounts F-56

All other schedules for which provision is made in the applicable accounting regulation of the Securities and Exchange Commission are not required under the related instructions or are not applicable and, therefore, have been omitted.

(3) Exhibits.

The exhibits below are numbered in accordance with the Exhibit Table of Item 601 of Regulation S-K.

Exhibit No. Description of Exhibit

Peabody Energy Corporation 2025 Form 10-K 81

Table of Contents

Peabody Energy Corporation 2025 Form 10-K 82

Table of Contents

Peabody Energy Corporation 2025 Form 10-K 83

Table of Contents

Peabody Energy Corporation 2025 Form 10-K 84

Table of Contents

Peabody Energy Corporation 2025 Form 10-K 85

Table of Contents

21† List of Subsidiaries.

95† Mine Safety Disclosure required by Item 104 of Regulation S-K.

101.SCH Inline XBRL Taxonomy Extension Schema Document

Peabody Energy Corporation 2025 Form 10-K 86

Table of Contents

101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document

104 Cover Page Interactive Data File (embedded within the Inline XBRL document).

† Filed herewith.

Pursuant to the Instructions to Exhibits, certain instruments defining the rights of holders of long-term debt securities of the Company and its consolidated subsidiaries are not filed because the total amount of securities authorized under any such instrument does not exceed 10% of the total assets of the Company and its subsidiaries on a consolidated basis. A copy of such instrument will be furnished to the Securities and Exchange Commission upon request.

Item 16.Form 10-K Summary.

None.

Peabody Energy Corporation 2025 Form 10-K 87

Table of Contents

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

PEABODY ENERGY CORPORATION

/s/ JAMES C. GRECH

James C. GrechPresident and Chief Executive Officer

Date: February 19, 2026

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons, on behalf of the registrant and in the capacities and on the dates indicated.

Signature Title Date

James C. Grech

Mark A. Spurbeck

/s/ M. KATHERINE BANKS Director February 19, 2026

M. Katherine Banks

/s/ ANDREA BERTONE Director February 19, 2026

Andrea Bertone

/s/ BILL CHAMPION Director February 19, 2026

Bill Champion

/s/ NICHOLAS CHIREKOS Director February 19, 2026

Nicholas Chirekos

/s/ STEPHEN GORMAN Director February 19, 2026

Stephen Gorman

/s/ GEORGANNE HODGES Director February 19, 2026

Georganne Hodges

/s/ JOE LAYMON Director February 19, 2026

Joe Laymon

/s/ ROBERT MALONE Chairman February 19, 2026

Robert Malone

/s/ CLAYTON WALKER Director February 19, 2026

Clayton Walker

Peabody Energy Corporation 2025 Form 10-K 88

Table of Contents

Report of Independent Registered Public Accounting Firm

To the Stockholders and the Board of Directors of Peabody Energy Corporation

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Peabody Energy Corporation (the Company) as of December 31, 2025 and 2024, the related consolidated statements of operations, comprehensive income, changes in stockholders' equity and cash flows for each of the three years in the period ended December 31, 2025, and the related notes and financial statement schedule listed in the Index at Item 15(a) (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February 19, 2026 expressed an unqualified opinion thereon.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Peabody Energy Corporation 2025 Form 10-K F-1

Table of Contents

Asset Retirement Obligation Liabilities – Surface Mines

/s/ Ernst & Young LLP

We have served as the Company’s auditor since 1991.

St. Louis, Missouri

February 19, 2026

Peabody Energy Corporation 2025 Form 10-K F-2

Table of Contents

PEABODY ENERGY CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

Year Ended December 31,

(Dollars in millions, except per share data)

Costs and expenses

Asset retirement obligation expenses 36.5 48.9 50.5

Selling and administrative expenses 105.0 91.0 90.7

Restructuring charges 9.5 4.4 3.3

Costs related to terminated acquisition 78.9 10.3 —

Net gain on disposals (27.7) (9.8) (15.0)

Shoal Creek insurance recovery — (109.5) —

Loss (income) from equity affiliates 14.4 (11.5) (6.9)

Interest expense, net of capitalized interest 43.9 46.9 59.8

Net loss on early debt extinguishment — — 8.8

Net periodic benefit credit, excluding service cost (29.7) (40.6) (41.6)

(Loss) income from continuing operations, net of income taxes (42.3) 407.3 816.0

Loss from discontinued operations, net of income taxes (0.2) (3.8) (0.4)

Less: Net income attributable to noncontrolling interests 10.4 32.6 56.0

Net (loss) income attributable to common stockholders $ (52.9) $ 370.9 $ 759.6

(Loss) income from continuing operations:

Basic (loss) income per share $ (0.43) $ 2.99 $ 5.52

Diluted (loss) income per share $ (0.43) $ 2.73 $ 5.00

Net (loss) income attributable to common stockholders:

Basic (loss) income per share $ (0.43) $ 2.96 $ 5.52

Diluted (loss) income per share $ (0.43) $ 2.70 $ 5.00

See accompanying notes to consolidated financial statements

Peabody Energy Corporation 2025 Form 10-K F-3

Table of Contents

PEABODY ENERGY CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Year Ended December 31,

(Dollars in millions)

Foreign currency translation adjustment 3.1 (4.3) 0.9

Other comprehensive loss, net of income taxes (37.7) (50.8) (52.9)

Less: Net income attributable to noncontrolling interests 10.4 32.6 56.0

See accompanying notes to consolidated financial statements

Peabody Energy Corporation 2025 Form 10-K F-4

Table of Contents

PEABODY ENERGY CORPORATION

CONSOLIDATED BALANCE SHEETS

December 31,

(Amounts in millions, except per share data)

ASSETS

Current assets

Cash and cash equivalents $ 575.3 $ 700.4

Property, plant, equipment and mine development, net 3,153.3 3,081.5

Operating lease right-of-use assets 121.2 119.3

Restricted cash and collateral 844.1 809.8

Deferred income taxes 2.2 —

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities

Current portion of long-term debt $ 15.2 $ 15.8

Accounts payable and accrued expenses 827.0 811.7

Long-term debt, less current portion 321.2 332.3

Deferred income taxes 26.3 40.9

Asset retirement obligations, less current portion 692.8 667.8

Accrued postretirement benefit costs 109.2 120.4

Operating lease liabilities, less current portion 87.5 86.7

Stockholders’ equity

Accumulated other comprehensive income 101.1 138.8

Peabody Energy Corporation stockholders’ equity 3,536.4 3,650.5

Noncontrolling interests 45.8 58.3

Total liabilities and stockholders’ equity $ 5,807.2 $ 5,953.7

See accompanying notes to consolidated financial statements

Peabody Energy Corporation 2025 Form 10-K F-5

Table of Contents

PEABODY ENERGY CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

Year Ended December 31,

(Dollars in millions)

Cash Flows From Operating Activities

Loss from discontinued operations, net of income taxes 0.2 3.8 0.4

(Loss) income from continuing operations, net of income taxes (42.3) 407.3 816.0

Noncash interest expense, net 5.6 5.4 4.6

Noncash share-based compensation 13.8 7.3 6.9

Asset impairment — — 2.0

Noncash provision for NARM and Shoal Creek losses — — 33.7

Net gain on disposals (27.7) (9.8) (15.0)

Noncash income from port and rail capacity assignment — (0.3) (9.6)

Net loss on early debt extinguishment — — 8.8

Loss (income) from equity affiliates 14.4 (11.5) (6.9)

Shoal Creek insurance recovery — (10.9) —

Unrealized (gains) losses on foreign currency option contracts (6.0) 9.0 (7.4)

Changes in current assets and liabilities:

Accounts payable and accrued expenses 10.3 (184.9) 120.2

Asset retirement obligations (15.2) (4.5) (10.3)

Postretirement benefit obligations (52.0) (74.5) (61.9)

Pension obligations (4.9) 3.6 (1.3)

Net cash used in discontinued operations (2.3) (6.3) (80.8)

See accompanying notes to consolidated financial statements

Peabody Energy Corporation 2025 Form 10-K F-6

Table of Contents

PEABODY ENERGY CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS - (Continued)

Year Ended December 31,

(Dollars in millions)

Cash Flows From Investing Activities

Changes in accrued expenses related to capital expenditures (10.0) (1.2) 2.9

Wards Well acquisition — (143.8) —

Deposit associated with terminated acquisition — (75.0) —

Returned deposit related to terminated acquisition 29.0 — —

Insurance proceeds attributable to Shoal Creek equipment losses — 10.9 —

Proceeds from disposal of assets, net of receivables 32.5 17.1 22.8

Net cash used in investing activities (346.6) (598.1) (342.6)

Cash Flows From Financing Activities

Repayments of long-term debt (12.2) (10.4) (9.0)

Proceeds from loan note related to terminated acquisition — 9.3 —

Repayment of loan note related to terminated acquisition (9.3) — —

Payment of debt issuance and other deferred financing costs (1.8) (12.0) (0.3)

Common stock repurchases — (183.1) (347.7)

Excise taxes paid related to common stock repurchases (1.7) (3.3) —

Distributions to noncontrolling interests (22.9) (34.8) (59.0)

Net cash used in financing activities (85.2) (276.0) (460.3)

Net change in cash, cash equivalents and restricted cash (98.1) (267.6) 232.6

Cash and cash equivalents $ 700.4

Restricted cash included in “Restricted cash and collateral” 682.2

Cash, cash equivalents and restricted cash at beginning of period $ 1,382.6

Cash and cash equivalents $ 575.3

Restricted cash included in “Restricted cash and collateral” 709.2

Cash, cash equivalents and restricted cash at end of period $ 1,284.5

See accompanying notes to consolidated financial statements

Peabody Energy Corporation 2025 Form 10-K F-7

Table of Contents

PEABODY ENERGY CORPORATION

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY