SunCoke Energy, Inc. Reports Third Quarter 2025 Results

Core Insights - SunCoke Energy, Inc. reported a Consolidated Adjusted EBITDA of $59.1 million for Q3 2025, which includes two months of results from the acquisition of Phoenix Global [2][4] - The company updated its full-year Consolidated Adjusted EBITDA guidance to a range of $220 million to $225 million, reflecting the addition of Phoenix Global results and a deferral of approximately 200,000 tons of coke sales due to a breach of contract by a customer [2][4][17] Financial Performance - Revenues for Q3 2025 were $487.0 million, a decrease of $3.1 million compared to $490.1 million in Q3 2024 [3][5] - Net income attributable to SunCoke was $22.2 million, down from $30.7 million in the prior year, translating to $0.26 per diluted share compared to $0.36 [4][6] - Adjusted EBITDA decreased by $16.2 million from $75.3 million in Q3 2024 to $59.1 million in Q3 2025, primarily due to lower volumes and pricing [7][4] Segment Results - Domestic Coke segment revenues decreased by $46.1 million to $413.8 million, driven by lower pricing and volumes due to a change in the mix of contract and spot coke sales [9][10] - Adjusted EBITDA for the Domestic Coke segment fell by $14.1 million to $44.0 million, impacted by lower volumes and pricing [11] - The Industrial Services segment saw revenues increase by $42.7 million to $64.1 million, primarily due to the addition of Phoenix Global results [13][14] Acquisition and Integration - The acquisition of Phoenix Global was completed on August 1, 2025, for $325 million, funded through cash on hand and revolving credit [44] - The integration of Phoenix Global is progressing well, with expectations to begin realizing synergies from the acquisition in 2026 [2][4] Revised Outlook - The revised guidance for 2025 includes an expected Consolidated Net Income between $48 million and $58 million, with capital expenditures projected at approximately $70 million [20][17] - Operating cash flow is estimated to be between $62 million and $72 million for 2025 [20]