Core Insights - SunCoke Energy, Inc. (NYSE:SXC) is identified as one of the best dividend stocks to buy, with an average price target suggesting a 47% upside potential [1] - B. Riley maintained a Neutral rating on SXC, reducing the price target from $11 to $10, while noting that SXC's adjusted EBITDA of $59.1 million exceeded market expectations [2] - The company has raised its Industrial Services EBITDA guidance for 2025 to a range of $63 million to $67 million, and adjusted EBITDA guidance to between $220 million and $224 million, driven by contributions from Phoenix and anticipated synergies [3] Company Developments - SunCoke Energy has extended its cokemaking agreement with Cleveland-Cliffs Inc. for three years, committing to supply 500,000 tons of metallurgical coke annually from its Haverhill plant starting January 1, 2026 [4] - The company operates in the United States and Brazil through its Domestic Coke, Brazil Coke, and Logistics segments [5]

Core Insights - The article discusses the potential resurgence of small-cap dividend stocks, highlighting their current undervaluation and the favorable economic conditions that may support their growth [2][5]. Economic Environment - Small-cap American stocks have been slow-moving, but expectations of interest rate cuts by the Fed could benefit these companies due to reduced borrowing costs [2][3]. - Goldman Sachs reports that American small-cap earnings are showing signs of recovery, with 25% of Russell 2000 members posting growing earnings for at least two consecutive quarters [4]. International Perspective - European small-caps are expected to experience robust growth, with higher market expectations compared to larger companies [5]. - Japanese small and mid-cap companies have outperformed large-caps, supported by solid earnings and strong local demand [5]. Valuation Metrics - US small-cap stocks are currently priced about 26% less than large caps, while international small caps are 8% cheaper, indicating potential undervaluation [5]. Investment Strategy - The article presents a list of the best small-cap dividend stocks to buy, focusing on those with significant hedge fund interest [6][9]. - The methodology for selecting these stocks involves using the Invesco S&P SmallCap High Dividend Low Volatility ETF and focusing on holdings with market caps between $300 million and $2 billion [9]. Company Highlights - **Sylvamo Corporation (NYSE:SLVM)**: - Market Cap: $1.967 billion, Dividend Yield: 3.69%, with a potential upside of 21% to 54% based on price targets [11][12]. - Recently upgraded by BofA, with a rights plan approved to protect shareholder value [12][13][14]. - **SunCoke Energy, Inc. (NYSE:SXC)**: - Market Cap: $575.726 million, Dividend Yield: 7.06%, with a suggested upside of 47% [16]. - Adjusted EBITDA guidance for 2025 raised to between $220 million and $224 million, driven by strong performance in Industrial Services [18]. - Extended a cokemaking deal with Cleveland-Cliffs Inc. for three years, starting January 1, 2026 [19].

Core Points - SunCoke Energy, Inc. has announced a 3-year extension of its cokemaking agreement with Cleveland-Cliffs Inc., under which SunCoke will supply 500 thousand tons of metallurgical coke annually from its Haverhill facility starting January 1, 2026 [1][2] Company Overview - SunCoke Energy, Inc. supplies high-quality coke for steel production and foundry applications, primarily through long-term, take-or-pay contracts. The company also exports coke internationally and utilizes innovative heat-recovery technology in its operations [2] Operational Capacity - SunCoke operates facilities in Illinois, Indiana, Ohio, Virginia, and Brazil, with logistics terminals capable of mixing and transloading over 40 million tons of material annually, strategically located to serve various U.S. and international markets [2]

Core Insights - The materials sector is experiencing a trend of oversold stocks, presenting potential buying opportunities for undervalued companies [1][2] Company Summaries - **SunCoke Energy Inc (NYSE:SXC)**: Reported better-than-expected quarterly earnings with a Consolidated Adjusted EBITDA of $59.1 million, including results from Phoenix Global. The stock has fallen approximately 21% over the past month, with a 52-week low of $6.62. The RSI value is 29.7, and shares closed at $6.64, down 4.5% [8] - **Rayonier Advanced Materials Inc (NYSE:RYAM)**: Posted weaker-than-expected quarterly results, with a stock decline of around 22% over the past month and a 52-week low of $3.35. The RSI value is 29.5, and shares rose 1% to close at $6.01 [8] - **Chemours Co (NYSE:CC)**: Reported disappointing earnings for the third quarter, with a stock decline of approximately 26% over the past month and a 52-week low of $9.13. The RSI value is 28.8, and shares fell 2.6% to close at $11.74 [8]

Core Insights - The materials sector is currently experiencing a trend of oversold stocks, presenting potential buying opportunities for undervalued companies [1][2] Company Summaries - **SunCoke Energy Inc (NYSE:SXC)**: Reported better-than-expected quarterly earnings with a Consolidated Adjusted EBITDA of $59.1 million, including results from Phoenix Global. The stock has fallen approximately 21% over the past month, with a 52-week low of $6.62. The RSI value is 29.7, and shares closed at $6.64, down 4.5% [8] - **Rayonier Advanced Materials Inc (NYSE:RYAM)**: Posted weaker-than-expected quarterly results, with a stock decline of around 22% over the past month and a 52-week low of $3.35. The RSI value is 29.5, and shares rose 1% to close at $6.01 [8] - **Chemours Co (NYSE:CC)**: Reported disappointing earnings for the third quarter, with a stock decline of about 26% over the past month and a 52-week low of $9.13. The RSI value is 28.8, and shares fell 2.6% to close at $11.74 [8]

Financial Performance - For the three months ended September 30, 2025, SunCoke Energy reported revenues of $487.0 million, a slight decrease of 0.2% from $490.1 million in the same period of 2024[17]. - The net income for the three months ended September 30, 2025, was $23.8 million, down 28.0% from $33.3 million in the prior year[19]. - Operating income for the nine months ended September 30, 2025, was $53.4 million, a decrease of 54.2% compared to $116.4 million for the same period in 2024[17]. - The company reported a comprehensive income of $30.0 million for the three months ended September 30, 2025, compared to $33.4 million in the same period of 2024[19]. - For the nine months ended September 30, 2025, net income was reported at $148.2 million[29]. - The net income for the three months ended September 30, 2024, was $30.7 million, reflecting an increase compared to the previous period[27]. - The company reported a net revenue of $1,348.4 million for the nine months ended September 30, 2025, down from $1,441.0 million in the same period of 2024, a decline of 6.4%[114]. - The total consolidated revenues for the nine months ended September 30, 2025, were $1,357.1 million, down from $1,449.4 million in 2024, a decrease of 6.4%[115]. - Net income for Q3 2025 was $23.8 million, a decrease of 28.5% from $33.3 million in Q3 2024[126]. - Net income attributable to SunCoke Energy, Inc. for the three months ended September 30, 2025, was $22.2 million, a decrease of 27.7% from $30.7 million in 2024; for the nine months, net income was $41.4 million, down 42.9% from $72.2 million[129]. Assets and Liabilities - Total assets increased to $1,932.0 million as of September 30, 2025, compared to $1,668.2 million at the end of 2024, reflecting a growth of 15.8%[21]. - Long-term debt rose to $691.1 million as of September 30, 2025, up from $492.3 million at the end of 2024, indicating a significant increase of 40.4%[21]. - Cash and cash equivalents decreased to $80.4 million at the end of September 2025, down from $189.6 million at the end of 2024, representing a decline of 57.5%[21]. - As of September 30, 2025, SunCoke Energy, Inc. reported total equity of $726.1 million, with retained earnings of $148.2 million[25]. - The Company’s total debt rose to $691.1 million as of September 30, 2025, up from $492.3 million at the end of 2024[69]. - The fair value of the company's total debt was estimated to be $664.9 million at September 30, 2025, compared to a carrying amount of $699.0 million[93]. Capital Expenditures and Investments - Capital expenditures for the nine months ended September 30, 2025, were $43.0 million, slightly lower than $48.1 million in the same period of 2024[23]. - The company completed the acquisition of Phoenix Global for $271.5 million, impacting cash flows from investing activities significantly[23]. - The company completed the acquisition of Flame Aggregator, LLC for a total purchase consideration of $295.8 million, funded through cash on hand and borrowings[36]. - The acquisition is expected to enhance the industrial services segment, adding capabilities in servicing electric arc furnace operations and expanding into international markets[46]. - The fair value of net identifiable assets acquired from Flame Aggregator was estimated at $232.2 million, with goodwill recognized at $63.6 million[50]. - Net cash used in investing activities surged to $315.0 million for the nine months ended September 30, 2025, up from $47.6 million in the prior year, an increase of 563% primarily due to the acquisition of Phoenix Global[156]. Segment Performance - Domestic sales accounted for $464.4 million in Q3 2025, down from $481.3 million in Q3 2024, representing a decline of 3.8%[103]. - The Industrial Services segment generated $413.8 million in revenue for Q3 2025, compared to $21.4 million in Q3 2024, indicating significant growth[110]. - The Domestic Coke segment's revenue for the nine months ended September 30, 2025, was $1,230.0 million, a decrease from $1,361.0 million in 2024, representing a decline of 9.6%[114]. - Adjusted EBITDA for the Domestic Coke segment fell to $44.0 million for the three months ended September 30, 2025, compared to $58.1 million in the prior year, a decrease of 24%[143]. - Adjusted EBITDA for the Industrial Services segment increased to $18.2 million for the three months ended September 30, 2025, compared to $13.7 million in the prior year, an increase of 33%[144]. Cash Flow and Financing - Net cash provided by operating activities decreased by 91.4% to $9.2 million in Q3 2025 from $107.2 million in Q3 2024[126]. - Net cash provided by financing activities increased to $152.9 million for the nine months ended September 30, 2025, compared to a net cash used of $35.7 million in the prior year, a change of $188.6 million[157]. - The company declared dividends totaling $10.4 million for the three months ended September 30, 2025[25]. - The company declared a cash dividend of $0.12 per share on July 30, 2025, and another $0.12 per share on October 30, 2025, to be paid on December 1, 2025[158]. Operational Metrics - Domestic Coke production volumes for the three months ended September 30, 2025, were 982,000 tons, a decrease of 4.8% from 1,031,000 tons in 2024; for the nine months, production volumes were 2,834,000 tons, down 5.8% from 3,009,000 tons[139]. - The company’s interest expense for Q3 2025 was $8.4 million, compared to $5.7 million in Q3 2024, indicating an increase of 47.4%[111]. - The company’s operating and maintenance expenses for Q3 2025 were $73.3 million, compared to $76.8 million in Q3 2024, showing a reduction of 4.6%[110]. - Total depreciation and amortization expense for Q3 2025 was $37.4 million, up from $28.1 million in Q3 2024, marking a 33.0% increase[126]. Corporate Governance and Compliance - As of September 30, 2025, the Company was in compliance with all applicable debt covenants and does not anticipate any violations[74]. - The company maintains effective disclosure controls and procedures, as concluded by its Chief Executive Officer and Chief Financial Officer[171]. - The company is currently assessing and integrating Phoenix Global's internal control over financial reporting with its existing internal control[172]. - The company has engaged third-party valuation specialists to review critical assumptions for material acquisitions[164]. - The company believes that any liabilities arising from pending legal proceedings would not likely be material in relation to its business or financial position[175].

Financial Data and Key Metrics Changes - SunCoke Energy reported consolidated adjusted EBITDA of $59.1 million for Q3 2025, a decrease from $75.3 million in the prior year period [8][9] - Net income attributable to SunCoke was $0.26 per share, down $0.10 compared to the prior year, primarily due to a mix of contract and spot Coke sales and lower economics from the Granite City contract extension [7][8] - The company revised its consolidated adjusted EBITDA guidance for 2025 to a range of $220 million to $225 million, reflecting the addition of five months of Phoenix results and the impact of a deferral of approximately 200,000 coke tons [5][15] Business Line Data and Key Metrics Changes - Domestic Coke adjusted EBITDA for Q3 2025 was $44 million, down from $58.1 million in the prior year, with Coke sales volumes at 951,000 tons compared to 1,027,000 tons previously [9][10] - The new industrial services segment, which includes Phoenix Global, generated $18.2 million of adjusted EBITDA in Q3 2025, up from $13.7 million in the prior year [11][12] Market Data and Key Metrics Changes - The logistics business experienced lower volumes due to unfavorable market conditions, impacting the overall performance of the industrial services segment [12] - Total logistics handling volumes were 5.2 million tons, with Phoenix customer volume serviced at 3.8 million tons for the two months included in Q3 results [12] Company Strategy and Development Direction - The company is optimistic about 2026, expecting a full year of Phoenix Global adjusted EBITDA contribution and a modest recovery in the logistics business [18][35] - Active discussions are ongoing with U.S. Steel regarding the Granite City contract extension and with Cleveland-Cliffs for the Haverhill contract [34][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the enforceability of contracts and is pursuing legal remedies for the breach of contract by Algoma, which has impacted production and sales [24][25] - The company anticipates that 2026 results will improve over 2025, driven by strong fundamentals in its Coke business and the integration of Phoenix Global [19][35] Other Important Information - SunCoke ended Q3 2025 with a cash balance of $80.4 million and revolver availability of $126 million, indicating ample liquidity [13] - The company announced a quarterly dividend of $0.12 per share, marking the 25th consecutive quarter of dividend announcements [5][6] Q&A Session Summary Question: What is your level of confidence that incremental deferrals won't occur? - Management indicated that the 200,000 tons are anticipated to be produced and stored for 2025, and they believe they have an enforceable contract with Algoma [22][23] Question: What do the remedies for the breach of contract currently look like? - Management stated they are working with counsel and pursuing all legal remedies to recover financial losses from the breach [24] Question: How confident are you in retaining the dividend and liquidity going forward? - Management clarified that the 200,000 tons is the total exposure for this year, not an annual basis, and expressed confidence in maintaining liquidity [26][27] Question: Can you discuss your strategy for 2026 if unable to renew Granite City and Haverhill production under a long-term contract? - Management remains optimistic for 2026, citing strong contracts at Middletown and Indiana Harbor, and ongoing discussions for Haverhill and Granite City [32][34]

Financial Performance - SunCoke Energy的Q3 2025年调整后EBITDA为5910万美元，较去年同期减少1620万美元[10, 12, 14, 15] - Q3 2025年稀释后每股收益为026美元，较去年同期下降010美元[12, 13] - Domestic Coke业务的调整后EBITDA为4400万美元，低于Q3 2024年的5810万美元[15, 19] - Industrial Services业务的调整后EBITDA为1820万美元，高于Q3 2024年的1370万美元[15, 23] - 公司更新了2025财年调整后EBITDA的指导范围，调整为2200万美元至2250万美元[10, 27, 31] Operational Highlights - 2025年8月1日完成了对Phoenix Global的收购，整合进展顺利，预计2026年开始实现协同效应[10] - Granite City焦炭合同已延长至2025年12月31日[10] - 宣布连续第25个季度派发现金股息，每股012美元，于2025年12月1日支付[10, 25] - 由于某焦炭客户违反合同，导致约20万吨焦炭销售被推迟[10] Segment Performance - Q3物流处理量为5235Kt，Phoenix Global客户服务量为3825Kt[12, 22, 23] - Domestic Coke的销量为951Kt，低于去年同期的1027Kt[12] Liquidity - 公司在收购后的流动资金约为2060万美元[25] - 总债务为6990万美元[25]

Financial Performance - Third quarter 2025 net income attributable to SunCoke Energy, Inc. was $22.2 million, a decrease of $8.5 million from $30.7 million in the prior year period [4]. - Consolidated Adjusted EBITDA for the third quarter 2025 was $59.1 million, down from $75.3 million in the same period last year, reflecting a decrease of $16.2 million [4]. - Revenues for the third quarter 2025 were $487.0 million, a decrease of $3.1 million compared to $490.1 million in the prior year period [5]. - The operating income for the three months ended September 30, 2025, was $13.4 million, down from $47.2 million in the prior year, indicating a decline of approximately 71.5% [29]. - Net income attributable to SunCoke Energy, Inc. for the nine months ended September 30, 2025, was $41.4 million, compared to $72.2 million for the same period in 2024, reflecting a decrease of about 42.6% [29]. - Adjusted EBITDA for Q3 2025 was $59.1 million, down 21.5% from $75.3 million in Q3 2024 [38]. - Net income for Q3 2025 was $23.8 million, a decline of 28.5% from $33.3 million in Q3 2024 [38]. Revenue Segments - Domestic Coke segment revenues decreased by $46.1 million to $413.8 million, primarily due to lower pricing and volumes [10]. - Industrial Services segment revenues increased by $42.7 million to $64.1 million, driven by the addition of Phoenix Global results [14]. - Domestic Coke production volumes for Q3 2025 were 982,000 tons, a decrease of 4.8% compared to 1,031,000 tons in Q3 2024 [35]. - Domestic Coke sales volumes for Q3 2025 were 951,000 tons, down 7.4% from 1,027,000 tons in Q3 2024 [35]. - Industrial Services revenue for Q3 2025 was $64.1 million, an increase of 199.1% from $21.4 million in Q3 2024 [35]. - Logistics tons handled in Q3 2025 were 5,235,000 tons, a decrease of 10.4% from 5,843,000 tons in Q3 2024 [35]. Guidance and Projections - The full-year 2025 Consolidated Adjusted EBITDA guidance has been updated to a range of $220 million to $225 million [4]. - The company expects Domestic Coke total production to be approximately 3.9 million tons for 2025 [22]. - Capital expenditures for 2025 are projected to be approximately $70 million [22]. - Operating cash flow is estimated to be between $62 million and $72 million for 2025 [22]. - Estimated Adjusted EBITDA for 2025 is projected to be between $220.0 million and $225.0 million [41]. Cash Flow and Debt - Cash and cash equivalents decreased to $80.4 million as of September 30, 2025, from $189.6 million at the end of 2024, representing a decline of approximately 57.6% [31]. - Long-term debt increased to $691.1 million as of September 30, 2025, up from $492.3 million at the end of 2024, indicating a rise of about 40.4% [31]. - The company reported capital expenditures of $43.0 million for the nine months ended September 30, 2025, compared to $48.1 million in the same period of 2024 [33]. - SunCoke Energy acquired Phoenix Global for $271.5 million, net of cash acquired, impacting cash flows significantly in the investing activities [33]. - The company paid dividends totaling $31.2 million during the nine months ended September 30, 2025, compared to $27.5 million in the same period of 2024 [33]. Integration and Synergies - The integration of Phoenix Global is progressing well, with expected synergies to begin in 2026 [3]. - Restructuring costs related to the acquisition of Phoenix Global amounted to $3.0 million in Q3 2025 [38]. Asset Growth - Total assets increased to $1,932.0 million as of September 30, 2025, from $1,668.2 million at the end of 2024, reflecting a growth of approximately 15.8% [31].

Core Insights - SunCoke Energy reported quarterly earnings of $0.26 per share, exceeding the Zacks Consensus Estimate of $0.14 per share, but down from $0.36 per share a year ago, indicating an earnings surprise of +85.71% [1] - The company generated revenues of $487 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 42.69%, although this is a slight decrease from year-ago revenues of $490.1 million [2] - SunCoke shares have declined approximately 23% year-to-date, contrasting with the S&P 500's gain of 16.5% [3] Earnings Outlook - The future performance of SunCoke's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4] - The current consensus EPS estimate for the upcoming quarter is $0.20 on revenues of $363.8 million, and for the current fiscal year, it is $0.56 on revenues of $1.58 billion [7] Industry Context - The coal industry, to which SunCoke belongs, is currently ranked in the bottom 4% of over 250 Zacks industries, suggesting a challenging environment for stock performance [8] - Core Natural Resources, another company in the coal industry, is expected to report a quarterly loss of $1.40 per share, reflecting a year-over-year change of -143.5%, with its consensus EPS estimate revised 46.4% lower in the last 30 days [9]