Preheat oven to 350 degrees F (175 degrees C). Grease and flour a 10-inch tube pan.
Mix flour, baking powder, and salt together and set aside.
Beat butter and sugar with an electric mixer in a large bowl until light and fluffy. The mixture should be noticeably lighter in color. Add the room-temperature eggs one at a time, allowing each egg to blend into the butter mixture before adding the next. Mix in coconut extract.
Pour in the flour mixture alternately with the buttermilk, mixing until just incorporated. Fold in coconut, mixing just enough to evenly combine. Pour batter into prepared pan.
Bake at 350 degrees F (175 degrees C) for 1 hour, or until a toothpick inserted into the cake comes out clean.