SunCoke Energy Inc. press release
SunCoke Energy, Inc. Reports Second Quarter 2025 Results
NYSE - New York Stock Exchange · Coal · Iron · United States
Second quarter 2025 net income was $3.5 million, compared to $23.3 million in the prior year period; second quarter 2025 net income attributable to SXC was $1.9 million, or $0.02 per diluted share, compared to $21.5 million, or $0.25 per diluted share in the prior year period
Consolidated Adjusted EBITDA (1) for the quarter was $43.6 million, compared to $63.5 million in the prior year period
Announced the acquisition of Phoenix Global for $325 million; all regulatory approvals have been received, transaction expected to close on August 1, 2025 and be immediately accretive
Extension of revolving credit facility originally due June 2026 completed in July; now maturing in July 2030
Reaffirming full-year 2025 Consolidated Adjusted EBITDA (1) guidance range of $210 million - $225 million
SunCoke Energy, Inc. (NYSE: SXC) today reported results for second quarter 2025 and provided an update on the previously announced acquisition of Phoenix Global.
"We are excited by the progress we have made to grow and diversify our business through the acquisition of Phoenix Global, which we announced in May. We are pleased to share that the transaction is now scheduled to close on August 1, 2025. The acquisition of Phoenix is an excellent strategic fit for SunCoke, as it expands and diversifies our customer base and enhances our capabilities as a supplier of industrial services to steelmaking customers. Following the close of the transaction, we plan to host investor conferences," said Katherine Gates, President and CEO of SunCoke Energy, Inc. "Our quarterly financial results were adversely impacted by the timing and mix of contract and spot coke sales in the Domestic Coke segment and lower volumes in the Logistics segment. We expect higher Adjusted EBITDA in the second half of the year, driven by a more advantageous mix of contract and spot coke sales, and the new take-or-pay coal handling agreement at Kanawha River Terminal."
| (1) | | See definition of Adjusted EBITDA and reconciliation to GAAP elsewhere in this release. |
SECOND QUARTER CONSOLIDATED RESULTS
| | Three Months Ended June 30, | | | | | | | | | | (Dollars in millions) | 2025 | | 2024 | | Increase (decrease) | | | | | | Revenues | $ | 434.1 | | $ | 470.9 | | $ | (36.8 | ) | | Net income attributable to SXC | $ | 1.9 | | $ | 21.5 | | $ | (19.6 | ) | | Adjusted EBITDA (1) | $ | 43.6 | | $ | 63.5 | | $ | (19.9 | ) |
| (1) | | See definition of Adjusted EBITDA and reconciliation to United States generally accepted accounting principles (“GAAP”) elsewhere in this release. |
Revenues in the second quarter of 2025 decreased $36.8 million as compared to the same prior year period, primarily driven by the timing/mix of contract and spot coke sales volumes coupled with lower volumes and pricing due to the contract extension economics at Granite City in the Domestic Coke segment, and lower transloading volumes at CMT in the Logistics segment.
Net income attributable to SXC decreased $19.6 million from the same prior year period, primarily driven by the timing/mix of contract and spot coke sales and lower contract extension economics at Granite City in the Domestic Coke segment, lower transloading volumes at CMT in the Logistics segment, and transaction costs.
Adjusted EBITDA decreased $19.9 million as compared to the same prior year period, primarily driven by the timing/mix of contract and spot coke sales and lower contract extension economics at Granite City in the Domestic Coke segment, and lower transloading volumes at CMT in the Logistics segment.
SECOND QUARTER SEGMENT RESULTS
Domestic Coke
Domestic Coke consists of cokemaking facilities and heat recovery operations at our Jewell, Indiana Harbor, Haverhill, Granite City and Middletown plants.
| | Three Months Ended June 30, | | | | | | | | | | (Dollars in millions, except per ton amounts) | 2025 | | 2024 | | Increase (decrease) | | | | | | Revenues | $ | 410.4 | | $ | 441.6 | | $ | (31.2 | ) | | Adjusted EBITDA (1) | $ | 40.5 | | $ | 57.9 | | $ | (17.4 | ) | | Sales volumes (thousands of tons) | | 943 | | | 973 | | | (30 | ) | | Adjusted EBITDA per ton (2) | $ | 42.95 | | $ | 59.51 | | $ | (16.56 | ) |
| (1) | | See definition of Adjusted EBITDA elsewhere in this release. | | (2) | | Reflects Domestic Coke Adjusted EBITDA divided by Domestic Coke sales volumes. |
Revenues in the second quarter of 2025 decreased $31.2 million as compared to the same prior year period, primarily driven by the timing/mix of contract and spot coke sales volumes coupled with lower volumes and pricing due to the contract extension economics at Granite City.
Adjusted EBITDA in the second quarter of 2025 decreased $17.4 million as compared to the same prior year period, primarily driven by timing/mix of contract and spot coke sales volumes coupled with lower volumes and economics at Granite City due to contract extension economics.
Logistics
Logistics consists of the handling and mixing services of coal and other aggregates at our Convent Marine Terminal ("CMT"), Lake Terminal, and Kanawha River Terminals (“KRT”).
| | Three Months Ended June 30, | | | | | | | | | | (Dollars in millions, except per ton amounts) | 2025 | | 2024 | | Increase (decrease) | | | | | | Revenues | $ | 15.1 | | $ | 20.2 | | $ | (5.1 | ) | | Intersegment sales | $ | 5.9 | | $ | 5.9 | | $ | — | | | Adjusted EBITDA (1) | $ | 7.7 | | $ | 12.2 | | $ | (4.5 | ) | | Tons handled (thousands of tons) (2) | | 4,746 | | | 5,982 | | | (1,236 | ) |
| (1) | | See definition of Adjusted EBITDA elsewhere in this release. | | (2) | | Reflects inbound tons handled during the period. |
Revenues in the second quarter of 2025 decreased $5.1 million as compared to the same prior year period, primarily driven by lower transloading volumes at CMT due to challenging market conditions.
Adjusted EBITDA decreased by $4.5 million as compared to the same prior year period, primarily driven by lower transloading volumes at CMT due to challenging market conditions.
Brazil Coke
Brazil Coke consists of a cokemaking facility in Vitória, Brazil, which we operate for an affiliate of ArcelorMittal.
Revenues were $8.6 million and Adjusted EBITDA was $2.6 million during the second quarter of 2025, which was reasonably consistent with $9.1 million and $2.5 million, respectively, in the prior year period.
Corporate and Other
Corporate and Other, which includes activity from our legacy coal mining business, was an expense of $7.2 million during the second quarter of 2025, compared to expense of $9.1 million during the second quarter of 2024, primarily due to lower legacy black lung expenses resulting from the DOL exemption.
2025 REVISED OUTLOOK
Our 2025 revised guidance reflects the estimated impact of the "One Big Beautiful Bill Act" on cash taxes and the impact of transaction costs related to the acquisition of Phoenix Global on Consolidated Net Income.
Our revised 2025 guidance is as follows:
Domestic Coke total production is expected to be approximately 4.0 million tons
Consolidated Net Income is expected to be between $40 million and $59 million
Consolidated Adjusted EBITDA is expected to be between $210 million and $225 million
Capital expenditures are projected to be approximately $60 million
Operating cash flow is estimated to be between $165 million and $180 million
Cash taxes are projected to be between $5 million and $9 million
Disclaimer: The Company's 2025 outlook and guidance are based on the Company's current estimates and assumptions that are subject to change and may be outside the control of the Company. If actual results vary from these estimates and assumptions, the Company's expectations may change. There can be no assurances that SunCoke will achieve the results expressed by this outlook and guidance.
RELATED COMMUNICATIONS
We will host our quarterly earnings call at 11:00 am ET (10:00 a.m. CT) today. The conference call will be webcast live at https://event.choruscall.com/mediaframe/webcast.html?webcastid=XUoh0pDP and archived for replay in the Investors section of www.suncoke.com . Investors and analysts may participate in this call by dialing 1-833-821-7847 in the U.S. or 1-412-652-1261 if outside the U.S., and asking to be joined into the SunCoke Energy, Inc. call.
SUNCOKE ENERGY, INC.
SunCoke Energy, Inc. (NYSE: SXC) supplies high-quality coke to domestic and international customers. Our coke is used in the blast furnace production of steel as well as the foundry production of casted iron, with the majority of sales under long-term, take-or-pay contracts. We also export coke to overseas customers seeking high-quality product for their blast furnaces. Our process utilizes an innovative heat-recovery technology that captures excess heat for steam or electrical power generation and draws upon more than 60 years of cokemaking experience to operate our facilities in Illinois, Indiana, Ohio, Virginia and Brazil. Our logistics business provides export and domestic material handling services to coke, coal, steel, power and other bulk customers. The logistics terminals have the collective capacity to mix and transload more than 40 million tons of material each year and are strategically located to reach Gulf Coast, East Coast, Great Lakes and international ports. To learn more about SunCoke Energy, Inc., visit our website at www.suncoke.com .
SunCoke routinely announces material information to investors and the marketplace using press releases, Securities and Exchange Commission filings, public conference calls, webcasts, sustainability reports, and SunCoke's website at https://www.suncoke.com/en/investors/overview . The information that SunCoke posts to its website may be deemed to be material. Accordingly, SunCoke encourages investors and others interested in SunCoke to routinely monitor and review the information that SunCoke posts on its website, in addition to following SunCoke's press releases, Securities and Exchange Commission filings, sustainability reports, and public conference calls and webcasts.
NON-GAAP FINANCIAL MEASURES
In addition to U.S. GAAP measures, this press release contains certain non-GAAP financial measures. These non-GAAP financial measures should not be considered as alternatives to the measures derived in accordance with U.S. GAAP. Non-GAAP financial measures have important limitations as analytical tools, and you should not consider them in isolation or as substitutes for results as reported under U.S. GAAP. Additionally, other companies may calculate non-GAAP metrics differently than we do, thereby limiting their usefulness as a comparative measure. Because of these and other limitations, you should consider our non-GAAP measures only as supplemental to other U.S. GAAP-based financial performance measures, including revenues and net income. Reconciliations to the most comparable GAAP financial measures are included following the presentation of financial and operating results included at the end of this press release.
DEFINITIONS
Adjusted EBITDA represents earnings before interest, taxes, depreciation and amortization (“EBITDA”), adjusted for any impairments, restructuring costs, gains or losses on extinguishment of debt, and/or transaction costs ("Adjusted EBITDA"). EBITDA and Adjusted EBITDA do not represent and should not be considered alternatives to net income or operating income under U.S. GAAP and may not be comparable to other similarly titled measures in other businesses. Management believes Adjusted EBITDA is an important measure in assessing operating performance. Adjusted EBITDA provides useful information to investors because it highlights trends in our business that may not otherwise be apparent when relying solely on U.S. GAAP measures and because it eliminates items that have less bearing on our operating performance. EBITDA and Adjusted EBITDA are not measures calculated in accordance with U.S. GAAP, and they should not be considered a substitute for net income, or any other measure of financial performance presented in accordance with U.S. GAAP.
Adjusted EBITDA attributable to SXC represents Adjusted EBITDA less Adjusted EBITDA attributable to noncontrolling interests.
Domestic logistics terminals represents Lake Terminal and Kanawha River Terminals.
FORWARD-LOOKING STATEMENTS
This press release and related conference call contain “forward-looking statements” (as defined in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended). Forward-looking statements often may be identified by the use of such words as "believe," "expect," "plan," "project," "intend," "anticipate," "estimate," "predict," "potential," "continue," "may," "will," "should," or the negative of these terms, or similar expressions. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. Any statements made in this press release or during the related conference call that are not statements of historical fact, including statements about our full-year 2025 outlook and guidance, our 2025 key initiatives, future dividends and the timing of such dividend payments, anticipated amount of 2025 coke sales, challenging market conditions, anticipated transaction benefits and synergies of Phoenix acquisition and time of close, the intended hosting and timing of any investor conferences, and expected financial performance in the second half of 2025, are forward-looking statements and should be evaluated as such. Forward-looking statements represent only our present beliefs regarding future events, many of which are inherently uncertain and involve significant known and unknown risks and uncertainties (many of which are beyond the control of SunCoke) that could cause our actual results and financial condition to differ materially from the anticipated results and financial condition indicated in such forward-looking statements. These risks and uncertainties include, but are not limited to, the risks and uncertainties described in Item 1A (“Risk Factors”) of our Annual Report on Form 10-K for the most recently completed fiscal year, as well as those described from time to time in our other reports and filings with the Securities and Exchange Commission (SEC).
In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, SunCoke has included in its filings with the SEC cautionary language identifying important factors (but not necessarily all the important factors) that could cause actual results to differ materially from those expressed in any forward-looking statement made by SunCoke. For information concerning these factors and other important information regarding the matters discussed in this press release and related conference call, see SunCoke's SEC filings, copies of which are available free of charge on SunCoke's website at www.suncoke.com or on the SEC's website at www.sec.gov . All forward-looking statements included in this press release and related conference call are expressly qualified in their entirety by such cautionary statements. Unpredictable or unknown factors not discussed in this press release and related conference call also could have material adverse effects on forward-looking statements.
Forward-looking statements are not guarantees of future performance, but are based upon the current knowledge, beliefs and expectations of SunCoke management, and upon assumptions by SunCoke concerning future conditions, any or all of which ultimately may prove to be inaccurate. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. SunCoke does not intend, and expressly disclaims any obligation, to update or alter its forward-looking statements (or associated cautionary language), whether as a result of new information, future events, or otherwise, after the date of this press release except as required by applicable law.
| SunCoke Energy, Inc. | | | | | | | | | | | | | | Consolidated Statements of Income | | | | | | | | | | | | | | (Unaudited) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | Six Months Ended June 30, | | | | | | | | | | | | 2025 | | 2024 | | 2025 | | 2024 | | | | | | | | | | | | | | | | | | | | | | (Dollars and shares in millions, except per share amounts) | | | | | | | | | | | | Revenues | | | | | | | | | | | | | | Sales and other operating revenue | | $ | 434.1 | | $ | 470.9 | | $ | 870.1 | | $ | 959.3 | | Costs and operating expenses | | | | | | | | | | | | | | Cost of products sold and operating expenses | | | 375.1 | | | 389.7 | | | 737.4 | | | 791.9 | | Selling, general and administrative expenses | | | 20.6 | | | 17.8 | | | 35.3 | | | 36.2 | | Depreciation and amortization expense | | | 28.6 | | | 28.7 | | | 57.4 | | | 62.0 | | Total costs and operating expenses | | | 424.3 | | | 436.2 | | | 830.1 | | | 890.1 | | Operating income | | | 9.8 | | | 34.7 | | | 40.0 | | | 69.2 | | Interest expense, net | | | 5.4 | | | 5.8 | | | 10.6 | | | 12.1 | | Income before income tax expense | | | 4.4 | | | 28.9 | | | 29.4 | | | 57.1 | | Income tax expense | | | 0.9 | | | 5.6 | | | 6.5 | | | 12.7 | | Net income | | | 3.5 | | | 23.3 | | | 22.9 | | | 44.4 | | Less: Net income attributable to noncontrolling interests | | | 1.6 | | | 1.8 | | | 3.7 | | | 2.9 | | Net income attributable to SunCoke Energy, Inc. | | $ | 1.9 | | $ | 21.5 | | $ | 19.2 | | $ | 41.5 | | Earnings attributable to SunCoke Energy, Inc. per common share: | | | | | | | | | | | | | | Basic | | $ | 0.02 | | $ | 0.25 | | $ | 0.22 | | $ | 0.49 | | Diluted | | $ | 0.02 | | $ | 0.25 | | $ | 0.22 | | $ | 0.49 | | Weighted average number of common shares outstanding: | | | | | | | | | | | | | | Basic | | | 85.5 | | | 85.1 | | | 85.5 | | | 85.0 | | Diluted | | | 85.6 | | | 85.3 | | | 85.6 | | | 85.3 |
| SunCoke Energy, Inc. | | | | | | | | | | Consolidated Balance Sheets | | | | | | | | | | | | | | | | | | | | | | June 30, 2025 | | December 31, 2024 | | | | | | | | (Unaudited) | | | | | | | | | | (Dollars in millions, except par value amounts) | | | | | | | | Assets | | | | | | | | | | Cash and cash equivalents | | $ | 186.2 | | | $ | 189.6 | | | Receivables, net | | | 73.4 | | | | 96.6 | | | Inventories | | | 215.3 | | | | 180.8 | | | Other current assets | | | 9.1 | | | | 7.6 | | | Total current assets | | | 484.0 | | | | 474.6 | | | Properties, plants and equipment (net of accumulated depreciation of $1,554.2 million and $1,497.6 million at June 20, 2025 and December 31, 2024, respectively) | | | 1,107.6 | | | | 1,143.6 | | | Intangible assets, net | | | 28.5 | | | | 29.2 | | | Deferred charges and other assets | | | 21.3 | | | | 20.8 | | | Total assets | | $ | 1,641.4 | | | $ | 1,668.2 | | | Liabilities and Equity | | | | | | | | | | Accounts payable | | $ | 141.9 | | | $ | 153.2 | | | Accrued liabilities | | | 43.2 | | | | 52.6 | | | Total current liabilities | | | 185.1 | | | | 205.8 | | | Long-term debt | | | 493.4 | | | | 492.3 | | | Accrual for black lung benefits | | | 12.8 | | | | 12.7 | | | Retirement benefit liabilities | | | 7.1 | | | | 7.6 | | | Deferred income taxes | | | 194.3 | | | | 196.8 | | | Asset retirement obligations | | | 17.8 | | | | 17.2 | | | Other deferred credits and liabilities | | | 23.9 | | | | 24.8 | | | Total liabilities | | | 934.4 | | | | 957.2 | | | Equity | | | | | | | | | | Preferred stock, $0.01 par value. Authorized 50,000,000 shares; no issued shares at both March 31, 2025 and December 31, 2024 | | | — | | | | — | | | Common stock, $0.01 par value. Authorized 300,000,000 shares; issued 100,069,991 and 99,756,420 shares at June 30, 2025 and December 31, 2024, respectively | | | 1.0 | | | | 1.0 | | | Treasury stock, 15,404,482 shares at both June 30, 2025 and December 31, 2024 | | | (184.0 | ) | | | (184.0 | ) | | Additional paid-in capital | | | 731.6 | | | | 732.8 | | | Accumulated other comprehensive loss | | | (7.3 | ) | | | (7.7 | ) | | Retained earnings | | | 136.4 | | | | 138.1 | | | Total SunCoke Energy, Inc. stockholders’ equity | | | 677.7 | | | | 680.2 | | | Noncontrolling interest | | | 29.3 | | | | 30.8 | | | Total equity | | | 707.0 | | | | 711.0 | | | Total liabilities and equity | | $ | 1,641.4 | | | $ | 1,668.2 | |