SunCoke Energy's Q2 2025: Unpacking Key Contradictions on Contracts, Growth, and Market Dynamics

Cliffs contract renewal and Haverhill production, Phoenix Global's long-term growth drivers, foundry market demand and export coal market, contract renewal and market adaptation, coke pricing and market dynamics are the key contradictions discussed in SunCoke Energy's latest 2025Q2 earnings call.



Financial Performance:
- SunCoke Energy reported a consolidated adjusted EBITDA of $43.6 million for Q2 2025, driven by the timing and mix of contract and spot coke sales, as well as lower volumes at CMT.
- The company's net income attributable to SunCoke was $0.02 per share, down $0.23 versus the prior year period, mainly due to the timing and mix of lower contract coke sales and unfavorable economics on the Granite City contract extension.

Phoenix Global Acquisition:
- SunCoke announced the acquisition of Phoenix Global for $325 million, expecting it to be immediately accretive for the company.
- The acquisition represents an acquisition multiple of approximately 5.4x on a March 31, 2025, last 12 months adjusted EBITDA of $61 million and is anticipated to yield $5 million to $10 million in annual synergies.

Logistics Segment Challenges and Recovery:
- The Logistics segment generated $7.7 million of adjusted EBITDA in Q2 2025, primarily due to lower transloading volumes at CMT due to tepid market conditions.
- The company is expecting benefits from a new take-or-pay coal handling agreement starting in Q3, reaffirming its full-year Logistics adjusted EBITDA guidance range of $45 million to $50 million.

Dividend and Liquidity Position:
- SunCoke announced a $0.12 per share dividend payable to shareholders on September 2, 2025, reflecting a strong liquidity position with $536.2 million in cash and a fully undrawn revolver of $350 million.
- The company ended the second quarter with a cash balance of $186.2 million and expects free cash flow guidance to be between $103 million and $118 million for the year.