SunCoke Energy, Inc. Q2 2025 Earnings Conference Call Forward-Looking Statements This presentation should be reviewed in conjunction with the second quarter 2025 earnings release of SunCoke Energy, Inc. (SunCoke) and conference call held on July 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 ident ...

Company Performance - SunCoke Energy reported quarterly earnings of $0.02 per share, missing the Zacks Consensus Estimate of $0.15 per share, and down from $0.25 per share a year ago, representing an earnings surprise of -86.67% [1] - The company posted revenues of $434.1 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 25.10%, but down from year-ago revenues of $470.9 million [2] - Over the last four quarters, SunCoke has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance - SunCoke shares have lost about 22.6% since the beginning of the year, while the S&P 500 has gained 8.3% [3] - The current Zacks Rank for SunCoke is 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the coming quarter is $0.15 on $347 million in revenues, and $0.64 on $1.48 billion in revenues for the current fiscal year [7] - The outlook for the coal industry, where SunCoke operates, is currently in the bottom 17% of the Zacks industries, which may materially impact stock performance [8] Industry Context - Peabody Energy, another company in the coal industry, is expected to report a quarterly loss of $0.04 per share, reflecting a year-over-year change of -102.8%, with revenues expected to be $937.6 million, down 10% from the year-ago quarter [9][10]

[Executive Summary & Business Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Business%20Highlights) SunCoke Energy reported a decline in Q2 2025 net income and Adjusted EBITDA, while progressing with the Phoenix Global acquisition, extending its credit facility, and reaffirming full-year guidance [Second Quarter 2025 Performance Overview](index=1&type=section&id=Second%20Quarter%202025%20Performance%20Overview) SunCoke Energy reported a significant decline in Q2 2025 net income and Adjusted EBITDA compared to the prior year, primarily due to unfavorable timing and mix of contract and spot coke sales in Domestic Coke and lower volumes in Logistics **Q2 2025 Consolidated Financial Highlights** | Metric | Q2 2025 | Q2 2024 | Change | | :-------------------------- | :------ | :------ | :------- | | Net income attributable to SXC | $1.9M | $21.5M | $(19.6)M | | Consolidated Adjusted EBITDA | $43.6M | $63.5M | $(19.9)M | - 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[3](index=3&type=chunk) [Strategic Developments & Outlook](index=1&type=section&id=Strategic%20Developments%20%26%20Outlook) SunCoke is progressing with the acquisition of Phoenix Global for $325 million, expected to close on August 1, 2025, and be immediately accretive, while also extending its revolving credit facility and reaffirming full-year 2025 guidance - 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[3](index=3&type=chunk)[4](index=4&type=chunk) - Extension of revolving credit facility originally due June 2026 completed in July; now maturing in **July 2030**[4](index=4&type=chunk) - Reaffirming full-year 2025 Consolidated Adjusted EBITDA guidance range of **$210 million - $225 million**, with expectations for higher Adjusted EBITDA in the second half of the year[3](index=3&type=chunk)[4](index=4&type=chunk) [Consolidated Financial Results](index=2&type=section&id=Consolidated%20Financial%20Results) Consolidated financial results for Q2 2025 show a decrease in revenues, net income, and Adjusted EBITDA, primarily due to segment-specific challenges and transaction costs [Three Months Ended June 30, 2025](index=2&type=section&id=Three%20Months%20Ended%20June%2030%2C%202025) For Q2 2025, consolidated revenues decreased by $36.8 million to $434.1 million, net income attributable to SXC dropped by $19.6 million to $1.9 million, and Adjusted EBITDA declined by $19.9 million to $43.6 million, primarily due to challenges in Domestic Coke and Logistics segments and transaction costs **Consolidated Financial Performance (Q2 2025 vs Q2 2024)** | Metric | Q2 2025 ($M) | Q2 2024 ($M) | Increase (decrease) ($M) | | :-------------------------- | :----------- | :----------- | :----------------------- | | Revenues | 434.1 | 470.9 | (36.8) | | Net income attributable to SXC | 1.9 | 21.5 | (19.6) | | Adjusted EBITDA | 43.6 | 63.5 | (19.9) | - Revenues decreased primarily due to timing/mix of contract and spot coke sales, lower volumes and pricing at Granite City, and lower transloading volumes at CMT[6](index=6&type=chunk) - Net income attributable to SXC decreased due to factors mentioned above, plus transaction costs[7](index=7&type=chunk) [Segment Performance Analysis](index=2&type=section&id=Segment%20Performance%20Analysis) This section analyzes the performance of Domestic Coke, Logistics, Brazil Coke, and Corporate and Other segments, highlighting declines in Domestic Coke and Logistics, and consistent results in Brazil Coke [Domestic Coke Segment](index=2&type=section&id=Domestic%20Coke%20Segment) The Domestic Coke segment experienced a $31.2 million decrease in revenues to $410.4 million and a $17.4 million decrease in Adjusted EBITDA to $40.5 million in Q2 2025, primarily due to unfavorable sales mix and lower volumes at Granite City **Domestic Coke Segment Performance (Q2 2025 vs Q2 2024)** | Metric | Q2 2025 | Q2 2024 | Increase (decrease) | | :-------------------------- | :------ | :------ | :------------------ | | Revenues ($M) | 410.4 | 441.6 | (31.2) | | Adjusted EBITDA ($M) | 40.5 | 57.9 | (17.4) | | Sales volumes (thousands of tons) | 943 | 973 | (30) | | Adjusted EBITDA per ton | $42.95 | $59.51 | $(16.56) | - Revenues and Adjusted EBITDA decreased primarily due to the timing/mix of contract and spot coke sales volumes coupled with lower volumes and pricing due to contract extension economics at Granite City[11](index=11&type=chunk)[12](index=12&type=chunk) [Logistics Segment](index=3&type=section&id=Logistics%20Segment) The Logistics segment's revenues decreased by $5.1 million to $15.1 million, and Adjusted EBITDA decreased by $4.5 million to $7.7 million in Q2 2025, driven by lower transloading volumes at CMT **Logistics Segment Performance (Q2 2025 vs Q2 2024)** | Metric | Q2 2025 | Q2 2024 | Increase (decrease) | | :-------------------------- | :------ | :------ | :------------------ | | Revenues ($M) | 15.1 | 20.2 | (5.1) | | Adjusted EBITDA ($M) | 7.7 | 12.2 | (4.5) | | Tons handled (thousands of tons) | 4,746 | 5,982 | (1,236) | - Decreases in revenues and Adjusted EBITDA were primarily driven by lower transloading volumes at CMT due to challenging market conditions[15](index=15&type=chunk) [Brazil Coke Segment](index=3&type=section&id=Brazil%20Coke%20Segment) The Brazil Coke segment reported revenues of $8.6 million and Adjusted EBITDA of $2.6 million in Q2 2025, remaining reasonably consistent with the prior year period **Brazil Coke Segment Performance (Q2 2025 vs Q2 2024)** | Metric | Q2 2025 ($M) | Q2 2024 ($M) | | :---------------- | :----------- | :----------- | | Revenues | 8.6 | 9.1 | | Adjusted EBITDA | 2.6 | 2.5 | [Corporate and Other](index=3&type=section&id=Corporate%20and%20Other) Corporate and Other expenses decreased to $7.2 million in Q2 2025 from $9.1 million in Q2 2024, primarily due to lower legacy black lung expenses - Corporate and Other expense was **$7.2 million** in Q2 2025, compared to **$9.1 million** in Q2 2024, primarily due to lower legacy black lung expenses resulting from the DOL exemption[17](index=17&type=chunk) [Full-Year 2025 Outlook](index=4&type=section&id=Full-Year%202025%20Outlook) SunCoke reaffirmed its full-year 2025 Consolidated Adjusted EBITDA guidance, with revised projections reflecting the impact of new legislation and acquisition-related transaction costs **Full-Year 2025 Guidance** | Metric | Low ($M) | High ($M) | | :-------------------------------- | :------- | :-------- | | Consolidated Net Income | 40 | 59 | | Consolidated Adjusted EBITDA | 210 | 225 | | Capital expenditures | ~60 | ~60 | | Operating cash flow | 165 | 180 | | Cash taxes | 5 | 9 | | Domestic Coke total production (million tons) | ~4.0 | ~4.0 | - The 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[18](index=18&type=chunk) [Company Information](index=4&type=section&id=Company%20Information) This section provides an overview of SunCoke Energy's core business as a coke supplier and logistics provider, along with its investor relations and communication practices [About SunCoke Energy, Inc.](index=4&type=section&id=About%20SunCoke%20Energy%2C%20Inc.) SunCoke Energy, Inc. (NYSE: SXC) is a leading supplier of high-quality coke to domestic and international steelmaking and foundry customers, primarily under long-term, take-or-pay contracts, utilizing innovative heat-recovery technology and operating a logistics business - SunCoke Energy, Inc. supplies high-quality coke to domestic and international customers for blast furnace steel production and foundry casted iron, with most sales under long-term, take-or-pay contracts[20](index=20&type=chunk) - The company's process uses innovative heat-recovery technology for steam or electrical power generation[20](index=20&type=chunk) - Its logistics business provides export and domestic material handling services with a collective capacity to mix and transload over **40 million tons** of material annually[20](index=20&type=chunk) [Investor Relations & Communications](index=4&type=section&id=Investor%20Relations%20%26%20Communications) SunCoke communicates material information to investors through various public channels, and investors are encouraged to monitor these for important updates - SunCoke routinely announces material information via press releases, SEC filings, public conference calls, webcasts, sustainability reports, and its website[21](index=21&type=chunk) - Investors are encouraged to monitor and review information posted on the company's website, in addition to other communication channels[21](index=21&type=chunk) [Financial Statements](index=6&type=section&id=Financial%20Statements) This section presents the Consolidated Statements of Income, Balance Sheets, and Cash Flows, detailing the company's financial performance and position for the reported periods [Consolidated Statements of Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income) The Consolidated Statements of Income provide detailed revenue, cost, and profit figures for the three and six months ended June 30, 2025, and 2024, showing a significant decline in net income and earnings per share attributable to SXC in 2025 compared to 2024 **Consolidated Statements of Income (Q2 & YTD 2025 vs 2024)** | Metric | Three Months Ended June 30, 2025 ($M) | Three Months Ended June 30, 2024 ($M) | Six Months Ended June 30, 2025 ($M) | Six Months Ended June 30, 2024 ($M) | | :------------------------------------ | :------------------------------------ | :------------------------------------ | :---------------------------------- | :---------------------------------- | | Revenues | 434.1 | 470.9 | 870.1 | 959.3 | | Operating income | 9.8 | 34.7 | 40.0 | 69.2 | | Net income | 3.5 | 23.3 | 22.9 | 44.4 | | Net income attributable to SunCoke Energy, Inc. | 1.9 | 21.5 | 19.2 | 41.5 | | Diluted EPS | $0.02 | $0.25 | $0.22 | $0.49 | [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) The Consolidated Balance Sheets present the company's financial position as of June 30, 2025, and December 31, 2024, detailing assets, liabilities, and equity, with slight decreases in total assets and liabilities **Consolidated Balance Sheets (June 30, 2025 vs Dec 31, 2024)** | Metric | June 30, 2025 ($M) | December 31, 2024 ($M) | | :-------------------------- | :----------------- | :--------------------- | | Total current assets | 484.0 | 474.6 | | Total assets | 1,641.4 | 1,668.2 | | Total current liabilities | 185.1 | 205.8 | | Total liabilities | 934.4 | 957.2 | | Total equity | 707.0 | 711.0 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The Consolidated Statements of Cash Flows outline the cash generated from or used in operating, investing, and financing activities for the six months ended June 30, 2025, and 2024, showing a significant increase in net cash from operating activities **Consolidated Statements of Cash Flows (YTD 2025 vs 2024)** | Metric | Six Months Ended June 30, 2025 ($M) | Six Months Ended June 30, 2024 ($M) | | :------------------------------------ | :---------------------------------- | :---------------------------------- | | Net cash provided by operating activities | 43.3 | 0.7 | | Net cash used in investing activities | (17.2) | (33.4) | | Net cash used in financing activities | (29.5) | (25.5) | | Net decrease in cash and cash equivalents | (3.4) | (58.2) | | Cash and cash equivalents at end of period | 186.2 | 81.9 | - Net cash provided by operating activities increased significantly to **$43.3 million** for the six months ended June 30, 2025, compared to **$0.7 million** in the prior year period[34](index=34&type=chunk) [Non-GAAP Measures and Reconciliations](index=4&type=section&id=Non-GAAP%20Measures%20and%20Reconciliations) This section defines non-GAAP financial measures, specifically Adjusted EBITDA, and provides detailed reconciliations from net income for both historical performance and future guidance [Definition of Non-GAAP Measures](index=4&type=section&id=Definition%20of%20Non-GAAP%20Measures) This section defines Adjusted EBITDA as earnings before interest, taxes, depreciation, and amortization, adjusted for impairments, restructuring costs, gains/losses on debt extinguishment, and transaction costs, clarifying its supplemental nature and limitations - Adjusted EBITDA represents earnings before interest, taxes, depreciation and amortization, adjusted for impairments, restructuring costs, gains or losses on extinguishment of debt, and/or transaction costs[28](index=28&type=chunk) - Non-GAAP financial measures should not be considered as alternatives to U.S. GAAP measures and have important limitations as analytical tools[22](index=22&type=chunk) [Reconciliation of Net Income to Consolidated Adjusted EBITDA (Historical)](index=10&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Consolidated%20Adjusted%20EBITDA%20%28Historical%29) The reconciliation table details the adjustments made to convert GAAP Net Income to Consolidated Adjusted EBITDA for the three and six months ended June 30, 2025, and 2024, highlighting the impact of depreciation, interest, income tax, and transaction costs **Reconciliation of Net Income to Consolidated Adjusted EBITDA (Q2 & YTD 2025 vs 2024)** | Metric | Three Months Ended June 30, 2025 ($M) | Three Months Ended June 30, 2024 ($M) | Six Months Ended June 30, 2025 ($M) | Six Months Ended June 30, 2024 ($M) | | :-------------------------- | :------------------------------------ | :------------------------------------ | :---------------------------------- | :---------------------------------- | | Net income | 3.5 | 23.3 | 22.9 | 44.4 | | Add: Depreciation and amortization expense | 28.6 | 28.7 | 57.4 | 62.0 | | Add: Interest expense, net | 5.4 | 5.8 | 10.6 | 12.1 | | Add: Income tax expense | 0.9 | 5.6 | 6.5 | 12.7 | | Add: Transaction costs | 5.2 | 0.1 | 6.0 | 0.2 | | Adjusted EBITDA | 43.6 | 63.5 | 103.4 | 131.4 | [Reconciliation of Estimated 2025 Net Income to Estimated 2025 Consolidated Adjusted EBITDA (Guidance)](index=11&type=section&id=Reconciliation%20of%20Estimated%202025%20Net%20Income%20to%20Estimated%202025%20Consolidated%20Adjusted%20EBITDA%20%28Guidance%29) This reconciliation provides the estimated adjustments to convert the projected 2025 Net Income range ($40 million - $59 million) to the reaffirmed 2025 Consolidated Adjusted EBITDA guidance range ($210 million - $225 million), including estimated depreciation, interest, income tax, and transaction costs **Reconciliation of Estimated 2025 Net Income to Estimated 2025 Consolidated Adjusted EBITDA** | Metric | Low ($M) | High ($M) | | :-------------------------------- | :------- | :-------- | | Net income | 40 | 59 | | Add: Depreciation and amortization expense | 121 | 117 | | Add: Interest expense, net | 26 | 24 | | Add: Income tax expense | 11 | 15 | | Add: Transaction costs | 12 | 10 | | Adjusted EBITDA | 210 | 225 | [Legal & Disclaimers](index=5&type=section&id=Legal%20%26%20Disclaimers) This section provides a disclaimer regarding forward-looking statements, emphasizing their inherent uncertainties and the company's policy on updates [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) This section contains a comprehensive disclaimer regarding forward-looking statements, emphasizing that they represent current beliefs about future events, are inherently uncertain, and involve significant known and unknown risks - Forward-looking statements represent only current beliefs regarding future events, many of which are inherently uncertain and involve significant known and unknown risks and uncertainties[25](index=25&type=chunk) - Investors should not place undue reliance on these statements, which speak only as of the date of the press release[27](index=27&type=chunk) - SunCoke does not intend, and expressly disclaims any obligation, to update or alter its forward-looking statements after the date of the press release except as required by applicable law[27](index=27&type=chunk)

Industry Overview - The Zacks Coal industry is experiencing significant challenges due to a decline in coal usage in U.S. thermal power plants, with further weakening demand projected for 2025 as coal-fired units are retired and renewable energy sources gain traction [1][4] - Current U.S. estimated recoverable coal reserves stand at approximately 252 billion short tons, with 58% being underground mineable coal, but the industry's prospects are hindered by a shift towards renewable energy and the gradual shutdown of coal-powered generation units [2][4] - The coal industry is ranked 228 out of 245 Zacks industries, placing it in the bottom 7%, indicating a lackluster performance outlook [6][8] Production and Consumption Trends - U.S. coal production is expected to reach 520 million short tons (MMst) in 2025, a slight increase from 512 MMst in 2024, but is projected to decline by 9% to 475 MMst in 2026 due to increased competition from cleaner energy sources [5] - The share of coal in U.S. electricity generation is anticipated to decrease from 17% in 2025 to 15% in 2026, reflecting the ongoing transition to cleaner energy [4] Export and Market Performance - The coal industry is likely to face reduced export volumes in 2025 and 2026, influenced by a strong U.S. dollar and competition from natural gas and renewables [1][3] - Over the past year, coal stocks have underperformed, losing 8.7% compared to a 3.1% decline in the Zacks Oil-Energy sector and an 11.7% gain in the Zacks S&P 500 composite [10] Valuation Metrics - The coal industry is currently trading at a trailing 12-month EV/EBITDA ratio of 5.58X, significantly lower than the Zacks S&P 500 composite's 17.64X, indicating a challenging valuation environment [13] Key Companies - **Alliance Resource Partners (ARLP)**: Expected to produce between 32.75-34.75 million short tons in 2025, with a Zacks Rank 2 (Buy) and a current distribution yield of 10.49% [17][18] - **SunCoke Energy (SXC)**: Plans to produce 4 million tons of domestic coke in 2025, with a focus on metallurgical coal, and holds a Zacks Rank 3 (Hold) with a dividend yield of 5.64% [22][23]

Summary of SunCoke Energy (SXC) Acquisition of Phoenix Global Conference Call Company and Industry - **Company**: SunCoke Energy (SXC) - **Acquisition Target**: Phoenix Global - **Industry**: Steel production services Key Points and Arguments 1. **Acquisition Details**: SunCoke Energy announced a definitive agreement to acquire Phoenix Global for $325 million, representing an acquisition multiple of approximately 5.4 times based on a last twelve months adjusted EBITDA of $61 million as of March 31, 2025 [5][6] 2. **Funding and Synergies**: The acquisition will be funded through cash on hand and borrowing from a revolver with a capacity of $350 million. Expected annual synergies from the transaction are approximately $15 million [6][17] 3. **Strategic Fit**: Phoenix Global is a leading provider of mission-critical services to major steel producers, enhancing SunCoke's reach to new industrial customers, including electric arc furnace operators [7][8] 4. **Long-term Contracts**: Phoenix has long-term contracts with a weighted average life of approximately six years, providing predictable revenue and limiting earnings volatility [11][12] 5. **Operational Efficiency**: SunCoke plans to leverage its operational and technical expertise to enhance Phoenix's operations, aiming for improved efficiency and increased EBITDA from existing services [38][57] 6. **Market Expansion**: The acquisition will allow SunCoke to expand its footprint in North America, Brazil, and Europe, and to serve a larger group of steel mills, particularly in the electric arc furnace segment [16][20] 7. **Debt Profile Post-Acquisition**: Post-acquisition, SunCoke's gross leverage is expected to be approximately 2.62 times based on pro forma combined adjusted EBITDA of $279 million, which is below the long-term target of three times [17][18] 8. **Commitment to Shareholders**: The acquisition is positioned to enhance long-term sustainable earnings growth and increase shareholder value, while maintaining the quarterly dividend [21][48] Additional Important Content 1. **Limited Commodity Exposure**: Phoenix's contracts are structured to limit exposure to commodity price fluctuations, primarily using indexed pricing for diesel fuel [30][31] 2. **Future Growth Opportunities**: There are significant opportunities for growth in the electric arc furnace market, where Phoenix currently serves only 7% of the U.S. market [42][43] 3. **Granulated Pig Iron Project**: The acquisition does not impact SunCoke's plans for the granulated pig iron project, which remains a priority despite delays [46][48] 4. **Corporate Synergies**: Immediate corporate synergies are expected from the removal of redundancies, with further efficiencies anticipated as operations are integrated [36][57] This summary encapsulates the critical aspects of the conference call regarding SunCoke Energy's acquisition of Phoenix Global, highlighting the strategic rationale, financial implications, and future growth potential within the steel production services industry.

Acquisition Overview - SunCoke Energy will acquire 100% of Phoenix Global for $325 million on a cash-free, debt-free basis[8] - The implied purchase price is approximately 54 times Phoenix's Last Twelve Months (LTM) Adjusted EBITDA as of March 31, 2025, which was $61 million[8] - The acquisition is expected to generate annual synergies of approximately $5 million to $10 million[8] Financial Impact and Debt Profile - The transaction is expected to be immediately accretive to SunCoke Energy[8] - Pro forma Adjusted EBITDA for the combined company is projected to be $279 million[18] - SunCoke's 2025E Consolidated Adjusted EBITDA guidance is $210 - $225 million[19] - Pro Forma Gross Debt / Adj EBITDA is expected to be 230x and Net Debt / Adj EBITDA is expected to be 141x[28] Strategic Benefits - The acquisition diversifies SunCoke's customer base to include Electric Arc Furnace (EAF) operators and expands its global footprint[11] - Phoenix has invested approximately $72 million in equipment since 2023 through a major capital investment plan[9] - Phoenix has a weighted average contract life of approximately 6 years, providing stable cash flows[15]

[Filing Information](index=1&type=section&id=Filing%20Information) This section provides key administrative details of the Quarterly Report on Form 10-Q for SunCoke Energy, Inc., including filing period, commission number, and outstanding shares - The document is a Quarterly Report on Form **10-Q** for **SUNCOKE ENERGY, INC.**, covering the quarterly period ended **March 31, 2025**[2](index=2&type=chunk) - The company is registered under Commission File Number: **001-35243** and is classified as a **large accelerated filer**[2](index=2&type=chunk)[4](index=4&type=chunk) - As of **April 25, 2025**, there were **84,651,097 shares** of the Registrant's Common Stock outstanding[4](index=4&type=chunk) [Cautionary Statement Concerning Forward-Looking Statements](index=3&type=section&id=CAUTIONARY%20STATEMENT%20CONCERNING%20FORWARD-LOOKING%20STATEMENTS) This section outlines the nature of forward-looking statements within the report, emphasizing inherent risks and uncertainties that could cause actual results to differ materially - This report contains forward-looking statements covered by safe harbor provisions, based on management's beliefs and assumptions, **not guarantees of future performance**[8](index=8&type=chunk) - Actual results may **differ materially** due to various risks and uncertainties, and the company has no obligation to update these statements unless required by law[9](index=9&type=chunk) - **Key risk factors** include impacts of international conflicts, inflation, trade regulations, volatility in the steel and coal industries, changes in coke/coal supply and demand, customer financial hardship, operational performance, environmental compliance, debt covenants, competition from alternative technologies, and IT infrastructure disruptions[10](index=10&type=chunk)[11](index=11&type=chunk)[14](index=14&type=chunk) [PART I – FINANCIAL INFORMATION](index=6&type=section&id=PART%20I%20–%20FINANCIAL%20INFORMATION) This part presents the company's unaudited consolidated financial statements and management's discussion and analysis for the quarter ended March 31, 2025 [Item 1. Consolidated Financial Statements](index=6&type=section&id=Item%201.%20Consolidated%20Financial%20Statements) This section presents the unaudited consolidated financial statements for SunCoke Energy, Inc. for the three months ended March 31, 2025 and 2024, including statements of income, comprehensive income, balance sheets, cash flows, and equity, along with detailed notes explaining various financial components and accounting policies [Consolidated Statements of Income (Unaudited)](index=6&type=section&id=Consolidated%20Statements%20of%20Income%20(Unaudited)) This statement provides a summary of the company's revenues, expenses, and net income for the three months ended March 31, 2025 and 2024 | Metric | 3 Months Ended March 31, 2025 (Millions USD) | 3 Months Ended March 31, 2024 (Millions USD) | Change (Millions USD) | | :-------------------------------- | :--------------------------------------- | :--------------------------------------- | :------------------ | | Sales and other operating revenue | 436.0 | 488.4 | (52.4) | | Total costs and operating expenses | 405.8 | 453.9 | (48.1) | | Operating income | 30.2 | 34.5 | (4.3) | | Net income | 19.4 | 21.1 | (1.7) | | Net income attributable to SunCoke Energy, Inc. | 17.3 | 20.0 | (2.7) | | Basic EPS | 0.20 | 0.24 | (0.04) | | Diluted EPS | 0.20 | 0.23 | (0.03) | [Consolidated Statements of Comprehensive Income (Unaudited)](index=7&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20(Unaudited)) This statement details the net income and other comprehensive income components for the three months ended March 31, 2025 and 2024 | Metric | 3 Months Ended March 31, 2025 (Millions USD) | 3 Months Ended March 31, 2024 (Millions USD) | | :------------------------------------------ | :--------------------------------------- | :--------------------------------------- | | Net income | 19.4 | 21.1 | | Other comprehensive income (loss) | 0.2 | (0.1) | | Comprehensive income | 19.6 | 21.0 | | Comprehensive income attributable to SunCoke Energy, Inc. | 17.5 | 19.9 | [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) This statement presents the company's assets, liabilities, and equity as of March 31, 2025, and December 31, 2024 | Metric | March 31, 2025 (Millions USD) | December 31, 2024 (Millions USD) | Change (Millions USD) | | :-------------------------------- | :-------------------------------- | :-------------------------------- | :------------------ | | Total current assets | 495.8 | 474.6 | 21.2 | | Total assets | 1,668.4 | 1,668.2 | 0.2 | | Total current liabilities | 206.3 | 205.8 | 0.5 | | Total liabilities | 953.9 | 957.2 | (3.3) | | Total SunCoke Energy, Inc. stockholders' equity | 684.6 | 680.2 | 4.4 | | Total equity | 714.5 | 711.0 | 3.5 | [Consolidated Statements of Cash Flows (Unaudited)](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) This statement summarizes the cash inflows and outflows from operating, investing, and financing activities for the three months ended March 31, 2025 and 2024 | Metric | 3 Months Ended March 31, 2025 (Millions USD) | 3 Months Ended March 31, 2024 (Millions USD) | Change (Millions USD) | | :------------------------------------ | :--------------------------------------- | :--------------------------------------- | :------------------ | | Net cash provided by operating activities | 25.8 | 10.0 | 15.8 | | Net cash used in investing activities | (4.6) | (15.1) | 10.5 | | Net cash used in financing activities | (17.1) | (14.9) | (2.2) | | Net increase (decrease) in cash and cash equivalents | 4.1 | (20.0) | 24.1 | | Cash and cash equivalents at end of period | 193.7 | 120.1 | 73.6 | [Consolidated Statements of Equity (Unaudited)](index=10&type=section&id=Consolidated%20Statements%20of%20Equity%20(Unaudited)) This statement outlines changes in equity attributable to SunCoke Energy, Inc. and noncontrolling interests for the periods presented | Metric | March 31, 2025 (Millions USD) | December 31, 2024 (Millions USD) | | :------------------------------------ | :-------------------------------- | :-------------------------------- | | Total SunCoke Energy, Inc. stockholders' equity | 684.6 | 680.2 | | Noncontrolling interest | 29.9 | 30.8 | | Total equity | 714.5 | 711.0 | | Metric | March 31, 2024 (Millions USD) | December 31, 2023 (Millions USD) | | :------------------------------------ | :-------------------------------- | :-------------------------------- | | Total SunCoke Energy, Inc. stockholders' equity | 623.0 | 614.2 | | Noncontrolling interest | 30.2 | 31.3 | | Total equity | 653.2 | 645.5 | [Notes to the Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the consolidated financial statements, covering accounting policies and specific financial components [1. General](index=12&type=section&id=1.%20General) This note provides an overview of SunCoke Energy's business, including its cokemaking and logistics operations - **SunCoke Energy** is the **largest independent producer of high-quality coke** in the Americas, with over 60 years of experience, primarily selling blast furnace coke under **long-term, take-or-pay agreements**[31](index=31&type=chunk) - The company operates **five U.S. cokemaking facilities** (**4.2 million tons/year** capacity) and **one in Brazil** (**1.7 million tons/year** capacity) for ArcelorMittal Brasil S.A., utilizing heat recovery technology to produce steam or electricity[31](index=31&type=chunk) - Its logistics business provides material handling and mixing services with terminals capable of mixing/transloading **over 40 million tons annually** and storing approximately **3 million tons**[32](index=32&type=chunk) [2. Inventories](index=12&type=section&id=2.%20Inventories) This note details the composition and value of the company's inventories as of March 31, 2025, and December 31, 2024 | Inventory Component | March 31, 2025 (Millions USD) | December 31, 2024 (Millions USD) | | :------------------ | :-------------------------------- | :-------------------------------- | | Coal | 136.4 | 109.3 | | Coke | 15.6 | 13.9 | | Materials, supplies and other | 57.7 | 57.6 | | Total inventories | 209.7 | 180.8 | [3. Intangible Assets](index=13&type=section&id=3.%20Intangible%2

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]

Financial Performance - Q1 2025 Consolidated Adjusted EBITDA was $59.8 million, a decrease of $8.1 million compared to Q1 2024[10, 12, 14] - Q1 2025 Diluted EPS was $0.20, down $0.03 from Q1 2024[12, 14] - The company reaffirmed its FY 2025 Consolidated Adjusted EBITDA guidance range of $210 million to $225 million[10, 25, 34] - The company expects 2025 Free Cash Flow to be between $100 million and $115 million[34, 36] Segment Performance - Coke Adjusted EBITDA decreased by $11.6 million, primarily due to lower economics on the Granite City contract extension and lower spot blast coke sales volumes[13, 14] - Logistics Adjusted EBITDA increased by $0.7 million, driven by higher volumes at CMT[13, 14] - Domestic Coke Adjusted EBITDA was $49.9 million in Q1 2025, compared to $61.4 million in Q1 2024[16, 17] - Logistics segment contributed $13.7 million to Q1 2025 Adjusted EBITDA, compared to $13.0 million in Q1 2024[19, 20] Liquidity and Capital Allocation - The company ended Q1 2025 with a strong liquidity position of $543.7 million[10, 22] - Gross leverage was 1.89x on a trailing 12-month Adjusted EBITDA basis[10, 22] - A cash dividend of $0.12 per share was declared, payable on June 2, 2025[10, 22]