SunCoke Energy (SXC) Plunges 17.96% as Mixed Q3 Results Spur Long-Term Risk Concerns

The share price fell to its lowest level since June 2023 today, with an intraday decline of 17.96%. SunCoke Energy (SXC) closed at $8.08, marking a sharp reversal from its 52-week high of $12.82. The selloff followed mixed third-quarter results, where the company exceeded earnings and revenue estimates but faced investor skepticism over long-term operational risks.

Despite a 52.94% beat on earnings per share (EPS) and a 39.42% revenue surprise, SXC’s stock plunged 11.77% in pre-market trading. The decline reflected concerns over a 27.8% year-over-year drop in EPS to $0.26 and a 19.3% decline in consolidated adjusted EBITDA to $59.1 million. Weakness in the Domestic Coke segment, which saw EBITDA fall to $44 million from $58.1 million YoY, underscored broader challenges in pricing and volume recovery.

Operational headwinds included a customer contract breach by Algoma, deferring 200,000 tons of coke sales and forcing a downward revision of 2025 guidance to $220–$225 million in adjusted EBITDA. Logistics bottlenecks and an unfavorable mix of contract and spot coke sales further pressured margins. While the Phoenix Global acquisition added $18.2 million in EBITDA for the Industrial Services segment, integration delays and unresolved legal disputes have muted its immediate impact.

Investors remain cautious despite SXC’s consistent dividend policy and optimism around 2026 synergies from Phoenix Global. Analysts highlight a 49.81% implied upside to the $12.00 average price target but note a 11.24% downside risk. The stock’s 23% underperformance against the S&P 500 this year reflects lingering doubts about the company’s ability to balance near-term challenges with long-term strategic growth.