SunCoke Energy(US:SXC)2025-11-04 18:00Financial 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].