Peabody Energy Surges 8.22% on Expanded Buybacks and Coal Market Tailwinds Ranking 420th in $240M Trading Volume

On September 24, 2025, Peabody Energy (BTU) surged 8.22% to $25.71, with a trading volume of $0.24 billion, ranking 420th in market activity. The rally followed raised full-year guidance, a $1 billion share buyback program expansion, and favorable coal market dynamics. Analysts upgraded price targets, citing improved cost discipline and policy tailwinds under a pro-coal administration.

Peabody’s Q2 earnings highlighted operational strength, with $93 million in adjusted EBITDA and a robust $586 million cash balance. The company terminated its $3.8 billion Anglo American acquisition due to a mine fire, preserving liquidity and removing uncertainty. Management emphasized disciplined capital allocation, with cost reductions and a focus on organic growth, including the Centurion metallurgical coal mine.

Global coal demand remained resilient, driven by U.S. grid reliability needs and China’s supply constraints. Peabody benefited from tax credits for metallurgical coal and reduced federal royalties, boosting profitability. Despite ESG challenges, the company maintained a strong governance rating (ISS 1) and prioritized shareholder returns through dividends and buybacks, returning 65% of free cash flow to investors.

Analysts noted Peabody’s low debt-to-equity ratio (0.09) and $1 billion liquidity cushion as key strengths. While coal faces long-term headwinds, near-term policy support and strategic execution positioned Peabody to capitalize on cyclical demand. The stock’s 22% year-to-date return outperformed broader markets, reflecting renewed confidence in its value proposition.

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