Financial Data and Key Metrics Changes - SunCoke Energy reported consolidated adjusted EBITDA of $59.8 million for Q1 2025, a decrease from $67.9 million in the prior year period, primarily due to lower economics on the Granite City contract extension and lower spot blast coke sales volumes [11][13] - Net income attributable to SunCoke was $0.20 per share in Q1 2025, down $0.03 compared to the prior year [13] - The company ended the quarter with a strong liquidity position of $543.7 million, including a cash balance of $193.7 million and a fully undrawn revolver of $350 million [12][18] Business Line Data and Key Metrics Changes - Domestic coke adjusted EBITDA was $49.9 million with sales volumes of 898,000 tons, impacted by lower economics and volumes at Granite City due to the contract extension [14] - The logistics business generated adjusted EBITDA of $13.7 million, an increase from $13 million in the prior year, driven by higher transloading volumes [15] - Combined throughput volumes at terminals were 5.7 million tons in Q1 2025, up from 5.5 million tons in the same prior year period [16] Market Data and Key Metrics Changes - The domestic coke market remains volatile, with the steel industry outlook uncertain, but the company has finalized all spot blast and foundry coke sales for the full year [11][14] - The pricing environment for coke is challenging, with expectations that the market will not strengthen significantly in the near term [42] Company Strategy and Development Direction - The company is focused on maintaining strong safety and environmental performance while executing operating and capital plans [19] - SunCoke is pursuing growth opportunities beyond the GPI project, emphasizing disciplined capital allocation to reward long-term shareholders [20][27] - The Granite City coke supply agreement has been extended through September 2025, with an option for an additional three-month extension [12] Management's Comments on Operating Environment and Future Outlook - Management reaffirmed full-year consolidated adjusted EBITDA guidance of $210 million to $225 million, despite challenging market conditions [21] - The company is closely monitoring market conditions but does not foresee significant impacts on operations for the remainder of the year [13][19] Other Important Information - A dividend of $0.12 per share was announced, payable to shareholders on June 2, 2025 [11] - The company spent $4.9 million on capital expenditures in Q1 2025 and paid $10.9 million in dividends [18] Q&A Session Summary Question: Annual guidance implies an uplift in quarterly adjusted EBITDA; can you discuss the cadence? - Management indicated that lower EBITDA in Q1 was due to timing and expected margins from shipments in the second half of the year [24][25] Question: Update on capital allocation priorities and long-term growth opportunities? - Management stated they are looking for profitable growth opportunities while maintaining dividends and being judicious with spending [26][27] Question: What drove the inventory build on the coal side? - The inventory build was attributed to seasonal factors and the need to prepare for the year, with expectations for reversal later [29][30] Question: Health of the foundry and export coke markets? - Management noted the market is challenging, but they are sold out for the year and are monitoring pricing closely [40][42] Question: EBITDA per ton in the Domestic Coke segment was above guidance; any thoughts? - Management explained that the higher EBITDA per ton was due to lower spot blast coke sales this year compared to the previous year [44] Question: Production from Haverhill was below normal rates; was this timing? - Management confirmed that lower production in Q1 was planned and accounted for in their full-year guidance [45]

Financial Data and Key Metrics Changes - SunCoke Energy reported consolidated adjusted EBITDA of $59.8 million for Q1 2025, down from $67.9 million in the prior year period, primarily due to lower economics on the Granite City contract extension and lower spot blast coke sales volumes [9][11][12] - Net income attributable to SunCoke was $0.20 per share in Q1 2025, a decrease of $0.03 compared to the prior year [11] - The company ended the quarter with a strong liquidity position of $543.7 million, including a cash balance of $193.7 million and a fully undrawn revolver of $350 million [10][15] Business Line Data and Key Metrics Changes - Domestic coke adjusted EBITDA was $49.9 million with sales volumes of 898,000 tons, impacted by lower economics and volumes at Granite City due to the contract extension [12] - The logistics business generated adjusted EBITDA of $13.7 million, an increase from $13 million in the prior year, driven by higher transloading volumes [13][14] Market Data and Key Metrics Changes - The spot glass coke pricing environment remains highly challenged, but demand for coke is present, with all spot blast and foundry coke sales finalized for the full year [9] - The company reaffirmed its full-year consolidated adjusted EBITDA guidance range of $210 million to $225 million [11][18] Company Strategy and Development Direction - The company is focused on maintaining strong safety and environmental performance while executing its operating and capital plans [16] - SunCoke is pursuing growth opportunities beyond the GPI project, emphasizing disciplined capital allocation to reward long-term shareholders [17][24] - The Granite City coke supply agreement with U.S. Steel has been extended through September 30, 2025, with an option for further extension [10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertain and volatile outlook for the steel industry but stated that coke production and sales plans remain on track [12] - The company expects to see improved margins in the second half of the year as contracts are adjusted and spot exposure increases [21][22] - Management remains cautious regarding capital expenditures, indicating a likelihood of not spending the previously planned $65 million due to current uncertainties [31][32] Other Important Information - A dividend of $0.12 per share is payable to shareholders on June 2, 2025 [9] - The company spent $4.9 million on capital expenditures in Q1 2025 [15] Q&A Session Summary Question: Annual guidance implies an uplift in quarterly adjusted EBITDA; can you discuss the cadence? - Management indicated that lower EBITDA in Q1 was expected due to contract timing, with expectations for improved performance in the second half of the year [20][21][22] Question: What are the capital allocation priorities beyond the GPI project? - Management emphasized a disciplined approach to identifying profitable growth opportunities while maintaining dividends to reward shareholders [24][25] Question: What drove the inventory build on the coal side? - The inventory build was attributed to seasonal factors and the new coal blend at the beginning of the year, with expectations for reversal later in the year [27][28] Question: Can you provide insights on the health of the foundry and export coke markets? - Management noted that while the market is challenging, they are closely monitoring conditions and have made strategic decisions to sell early in the year [36][37] Question: What drove the higher EBITDA per ton in the Domestic Coke segment? - The higher EBITDA per ton was influenced by the absence of lower-margin blast coke sales in Q1, with expectations to revert to guidance levels later in the year [40] Question: Was the lower production from Haverhill planned? - Yes, the lower production was planned and accounted for in the full-year guidance due to challenges in the spot coke market [41]

2 SunCoke Energy, Inc. Q1 2025 Earnings Conference Call Forward-Looking Statements This presentation should be reviewed in conjunction with the first quarter 2025 earnings release of SunCoke Energy, Inc. (SunCoke) and conference call held on April 30, 2025 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). Forward-looking statements often may be ide ...

[First Quarter 2025 Performance Overview](index=1&type=section&id=First%20Quarter%202025%20Performance%20Overview) SunCoke Energy reported decreased Q1 2025 net income and Adjusted EBITDA, impacted by steel industry challenges, but reaffirmed full-year guidance [Key Highlights](index=1&type=section&id=Key%20Highlights) SunCoke Energy reported a decrease in net income and Adjusted EBITDA for Q1 2025 compared to the prior year, citing challenges in the steel industry and specific contract economics at its Granite City facility | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Income | $19.4M | $21.1M | | Net Income Attributable to SXC | $17.3M | $20.0M | | Diluted EPS | $0.20 | $0.23 | | Consolidated Adjusted EBITDA | $59.8M | $67.9M | - The company extended its cokemaking contract at Granite City with U.S. Steel through **September 30, 2025**, with an option for an additional three-month extension[3](index=3&type=chunk)[5](index=5&type=chunk) - SunCoke reaffirmed its full-year 2025 Consolidated Adjusted EBITDA guidance range of **$210 million to $225 million**[3](index=3&type=chunk)[5](index=5&type=chunk) [Consolidated Financial Results](index=2&type=section&id=Consolidated%20Financial%20Results) Consolidated revenues, net income, and Adjusted EBITDA all declined in Q1 2025 compared to Q1 2024, primarily due to lower spot coke sales, reduced coal prices, and unfavorable Granite City contract economics | (Dollars in millions) | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Revenues | $436.0 | $488.4 | $(52.4) | | Net income attributable to SXC | $17.3 | $20.0 | $(2.7) | | Adjusted EBITDA | $59.8 | $67.9 | $(8.1) | - The decline in revenue was primarily attributed to lower spot coke sales volumes, the pass-through of lower coal prices, and reduced volumes and pricing from the **Granite City contract extension**[7](index=7&type=chunk) - The decrease in Adjusted EBITDA was mainly caused by lower contract economics and sales volumes at **Granite City**, partially offset by higher transloading volumes in the **Logistics segment** and lower **legacy black lung expenses**[9](index=9&type=chunk) [Segment Performance](index=2&type=section&id=Segment%20Performance) Segment performance in Q1 2025 showed Domestic Coke decline, Logistics growth, Brazil Coke stability, and reduced Corporate expenses [Domestic Coke](index=2&type=section&id=Domestic%20Coke) The Domestic Coke segment experienced a significant decline in Q1 2025 revenue and Adjusted EBITDA, driven by challenging market conditions and unfavorable Granite City contract terms | (Dollars in millions, except per ton) | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Revenues | $405.8 | $459.5 | $(53.7) | | Adjusted EBITDA | $49.9 | $61.4 | $(11.5) | | Sales volumes (k tons) | 898 | 996 | (98) | | Adjusted EBITDA per ton | $55.57 | $61.65 | $(6.08) | - The primary drivers for the decrease in Adjusted EBITDA were lower pricing and volumes at **Granite City** and reduced **spot blast coke sales volumes**[13](index=13&type=chunk) [Logistics](index=3&type=section&id=Logistics) The Logistics segment demonstrated positive performance in Q1 2025, with revenue and Adjusted EBITDA growth primarily fueled by higher transloading volumes at CMT | (Dollars in millions, except tons) | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Revenues | $22.4 | $20.6 | $1.8 | | Adjusted EBITDA | $13.7 | $13.0 | $0.7 | | Tons handled (k tons) | 5,724 | 5,453 | 271 | - Both revenue and Adjusted EBITDA increases were driven by higher transloading volumes at **CMT**[16](index=16&type=chunk) [Brazil Coke](index=3&type=section&id=Brazil%20Coke) The Brazil Coke segment's performance remained stable and consistent in Q1 2025 compared to the same period in 2024, with minimal year-over-year changes in revenue and Adjusted EBITDA | (Dollars in millions) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenues | $7.8 | $8.3 | | Adjusted EBITDA | $2.3 | $2.4 | [Corporate and Other](index=3&type=section&id=Corporate%20and%20Other) Corporate and Other expenses decreased in Q1 2025, primarily due to lower legacy black lung expenses and reduced employee-related costs - Corporate expenses were **$6.1 million**, a decrease from **$8.9 million** in the prior year, mainly due to lower **legacy black lung expenses** and lower **employee-related costs**[18](index=18&type=chunk) [2025 Outlook](index=4&type=section&id=2025%20Outlook) SunCoke Energy reaffirmed its full-year 2025 guidance for Adjusted EBITDA, net income, capital expenditures, and operating cash flow [Full-Year 2025 Guidance](index=4&type=section&id=Full-Year%202025%20Guidance) SunCoke Energy reaffirmed its full-year 2025 guidance, projecting Consolidated Adjusted EBITDA between $210 million and $225 million and net income between $52 million and $69 million | Metric | 2025 Guidance | | :--- | :--- | | Domestic Coke Production | ~4.0 million tons | | Consolidated Net Income | $52M - $69M | | Consolidated Adjusted EBITDA | $210M - $225M | | Capital Expenditures | ~$65M | | Operating Cash Flow | $165M - $180M | | Cash Taxes | $17M - $21M | [Financial Statements](index=7&type=section&id=Financial%20Statements) Q1 2025 financial statements show decreased revenues and net income, stable balance sheet with increased cash, and improved operating cash flow [Consolidated Statements of Income](index=7&type=section&id=Consolidated%20Statements%20of%20Income) For Q1 2025, SunCoke reported decreased revenues and operating income, resulting in lower net income attributable to the company and diluted EPS compared to Q1 2024 | (Dollars in millions, except per share) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Sales and other operating revenue | $436.0 | $488.4 | | Operating income | $30.2 | $34.5 | | Net income attributable to SXC | $17.3 | $20.0 | | Diluted EPS | $0.20 | $0.23 | [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, SunCoke's balance sheet remained stable with total assets of $1,668.4 million, increased cash, and a slight decrease in total liabilities | (Dollars in millions) | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $193.7 | $189.6 | | Total current assets | $495.8 | $474.6 | | Total assets | $1,668.4 | $1,668.2 | | Total liabilities | $953.9 | $957.2 | | Total SunCoke stockholders' equity | $684.6 | $680.2 | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) In Q1 2025, net cash provided by operating activities significantly improved, capital expenditures were lower, and the company ended the period with a net increase in cash | (Dollars in millions) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $25.8 | $10.0 | | Net cash used in investing activities | $(4.6) | $(15.1) | | Net cash used in financing activities | $(17.1) | $(14.9) | | Net increase (decrease) in cash | $4.1 | $(20.0) | | Cash and cash equivalents at end of period | $193.7 | $120.1 | [Supplemental Information](index=4&type=section&id=Supplemental%20Information) This section provides non-GAAP reconciliations for Adjusted EBITDA and includes definitions and forward-looking statement disclaimers [Non-GAAP Reconciliations](index=11&type=section&id=Non-GAAP%20Reconciliations) The report provides reconciliations from GAAP Net Income to non-GAAP Adjusted EBITDA for Q1 2025 and for the full-year 2025 guidance Q1 2025 Net Income to Adjusted EBITDA Reconciliation | (Dollars in millions) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income | $19.4 | $21.1 | | Depreciation and amortization | $28.8 | $33.3 | | Interest expense, net | $5.2 | $6.3 | | Income tax expense | $5.6 | $7.1 | | Transaction costs | $0.8 | $0.1 | | **Adjusted EBITDA** | **$59.8** | **$67.9** | Estimated 2025 Net Income to Adjusted EBITDA Reconciliation | (Dollars in millions) | 2025 Low | 2025 High | | :--- | :--- | :--- | | Net income | $52 | $69 | | Depreciation and amortization | $121 | $117 | | Interest expense, net | $26 | $24 | | Income tax expense | $11 | $15 | | **Adjusted EBITDA** | **$210** | **$225** | [Definitions and Forward-Looking Statements](index=4&type=section&id=Definitions%20and%20Forward-Looking%20Statements) This section defines non-GAAP financial measures like Adjusted EBITDA and includes a standard safe harbor statement regarding forward-looking statements - **Adjusted EBITDA** is defined as EBITDA adjusted for impairments, restructuring costs, gains or losses on debt extinguishment, and/or transaction costs; management believes it is an important measure for assessing operating performance[29](index=29&type=chunk) - The report contains **forward-looking statements** regarding the 2025 outlook, dividends, and future sales, which are subject to risks and uncertainties and are not guarantees of future performance[26](index=26&type=chunk)

Market Expansion and Growth Opportunities - The company anticipates continued expansion into the foundry coke market as a potential growth opportunity[12]. - There are strategic plans for domestic and international growth, including the ability to identify and integrate acquisitions[20]. - The company aims to develop new cokemaking facilities, which may utilize by-product technology, to enhance production capabilities[20]. Financial Risks and Challenges - The company faces risks from international conflicts affecting global commodity prices and inflationary pressures[14]. - Inflation is impacting wages and operating expenses, which could affect overall profitability[14]. - There is a risk of severe financial hardship or bankruptcy of major customers, which could impact payment collections[14]. - Future capital raising may be impacted by changes in credit ratings assigned to the company's indebtedness[16]. Operational Performance and Compliance - The company is focused on maintaining operational performance by repairing aging coke ovens[14]. - The company is committed to compliance with environmental regulations and managing related costs[14]. - There are concerns regarding compliance with environmental regulations and the potential for hazardous materials incidents affecting operations[16]. - The company must navigate labor relations and the availability of skilled employees for cokemaking and logistics operations[16]. Supply Chain and Production Monitoring - The company is monitoring changes in the marketplace that may affect the supply and demand for coke products[14]. - Changes in production capacity and pricing for coal and coke are being closely observed[14]. - The company faces risks related to the availability, quality, and supply of metallurgical coal, which can impact cokemaking processes[16]. - The company is focused on securing new coal supply agreements and renewing existing ones to ensure operational continuity[16]. - The company is assessing the impacts of transportation performance and costs on its logistics operations[16]. Revenue Stability and Future Planning - The ability to enter into long-term agreements for the sale of coke and related services is crucial for future revenue stability[16]. - Future dividend declarations will be subject to approval by the Board of Directors based on existing circumstances[12]. - The company is committed to realizing expected benefits from investments and acquisitions while managing associated risks[20]. - The company is evaluating the impact of restrictive trade regulations on major customers and suppliers[14].

Core Insights - The article discusses potential investment opportunities in SXC, indicating a possible long position in the stock within the next 72 hours [1]. Group 1 - The analyst has no current stock, option, or similar derivative position in any of the companies mentioned [1]. - The article expresses the author's own opinions and is not receiving compensation from any company mentioned [1]. - There is an indication of a potential beneficial long position through stock or call options in SXC [1]. Group 2 - The article does not provide any specific financial performance data or metrics related to SXC or other companies [2]. - No recommendations or advice are given regarding the suitability of investments for particular investors [2]. - The views expressed may not reflect those of Seeking Alpha as a whole, highlighting the independent nature of the analysis [2].

Financial Performance - Full-year 2024 net income attributable to SunCoke Energy, Inc. was $95.9 million, or $1.12 per diluted share, compared to $57.5 million in 2023[3][4] - Full-year 2024 consolidated Adjusted EBITDA was $272.8 million, an increase from $268.8 million in 2023[3][4] - Operating cash flow for full-year 2024 was $168.8 million, with an estimated range of $165 million to $180 million for 2025[3][25] - Net income attributable to SunCoke Energy, Inc. for the year 2024 was $95.9 million, up 66.1% from $57.5 million in 2023[31] - Adjusted EBITDA for 2024 was $151.9 million, compared to $125.1 million in 2023, reflecting a 21.4% increase[31] - Cash and cash equivalents increased to $189.6 million in 2024 from $140.1 million in 2023, representing a 35.3% growth[34] - Total assets rose slightly to $1,668.2 million in 2024 from $1,660.4 million in 2023[34] - Long-term debt remained stable at $492.3 million in 2024, compared to $490.3 million in 2023[34] - The company paid dividends totaling $37.6 million in 2024, an increase from $30.7 million in 2023[36] Revenue and Sales - Fourth quarter 2024 revenues decreased to $486.0 million, down from $520.6 million in the same period of 2023, reflecting a decrease of $34.6 million[4][5] - Revenues for Q4 2024 were $486.0 million, a decrease of 6.5% from $520.6 million in Q4 2023[31] - Total sales and other operating revenue for Q4 2024 was $486.0 million, a decrease of 6.5% from $520.6 million in Q4 2023[38] - Logistics segment revenues increased to $83.0 million for full-year 2024, up from $74.0 million in 2023, driven by higher transloading volumes[13][14] Production and Operations - Domestic coke total production is projected to be approximately 4.0 million tons for 2025[25] - Domestic Coke production volumes for Q4 2024 were 1,023 thousand tons, slightly down from 1,025 thousand tons in Q4 2023[38] - Domestic Coke sales volumes for Q4 2024 were 1,032 thousand tons, compared to 1,037 thousand tons in Q4 2023[38] - Brazilian Coke production for Q4 2024 was 388 thousand tons, up from 383 thousand tons in Q4 2023[38] - Logistics tons handled increased to 5,262 thousand tons in Q4 2024, up from 5,022 thousand tons in Q4 2023[38] Future Outlook - Full-year 2025 consolidated Adjusted EBITDA is expected to be between $210 million and $225 million[3][25] - Estimated Adjusted EBITDA for 2025 is projected to be between $210 million and $225 million[43] - The Granite City cokemaking contract extension at lower economics is expected to adversely impact financial results in 2025[3] - The company anticipates lower margins on coke sales and plans to maintain a balanced approach to capital allocation moving forward[29] Safety and Corporate Actions - The company achieved a record safety performance in 2024, with a Total Recordable Incident Rate (TRIR) of 0.50[3] - The company increased its quarterly dividend by 20 percent during 2024[3] Quarterly Performance - Operating income for Q4 2024 was $35.5 million, a significant increase from $26.2 million in Q4 2023[31] - Adjusted EBITDA for Q4 2024 increased to $66.1 million, up 12.2% from $62.3 million in Q4 2023[41] - Corporate and Other segment reported an Adjusted EBITDA loss of $5.2 million in Q4 2024, compared to a loss of $5.8 million in Q4 2023[41] - The weighted average number of common shares outstanding was 85.3 million for Q4 2024, slightly up from 84.8 million in Q4 2023[31]

Core Insights - SunCoke Energy (SXC) is currently attracting investor attention due to its strong value metrics and favorable Zacks Rank of 2 (Buy) [4] - The company has an A grade for Value, indicating it is likely undervalued in the market [8] Valuation Metrics - SXC has a Price-to-Sales (P/S) ratio of 0.45, significantly lower than the industry average of 0.92, suggesting it may be undervalued [2] - The Price-to-Cash Flow (P/CF) ratio for SXC is 4.32, compared to the industry average of 5.06, indicating an attractive valuation based on cash flow [5] - SXC's Price-to-Book (P/B) ratio stands at 1.30, which is also lower than the industry average of 1.42, further supporting the notion of undervaluation [7] Performance Indicators - Over the past 52 weeks, SXC's P/CF has fluctuated between a high of 5.13 and a low of 3.37, with a median of 4.46, reflecting its cash flow performance [5] - The P/B ratio has varied from a high of 1.55 to a low of 0.97, with a median of 1.35, indicating stability in its book value relative to market value [7]

Group 1 - SunCoke Energy (SXC) has shown a year-to-date performance increase of approximately 17.3%, outperforming the average gain of 9.5% in the Oils-Energy sector [4] - The Zacks Rank for SunCoke Energy is currently 2 (Buy), indicating a positive earnings outlook with a consensus estimate for full-year earnings rising by 21.3% in the past quarter [3] - SunCoke Energy is part of the Coal industry, which includes 9 individual stocks and is currently ranked 85 in the Zacks Industry Rank, with an average gain of 10% this year [5] Group 2 - The Oils-Energy sector consists of 240 individual stocks, with the sector currently ranked 13 in the Zacks Sector Rank [2] - Another notable stock in the Oils-Energy sector is YPF Sociedad Anonima (YPF), which has increased by 133.6% year-to-date and has a Zacks Rank of 2 (Buy) [4][5] - The Oil and Gas - Integrated - International industry, to which YPF belongs, is ranked 77 and has seen a gain of 7.4% this year [6]

Group 1 - SunCoke Energy, Inc. (SXC) has reached a significant support level and is considered a good investment pick from a technical perspective due to a "golden cross" formation, where the 50-day simple moving average has broken above the 200-day moving average [1] - A successful golden cross event consists of three stages: the stock price bottoms out, the shorter moving average crosses above the longer moving average, and the stock maintains upward momentum [2] - SXC shares have increased by 26.9% over the past four weeks, and the company holds a 2 (Buy) rating on the Zacks Rank, indicating potential for a breakout [3] Group 2 - There has been one upward revision in earnings estimates for SXC over the past 60 days, with no downward revisions, and the Zacks Consensus Estimate has also increased [4] - The technical indicators suggest that investors should consider adding SXC to their watchlist due to the positive movement in earnings estimates and the significance of the golden cross [4]