SunCoke Energy(SXC) - 2025 Q1 - Quarterly Results

First Quarter 2025 Performance Overview SunCoke Energy reported decreased Q1 2025 net income and Adjusted EBITDA, impacted by steel industry challenges, but reaffirmed full-year guidance Key Highlights 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][5] - SunCoke reaffirmed its full-year 2025 Consolidated Adjusted EBITDA guidance range of $210 million to $225 million[3][5] Consolidated Financial Results 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] - 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] Segment Performance Segment performance in Q1 2025 showed Domestic Coke decline, Logistics growth, Brazil Coke stability, and reduced Corporate expenses Domestic Coke 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] 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] Brazil Coke 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 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] 2025 Outlook SunCoke Energy reaffirmed its full-year 2025 guidance for Adjusted EBITDA, net income, capital expenditures, and operating cash flow Full-Year 2025 Guidance 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 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 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 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 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 This section provides non-GAAP reconciliations for Adjusted EBITDA and includes definitions and forward-looking statement disclaimers Non-GAAP Reconciliations 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 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] - 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]