Dear Stakeholders,
The landscape in which we operate has changed meaningfully over the past year, shaped by accelerating U.S. policy tailwinds, recognition of the twin needs of energy reliability and affordability, and an expanding focus on resilient supply chains, steelmaking capacity, and responsible resource development. These shifts reinforce the importance of the work we do and the vital role Peabody continues to play in supporting global economic progress, energy system stability, and the materials needed for modern infrastructure.
Safety remains our first priority and our measure of excellence. In 2025, we delivered record-setting safety outcomes across our global operations, achieving a total recordable injury frequency rate (TRIFR) of 0.71 recordable accidents per 200,000 hours worked. This is 12 percent better than the prior record set in 2024 and sets a new standard for our organization.
Our commitment to sustainability continues to guide our decisions at every level of business. Industry-leading reclamation work continued, demonstrating our long-term commitment to land stewardship and responsible resource development. Our acres reclaimed were approximately double acres disturbed, and we tied our best year ever for environmental notices of violation. The American Society of Reclamation Sciences recognized Peabody’s Monty Parke as Reclamationist of the Year, a well-deserved honor for our midwestern operations environmental manager. The team at the Kayenta Mine was also honored by the U.S. Department of the Interior for their exceptional reclamation practices.
Among our most transformative initiatives is the advancement of the Centurion Mine, which enters 2026 as our flagship operation. The start of longwall production in February is the culmination of years of work, positioning it as a leading, modern metallurgical coal mine. It is engineered for advanced safety performance, built for high-efficiency metallurgical coal production, aligned with the energy and industrial policy priorities emerging globally, and structured to support long-term market needs while elevating operational sustainability. As we advance Centurion, we are also committed to operating fully within Australia’s Safeguard Mechanism, ensuring the mine is developed with transparent, responsible greenhouse gas emissions management aligned to national climate policy. An early step is the construction of a 5MW power plant onsite that will support Centurion’s power requirements using coal mine gas sourced onsite.
Centurion will allow Peabody to meet the growing global demand for steelmaking coal that enables infrastructure, electrification, urbanization, renewable energy expansion, and economic development.
Both in the United States and around the world, energy reliability and affordability were major themes, and increasingly the call is for energy addition versus energy transition. 2025 again saw global coal use reach an all-time record. New coal plants continue to be built in significant numbers in Asia, as major populations switch on to modern electricity, major economies continue to grow, and emerging technologies such as artificial intelligence create step-function increases in energy demand. Peabody remains a part of those responsible solutions.
The world is seeking a balance between the need for the responsible development of resources and energy security and industrial capacity essential to global advancement. We believe these go hand in hand and reinforce the importance of our work across safety, sustainability, operational excellence, and innovation. We view this work not as a risk, but as an opportunity. As we continue to advance our strategy, strengthen our operations, and invest in innovations that support global progress, we remain committed to building brighter futures for our employees, our communities, and the world that depends on the energy and resources we provide.
Jim Grech
President and Chief Executive Officer