Is Peabody Energy’s (BTU) Canceled Anglo Deal a Turning Point for Its Long-Term Growth Plans?

• Peabody Energy Corporation recently presented at the UBS Global Materials Conference 2025 in New York, following the termination of purchase agreements with Anglo American due to a material adverse change.
• This corporate decision has prompted market participants to reconsider Peabody’s operational direction and its broader implications for the company's future growth opportunities.
• We’ll examine how Peabody’s shift in strategy after ending its Anglo American agreements could alter the company’s investment narrative.

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Peabody Energy Investment Narrative Recap

Owning Peabody Energy stock today means weighing confidence in coal’s cash flow potential against persistent questions about long-term demand and regulatory pressure. The recent termination of the Anglo American purchase agreements drew a strong response in the share price, but for most investors, the primary short-term catalyst, tight U.S. coal supply-demand dynamics, and the significant risk of energy transition remain the key factors. The news itself does not materially change either for now.

The most relevant recent announcement is the company’s updated third-quarter and full-year 2025 production guidance. Peabody expects increased Powder River Basin volumes and improved cost per ton on U.S. shipments, which may support near-term earnings as policy tailwinds and deferred plant retirements play out. However, investors should also weigh...

Read the full narrative on Peabody Energy (it's free!)

Peabody Energy's narrative projects $4.9 billion revenue and $468.2 million earnings by 2028. This requires 6.5% yearly revenue growth and a $327.3 million earnings increase from $140.9 million today.

Uncover how Peabody Energy's forecasts yield a $19.05 fair value, a 4% upside to its current price.

Exploring Other Perspectives

Six members of the Simply Wall St Community estimate Peabody Energy's fair value between US$19.05 and US$43.13. While many expect robust U.S. policy support to lift results, the market remains mindful of ongoing global renewable adoption.

Explore 6 other fair value estimates on Peabody Energy - why the stock might be worth just $19.05!

Build Your Own Peabody Energy Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Peabody Energy research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Peabody Energy research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Peabody Energy's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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