- **2025 EBITDA Guidance Update**: $220-225 million due to 200,000 coke tons deferral, stored inventory, and legal recovery efforts.
- **Phoenix Acquisition Impact**: 2026 expected to benefit from full year contribution ($60M+ EBITDA) and logistics recovery.
- **Dividend Continuity**: $0.12 quarterly dividend declared, with Board review for 2026 sustainability.
- **Operational Challenges**: Lower contract volumes, production inefficiencies, and weak logistics volumes拖累 Domestic Coke segment performance.

**【Management Opening Remarks】**
- Shantanu Agrawal introduced the call, noting the completion of the Phoenix Global acquisition and the integration progress. He emphasized the revised 2025 EBITDA guidance of $220-225 million, reflecting the deferral of 200,000 coke tons due to a customer breach.

**【CEO Summary Section】**
- Q3 2025 adjusted EBITDA was $59.1 million, with sequential improvement but below expectations. The Phoenix acquisition added 2 months of results, offset by weak logistics volumes. The company expects 2026 synergies from Phoenix. 
- The breach of contract with Algoma resulted in $200,000 deferred coke sales, stored inventory, and revised guidance. The company is pursuing legal remedies to recover losses.
- A quarterly dividend of $0.12 per share was declared, with plans to continue the dividend based on Board approval.

**【CFO Financial Commentary】**
- Net income was $0.26 per share, down $0.10 YoY due to contract mix and operational issues. Adjusted EBITDA decreased 21% YoY to $59.1 million, driven by lower contract volumes and production inefficiencies.
- Free cash flow guidance was revised to negative $10-0 million for 2025, reflecting the $70 million unfavorable impact from deferred coke sales and transaction costs.
- Liquidity remained strong with $206 million post-acquisition, including $80.4 million cash and $126 million revolver availability.

**【Q&A Key Highlights】**
- **Customer Breach Confidence**: Management expressed confidence in enforcing the contract, with legal actions ongoing. The 200,000 tons deferral is a one-time event, not an annualized impact.
- **2026 Strategy**: Optimistic about full Phoenix contribution ($60M+ EBITDA) and modest logistics recovery. Coke plants (Middletown, Indiana Harbor, Jewell) provide long-term stability, while Haverhill and Granite City contracts are under negotiation.
- **Dividend Sustainability**: Despite near-term free cash flow breakeven, the Board will evaluate dividend continuation based on 2026 cash flow visibility.


SunCoke Energy, Inc. (SXC) Q3 2025 Earnings Call Transcript

- **Q2 EBITDA**: $43.6 million, with Phoenix acquisition driving strategic growth.
- **Acquisition Impact**: $325 million Phoenix deal to close August 1, with $5-10 million annual synergies.
- **Financial Strength**: $0.12 dividend, $536 million liquidity, reaffirmed $210-225 million EBITDA guidance.
- **Segment Shift**: Logistics + Phoenix form Industrial Services, targeting new steel markets.
- **Coke Recovery**: Q2 as trough, H2 improvement expected with normalized contract mix.

**【CEO Summary Section】**
- Q2 2025 adjusted EBITDA: $43.6 million, driven by contract/spot mix and lower CMT volumes.
- Acquired Phoenix Global for $325 million (5.4x LTM EBITDA), closing on August 1, with $5-10 million annual synergies.
- Paid $0.12/share dividend, ending Q2 with $536.2 million liquidity.
- Reaffirmed full year EBITDA guidance of $210-225 million, combining Logistics and Phoenix into Industrial Services segment.

**【CFO Financial Commentary】**
- Net income: $0.02/share (down $0.23 YoY) due to contract mix, Granite City extension, and $5.2 million transaction costs.
- Domestic Coke EBITDA: $40.5 million (down 36% YoY) due to spot coke margins; Q2 as trough, H2 improvement expected.
- Logistics EBITDA: $7.7 million (down 43% YoY) due to CMT volumes; July volumes improving, reaffirming $45-50 million annual guidance.
- Updated free cash flow: $103-118 million (down from prior range due to transaction costs and tax changes).

**【Q&A Key Highlights】**
- **EBITDA Drivers**: Coke segment to normalize contract/spot mix in H2, Logistics volumes recovering in July.
- **Phoenix Strategy**: EAF exposure, organic growth via technical expertise, and $61 million LTM EBITDA stability.
- **Cliffs Contract**: Active renewal discussions; exploring alternative customers for blast coke.
- **GPI Project**: No updates; focusing on Phoenix integration and balance sheet strength.
- **Market Dynamics**: Higher domestic coal demand impacting exports, no price adjustments in new Logistics contract.

SunCoke Energy (SXC)-30 Jul 25-2025 Q2 Earnings call transcript

- **Q1 EBITDA Performance**: $59.8 million adjusted EBITDA, with Logistics growth offsetting Domestic Coke challenges.
- **Dividend & Liquidity**: $0.12/quarter dividend maintained; strong liquidity ($543.7M) supports operations.
- **EBITDA Guidance**: Full year $210–$225M unchanged, with Q2+ Domestic Coke recovery expected.
- **Capital Discipline**: CapEx reduced to $50M+; prioritizing dividend and Granite City project.
- **Market Risks**: Spot coke market weakness persists, but 2025 sales fully contracted.


**【CEO Opening Remarks】**
- Q1 2025 adjusted EBITDA: $59.8 million, driven by strong Logistics business and challenges in Domestic Coke due to Granite City contract economics and weak spot coke market.
- Dividend of $0.12 per share announced, payable June 2, 2025.
- Full year consolidated adjusted EBITDA guidance reaffirmed at $210–$225 million.
- Liquidity remains strong at $543.7 million, with gross leverage of 1.89x.

**【CFO Financial Details】**
- Net income: $0.20 per share (down $0.03 YoY).
- Domestic Coke EBITDA: $49.9 million (down due to lower Granite City volumes and spot blast coke sales).
- Logistics EBITDA: $13.7 million (up 5% YoY, driven by higher transloading volumes at CMT).
- Cash balance: $193.7 million; operating cash flow: $25.8 million (impacted by coal inventory buildup).
- Full year operating cash flow guidance unchanged.

**【Q&A Key Highlights】**
- **EBITDA Cadence**: Q1 Domestic Coke EBITDA lower due to planned Haverhill production pause; Q2+ benefits from Cliffs contract shipments and higher-margin sales.
- **Capital Allocation**: Dividend ($0.12/quarter) prioritized alongside Granite City project; $65 million CapEx guidance reduced to $50 million+ due to deferrals.
- **Market Outlook**: Spot coke market remains challenging, but 2025 sales fully contracted; GPI project delays persist, but fundamentals remain strong.
- **Inventory Build**: Seasonal coal inventory buildup; expected to reverse in 2H2025.
- **EBITDA/Ton**: Q1 Domestic Coke EBITDA/Ton of $55 reflects absence of low-margin blast coke sales; full year guidance of $48–$50 reflects return of spot sales in 2H2025.


SunCoke Energy (SXC)-30 Apr 25-2025 Q1 Earnings call transcript

- **Record Safety & Strong Cash Flow**: 2024 TRIR of 0.5 and $96M free cash flow highlight operational excellence.
- **2025 EBITDA Warning**: Guidance of $210-225M reflects 17-20% drop in domestic coke margins due to contract renewals and spot market exposure.
- **Dividend Sustainability**: $0.12/share quarterly dividend maintained despite lower earnings.
- **GPI Project Hinge**: Granite City GPI development contingent on U.S. Steel/Nippon deal resolution.
- **Logistics Shift**: API2 price adjustment replaced with FOB New Orleans index, no near-term upside.

**【CEO Opening Remarks】**
- **Safety Milestone**: Achieved record-low Total Recordable Incident Rate (TRIR) of 0.5 in 2024, reflecting strong operational safety.
- **Financial Highlights**: 
  - Adjusted EBITDA: $272.8M (exceeded high-end guidance of $270M)
  - Free Cash Flow: $96M (vs. high-end guidance of $90M)
  - Dividend Growth: Increased quarterly dividend to $0.12/share, up 20% from prior year.
- **Operational Wins**: 
  - Extended Granite City cokemaking contract to June 2025 with 6-month option
  - Signed 3-year take-or-pay coal handling agreement at Kanawha River Terminal (KRT)
  - Sold all non-contracted coke tons into spot markets despite lower coal-to-coke yields

**【CFO Financial Review】**
- **2024 Results**: 
  - Net Income: $1.12/share (vs. $0.68/share in 2023)
  - Adjusted EBITDA: $272.8M (+$4M YoY)
  - Key Drivers: 
    - $36M gain from DOL agreement
    - Higher transloading volumes in Logistics
    - API2 price adjustment benefit in Coke segment
- **2025 Guidance**: 
  - Adjusted EBITDA: $210-225M (down 22-26% YoY)
  - Domestic Coke EBITDA: $185-192M (down 17-20% YoY)
  - Logistics EBITDA: $45-50M (flat to -10% YoY)
  - Free Cash Flow: $100-115M
  - CapEx: $65M (vs. $75-80M historical run rate)
- **Key Risks**: 
  - Haverhill contract expiration forcing spot market sales
  - Lower margins from Granite City contract extension
  - Absence of one-time DOL gain

**【Q&A Key Takeaways】**
1. **Haverhill Contract Risk**: 
   - 875K tons of coke to be sold at lower spot margins
   - 2025 coke EBITDA per ton drops from $58 to $47
   - No contract renewal with Cliffs as of now
2. **Capital Allocation**: 
   - Maintain quarterly dividend at $0.12/share
   - No debt buybacks planned
   - GPI project remains priority if U.S. Steel/Nippon deal resolves
3. **Logistics Adjustments**: 
   - API2 price adjustment replaced with FOB New Orleans index
   - No price adjustment benefit in 2025 guidance
   - KRT capital project to boost volumes starting Q3
4. **Coal Procurement**: 
   - Long-term take-or-pay contracts finalized in Q4
   - Foundry/spot coke sales tied to market pricing
   - 2025 coal buys fully aligned with coke sales


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