Hallador Energy (HNRG) stock rose nearly 12% in premarket trading on Tuesday after the coal and electricity producer posted a surprise second-quarter profit.

The company reported earnings of $0.19 per share for the three months ended June 30, while analysts expected it to post a loss of $0.15 per share, according to Fiscal.ai data. Its quarterly revenue of $102.9 million also topped estimates of $91.7 million.

The rise in revenue was driven by an uptick in coal sales, which rose to $38.1 million, compared with $32.8 million a year earlier. This comes at a time when Hallador is pivoting towards power generation over coal production. In 2024, the company reduced its coal output volume by approximately 40% and shifted its focus away from the higher-cost portions of its coal reserves.

However, President Donald Trump has provided a pivotal shot in the arm for the industry, which was staring down the barrel. He signed several executive orders to boost coal production and its usage for electricity generation.

Retail sentiment on Stocktwits about Hallador was in the ‘bullish’ territory at the time of writing.

“Market conditions have strengthened relative to last year, and we continue to assess whether it makes economic sense to bring additional production online in 2025 or into 2026,” CEO Brent Bilsland said.

The stock had taken a hit in May after a data center provider withdrew from a previous agreement that had granted Hallador exclusivity regarding a potential power supply deal. 

Bilsland said on Monday that it is now speaking with a broader slate of likely partners, including utilities whose proposals “offer compelling scale and execution benefits.” He was also confident of converting some of the discussions into long–term agreements.

Hallador Energy stock has surged nearly 66% this year.