We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Solar energy has surpassed coal production for the first time in history.
Peabody EPS is negative despite sky high electricity prices.
BTU shares are exhibiting abysmal relative performance in 2026.
Peabody Energy Company Overview
Zacks Rank #5 (Strong Sell) company Peabody Energy ((BTU - Free Report) ) is one of the world’s largest coal companies. The St. Louis, Missouri-based company provides coal used to produce electricity to industrial customers in more than 25 countries. BTU has majority ownership in a mix of 17 surface and underground coal mining operations in the United States and Australia. Peabody operates its business among two primary segments, including:
· Thermal Coal: Peabody provides high-quality thermal coal to domestic and international buyers. Thermal coal is used for electricity generation and is mainly sold to utility companies through long-term contracts.
· Seaborne Metallurgical Coal: Met coal is an essential ingredient needed to produce steel. Peabody mainly exports its met coal to Asian buyers who use it for infrastructure projects.
Over the past few years, BTU has been working to diversify its business into a more balanced mix by selling more met coal. Currently, met revenue accounts for roughly a third of total revenue.
Solar Overtakes Coal Energy Production for the 1st Time
Few, if any, on Earth know more about energy and clean energy than Tesla ((TSLA - Free Report) ) and SpaceX ((SPCX - Free Report) ) CEO Elon Musk. For years, Musk has touted solar energy, saying things like:
“Solar is everything. Other energy sources are a waste of time, like a caveman throwing some twigs into the fire.”
“Once you understand the Kardashev Scale, it becomes utterly obvious that essentially all energy will be solar.”
Although solar energy production requires higher start-up capital than coal, it is zero-emission and long-term generation costs are far lower. The latest energy production data tells the story. Solar energy accounted for 12.8% of U.S. electricity in May, surpassing coal (12.2%) for the first time in history. While low-cost natural gas remains the dominant electricity source (~37%), solar is catching up. In fact, solar and battery storage accounted for a staggering 91% of U.S. power capacity installed in Q1 2026.
U.S. electricity prices have been soaring due to the rapid buildout of AI data centers. However, investors wouldn’t know from BTU’s fundamentals. BTU EPS has downtrended since early 2023 and flipped negative in early 2026.
Image Source: Zacks Investment Research
Meanwhile, BTU has missed Zacks Consensus Analyst Estimates in five of the past 6 quarters.
Image Source: Zacks Investment Research
The Centurion Mine Debacle
In addition to bearish macro trends, BTU is suffering from executional errors. For instance, the Australia-based Centurion mine was touted by management as the company’s flagship location. Management expected 700,000 tons from the mine in Q1. However, Q1 production from the mine was a meager 250,000 due to mechanical and electrical issues.
BTU Underperformance is Concerning
BTU shares are exhibiting troubling relative price action. While the S&P 500 Index is up more than 7% year-to-date, BTU is down more than 20%.
Image Source: Zacks Investment Research
Bottom Line
Although electricity prices are soaring thanks to AI data center demand, Peabody Energy is struggling. Peabody earnings have downtrended and flipped negative as solar electricity production flips coal production for the first time in history.
View the Zacks #1 Rank List
Bear of the Day: Peabody Energy (BTU)
Key Takeaways
Peabody Energy Company Overview
Zacks Rank #5 (Strong Sell) company Peabody Energy ((BTU - Free Report) ) is one of the world’s largest coal companies. The St. Louis, Missouri-based company provides coal used to produce electricity to industrial customers in more than 25 countries. BTU has majority ownership in a mix of 17 surface and underground coal mining operations in the United States and Australia. Peabody operates its business among two primary segments, including:
· Thermal Coal: Peabody provides high-quality thermal coal to domestic and international buyers. Thermal coal is used for electricity generation and is mainly sold to utility companies through long-term contracts.
· Seaborne Metallurgical Coal: Met coal is an essential ingredient needed to produce steel. Peabody mainly exports its met coal to Asian buyers who use it for infrastructure projects.
Over the past few years, BTU has been working to diversify its business into a more balanced mix by selling more met coal. Currently, met revenue accounts for roughly a third of total revenue.
Solar Overtakes Coal Energy Production for the 1st Time
Few, if any, on Earth know more about energy and clean energy than Tesla ((TSLA - Free Report) ) and SpaceX ((SPCX - Free Report) ) CEO Elon Musk. For years, Musk has touted solar energy, saying things like:
“Solar is everything. Other energy sources are a waste of time, like a caveman throwing some twigs into the fire.”
“Once you understand the Kardashev Scale, it becomes utterly obvious that essentially all energy will be solar.”
Although solar energy production requires higher start-up capital than coal, it is zero-emission and long-term generation costs are far lower. The latest energy production data tells the story. Solar energy accounted for 12.8% of U.S. electricity in May, surpassing coal (12.2%) for the first time in history. While low-cost natural gas remains the dominant electricity source (~37%), solar is catching up. In fact, solar and battery storage accounted for a staggering 91% of U.S. power capacity installed in Q1 2026.
Image Source: Ember
BTU Unprofitable Despite Sky-High Electricity Prices
U.S. electricity prices have been soaring due to the rapid buildout of AI data centers. However, investors wouldn’t know from BTU’s fundamentals. BTU EPS has downtrended since early 2023 and flipped negative in early 2026.
Image Source: Zacks Investment Research
Meanwhile, BTU has missed Zacks Consensus Analyst Estimates in five of the past 6 quarters.
Image Source: Zacks Investment Research
The Centurion Mine Debacle
In addition to bearish macro trends, BTU is suffering from executional errors. For instance, the Australia-based Centurion mine was touted by management as the company’s flagship location. Management expected 700,000 tons from the mine in Q1. However, Q1 production from the mine was a meager 250,000 due to mechanical and electrical issues.
BTU Underperformance is Concerning
BTU shares are exhibiting troubling relative price action. While the S&P 500 Index is up more than 7% year-to-date, BTU is down more than 20%.
Image Source: Zacks Investment Research
Bottom Line
Although electricity prices are soaring thanks to AI data center demand, Peabody Energy is struggling. Peabody earnings have downtrended and flipped negative as solar electricity production flips coal production for the first time in history.