Core Insights - Performance was significantly impacted by Algoma's breach of contract, leading to the idling of the Haverhill 1 facility and a shift towards lower-margin spot markets [1] - Management mitigated approximately $40 million of the potential $70 million working capital impact from the Algoma breach through third-party sales and facility turndowns [1] - The acquisition of Phoenix Global is a strategic pivot aimed at diversifying revenue streams, contributing five months of results in 2025, with full integration expected to drive growth in 2026 [1] Financial Performance - Domestic coke economics faced pressure due to lower pricing on the Granite City contract extension and a transition from long-term contracts to spot blast coke sales [1] - Industrial Services growth was driven by the addition of Phoenix and a new take-or-pay coal handling agreement at the KRT terminal that commenced in 2025 [1] Operational Highlights - Operational excellence was demonstrated by a total recordable incident rate of 0.55, maintaining safety as the primary organizational priority during structural transitions [1]

Core Insights - The company made significant progress in capital allocation priorities in 2025, highlighted by the acquisition of Phoenix and a return of approximately $41 million to shareholders through dividends [1][11] - The integration of Phoenix is progressing well, and the company expects continued growth and a quarterly dividend throughout 2026 [1][12] Financial Performance - The consolidated adjusted EBITDA for 2025 was $219.2 million, reflecting a decrease of $53.6 million compared to the previous year, primarily due to lower coke sales volumes and market conditions [3][7] - The fourth quarter net loss attributable to the company was $1 per share, down from $1.28 in 2024, influenced by one-time items including asset impairment charges and restructuring costs related to the Phoenix acquisition [5][6] - The domestic coke segment faced challenges due to a change in the mix of contract and spot coke sales, resulting in lower economics on the Granite City contract extension and a breach of contract by Algoma [2][8] Operational Highlights - The company achieved a total recordable incident rate of 0.55, emphasizing its commitment to safety [3] - The domestic coke business delivered an adjusted EBITDA of $170 million, down $64.7 million from the prior year, impacted by contract changes and lower sales volumes [8] - The Industrial Services segment, including the new Phoenix Global business, reported an adjusted EBITDA of $62.3 million, an increase of $11.9 million year-over-year, driven by the addition of Phoenix Global [9] Future Outlook - For 2026, the company expects consolidated adjusted EBITDA to be between $230 million and $250 million, with domestic coke adjusted EBITDA projected to be lower by $2 million to $8 million [15][20] - The Industrial Services segment is anticipated to see an increase in adjusted EBITDA by $28 million to $38 million, benefiting from a full year of Phoenix Global and improved market conditions [15][20] - The company plans to utilize excess free cash flow to pay down outstanding borrowings and maintain a gross leverage target below three times [14][21]

Financial Data and Key Metrics Changes - The consolidated adjusted EBITDA for 2025 was $219.2 million, down $53.6 million from the prior year, primarily due to changes in contract and spot coke sales, lower economics on the Granite City contract extension, and lower handling volumes [5][10] - The fourth quarter net loss attributable to SunCoke was $1 per share, down $1.28 compared to Q4 2024, mainly driven by one-time items totaling $0.85 per share net of tax [8][9] - Full year net loss attributable to SunCoke was $0.52 per share, down $1.64 from 2024, influenced by one-time items including non-cash asset impairment charges [8][9] Business Line Data and Key Metrics Changes - The domestic coke business delivered full-year adjusted EBITDA of $170 million, down $64.7 million from the prior year, impacted by contract and spot coke sales mix and the Algoma breach [10] - The industrial services segment, including Phoenix Global, delivered full-year adjusted EBITDA of $62.3 million, an increase of $11.9 million year-over-year, primarily due to the addition of Phoenix Global [11] - Corporate and other expenses increased by $800,000 year-over-year to $13.1 million, reflecting results from legacy coal mining and Brazil coke-making businesses [11] Market Data and Key Metrics Changes - The domestic coke segment is expected to deliver adjusted EBITDA between $162 million and $168 million in 2026, with sales of approximately 3.4 million tons [16][18] - Industrial services adjusted EBITDA is projected to be between $90 million and $100 million in 2026, reflecting expectations for improved market conditions [19][20] Company Strategy and Development Direction - The company plans to utilize free cash flow to support capital allocation priorities, including paying down revolver balance and maintaining dividends [22][23] - The integration of Phoenix Global is progressing well, with expectations for growth potential in this business [7][23] - The company aims to maintain strong safety and environmental performance, which is central to delivering high-quality coke and industrial services [22] Management's Comments on Operating Environment and Future Outlook - Management anticipates a meaningful recovery in 2026, supported by an optimized coke fleet and extended coke-making contracts [15] - The company expects consolidated adjusted EBITDA to be between $230 million and $250 million in 2026, with a focus on deleveraging and maintaining a gross leverage target below 3x [15][21] - Management highlighted the impact of ongoing litigation with Algoma, expecting to recover losses from the breach of contract [28][30] Other Important Information - The company returned approximately $41 million to shareholders via dividends in 2025 and plans to continue this in 2026 [7] - Capital expenditures for 2025 were $66.8 million, slightly below the revised guidance of $70 million [13] Q&A Session Summary Question: Status of litigation with Algoma - Management confirmed they are pursuing arbitration against Algoma for breach of contract and expect to prevail [28][30] Question: EBITDA contribution from Phoenix Global - Management affirmed the anticipated annual EBITDA contribution from Phoenix Global is still expected to be around $60 million, with synergies of $5 million-$10 million [32] Question: Haverhill One closure and potential reopening - Management stated that Haverhill One could be restarted but would require significant capital investment and about 12-18 months [42] Question: Impact of Middletown turbine failure - Management indicated that the turbine failure will have a $10 million impact in the first quarter, with no earnings from power production until it is operational again [46][48] Question: Expected improvement in tons handled in the industrial segment - Management noted that guidance includes a full year of the new KRT contract and modest recovery across both KRT and CMT [52]

Financial Data and Key Metrics Changes - Consolidated adjusted EBITDA for Q4 2025 was $56.7 million, down $9.4 million year-over-year, primarily due to lower coke sales volumes and market conditions [9][10] - Full-year consolidated adjusted EBITDA was $219.2 million, a decrease of $53.6 million compared to the previous year [9][10] - The net loss attributable to SunCoke for Q4 2025 was $1 per share, down from $1.28 per share in Q4 2024, driven by one-time items totaling $0.85 per share net of tax [8] - Full-year net loss attributable to SunCoke was $0.52 per share, down from $1.64 per share in 2024, impacted by one-time items totaling $0.97 per share net of tax [8] Business Line Data and Key Metrics Changes - Domestic coke business delivered full-year adjusted EBITDA of $170 million, down $64.7 million from the prior year, affected by contract and spot coke sales mix changes and lower contract economics [10] - Industrial services segment, including Phoenix Global, delivered full-year adjusted EBITDA of $62.3 million, an increase of $11.9 million year-over-year, primarily due to the addition of Phoenix Global [11] - Corporate and other expenses increased by $800,000 year-over-year to $13.1 million, reflecting costs from legacy operations [11] Market Data and Key Metrics Changes - The domestic coke segment is expected to deliver adjusted EBITDA between $162 million and $168 million in 2026, with sales of approximately 3.4 million tons [16][18] - Industrial services adjusted EBITDA is projected to be between $90 million and $100 million in 2026, reflecting expectations for improved market conditions [19][20] Company Strategy and Development Direction - The company plans to utilize free cash flow to support capital allocation priorities, including paying down revolver balance and maintaining dividends [22] - Focus on seamless integration of Phoenix Global and exploring new growth opportunities across all business areas [23] - The company aims to maintain strong safety and environmental performance as a competitive advantage [22] Management's Comments on Operating Environment and Future Outlook - Management anticipates a meaningful recovery in 2026, supported by an optimized coke fleet and extended contracts [15] - The company expects to generate positive free cash flow in 2026, with gross leverage targeted around 2.45x, below the long-term target of 3x [15] - Management highlighted challenges in 2025 due to market conditions but remains optimistic about future performance [15] Other Important Information - The company returned approximately $41 million to shareholders via dividends in 2025 and plans to continue this in 2026 [7] - The integration of Phoenix Global is progressing well, with expectations for significant contributions in 2026 [15] Q&A Session Summary Question: Status of litigation with Algoma regarding contract breach - Management confirmed ongoing arbitration with Algoma, expecting to recover losses from the breach, which could amount to up to $70 million [28][29] Question: Anticipated EBITDA contribution from Phoenix Global - Management affirmed expectations of an annual EBITDA contribution of roughly $60 million from Phoenix Global [31] Question: One-time integration costs incurred with Phoenix Global - One-time costs included site closure costs of about $3.9 million and transaction costs of approximately $600,000 [32] Question: Permanence of Haverhill One closure and potential reopening - Haverhill One closure is permanent unless significant capital investment is made, which is not currently justified [40] Question: Expected improvement in tons handled in the industrial segment - Guidance includes a full year of the new KRT contract and modest recovery across both KRT and CMT [49]

Financial Data and Key Metrics Changes - The consolidated adjusted EBITDA for Q4 2025 was $56.7 million, down $9.4 million compared to the prior year, primarily due to lower coke sales volumes and market conditions [9][10] - Full year adjusted EBITDA for 2025 was $219.2 million, a decrease of $53.6 million from the previous year, driven by changes in contract and spot coke sales and lower economics on the Granite City contract extension [9][10] - The net loss attributable to SunCoke for Q4 2025 was $1 per share, down from $1.28 in Q4 2024, influenced by one-time items totaling $0.85 per share [8][9] Business Line Data and Key Metrics Changes - The domestic coke business delivered full-year adjusted EBITDA of $170 million, down $64.7 million from the prior year, impacted by contract and spot coke sales mix and the Algoma breach [10][11] - The industrial services segment, including Phoenix Global, reported full-year adjusted EBITDA of $62.3 million, an increase of $11.9 million year-over-year, primarily due to the addition of Phoenix Global [11] - Corporate and other expenses increased by $800,000 year-over-year to $13.1 million, reflecting costs from legacy operations [11] Market Data and Key Metrics Changes - The domestic coke segment is expected to deliver adjusted EBITDA between $162 million and $168 million in 2026, with sales of approximately 3.4 million tons [17][19] - Industrial services adjusted EBITDA is projected to be between $90 million and $100 million in 2026, reflecting expectations for improved market conditions [20][22] Company Strategy and Development Direction - The company plans to utilize free cash flow to support capital allocation priorities, including paying down revolver balance and maintaining dividends [24][25] - SunCoke aims to continue integrating Phoenix Global and assess new growth opportunities across its business [25] - The company has extended key contracts, including the Granite City and Haverhill Two contracts, to ensure stable revenue streams [6][19] Management's Comments on Operating Environment and Future Outlook - Management anticipates a meaningful recovery in 2026, supported by an optimized coke fleet and improved market conditions [16][24] - The company expects to generate positive free cash flow in 2026, with gross leverage targeted around 2.45x, below the long-term target of 3x [16][24] - Management highlighted the impact of recent weather conditions and operational challenges, including a turbine failure, on first-quarter results [47][48] Other Important Information - The company returned approximately $41 million to shareholders via dividends in 2025 and plans to continue this practice in 2026 [6][24] - The integration of Phoenix Global is progressing well, with expected synergies contributing to future earnings [33][20] Q&A Session Summary Question: Status of litigation with Algoma regarding contract breach - Management confirmed ongoing arbitration with Algoma, expecting to recover losses from the breach, which could amount to up to $70 million [30][31] Question: Expected EBITDA contribution from Phoenix Global - Management affirmed the anticipated annual EBITDA contribution of approximately $60 million from Phoenix Global, along with expected synergies of $5 million to $10 million [33] Question: Future of Haverhill One facility - Management indicated that Haverhill One could be restarted but would require significant capital investment and is currently not economically viable [42][43] Question: Impact of Middletown turbine failure and weather on operations - Management noted that the turbine failure and severe weather have resulted in an estimated $10 million impact on first-quarter results [48][49] Question: Drivers of expected improvement in industrial segment handling volumes - Management attributed the expected improvement to a full year of the new KRT contract and modest recovery across both KRT and CMT [52]

Financial Data and Key Metrics Changes - SunCoke Energy reported consolidated adjusted EBITDA of $59.1 million for Q3 2025, a decrease from $75.3 million in the prior year period [8][9] - Net income attributable to SunCoke was $0.26 per share, down $0.10 compared to the prior year, primarily due to a mix of contract and spot Coke sales and lower economics from the Granite City contract extension [7][8] - The company revised its consolidated adjusted EBITDA guidance for 2025 to a range of $220 million to $225 million, reflecting the addition of five months of Phoenix results and the impact of a deferral of approximately 200,000 coke tons [5][15] Business Line Data and Key Metrics Changes - Domestic Coke adjusted EBITDA for Q3 2025 was $44 million, down from $58.1 million in the prior year, with Coke sales volumes at 951,000 tons compared to 1,027,000 tons previously [9][10] - The new industrial services segment, which includes Phoenix Global, generated $18.2 million of adjusted EBITDA in Q3 2025, up from $13.7 million in the prior year [11][12] Market Data and Key Metrics Changes - The logistics business experienced lower volumes due to unfavorable market conditions, impacting the overall performance of the industrial services segment [12] - Total logistics handling volumes were 5.2 million tons, with Phoenix customer volume serviced at 3.8 million tons for the two months included in Q3 results [12] Company Strategy and Development Direction - The company is optimistic about 2026, expecting a full year of Phoenix Global adjusted EBITDA contribution and a modest recovery in the logistics business [18][35] - Active discussions are ongoing with U.S. Steel regarding the Granite City contract extension and with Cleveland-Cliffs for the Haverhill contract [34][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the enforceability of contracts and is pursuing legal remedies for the breach of contract by Algoma, which has impacted production and sales [24][25] - The company anticipates that 2026 results will improve over 2025, driven by strong fundamentals in its Coke business and the integration of Phoenix Global [19][35] Other Important Information - SunCoke ended Q3 2025 with a cash balance of $80.4 million and revolver availability of $126 million, indicating ample liquidity [13] - The company announced a quarterly dividend of $0.12 per share, marking the 25th consecutive quarter of dividend announcements [5][6] Q&A Session Summary Question: What is your level of confidence that incremental deferrals won't occur? - Management indicated that the 200,000 tons are anticipated to be produced and stored for 2025, and they believe they have an enforceable contract with Algoma [22][23] Question: What do the remedies for the breach of contract currently look like? - Management stated they are working with counsel and pursuing all legal remedies to recover financial losses from the breach [24] Question: How confident are you in retaining the dividend and liquidity going forward? - Management clarified that the 200,000 tons is the total exposure for this year, not an annual basis, and expressed confidence in maintaining liquidity [26][27] Question: Can you discuss your strategy for 2026 if unable to renew Granite City and Haverhill production under a long-term contract? - Management remains optimistic for 2026, citing strong contracts at Middletown and Indiana Harbor, and ongoing discussions for Haverhill and Granite City [32][34]

Financial Performance - SunCoke Energy的Q3 2025年调整后EBITDA为5910万美元，较去年同期减少1620万美元[10, 12, 14, 15] - Q3 2025年稀释后每股收益为026美元，较去年同期下降010美元[12, 13] - Domestic Coke业务的调整后EBITDA为4400万美元，低于Q3 2024年的5810万美元[15, 19] - Industrial Services业务的调整后EBITDA为1820万美元，高于Q3 2024年的1370万美元[15, 23] - 公司更新了2025财年调整后EBITDA的指导范围，调整为2200万美元至2250万美元[10, 27, 31] Operational Highlights - 2025年8月1日完成了对Phoenix Global的收购，整合进展顺利，预计2026年开始实现协同效应[10] - Granite City焦炭合同已延长至2025年12月31日[10] - 宣布连续第25个季度派发现金股息，每股012美元，于2025年12月1日支付[10, 25] - 由于某焦炭客户违反合同，导致约20万吨焦炭销售被推迟[10] Segment Performance - Q3物流处理量为5235Kt，Phoenix Global客户服务量为3825Kt[12, 22, 23] - Domestic Coke的销量为951Kt，低于去年同期的1027Kt[12] Liquidity - 公司在收购后的流动资金约为2060万美元[25] - 总债务为6990万美元[25]

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]

Financial Data and Key Metrics Changes - SunCoke Energy reported consolidated adjusted EBITDA of $43.6 million for Q2 2025, a decrease from $63.5 million in the prior year period, primarily due to lower contract coke sales and unfavorable economics from the Granite City contract extension [4][12] - Net income attributable to SunCoke was $0.02 per share, down $0.23 compared to the prior year, impacted by lower contract coke sales and transaction costs related to the acquisition of Phoenix Global [11][12] - The company ended Q2 with a strong liquidity position of $536.2 million, including a cash balance of $186.2 million and a fully undrawn revolver of $350 million [5][14] Business Line Data and Key Metrics Changes - Domestic coke adjusted EBITDA for Q2 was $40.5 million, with coke sales volumes at 943,000 tons, reflecting a decrease due to a change in the mix of contract and spot coke sales [12][13] - The logistics business generated $7.7 million of adjusted EBITDA, with terminals handling combined throughput volumes of 4.8 million tons, also impacted by lower transloading volumes due to market conditions [13][14] Market Data and Key Metrics Changes - The company expects higher contract coke sales in the second half of the year, reaffirming its domestic coke adjusted EBITDA guidance range of $185 million to $192 million [13] - Logistics adjusted EBITDA guidance for the full year remains at $45 million to $50 million, with expectations of improved volumes in the second half [14][18] Company Strategy and Development Direction - The acquisition of Phoenix Global for $325 million is seen as a strategic fit, expected to be immediately accretive and providing opportunities for organic growth through new industrial customers [5][6][10] - The company aims to integrate Phoenix's operations into a new Industrial Services segment, leveraging its strong financial position and operational excellence [10][17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improvements in both logistics and domestic coke in the second half of the year, reaffirming full-year consolidated adjusted EBITDA guidance of $210 million to $225 million [18] - The company is focused on maintaining operational discipline and capital allocation to reward long-term shareholders while integrating Phoenix's operations [17][18] Other Important Information - The company amended and extended its revolving credit facility, now maturing in July 2030, with covenants similar to the previous agreement [5][14] - The acquisition is expected to generate annual synergies of approximately $5 million to $10 million [6] Q&A Session Summary Question: Can you walk us through the drivers of the improvement from here? - Management indicated that the second quarter was expected to be the trough of 2025, with higher contract coke sales anticipated in the second half, aiming for a total of 2 million to 2.1 million tons of coke sales [20][21] Question: Can you talk about the macro drivers of Phoenix Global? - Management highlighted excitement about the EAF exposure from Phoenix, which diversifies the customer base and presents opportunities for organic growth [23][25] Question: What are the recent conversations with your largest customer regarding contract renewals? - Management confirmed active discussions with Cliffs regarding contract renewals, noting that they were surprised by comments made during Cliffs' earnings call [27][28] Question: How do you view the logistics business and export coal demand? - Management acknowledged that the majority of volumes at CMT are coal for export, with higher domestic pricing impacting international shipments, but reaffirmed logistics guidance based on expected volumes [39][40] Question: Any updates on the GPI project? - Management stated they are in active discussions with U.S. Steel regarding the GPI project but had no further details to share at this time [47]

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 ...