SunCoke Energy (SXC) Q1 2026 earnings summary

Executive summary

• Reported a net loss of $3.4 million for Q1 2026, compared to net income of $19.4 million in Q1 2025, primarily due to the shutdown of Haverhill I, severe winter weather, and lower energy revenues from the Middletown turbine failure.

• Consolidated Adjusted EBITDA was $56.5 million, down $3.3 million year-over-year, reflecting lower volumes and higher costs, but supported by strong operational execution and the Phoenix acquisition.

• Revenues increased to $455.1 million, up $19.1 million year-over-year, driven by the inclusion of Phoenix Global acquisition results.

• Operating cash flow was $72.7 million, with liquidity at $262 million at quarter-end.

• Declared a $0.12 per share dividend for the 27th consecutive quarter, payable June 2, 2026.

Financial highlights

• Net loss attributable to shareholders was $4.4 million, or $(0.05) per share, versus net income of $17.3 million, or $0.20 per share, in Q1 2025.

• Domestic Coke Adjusted EBITDA was $35.3 million with sales volumes of 842,000 tons, down from $49.9 million and 898,000 tons year-over-year.

• Industrial Services Adjusted EBITDA rose to $26.2 million from $13.7 million year-over-year, driven by the Phoenix acquisition and improved terminal volumes.

• Operating income declined to $4.4 million from $30.2 million year-over-year.

• Adjusted EBITDA margin decreased due to higher costs and lower volumes.

Outlook and guidance

• Full-year 2026 Consolidated Adjusted EBITDA guidance reaffirmed at $230–$250 million.

• Domestic Coke Adjusted EBITDA guidance maintained at $162 million–$168 million; Industrial Services: $90 million–$100 million.

• Free Cash Flow for 2026 expected at $140 million–$150 million.

• Middletown power production expected to resume late in Q2 2026, with lost earnings anticipated to be recovered in H2.

• Management expects current resources to be sufficient for working capital and capital needs for at least the next 12 months.