Peabody Energy Corp (BTU) shares are soaring 6.02% in pre-market trading on Tuesday following the release of its impressive first-quarter 2025 earnings report and dividend announcement. The coal mining giant significantly outperformed analyst expectations, demonstrating resilience in a challenging energy market.

The company reported earnings per share (EPS) of $0.27, handily beating the FactSet consensus estimate of $0.10 and the IBES estimate of $0.05. Peabody's adjusted EBITDA for the quarter reached $144 million, substantially surpassing the IBES estimate of $93 million. While revenue for the quarter came in at $937 million, slightly below analyst expectations, investors seemed to focus on the bottom-line beat and strong cash flow generation.

Adding to investor optimism, Peabody declared a quarterly dividend of $0.075 per share, signaling confidence in its financial stability. However, the company also noted a potential issue regarding its pending deal with Anglo American's Moranbah North mine, stating that if the matter is not resolved satisfactorily, Peabody may elect to terminate the agreements. Despite this uncertainty, the market's positive reaction to the earnings report and dividend announcement appears to be overshadowing any concerns about the potential deal termination.