PEABODY ENERGY CORPBTU
PEABODY ENERGY CORP Earnings Per Share Disclosure
Earnings per Share (EPS)
Basic EPS is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted EPS is computed based on the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding. As such, the Company includes the 2028 Convertible Notes and share-based compensation awards in its potentially dilutive securities. Generally, dilutive securities are not included in the computation of loss per share when a company reports a net loss from continuing operations as the impact would be anti-dilutive.
For all but performance units, the potentially dilutive impact of the Company’s share-based compensation awards is determined using the treasury stock method. Under the treasury stock method, awards are treated as if they had been exercised with any proceeds used to repurchase common stock at the average market price during the period. Any incremental difference between the assumed number of shares issued and purchased is included in the diluted share computation. For performance units, their contingent features result in an assessment for any potentially dilutive common stock by using the end of the reporting period as if it were the end of the contingency period for all units granted. For further discussion of the Company’s share-based compensation awards, see Note 15. “Share-Based Compensation.”
A conversion of the 2028 Convertible Notes may result in payment in the Company’s common stock. For diluted EPS purposes, the potentially dilutive common stock is assumed to have been converted at the beginning of the period (or at the time of issuance, if later). In periods where the potentially dilutive common stock is included in the computation of diluted EPS, the numerator will be adjusted to add back tax adjusted interest expense, which includes the amortization of debt issuance costs, related to the convertible debt. The computation of diluted EPS excluded 16.6 million shares related to the 2028 Convertible Notes for the year ended December 31, 2025 because their inclusion would have been anti-dilutive.
The computation of diluted EPS also excluded aggregate share-based compensation awards of 0.8 million for the year ended December 31, 2025 and less than 0.1 million for both the years ended December 31, 2024 and 2023 because to do so would have been anti-dilutive for those periods. Because the potential dilutive impact of such share-based compensation awards is calculated under the treasury stock method, anti-dilution generally occurs when the exercise prices or unrecognized compensation cost per share of such awards are higher than the Company’s average stock price during the applicable period. Anti-dilution also occurs when a company reports a net loss from continuing operations, and the dilutive impact of all share-based compensation awards are excluded accordingly.
The following illustrates the earnings allocation method utilized in the calculation of basic and diluted EPS:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (In millions, except per share data) | |||||||||||||||||
| Basic EPS numerator: | |||||||||||||||||
| (Loss) income from continuing operations, net of income taxes | $ | (42.3) | $ | 407.3 | $ | 816.0 | |||||||||||
| Less: Net income attributable to noncontrolling interests | 10.4 | 32.6 | 56.0 | ||||||||||||||
| (Loss) income from continuing operations attributable to common stockholders | (52.7) | 374.7 | 760.0 | ||||||||||||||
| Loss from discontinued operations, net of income taxes | (0.2) | (3.8) | (0.4) | ||||||||||||||
| Net (loss) income attributable to common stockholders | $ | (52.9) | $ | 370.9 | $ | 759.6 | |||||||||||
| Diluted EPS numerator: | |||||||||||||||||
| (Loss) income from continuing operations, net of income taxes | $ | (42.3) | $ | 407.3 | $ | 816.0 | |||||||||||
| Add: Tax adjusted interest expense related to 2028 Convertible Notes | — | 12.2 | 12.2 | ||||||||||||||
| Less: Net income attributable to noncontrolling interests | 10.4 | 32.6 | 56.0 | ||||||||||||||
| (Loss) income from continuing operations attributable to common stockholders | (52.7) | 386.9 | 772.2 | ||||||||||||||
| Loss from discontinued operations, net of income taxes | (0.2) | (3.8) | (0.4) | ||||||||||||||
| Net (loss) income attributable to common stockholders | $ | (52.9) | $ | 383.1 | $ | 771.8 | |||||||||||
| EPS denominator: | |||||||||||||||||
| Weighted average shares outstanding — basic | 121.8 | 125.1 | 137.6 | ||||||||||||||
| Dilutive impact of share-based compensation awards | — | 0.5 | 0.6 | ||||||||||||||
| Dilutive impact of 2028 Convertible Notes | — | 16.3 | 16.1 | ||||||||||||||
| Weighted average shares outstanding — diluted | 121.8 | 141.9 | 154.3 | ||||||||||||||
| Basic EPS attributable to common stockholders: | |||||||||||||||||
| (Loss) income from continuing operations | $ | (0.43) | $ | 2.99 | $ | 5.52 | |||||||||||
| Loss from discontinued operations | — | (0.03) | — | ||||||||||||||
| Net (loss) income attributable to common stockholders | $ | (0.43) | $ | 2.96 | $ | 5.52 | |||||||||||
| Diluted EPS attributable to common stockholders: | |||||||||||||||||
| (Loss) income from continuing operations | $ | (0.43) | $ | 2.73 | $ | 5.00 | |||||||||||
| Loss from discontinued operations | — | (0.03) | — | ||||||||||||||
| Net (loss) income attributable to common stockholders | $ | (0.43) | $ | 2.70 | $ | 5.00 | |||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 18, 2022 | |
| 2020 | Feb 23, 2021 | |
| 2019 | Feb 21, 2020 | |
| 2018 | Feb 27, 2019 | |
| 2017 | Feb 26, 2018 | |
| 2016 | Mar 22, 2017 | |
| 2015 | Mar 16, 2016 | |
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.