Peabody Energy Corporation

Peabody Energy Corporation (BTU) Market Cap

Peabody Energy Corporation has a market capitalization of —.

No quote data available.

CEO: James C. Grech

Sector: Energy

Industry: Coal

IPO Date: 2017-04-03

Website: https://www.peabodyenergy.com

Peabody Energy Corporation (BTU) - Company Information

Market Cap: -|Sector: Energy

Company Profile

Headquartered in St. Louis, Missouri, and founded in 1883, Peabody Energy Corporation operates as a prominent global entity in the coal mining sector. Its vast operations encompass the United States, Australia, Japan, India, China, and several other countries across Asia and beyond. The company organizes its extensive activities into key divisions: Seaborne Thermal Mining, Seaborne Metallurgical Mining, Powder River Basin Mining, and other U.S. Thermal Mining segments. Peabody's core business involves the extraction, processing, and sale of various types of coal. This includes thermal coal, primarily supplied to electricity generation facilities, as well as bituminous and sub-bituminous coal. Additionally, it mines a range of metallurgical coals, such as hard, semi-hard, and semi-soft coking coal, alongside pulverized coal injection (PCI) coal, which it delivers to industrial clients and steel manufacturers. As of the end of 2021, the corporation maintained interests in 17 coal mining sites situated in both the U.S. and Australia, possessing approximately 2.5 billion tons of validated and likely coal reserves. It also managed around 450,000 acres of surface land through a combination of ownership and lease agreements. Beyond its mining endeavors, Peabody also facilitates direct and brokered trading of coal and related freight contracts, and furnishes transportation services.

Analyst Sentiment

72%
Strong Buy

From 6 Active Polls

1Y Forecast: $36.50

▲ +0.0% Potential Upside

Consensus Target Metrics

Low Bound

$37

Median

$37

High Bound

$37

Average

$37

Price & Moving Averages

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🎯 Wall Street Analyst Intelligence Report

1-Year structural target targets, chart projections, and sentiment maps.

Average 1Y Target
$36.50
▲ +71.20% Upside
Low Target
$36.50
71% Risk
Median Target
$36.50
71% Mid
High Target
$36.50
71% Max

Consensus Trend Projection

Trailing closures vs. 12-month metrics map.

Analyst Vote Distribution

Aggregate institutional coverage sentiment weights.

Sentiment volume allocation data unavailable.

valuation & financial ratiosdetailed financials

Historical valuation matrix unavailable.

📘 Full Research Report

ℹ️

AI-Generated Research: This report is for informational purposes only.

📘 PEABODY ENERGY CORP (BTU) — Investment Overview

🧩 Business Model Overview

Peabody Energy produces and sells coal from major U.S. basins, monetizing its ability to source low-cost thermal and metallurgical coal and move it to power generators and industrial users. The value chain is centered on (1) owning and operating coal reserves, (2) extracting coal with basin-specific cost advantages, (3) maintaining rail/handling and shipping infrastructure, and (4) selling to end customers through spot market sales and longer-term supply arrangements where available.

Customer stickiness is driven less by software-like switching costs and more by logistical and contract execution friction: buyers plan fuel procurement around reliable supply, mine/transport capabilities, and delivery schedules. When production and delivery performance are dependable, counterparties are more willing to continue sourcing from proven operators.

💰 Revenue Streams & Monetisation Model

Revenue is primarily tied to thermal coal (electricity generation) and metallurgical coal (steelmaking), with pricing influenced by global commodity conditions and customer-specific product requirements (heat content, blend characteristics, and delivery terms). Monetisation is typically:

  • Contracted and index-linked sales: Terms often reference market indices or negotiated formulas, with volume commitments and delivery schedules that can smooth results versus pure spot exposure.
  • Spot/merchant sales: More exposed to prevailing market pricing and short-cycle demand changes.
  • Freight and logistics pass-through: Some delivery costs are reflected in contract terms, while others are embedded in netbacks depending on shipping arrangements.

Key margin drivers include the cash cost position (mine operating costs, stripping/production efficiency), coal quality and yield (which affect pricing/realization), and transport economics (rail and handling constraints that can compress or expand netbacks).

🧠 Competitive Advantages & Market Positioning

Peabody’s structural advantage is rooted in geographic cost leadership and logistical infrastructure associated with U.S. coal basins, particularly the Powder River Basin for low-cost thermal coal. This positioning matters because electricity and industrial fuel procurement is highly sensitive to the delivered cost per unit of energy, not just mine-gate pricing.

Moat: Geographic low-cost feedstock + distribution access

  • Low-Cost Feedstock: Basin characteristics can support a favorable cost curve, enabling profitability across a wider range of market conditions than higher-cost competitors.
  • Logistical Infrastructure: Rail and terminal/handling capabilities help sustain delivery performance, reducing the operational risk for buyers relying on predictable supply.
  • Contracting and execution track record: Mines and logistics that consistently meet delivery obligations create practical switching friction for customers.

Competitive benchmarking (focus on U.S. coal producers)

  • Arch Resources (ARCH): Heavily exposed to U.S. coal production with meaningful Powder River Basin footprint. Peabody competes on delivered-cost competitiveness and contract performance.
  • CONSOL Energy (CEIX): Greater emphasis on metallurgical coal and different basin dynamics. The competitive differentiator shifts toward coal quality specs, blend requirements, and steel demand cycles.
  • Alliance Resource Partners / other Powder River Basin peers: Similar geography-driven cost dynamics, competing primarily on cost curve, volumes, and rail/market access.

Compared with peers that are more concentrated in metallurgical coal characteristics or higher-cost production geographies, Peabody’s positioning emphasizes low-cost thermal supply and the ability to deliver coal into customer networks.

🚀 Multi-Year Growth Drivers

While coal demand faces long-run decarbonization pressure, the multi-year investment frame for a cost-advantaged miner typically rests on four elements:

  • Cost-curve durability: Lower-cost producers tend to preserve market share when industry supply tightens, especially during periods when higher-cost supply is curtailed.
  • Supply discipline and mine lifecycle management: In a capital-intensive industry, disciplined development and shutdown decisions can stabilize industry balance and support realized terms versus a pure demand-only view.
  • Operational reliability: Buyers value supply certainty. Sustained delivery performance can translate into higher contracted volumes and reduced resupply risk.
  • Metallurgical optionality: Exposure to steelmaking coal can partially offset thermal cyclicality because steel demand and coking coal conditions follow different drivers than power-sector coal.

TAM expansion is not a smooth upward trend for coal globally, but the relevant “investment TAM” is the share of delivered coal that low-cost suppliers can capture and retain through changing power-generation and industrial patterns.

⚠ Risk Factors to Monitor

  • Regulatory and environmental risk: Emissions regulations, permitting constraints, and potential acceleration of coal plant retirements can reduce addressable demand.
  • Capital intensity and closure obligations: Environmental remediation, mine reclamation, and sustaining capital can pressure free cash flow, particularly in weaker commodity cycles.
  • Logistics and rail constraints: Delivery economics depend on rail capacity, service levels, and network conditions; disruptions can reduce netbacks.
  • Commodity price and demand cyclicality: Pricing is influenced by global coal balances, weather, steel production cycles, and macroeconomic activity.
  • Financing and counterparty risk: Access to capital and credit markets can affect flexibility during downturns; customer procurement risk can rise during prolonged weakness.

📊 Valuation & Market View

Market valuation for coal producers typically reflects commodity cyclicality and balance-sheet durability. Common approaches include:

  • EV/EBITDA or EV/ton sensitivity to realized pricing and production volumes
  • Net debt and liquidity assessment, given capital intensity and environmental liabilities
  • Cost curve positioning—a key driver of expected earnings resilience across cycles
  • Contract mix and delivery performance, which influence volatility and downside capture

Valuation generally becomes more favorable when the market expects (1) sustained delivery volumes, (2) favorable cost/margin structure, and (3) controlled capital spending and liability management.

🔍 Investment Takeaway

Peabody’s long-term thesis centers on geographic low-cost thermal coal supply backed by logistical infrastructure and execution, which can support resilience when industry economics deteriorate. The investment case is strongest when durable cost advantages and supply discipline translate into stable delivered economics, while recognizing that regulatory and demand headwinds can structurally limit the addressable market over time.


⚠ AI-generated — informational only. Validate using filings before investing.

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📊 AI Financial Analysis

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Earnings Data: Q Ending 2026-06-30

"BTU reported Q2 2026 revenue of $1.003B and net loss of $90.6M (EPS -$0.74), with margins deteriorating sharply. On a QoQ basis, revenue rose +3.1% (from $973.3M in Q1 2026 to $1.0032B), but gross profit flipped from +$108.6M (gross margin +11.2%) to -$72.0M (gross margin -7.2%). Net income worsened materially from -$32.4M in Q1 2026 to -$90.6M in Q2 2026 (QoQ: -180.2%). On a YoY basis, revenue increased +12.7% versus Q2 2025 ($890.1M). However, profitability fell: net loss expanded from -$27.6M (Q2 2025) to -$90.6M (Q2 2026) (YoY: -228.4% loss deterioration), indicating significant cost/commodity-driven margin pressure. Over the 4-quarter run, profitability has been volatile—Q4 2025 was profitable (net income +$10.4M; margins positive), while Q1 2026 and Q2 2026 swung back to losses, with gross and net margins contracting overall into Q2. Cash flow partially offset earnings weakness: operating cash flow was $318M in Q2 2026 and free cash flow was $258.1M, a notable improvement from Q1 2026 (FCF -$92.5M). The balance sheet remains resilient with net cash (net debt -$440.4M) and equity of $3.25B. Shareholder returns look strong given price momentum (+109.7% 1Y) and a small dividend yield (~0.3%), though buybacks were not evident in this dataset. Analyst consensus valuation context: fair value/price target level is far below the current price, implying valuation risk despite the strong momentum."

Revenue Growth

Positive

Revenue grew +12.7% YoY in Q2 2026 ($890.1M to $1.0032B) and +3.1% QoQ (Q1 to Q2 2026), but profitability did not follow.

Profitability

Neutral

Margins contracted sharply: gross margin fell from +11.2% (Q1 2026) to -7.2% (Q2 2026); net margin dropped from -3.3% to -9.0%. Net loss widened from -$32.4M to -$90.6M QoQ.

Cash Flow Quality

Neutral

Despite net losses, Q2 2026 generated strong operating cash flow of $318M and free cash flow of $258.1M, improving from Q1 FCF of -$92.5M. Dividend paid remains small (-$9.1M) with no buybacks shown.

Leverage & Balance Sheet

Positive

Net debt is negative (net cash) at -$440.4M in Q2 2026, and equity is stable at ~$3.25B. Liquidity ratios remain acceptable (current ratio ~2.01).

Shareholder Returns

Strong

Strong 1-year capital appreciation (+109.7%) materially boosts total return. Dividend yield is low (~0.3%), but total shareholder momentum is clearly positive; buybacks were not indicated.

Analyst Sentiment & Valuation

Neutral

Consensus price target ($36.50) is materially below the current price ($25.65 reported; however the dataset also shows a priceFairValue around 0.87× book). Net takeaway: valuation signals appear inconsistent, but the target implies limited upside and potential downside risk versus momentum.

Disclaimer:This analysis is AI-generated for informational purposes only. Accuracy is not guaranteed and this does not constitute financial advice.

RevenueEarningsP/E RatioSharesDebtMargin %

Fundamentals Overview

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Peabody’s Q1 2026 was anchored by strong thermal performance—especially Seaborne Thermal—offset by Centurion’s met-ramp disruptions. Seaborne Thermal delivered 3.0M tons, realized export prices of $86.25/ton (+>5% QoQ), costs of $50.26/ton (below guidance low end), and 25% adjusted EBITDA margin ($48.5M EBITDA). Against this, Seaborne Met posted a $7M adjusted EBITDA loss, with shipments 400k tons below plan and ~$80M drag from Centurion ramp-up, including $10M additional commissioning costs. Centurion’s issues were mechanical/electrical commissioning problems plus localized roof/floor conditions from slow progress, requiring roof reinforcement and shield realignment; safety metrics remain strong (no CO/methane/ignition events). Guidance updates reflect diesel-driven cost increases (+$0.50 PRB; +$2 seaborne thermal) and Centurion volume-driven cost pressure (+$15 seaborne met). Management expects remaining Centurion headwinds largely in Q2, optimizing automation by end-May and returning to forecast rates in June, supporting stronger free cash flow in the back half.

AI IconGrowth Catalysts

  • Seaborne Thermal outperformance: March Newcastle >$20/ton higher post-Iran conflict and stronger LNG-price-driven coal switching
  • U.S. thermal volume strength driven by continued electricity demand (strong early-quarter dispatch)
  • Longwall ramp stabilization progress at Centurion via proactive strata management, shield realignment, and reinforcement steps
  • Initial rare-earth/pilot-plant momentum: Wyoming Energy Authority grant received; pilot processing PRB coal using rare-earth feedstock under development

Business Development

  • West Coast PRB thermal export test shipment: PRB coal transported by Union Pacific Rail to Port of Guaymas for export to an Asian customer (May shipment with customer feedback cycle)
  • Coordination with U.S. and Mexican governments, port authorities, and logistics partners for the Guaymas PRB proof-of-concept
  • Rare-earth/critical minerals: Wyoming Energy Authority grant awarded for PRB-coal-based pilot plant; siting under consideration around Rawhide mine and other sites
  • Centurion commercial demand: North Asia historical customers; current focus on India with ~8–9 contracts concluded (commercial details withheld)

AI IconFinancial Highlights

  • Adjusted EBITDA $82.5M; net loss attributable to common $32.4M ($0.27/diluted share)
  • Seaborne Thermal: 3.0M tons (exceeded expectations) and export shipments +200k tons; realized export price $86.25/ton (+>5% QoQ); cost $50.26/ton (below low end of guidance); 25% adjusted EBITDA margin; adjusted EBITDA $48.5M
  • Seaborne Met: 2.0M tons (400k tons below plan) due to Centurion longwall ramp challenges and wet weather at CMJV; adjusted EBITDA loss of $7M with ~$80M reduction from Centurion ramp-up including $10M additional commissioning costs
  • U.S. Thermal (PRB): 21.2M tons (exceeded expectations); costs above guidance driven by sales mix (higher heat coal from NARM) and repair/maintenance timing; adjusted EBITDA $23.7M (lower margins net-net despite higher realized prices)
  • Full-year cost guidance updates: PRB +$0.50/ton and Seaborne Thermal +$2/ton (both entirely due to higher diesel pricing); Seaborne Met full-year cost guidance +$15/ton (entirely due to lower Centurion volume)
  • Q2 outlook: Seaborne Thermal volume 3.0M tons (1.9M export) with 300k tons at $64.60/ton average; costs $57–$62/ton including ~$3.50 higher fuel costs

AI IconCapital Funding

  • Cash: just under $500M; total liquidity above $850M at quarter-end
  • Restricted cash: restricted cash balance declined by ~$33M in the quarter; explanation given as collateralization method change with no liabilities change
  • Shareholder return: discussion of opportunity to repurchase shares; no dollar buyback amount provided in transcript
  • Mentioned 2028 convert outstanding as part of potential dilution/addressing strategy; no balance/size provided

AI IconStrategy & Ops

  • Centurion: commissioning disruptions resolved but ramp slowed; response plan centered on proactive strata management and disciplined execution
  • Operational remediation: reinforced roof and face, realigned shields, improved cutting conditions; expected remaining headwinds largely confined to Q2
  • Centurion volume/sales impacts: Q2 sales expected ~300k tons (June production strong but conversion lag at port); planned 7-week longwall move shifted from Q4 to early 2027; full-year Centurion sales reduced to 2.5M tons vs original 3.5M expectation
  • Centurion Q2 operating plan: confidence in moving to regular production mode starting in June; optimize longwall automation by end of May (commissioning completed; shield floor/roof straightened and iterative advance/align/fortify/cut cycle)

AI IconMarket Outlook

  • Q2 Seaborne Thermal: 3.0M tons; seaborne met 2.3M tons with realizations at 75% of premium hard coking coal index; PRB shipments 19.0M tons at cost $13.25; Other U.S. thermal 3.4M tons at costs $45–$49 per ton
  • Centurion: remaining temporary headwinds largely in Q2; back half of 2026 expected to return to full longwall production rates; longwall move shifted to early 2027
  • Seaborne market view: potential for additional upward pricing in coming months driven by Chinese import price rally and summer burn season
  • PRB margin framing: expectations that implied guidance and additional volumes in H2 will restore margins to multi-$/ton range as cost base is reflected in new deals

AI IconRisks & Headwinds

  • Centurion ramp risk: longer-than-anticipated commissioning due to unanticipated electrical/mechanical issues (equipment ~8-year-old; electrical troubleshooting and conveyor/shoot mechanical issues); localized roof/floor conditions and shield misalignment extended remediation
  • Sales conversion lag: June production expected to translate to Q2 sales slower due to typical lag converting production at mine to sales at port
  • Weather and operational disruptions: seaborne met shipments impacted by unfavorable wet weather at CMJV
  • Cost inflation: diesel/fuel and freight pressures; seaborne freight rates roughly +50% vs pre-conflict levels
  • Oil/gas sensitivity: PRB and broader margin challenged at current oil prices; management expects spot market robustness but cost-base pass-through required
  • Supply tightening risk: Indonesia directive to keep more coal domestically and announced production/export cuts (about 1/4 exports if fully implemented); could support prices but implementation uncertainty noted

Q&A: Analyst Interest

  • PRB full-year cost guidance mechanics: Management explained Q2 costs rise mainly from diesel fuel (about $0.50 full-year impact driven by forward strip declines), plus denominator effects from shoulder-season volume being ~2M tons lower in Q2. They emphasized Diesel dominates and volumes/liquidity timing matter.
  • Centurion electrical/mechanical root cause and shield integrity: Management detailed that unused ~8-year-old equipment with updated technology showed unanticipated electrical issues under full load, followed by standard commissioning mechanical problems (conveyors/shoots). Slow longwall progress created moisture/soft floor/localized ground conditions; shields were performing but misaligned, requiring iterative shield realignment by advancing the longwall.
  • Centurion timing confidence and ramp milestones: Analysts asked when full longwall production should be achieved. Management said they have “a lot of confidence” for Q2, with a plan to optimize longwall automation by end of May—commissioning complete and regular production mode in June—using an advance/align/fortify/cut iterative loop until floor/roof alignment conditions are met.

Sentiment: MIXED

Note: This summary was synthesized by AI from the BTU Q1 2026 earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.

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© 2026 Stock Market Info — Peabody Energy Corporation (BTU) Financial Profile