SunCoke Energy (SXC) Q2 2024 earnings summary

Executive summary

• Q2 2024 consolidated Adjusted EBITDA was $63.5 million, reflecting strong operational performance in both coke and logistics segments, with domestic coke plants operating at or near full capacity and logistics handling nearly 6 million tons.

• Quarterly dividend increased by 20% to $0.12 per share, effective September 3, 2024, highlighting business stability and confidence in cash flow.

• Net income attributable to shareholders was $0.25 per share in Q2 2024, up $0.01 year-over-year.

• All spot blast and foundry coke sales for 2024 have been finalized, indicating strong demand.

• Domestic coke plants operated under long-term, take-or-pay agreements, insulating results from global price volatility.

Financial highlights

• Q2 2024 sales and other operating revenue were $470.9 million, down from $534.4 million in Q2 2023, mainly due to lower blast coke sales volumes and lower coal prices.

• Net income for Q2 2024 was $23.3 million, up from $22.0 million in Q2 2023; diluted EPS was $0.25, up from $0.24.

• Adjusted EBITDA for Q2 2024 was $63.5 million, down from $74.0 million in Q2 2023 due to lower sales volumes and pricing.

• Cash and cash equivalents at June 30, 2024, were $81.9 million, with a fully undrawn $350 million revolver and total liquidity of $431.9 million.

• Net cash provided by operating activities for H1 2024 was $0.7 million, a significant decrease from $98.9 million in H1 2023, mainly due to unfavorable working capital changes and timing of $68 million in cash receipts.

Outlook and guidance

• 2024 consolidated Adjusted EBITDA is expected at the high end of $240 million–$255 million, with Domestic Coke Adjusted EBITDA guidance reaffirmed at $238 million–$245 million and sales volume guidance of approximately 4.1 million tons.

• Logistics segment is expected to exceed full-year 2024 Adjusted EBITDA and volume guidance.

• Full-year operating cash flow guidance reaffirmed at $185 million–$200 million; capital expenditures projected at $75 million–$80 million.

• Free Cash Flow for 2024 projected between $105 million and $125 million.

• 2024 consolidated net income expected between $67 million and $84 million; cash taxes projected between $20 million and $25 million.