What Peabody Energy Does & How It Makes Money (BTU)

Updated October 2026 · reflects Peabody Energy's latest reported financials

Coal miner producing thermal and metallurgical coal in the US and Australia. It earns revenue by mining, preparing and selling coal, mainly to electric utilities and power generators, as well as to industrial facilities and steel manufacturers.

How Peabody Energy makes money

It earns revenue by mining, preparing and selling coal, mainly to electric utilities and power generators, as well as to industrial facilities and steel manufacturers. Its segments cover seaborne thermal and metallurgical coal from Australia and thermal coal from US mines.

What Peabody Energy does

Peabody Energy is a coal producer founded in 1883 and headquartered in St. Louis, Missouri. It runs mines in Wyoming and Alabama in the United States and in New South Wales and Queensland in Australia. It produces thermal coal for electricity generation and metallurgical coal for steelmaking. It reports four segments: Seaborne Thermal, Seaborne Metallurgical, Powder River Basin, and Other U.S. Thermal. In the Powder River Basin it uses surface mining to extract sub-bituminous coal with lower sulfur content. Its main customers are electricity generators, industrial facilities and steel manufacturers.

Products & services

• Thermal coal
• Metallurgical (coking) coal
• Powder River Basin sub-bituminous coal
• Seaborne thermal coal
• Seaborne metallurgical coal
• Low-sulfur coal

What is Peabody Energy worth?

On an owner-earnings DCF, Peabody Energy's most-likely value is about $8 versus a recent price near $25 (70% above fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$6) with a margin of safety — so the honest verdict here is “Stretched — richly priced.” Fair value earns its keep only at the extremes, not in the wide middle.

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