SunCoke Energy (SXC) Q4 2024 earnings summary

Executive summary

• Achieved record safety performance in 2024 with a TRIR of 0.5, highlighting safety as a top priority.

• Delivered consolidated Adjusted EBITDA of $272.8 million for 2024, exceeding guidance, driven by strong logistics performance and a one-time gain from eliminating most black lung liabilities.

• Generated $96 million in free cash flow, surpassing the high end of guidance.

• Quarterly dividend increased by 20% to $0.12 per share in 2024.

• Coke plants operated at full capacity, with all non-contracted tons sold into foundry and spot blast coke markets.

Financial highlights

• Full year 2024 net income was $1.12 per share, up $0.44 from 2023, mainly due to lower depreciation, a one-time DOL gain, and lower tax expense.

• Consolidated Adjusted EBITDA for Q4 2024 was $66.1 million, up $3.8 million year-over-year.

• Domestic Coke Adjusted EBITDA for 2024 was $234.7 million; logistics segment Adjusted EBITDA was $50.4 million.

• Operating cash flow in 2024 was $168.8 million; capital expenditures were $72.9 million, below guidance.

• Ended 2024 with $189.6 million in cash and $350 million revolver fully available, totaling $540 million in liquidity.

Outlook and guidance

• 2025 consolidated Adjusted EBITDA expected between $210–$225 million, reflecting lower margins in Domestic Coke and logistics.

• Domestic Coke Adjusted EBITDA projected at $185–$192 million, with 4 million tons in sales, 3.3 million under long-term contracts.

• Logistics Adjusted EBITDA expected at $45–$50 million; no index-based price adjustment benefit assumed in guidance.

• 2025 CapEx expected at $65 million, below the typical $75–$80 million run rate.

• Free cash flow for 2025 projected at $100–$115 million.