Oil Market Impact - April WTI crude oil prices surged to $119.48 per barrel, the highest in 3.75 years, before settling at $94.77 following Israeli airstrikes on Iranian oil depots [1] - The Strait of Hormuz, a critical passage for about 20% of global oil supply, is effectively closed, with warnings from Iran's Revolutionary Guard Corps regarding potential risks to vessels [3] Equity Market Reaction - The S&P 500 fell to a three-month low, the Dow Jones Industrial Average dropped to a two-month low, and the Nasdaq 100 slid to a three-month low due to rising energy costs exacerbating inflation concerns [3] Investment Opportunities in Materials Sector - The materials sector presents opportunities for income-focused investors, with three high-yield dividend stocks highlighted: Westlake Chemical Partners LP (WLKP) yielding 10.11%, Suncoke Energy (SXC) yielding 7.66%, and AngloGold Ashanti (AU) yielding 3.37% [4] - These stocks have low beta values ranging from 0.55 to 0.98, indicating less volatility compared to the broader market, making them attractive during periods of high crude prices and market instability [5] Westlake Chemical Partners LP (WLKP) Overview - WLKP is a master limited partnership focused on ethylene production, with a long-term agreement to sell most of its output to Westlake Corporation (WLK) [6] - Despite a 7.5% decline over the past year, WLKP has gained 16% year-to-date, with a reasonable valuation at approximately 12.26x forward earnings compared to the sector's 15.51x [7] - WLKP offers a forward annual dividend of $1.89 per unit, yielding 8.69%, with a recent distribution of $0.4714 declared in February; however, the payout ratio is around 136%, indicating tight coverage [8]

Core Viewpoint - SunCoke Energy, Inc. (NYSE:SXC) is recognized as one of the 13 most promising long-term stocks to buy according to hedge funds, despite recent challenges in its performance [1]. Financial Performance - In Q4, SunCoke reported an adjusted EBITDA of $56.7 million, which was below expectations, with contributions from Industrial Services at $22.7 million [2]. - For the full year, consolidated adjusted EBITDA reached $219.2 million, influenced by the addition of Phoenix Global, although terminal segment volumes were weaker [4]. Leadership Changes - During the Q4 2025 earnings call, CEO Katherine Gates announced a leadership transition with CFO Mark Marinko retiring and Shantanu Agrawal taking over, aimed at maintaining financial discipline and operational priorities [3]. Segment Performance - The Domestic Coke segment faced challenges due to changes in the sales mix between contract and spot coke, as well as profitability impacts from the Granite City contract extension and a contract breach by Algoma [5].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-35243 Lisle, Illinois 60532 (Address of principal executive offices, including zip code) (630) 824-1000 (Registran ...

Core Viewpoint - SunCoke Energy is focusing on recovery in 2026 after a challenging 2025, driven by weaker market conditions and contract disputes, while emphasizing capital allocation towards dividends and debt reduction [4][7]. Contractual Agreements - SunCoke extended its Granite City coke-making contract with U.S. Steel through December 2026 and its Haverhill Two contract with Cleveland-Cliffs through December 2028, maintaining similar economic terms [1]. - A new take-or-pay coal handling agreement at KRT is expected to benefit the company for a full year in 2026 [1]. Financial Performance - For 2025, SunCoke reported consolidated adjusted EBITDA of $219.2 million, down $53.6 million from the previous year, impacted by lower terminal handling volumes and a shift in sales mix [2][11]. - The company experienced a net loss of $1.00 per share in Q4 2025, attributed to one-time items totaling $0.85 per share after tax [8]. - Full-year net loss was $0.52 per share, down $1.64 from 2024, influenced by impairment charges and lower contract economics [9]. Operational Updates - SunCoke's domestic coke segment delivered full-year adjusted EBITDA of $170.0 million, down $64.7 million from the prior year due to a sales mix shift and contract breaches [12]. - The company generated operating cash flow of $109.1 million in 2025, negatively impacted by $29.3 million in acquisition-related costs and $30 million from Algoma's breach [13]. 2026 Guidance - Management guided for consolidated adjusted EBITDA of $230–$250 million in 2026, with free cash flow expected to be $140–$150 million [7][15]. - Domestic coke adjusted EBITDA is anticipated to decrease by $2 million to $8 million, while industrial services adjusted EBITDA is expected to rise by $28 million to $38 million [15]. Integration and Synergies - The Phoenix Global acquisition is projected to contribute approximately $60 million of annual EBITDA and $5–10 million in synergies, enhancing industrial services adjusted EBITDA to $90–$100 million in 2026 [5][23]. - Integration of Phoenix is progressing, with management confirming the anticipated EBITDA contribution and synergy opportunities [23]. Capital Expenditures and Liquidity - Capital expenditures for 2026 are projected to be $90 million to $100 million, reflecting a full year of Phoenix capital requirements [18]. - SunCoke ended 2025 with $88.7 million in cash and $132 million available under its revolver, totaling about $221 million in liquidity [14]. Operational Challenges - The company is facing operational disruptions at the start of 2026 due to a turbine failure and severe winter weather, with an estimated impact of about $10 million in Q1 [21]. - SunCoke continues to pursue arbitration against Algoma for a breach of contract, which is expected to affect volumes for both 2025 and 2026 [22]. Future Events - SunCoke plans to host a virtual Investor Day on February 26 to discuss recent developments and engage with investors [24].

Core Insights - Performance was significantly impacted by Algoma's breach of contract, leading to the idling of the Haverhill 1 facility and a shift towards lower-margin spot markets [1] - Management mitigated approximately $40 million of the potential $70 million working capital impact from the Algoma breach through third-party sales and facility turndowns [1] - The acquisition of Phoenix Global is a strategic pivot aimed at diversifying revenue streams, contributing five months of results in 2025, with full integration expected to drive growth in 2026 [1] Financial Performance - Domestic coke economics faced pressure due to lower pricing on the Granite City contract extension and a transition from long-term contracts to spot blast coke sales [1] - Industrial Services growth was driven by the addition of Phoenix and a new take-or-pay coal handling agreement at the KRT terminal that commenced in 2025 [1] Operational Highlights - Operational excellence was demonstrated by a total recordable incident rate of 0.55, maintaining safety as the primary organizational priority during structural transitions [1]

Core Insights - The company made significant progress in capital allocation priorities in 2025, highlighted by the acquisition of Phoenix and a return of approximately $41 million to shareholders through dividends [1][11] - The integration of Phoenix is progressing well, and the company expects continued growth and a quarterly dividend throughout 2026 [1][12] Financial Performance - The consolidated adjusted EBITDA for 2025 was $219.2 million, reflecting a decrease of $53.6 million compared to the previous year, primarily due to lower coke sales volumes and market conditions [3][7] - The fourth quarter net loss attributable to the company was $1 per share, down from $1.28 in 2024, influenced by one-time items including asset impairment charges and restructuring costs related to the Phoenix acquisition [5][6] - The domestic coke segment faced challenges due to a change in the mix of contract and spot coke sales, resulting in lower economics on the Granite City contract extension and a breach of contract by Algoma [2][8] Operational Highlights - The company achieved a total recordable incident rate of 0.55, emphasizing its commitment to safety [3] - The domestic coke business delivered an adjusted EBITDA of $170 million, down $64.7 million from the prior year, impacted by contract changes and lower sales volumes [8] - The Industrial Services segment, including the new Phoenix Global business, reported an adjusted EBITDA of $62.3 million, an increase of $11.9 million year-over-year, driven by the addition of Phoenix Global [9] Future Outlook - For 2026, the company expects consolidated adjusted EBITDA to be between $230 million and $250 million, with domestic coke adjusted EBITDA projected to be lower by $2 million to $8 million [15][20] - The Industrial Services segment is anticipated to see an increase in adjusted EBITDA by $28 million to $38 million, benefiting from a full year of Phoenix Global and improved market conditions [15][20] - The company plans to utilize excess free cash flow to pay down outstanding borrowings and maintain a gross leverage target below three times [14][21]

Financial Data and Key Metrics Changes - The consolidated adjusted EBITDA for 2025 was $219.2 million, down $53.6 million from the prior year, primarily due to changes in contract and spot coke sales, lower economics on the Granite City contract extension, and lower handling volumes [5][10] - The fourth quarter net loss attributable to SunCoke was $1 per share, down $1.28 compared to Q4 2024, mainly driven by one-time items totaling $0.85 per share net of tax [8][9] - Full year net loss attributable to SunCoke was $0.52 per share, down $1.64 from 2024, influenced by one-time items including non-cash asset impairment charges [8][9] Business Line Data and Key Metrics Changes - The domestic coke business delivered full-year adjusted EBITDA of $170 million, down $64.7 million from the prior year, impacted by contract and spot coke sales mix and the Algoma breach [10] - The industrial services segment, including Phoenix Global, delivered full-year adjusted EBITDA of $62.3 million, an increase of $11.9 million year-over-year, primarily due to the addition of Phoenix Global [11] - Corporate and other expenses increased by $800,000 year-over-year to $13.1 million, reflecting results from legacy coal mining and Brazil coke-making businesses [11] Market Data and Key Metrics Changes - The domestic coke segment is expected to deliver adjusted EBITDA between $162 million and $168 million in 2026, with sales of approximately 3.4 million tons [16][18] - Industrial services adjusted EBITDA is projected to be between $90 million and $100 million in 2026, reflecting expectations for improved market conditions [19][20] Company Strategy and Development Direction - The company plans to utilize free cash flow to support capital allocation priorities, including paying down revolver balance and maintaining dividends [22][23] - The integration of Phoenix Global is progressing well, with expectations for growth potential in this business [7][23] - The company aims to maintain strong safety and environmental performance, which is central to delivering high-quality coke and industrial services [22] Management's Comments on Operating Environment and Future Outlook - Management anticipates a meaningful recovery in 2026, supported by an optimized coke fleet and extended coke-making contracts [15] - The company expects consolidated adjusted EBITDA to be between $230 million and $250 million in 2026, with a focus on deleveraging and maintaining a gross leverage target below 3x [15][21] - Management highlighted the impact of ongoing litigation with Algoma, expecting to recover losses from the breach of contract [28][30] Other Important Information - The company returned approximately $41 million to shareholders via dividends in 2025 and plans to continue this in 2026 [7] - Capital expenditures for 2025 were $66.8 million, slightly below the revised guidance of $70 million [13] Q&A Session Summary Question: Status of litigation with Algoma - Management confirmed they are pursuing arbitration against Algoma for breach of contract and expect to prevail [28][30] Question: EBITDA contribution from Phoenix Global - Management affirmed the anticipated annual EBITDA contribution from Phoenix Global is still expected to be around $60 million, with synergies of $5 million-$10 million [32] Question: Haverhill One closure and potential reopening - Management stated that Haverhill One could be restarted but would require significant capital investment and about 12-18 months [42] Question: Impact of Middletown turbine failure - Management indicated that the turbine failure will have a $10 million impact in the first quarter, with no earnings from power production until it is operational again [46][48] Question: Expected improvement in tons handled in the industrial segment - Management noted that guidance includes a full year of the new KRT contract and modest recovery across both KRT and CMT [52]

Financial Data and Key Metrics Changes - Consolidated adjusted EBITDA for Q4 2025 was $56.7 million, down $9.4 million year-over-year, primarily due to lower coke sales volumes and market conditions [9][10] - Full-year consolidated adjusted EBITDA was $219.2 million, a decrease of $53.6 million compared to the previous year [9][10] - The net loss attributable to SunCoke for Q4 2025 was $1 per share, down from $1.28 per share in Q4 2024, driven by one-time items totaling $0.85 per share net of tax [8] - Full-year net loss attributable to SunCoke was $0.52 per share, down from $1.64 per share in 2024, impacted by one-time items totaling $0.97 per share net of tax [8] Business Line Data and Key Metrics Changes - Domestic coke business delivered full-year adjusted EBITDA of $170 million, down $64.7 million from the prior year, affected by contract and spot coke sales mix changes and lower contract economics [10] - Industrial services segment, including Phoenix Global, delivered full-year adjusted EBITDA of $62.3 million, an increase of $11.9 million year-over-year, primarily due to the addition of Phoenix Global [11] - Corporate and other expenses increased by $800,000 year-over-year to $13.1 million, reflecting costs from legacy operations [11] Market Data and Key Metrics Changes - The domestic coke segment is expected to deliver adjusted EBITDA between $162 million and $168 million in 2026, with sales of approximately 3.4 million tons [16][18] - Industrial services adjusted EBITDA is projected to be between $90 million and $100 million in 2026, reflecting expectations for improved market conditions [19][20] Company Strategy and Development Direction - The company plans to utilize free cash flow to support capital allocation priorities, including paying down revolver balance and maintaining dividends [22] - Focus on seamless integration of Phoenix Global and exploring new growth opportunities across all business areas [23] - The company aims to maintain strong safety and environmental performance as a competitive advantage [22] Management's Comments on Operating Environment and Future Outlook - Management anticipates a meaningful recovery in 2026, supported by an optimized coke fleet and extended contracts [15] - The company expects to generate positive free cash flow in 2026, with gross leverage targeted around 2.45x, below the long-term target of 3x [15] - Management highlighted challenges in 2025 due to market conditions but remains optimistic about future performance [15] Other Important Information - The company returned approximately $41 million to shareholders via dividends in 2025 and plans to continue this in 2026 [7] - The integration of Phoenix Global is progressing well, with expectations for significant contributions in 2026 [15] Q&A Session Summary Question: Status of litigation with Algoma regarding contract breach - Management confirmed ongoing arbitration with Algoma, expecting to recover losses from the breach, which could amount to up to $70 million [28][29] Question: Anticipated EBITDA contribution from Phoenix Global - Management affirmed expectations of an annual EBITDA contribution of roughly $60 million from Phoenix Global [31] Question: One-time integration costs incurred with Phoenix Global - One-time costs included site closure costs of about $3.9 million and transaction costs of approximately $600,000 [32] Question: Permanence of Haverhill One closure and potential reopening - Haverhill One closure is permanent unless significant capital investment is made, which is not currently justified [40] Question: Expected improvement in tons handled in the industrial segment - Guidance includes a full year of the new KRT contract and modest recovery across both KRT and CMT [49]

Financial Data and Key Metrics Changes - The consolidated adjusted EBITDA for Q4 2025 was $56.7 million, down $9.4 million compared to the prior year, primarily due to lower coke sales volumes and market conditions [9][10] - Full year adjusted EBITDA for 2025 was $219.2 million, a decrease of $53.6 million from the previous year, driven by changes in contract and spot coke sales and lower economics on the Granite City contract extension [9][10] - The net loss attributable to SunCoke for Q4 2025 was $1 per share, down from $1.28 in Q4 2024, influenced by one-time items totaling $0.85 per share [8][9] Business Line Data and Key Metrics Changes - The domestic coke business delivered full-year adjusted EBITDA of $170 million, down $64.7 million from the prior year, impacted by contract and spot coke sales mix and the Algoma breach [10][11] - The industrial services segment, including Phoenix Global, reported full-year adjusted EBITDA of $62.3 million, an increase of $11.9 million year-over-year, primarily due to the addition of Phoenix Global [11] - Corporate and other expenses increased by $800,000 year-over-year to $13.1 million, reflecting costs from legacy operations [11] Market Data and Key Metrics Changes - The domestic coke segment is expected to deliver adjusted EBITDA between $162 million and $168 million in 2026, with sales of approximately 3.4 million tons [17][19] - Industrial services adjusted EBITDA is projected to be between $90 million and $100 million in 2026, reflecting expectations for improved market conditions [20][22] Company Strategy and Development Direction - The company plans to utilize free cash flow to support capital allocation priorities, including paying down revolver balance and maintaining dividends [24][25] - SunCoke aims to continue integrating Phoenix Global and assess new growth opportunities across its business [25] - The company has extended key contracts, including the Granite City and Haverhill Two contracts, to ensure stable revenue streams [6][19] Management's Comments on Operating Environment and Future Outlook - Management anticipates a meaningful recovery in 2026, supported by an optimized coke fleet and improved market conditions [16][24] - The company expects to generate positive free cash flow in 2026, with gross leverage targeted around 2.45x, below the long-term target of 3x [16][24] - Management highlighted the impact of recent weather conditions and operational challenges, including a turbine failure, on first-quarter results [47][48] Other Important Information - The company returned approximately $41 million to shareholders via dividends in 2025 and plans to continue this practice in 2026 [6][24] - The integration of Phoenix Global is progressing well, with expected synergies contributing to future earnings [33][20] Q&A Session Summary Question: Status of litigation with Algoma regarding contract breach - Management confirmed ongoing arbitration with Algoma, expecting to recover losses from the breach, which could amount to up to $70 million [30][31] Question: Expected EBITDA contribution from Phoenix Global - Management affirmed the anticipated annual EBITDA contribution of approximately $60 million from Phoenix Global, along with expected synergies of $5 million to $10 million [33] Question: Future of Haverhill One facility - Management indicated that Haverhill One could be restarted but would require significant capital investment and is currently not economically viable [42][43] Question: Impact of Middletown turbine failure and weather on operations - Management noted that the turbine failure and severe weather have resulted in an estimated $10 million impact on first-quarter results [48][49] Question: Drivers of expected improvement in industrial segment handling volumes - Management attributed the expected improvement to a full year of the new KRT contract and modest recovery across both KRT and CMT [52]

SunCoke Energy, Inc. Q4 & FY 2025 Earnings and 2026 Guidance Conference Call Forward-Looking Statements 2 This presentation should be reviewed in conjunction with the fourth quarter and full-year 2025 earnings release of SunCoke Energy, Inc. (SunCoke) and conference call held on February 17, 2026 at 11:00 a.m. ET. This presentation contains "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). Fo ...