SunCoke Energy (SXC) Q4 2025 earnings summary

Executive summary

• Achieved a Total Recordable Incident Rate (TRIR) of 0.55 in 2025, reflecting strong safety performance.

• Completed the acquisition and integration of Phoenix Global, expanding the Industrial Services segment and contributing to segment growth.

• Extended key coke-making contracts at Granite City (through 2026) and Haverhill II (through 2028).

• Maintained a quarterly dividend of $0.12/share, totaling $0.48/share and $41 million returned to shareholders in 2025.

• Reported a net loss of $44.2 million for 2025, impacted by significant one-time items including asset impairments and restructuring costs.

Financial highlights

• FY 2025 Adjusted EBITDA was $219.2 million, down $53.6 million year-over-year, mainly due to lower coke sales, contract mix changes, and the Algoma breach.

• Fourth quarter 2025 net loss was $1 per share, impacted by $0.85 per share in one-time items.

• Full year 2025 net loss was $0.52 per share, down $1.64 year-over-year, mainly due to one-time items and contract mix changes.

• Operating cash flow for 2025 was $109.1 million; capital expenditures totaled $66.8 million.

• Ended 2025 with $88.7 million in cash and $221 million in liquidity.

Outlook and guidance

• 2026 consolidated adjusted EBITDA expected between $230 million and $250 million, driven by a full year of Phoenix Global and improved terminal volumes.

• Domestic coke adjusted EBITDA projected at $162–$168 million with 3.4 million tons in sales.

• Industrial services adjusted EBITDA expected at $90–$100 million, supported by Phoenix Global and improved market conditions.

• CapEx for 2026 anticipated at $90–$100 million; free cash flow expected between $140 million and $150 million.

• Net income for 2026 projected between $25 million and $43 million; deleveraging prioritized with gross leverage targeted at 2.45x by year-end.