Peabody Energy Corporation

Item 1A. Risk Factors. 

The Company operates in a rapidly changing environment that involves a number of risks. The risk factFor set forth below is in addition to the risk factors previously disclosed in Item 1A. Risk Factors of Part I of its Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on February 20, 2025.

Changes to trade policy, including tariff and customs regulations, or failure toinformation regarding factors that comply with such regulations may have an adverse euld affect on the Companys business, financial condition and results of operations.

Peabody, like many other multinationa, financial corporations, conducts a significant amount of business that would be impacted by changes to tndition and liquidity, see the trade policies of the U.S. and other countries (including governmental action related to tariffs, international trade agreements, or economic sanctions). Such changes have the potential to adversely impact the U.S. economy or certain sectors thereof; the economy of another country in which the Company conducts operations; or the coal industry and the global demand for coal. The Company cannot predict the extent to which the U.S. or other countries will impose new or additional quotas, duties, tariffs, taxes or other similar restrictions upon the imporisk factors disclosed in Item 1A. Risk Factors of Part I of its Annual Report or export of its products in the future; nor can the Company predict future trade policy on Form 10-K for the terms of any renegotiated trade agreements and their impact on its business. The continuing adoption or expansion of trade restrictions, the occurrence of a trade war, or other governmental action related to tariffs or trade agreements or policies has the potential to adversely impact demand for the Companys coal, its costs, its customers and the economies in which the Company operates, which in turn could have a material adverse effect on the Companys business, financial condition and results of operations.

For information regarding other factors that could affect the Companys results of operations, financial condition year ended December 31, 2024 filed with the SEC on February 20, 2025 and liquidity, see the risk factors disclosed in Item 1A. Risk Factors of Part II of its AnnualQuarterly Report on Form 10-KQ for the yearquarterly period ended DecemberMarch 31, 20245 filed with the SEC on February 20May 8, 2025. In addition to the other information set forth in this Quarterly Report, including the information presented in Part I, Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations, you should carefully consider the risk factors disclosed in the aforementioned filings, which could materially affect the Company's results of operations, financial condition and liquidity.

Factors that could affect the Companys results or an investment in the Companys securities include, but are not limited to:

the Companys profitability depends upon the prices it receives for its coal;

if a substantial number of the Companys long-term coal supply agreements, including those with its largest customers, terminate, or if the pricing, volumes or other elements of those agreements materially adjust, its revenue and operating profits could suffer if the Company is unable to find alternate buyers willing to purchase its coal on comparable terms to those in its contracts;

risks inherent to mining could increase the cost of operating the Companys business, and events and conditions that could occur during the course of its mining operations could have a material adverse impact on the Company;

the Companys take-or-pay arrangements could unfavorably affect its profitability;

the Company may not recover its investments in its mining, exploration and other assets, which may require the Company to recognize impairment charges related to those assets;

the Companys ability to operate effectively could be impaired if it loses key personnel or fails to attract qualified personnel;

the Company could be negatively affected if it fails to maintain satisfactory labor relations;

the Company could be adversely affected if it fails to appropriately provide financial assurances for its obligations;

if the assumptions underlying the Companys asset retirement obligations for reclamation and mine closures are materially inaccurate, its costs could be significantly greater than anticipated;

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the Companys mining operations are extensively regulated, which imposes significant costs on it, and future regulations and developments could increase those costs or limit its ability to produce coal;

the Companys operations may impact the environment or cause exposure to hazardous substances, and its properties may have environmental contamination, which could result in material liabilities to the Company;

the Company may be unable to obtain, renew or maintain permits necessary for its operations, or the Company may be unable to obtain, renew or maintain such permits without conditions on the manner in which it runs its operations, which would reduce its production, cash flows and profitability;

concerns about the impacts of coal combustion on global climate are increasingly leading to conditions that have affected and could continue to affect demand for the Companys products or its securities and its ability to produce, including increased governmental regulation of coal combustion and unfavorable investment decisions by electricity generators;

numerous activist groups are devoting substantial resources to anti-coal activities to minimize or eliminate the use of coal as a source of electricity generation, domestically and internationally, thereby further reducing the demand and pricing for coal, and potentially materially and adversely impacting the Companys future financial results, liquidity and growth prospects;

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the Companys trading and hedging activities do not cover certain risks and may expose it to earnings volatility and other risks;

the Companys future success depends upon its ability to continue acquiring and developing coal reserves and resources that are economically recoverable;

the Company faces numerous uncertainties in estimating its coal reserves and resources and inaccuracies in its estimates could result in lower than expected revenue, higher than expected costs and decreased profitability;

joint ventures, partnerships or non-managed operations may not be successful and may not comply with the Companys operating standards;

the Companys expenditures for postretirement benefit obligations could be materially higher than it has predicted if its underlying assumptions prove to be incorrect;

high inflation or imposed tariffs could result in higher costs and decreased profitability;

changes to trade policy, including tariff and customs regulations, or failure to comply with such regulations may have an adverse effect on the Companys business, financial condition and results of operations;

the Companys business, results of operations, financial condition and prospects could be materially and adversely affected by pandemics or other widespread illnesses and the related effects on public health;

Peabody is exposed to risks associated with political or international conflicts;

Peabody could be exposed to significant liability, reputational harm, loss of revenue, increased costs or other risks if it sustains cybersecurity attacks or other security breaches that disrupt its operations or result in the dissemination of proprietary or confidential information about the Company, its customers or other third-parties;

Peabodys information and operational technology systems may be adversely affected by disruptions, damage, failure and risks associated with implementation and integration, including of new technologies;

the Company is subject to various general operating risks which may be fully or partially outside of its control;

the Company may be able to incur more debt, including secured debt, which could increase the risks associated with its indebtedness;

the terms of the agreements and instruments governing the Companys debt and surety bonding obligations impose restrictions that may limit its operating and financial flexibility;

the number and quantity of viable financing and insurance alternatives available to the Company may be significantly impacted by unfavorable lending and investment policies by financial institutions and insurance companies associated with concerns about environmental impacts of coal combustion, and negative views around its efforts with respect to environmental and social matters and related governance considerations could harm the perception of the Company by a significant number of investors or result in the exclusion of its securities from consideration by those investors;

the price of Peabodys securities may be volatile;

Peabodys common stock is subject to dilution and may be subject to further dilution in the future;

there may be circumstances in which the interests of a significant stockholder could be in conflict with other stakeholders interests;

the future payment of dividends on Peabodys stock or future repurchases of its stock is dependent on a number of factors and cannot be assured;

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acquisitions and divestitures are a potentially important part of the Companys long-term strategy, subject to its investment criteria, and involve a number of risks, any of which could cause the Company not to realize the anticipated benefits;

the Company may not be able to fully utilize its deferred tax assets;

Peabodys certificate of incorporation and by-laws include provisions that may discourage a takeover attempt;

diversity in interpretation and application of accounting literature in the mining industry may impact the Companys reported financial results; and

other risks and factors detailed in this report, including, but not limited to, those discussed in Legal Proceedings, set forth in Part II, Item 1 of this Quarterly Report on Form 10-Q.