Peabody Energy: A Weak Q1 2026, But There Is Value At This Price (Upgrade)

Peabody Energy Corporation is rated a Buy, with recent share price weakness viewed as a compelling entry amid improving coking coal prices and Centurion ramp-up. Seaborne Metallurgical's earnings contribution is set to rise materially, driven by higher market prices and Centurion's low-cost production in Australia. Q1 2026 delivered $83M adjusted EBITDA, down materially due to the ramp-up issues with Centurion.