SunCoke Energy's Q1 2025: Navigating Contradictions in CapEx, Growth Strategies, and Market Outlook

Capital expenditure guidance and spending, growth opportunities beyond GPI project, financial guidance and market conditions, export coke market outlook, and coke sales and market conditions are the key contradictions discussed in SunCoke Energy's latest 2025Q1 earnings call.



Strong Performance in Logistics Segment:
- SunCoke's Logistics segment generated $13.7 million in adjusted EBITDA for Q1, a $0.7 million increase from the same period last year.
- The growth was primarily driven by higher transloading volumes at CMT, partially offset by the absence of an index price adjustment benefit.

Weakness in Domestic Coke Segment:
- The Domestic Coke adjusted EBITDA was $49.9 million in Q1, with sales volumes at 898,000 tons, a decrease from the previous year.
- The decline was attributed to lower economics and volumes at Granite City due to the contract extension and lower spot blast coke sales volumes.

Cash Flow and Liquidity Position:
- SunCoke ended the first quarter with a strong liquidity position of $543.7 million, with a cash balance of $193.7 million and a fully undrawn revolver of $350 million.
- This was supported by net cash provided by operating activities of $25.8 million, despite a coal inventory buildup that is expected to reverse during the year.

Dividend and Capital Allocation:
- SunCoke announced a $0.12 per share dividend payable to shareholders on June 2, 2025.
- The company maintains its commitment to rewarding shareholders through dividends while preserving cash for projects like Granite City, despite operating in a challenging environment.