SXC completes Phoenix Global acquisition

SXC completes Phoenix Global acquisition

SunCoke Energy, Inc. (SXC) has successfully completed the acquisition of Phoenix Global, a leading provider of mission-critical services to major steel-producing companies, for $325 million [1]. The acquisition, which closed on August 1, 2025, is expected to immediately accrue to the company's earnings and deliver annual synergies of $5 million to $10 million [1]. Phoenix Global will be combined with SunCoke's Logistics segment to form a new Industrial Services segment.

The acquisition was made possible due to the timely receipt of necessary regulatory approvals. SunCoke's CEO, Katherine T. Gates, expressed excitement about the diversification of the company's customer base through the acquisition. She noted that Phoenix Global's last 12 months trailing adjusted EBITDA of approximately $61 million aligns well with expectations for the business [1].

The acquisition is part of SunCoke's strategic efforts to grow and diversify its business. The company has reaffirmed its full-year 2025 consolidated adjusted EBITDA guidance range of $210 million to $225 million, with expectations for higher contract coke sales in the second half of the year [1]. The Logistics segment's adjusted EBITDA guidance remains at $45 million to $50 million for the full year, with anticipated benefits from the KRT expansion and a new take-or-pay coal handling agreement in Q3 [1].

SunCoke's strong liquidity position, with a cash balance of $186.2 million and a fully undrawn revolver of $350 million at quarter end, supports its ability to execute on this strategic acquisition and future growth initiatives [1]. The company has also extended its revolving credit facility, previously due in June 2026, to July 2030 [1].

The acquisition of Phoenix Global comes as SunCoke continues to navigate challenging market conditions in the coke and logistics sectors. The company is actively engaged in contract renewal discussions with its largest customer, Cliffs, but has not provided specific volume details [1]. Management remains confident in the company's ability to achieve its financial guidance and expects improvements in core business performance through year-end.

References:

[1] Seeking Alpha. (2025, July 30). Earnings Call Insights: SunCoke Energy, Inc. (SXC) Q2 2025 Management View. Retrieved from https://seekingalpha.com/news/4474519-suncoke-reaffirms-210m-225m-full-year-ebitda-guidance-while-closing-325m-phoenix-global