Peabody Energy Corp (BTU) shares are soaring 5.06% in intraday trading on Thursday, despite reporting disappointing second-quarter results. The coal mining giant's stock rally comes as investors look beyond the immediate financial setback to focus on positive operational developments and cost improvements.

Peabody reported a net loss of $27.6 million for Q2 2025, or $0.23 per share, missing analyst estimates. Revenue fell 14.6% year-over-year to $890.1 million, also below expectations. However, the company's announcement of an accelerated start for longwall operations at its Centurion Mine, now set for February 2026, has sparked optimism among investors. This earlier-than-expected start could potentially boost future production and revenues.

Adding to the positive sentiment, Peabody highlighted improvements in seaborne and Powder River Basin (PRB) cost performance, indicating enhanced operational efficiency. The company also declared a quarterly dividend of $0.075 per share, signaling confidence in its financial stability despite the recent losses. These factors, combined with potential adjustments to full-year volume and cost targets, appear to be outweighing the short-term financial disappointment, driving the stock's significant rise today.