SunCoke Energy : CALL PRESENTATION (q1 2026 sxc earnings deck)

Published: 2026-04-30 07:10:18 ET SXC

Published on 04/30/2026 at 07:10 am EDT

SunCoke Energy, Inc. Q1 2026 Earnings Conference Call

Q1 2026 Highlights

(1) See appendix for a definition and reconciliation of Adjusted EBITDA

Q1 2026 Financial Performance

Q1 2026 Earnings Review

($/share)

($ in millions)

Diluted EPS

Adjusted EBITDA(1)

-$3.3M

-$0.25

$0.20

$59.8 $56.5

($0.05)

Q1 '25 Q1 '26

▪

Primarily driven by higher depreciation expense,

the shutdown of Haverhill I, severe winter weather, and lower power sales due to the Middletown turbine failure, partially offset by lower income tax expense

Domestic Coke segment down $14.6M, primarily driven by severe winter weather impacting operations, lower power sales due to the Middletown turbine failure, and the shutdown of Haverhill I

($ in millions)

Q1 '26

Q1 '25

Q1 '26 vs

Q1 '25

Domestic Coke Sales Volumes, Kt

842

898

(56)

Terminals Handling Volumes, Kt

5,643

5,724

(81)

Steel Customer Volumes Serviced, Kt

5,562

N/A

Domestic Coke Adjusted EBITDA

$35.3

$49.9

($14.6)

Industrial Services Adjusted EBITDA(2)

$26.2

$13.7

$12.5

Corporate and Other Adjusted EBITDA (3)

($5.0)

($3.8)

($1.2)

Consolidated Adjusted EBITDA (1)

$56.5

$59.8

($3.3)

Industrial Services segment up $12.5M, primarily driven by the addition of Phoenix, partially offset by mix of products handled at the terminals

See appendix for a definition and reconciliation of Adjusted EBITDA

Industrial Services Adjusted EBITDA includes logistics business and Phoenix business

Corporate and Other Adj. EBITDA includes activity from our legacy coal mining business and Brazil cokemaking business

Domestic Coke Performance

Domestic Coke Business Summary

Domestic Coke performance impacted by severe winter weather, Middletown turbine failure, and Haverhill I shutdown

•

Operations impacted by severe winter weather during the quarter

Lower power sales due to the

Middletown turbine failure

Lower coke sales volumes due to Haverhill I shutdown

Power production at Middletown

expected to resume in late Q2

(Coke Production, Kt)

$49.9M

$44.0M

$40.5M

$35.6M

$35.3M

905

947

982

915

148

155

160

155

806

146

150

154

147

165

200

229

241

145

198

125

303

292

299

287

273

108

121

128

110

116

Q1 '25 Q2 '25 Q3 '25 Q4 '25 Q1 '26

Sales

Tons

898K

943K

951K

876K

842K

See appendix for a definition and reconciliation of Adjusted EBITDA

Quarters prior to Q1 '26 reflect Haverhill I and Haverhill II; Haverhill I shut down as of Q1 '26

Industrial Services Performance

$26.2M

$22.7M

$18.2M

$13.7M

$7.7M

5,724

5,235

5,398

5,643 5,562

4,746

4,616

3,825

Q1 '25

Q2 '25

Q3 '25

Q4 '25

Q1 '26

Industrial Services Business Summary

Industrial Services performance driven by addition of Phoenix

•

Primarily driven by addition of Phoenix

Partially offset by mix of products

handled at the terminals

Substantial improvement in terminals handling volumes vs Q4 2025

(1) See appendix for a definition and reconciliation of Adjusted EBITDA

(Consolidated)

Total Debt

Gross Leverage(1) Net Leverage(1)

Q1 '26

$667M 3.09x

2.61x

Revolver Availability:

$158M

Q1 2026 Liquidity

Ended Q1 with ample liquidity of ~$262M; excess cash used for revolver paydown and continued quarterly dividend payment of $0.12 per share

($ in millions)

($3.3)

$104.4

$88.7

($10.7)

$72.7

($17.0)

($26.0)

Dividend of

$0.12 per share

Cash @ Q4 2025

Net Cash Provided

Net Revolver

CapEx

Dividends

Other

Cash @ Q1 2026

by Ops. Activities

Borrowing / (Paydown)

(1) Gross leverage and net leverage calculated using Last Twelve Month (LTM) Adjusted EBITDA

2026 Key Initiatives

Continued Safety and Environmental Excellence

Continue to deliver strong safety and environmental performance

Deliver Operational Excellence and Optimize Asset Utilization

Successfully execute on operational and capital plan

Continue to provide reliable, high-quality products and services to our customers

Strengthen Customer Bases for Coke and Industrial Services Businesses

Further strengthen customer relationships and grow market share in foundry business

Expand product and customer base in Industrial Services segment

Execute on Well-Established Capital Allocation Priorities

Continue to execute against our well-established capital allocation priorities of exploring growth opportunities, deleveraging, and returning capital to shareholders

Achieve 2026 Financial Objectives

$230M - $250M Adjusted EBITDA(1)

$140M - $150M Free Cash Flow(2) generation to support capital allocation priorities of deleveraging and returning capital to shareholders

See appendix for a definition and reconciliation of Adjusted EBITDA

See appendix for a definition and reconciliation of Free Cash Flow

In order to assist readers in understanding the core operating results that our management uses to evaluate the business, we describe our non-GAAP measures referenced in this presentation below. In addition to U.S. GAAP measures, this presentation contains certain non-GAAP financial measures. These non-GAAP financial measures should not be considered as alternatives to the measures derived in accordance with U.S. GAAP. Non-GAAP financial measures have important limitations as analytical tools, and you should not consider them in isolation or as substitutes for results as reported under U.S. GAAP. Additionally, other companies may calculate non-GAAP metrics differently than we do, thereby limiting their usefulness as a comparative measure. Because of these and other limitations, you should consider our non-GAAP measures only as supplemental to other U.S. GAAP-based financial performance measures, including revenues and net income. Reconciliations to the most comparable GAAP financial measures are included at the end of this Appendix.

DEFINITIONS

EBITDA represents earnings before interest, taxes, depreciation and amortization.

Adjusted EBITDA represents earnings before interest, taxes, depreciation and amortization ("EBITDA"), adjusted for any impairments, restructuring costs, gains or losses on extinguishment of debt, gains or losses on derivative instruments, site closure costs and/or transaction costs ("Adjusted EBITDA"). EBITDA and Adjusted EBITDA do not represent and should not be considered alternatives to net income or operating income under U.S. GAAP and may not be comparable to other similarly titled measures in other businesses. Management believes Adjusted EBITDA is an important measure in assessing operating performance. Adjusted EBITDA provides useful information to investors because it highlights trends in our business that may not otherwise be apparent when relying solely on U.S. GAAP measures and because it eliminates items that have less bearing on our operating performance. EBITDA and Adjusted EBITDA are not measures calculated in accordance with U.S. GAAP, and they should not be considered a substitute for net income, or any other measure of financial performance presented in accordance with U.S. GAAP.

Adjusted EBITDA/Ton represents Adjusted EBITDA divided by tons sold/handled.

Free Cash Flow (FCF) represents operating cash flow adjusted for capital expenditures and debt issuance costs. Management believes FCF is an important measure of liquidity. FCF is not a measure calculated in accordance with GAAP, and it should not be considered a substitute for operating cash flow or any other measure of financial performance presented in accordance with GAAP.

Metric

2026

Guidance*

Adjusted EBITDA Consolidated(1)

$230M - $250M

Domestic Coke EBITDA

$162M - $168M

Industrial Services EBITDA

$90M - $100M

Domestic Coke Sales

~3.4M tons

Domestic Coke Production

~3.4M tons

Domestic Coke Adjusted EBITDA/ton(3)

$48 - $50/ton

Total Capital Expenditures

$90M - $100M

Operating Cash Flow

$230M - $250M

Cash Taxes(4)

($8M) - ($12M)

2026 Guidance Summary

Expect 2026 Consolidated Adjusted EBITDA(1) of $230M - $250M; 2026 Free Cash Flow(2) of $140M - $150M

* The Company's 2026 guidance is based on the Company's current estimates and assumptions that are subject to change and may be outside the control of the Company. If actual results vary from these estimates and assumptions, the Company's expectations may change. There can be no assurances that SunCoke will achieve the results expressed by this guidance.

Adjusted EBITDA to FCF Walk

2026E

($ in millions)

Low End

High End

Adjusted EBITDA(1)

$230

$250

Cash interest, net

($35)

($33)

Cash taxes

$12

Total capex

($90)

($100)

Non-cash items and other working capital changes

$27

$21

Free Cash Flow (FCF)(2)

$140

$150

See appendix for a definition and reconciliation of Adjusted EBITDA

See appendix for a definition and reconciliation of Free Cash Flow

Domestic Coke Adjusted EBITDA/ton calculated as Domestic Coke EBITDA/Domestic Coke Sales

Expecting cash tax refund in 2026 related to tax credits generated in prior years, offsetting cash tax payments in 2026, resulting in net cash tax receipt guidance for 2026

Coke Facility Capacity and Contract Duration/Volume

Facility

Capacity(1)

Customer

Contract

Expiry

Contract

Volume

Indiana Harbor

1,220 Kt

Cliffs Steel

Sep. 2035

Capacity

Middletown

550 Kt(2)

Cliffs Steel

Dec. 2032

Capacity

Granite City

650 Kt

US Steel

Dec. 2026

Capacity(3)

Haverhill II /Jewell

1,270Kt

Cliffs Steel

Algoma Steel(4) Foundries

Dec. 2028

Dec. 2026

N/A

500 Kt

150 Kt

Varies

Capacity represents blast furnace equivalent production capacity

Represents production capacity for blast-furnace sized coke, however, customer takes all on a "run of oven" basis, which represents >600k tons per year

Operating in a turn-down mode in 2026 as part of the contract extension

As of Q3 2025, Algoma refused to accept any additional coke tons from Haverhill I, which has been shut down; SunCoke actively pursuing enforcement of contract

Balance Sheet & Debt Metrics

($ in millions)

As of 3/31/2026

As of 12/31/2025

Cash

$ 104 $ 89

Available Revolver Capacity

$ 158 $ 132

Total Liquidity

$ 262 $ 221

Gross Debt (Long and Short-term)

$ 667 $ 693

Net Debt (Total Debt less Cash)

$ 563 $ 604

LTM Adjusted EBITDA

$ 216 $ 219

Gross Debt / LTM Adjusted EBITDA

3.09x 3.16x

Net Debt / LTM Adjusted EBITDA

2.61x 2.76x

2026 Guidance

Adjusted EBITDA

$230M - $250M

Gross Leverage(1)

2.34x - 2.58x

Net Leverage(1)

1.98x - 2.20x

As of 3/31/2026 ($ in millions)

2025

2026

2027

2028

2029

2030

Consolidated Total

Sr. Notes

$ -

$ 500.0

$ -

$ 500.0

Revolver

167.0

Total

$ -

$ 500.0

$ 167.0

$ 667.0

(1) 2026 gross and net leverage guidance calculated assuming all free cash flow in excess of $41M in dividend payments is used to pay down debt

2026 Adjusted EBITDA Guidance Reconciliation

($ in millions)

Low

High

Net Income

$18

$36

Depreciation and amortization expense

164

160

Interest expense, net

Income tax expense

Site closure costs(1)

Adjusted EBITDA (Consolidated)

$230

$250

Free Cash Flow Guidance Reconciliation

($ in millions)

2026E

Low

High

Operating Cash Flow

$230

$250

Capital Expenditures

(90)

(100)

Free Cash Flow (FCF)

$140

$150

Primarily reflects incremental one-time costs incurred related to the shutdown of Haverhill I and certain Phoenix operating sites

Net Income to FCF Reconciliation

($ in millions)

2026E

Low End

High End

Net Income

$18

$36

Depreciation and amortization expense

164

160

Interest expense, net

Income tax expense

Site closure costs(1)

Adjusted EBITDA (Consolidated)

$230

$250

Cash interest, net

(35)

(33)

Cash taxes

Total capex

(90)

(100)

Non-cash items and working capital changes

Free Cash Flow (FCF)

$140

$150

Primarily reflects incremental one-time costs incurred related to the shutdown of Haverhill I and certain Phoenix operating sites

Reconciliation to Adjusted EBITDA

($ in millions)

Q1 '25

Q2 '25

Q3 '25

Q4 '25

FY '25

Q1 '26

Net Income

$ 19.4

$ 3.5

$ 23.8

$ (85.5)

$ (38.8)

$ (3.4)

Depreciation and amortization expense

28.8

28.6

37.4

58.8

153.6

44.9

Interest expense, net

5.2

5.4

8.4

9.4

28.4

8.7

Income tax expense

5.6

0.9

(18.8)

(21.7)

(34.0)

(0.9)

Loss on derivative forward contracts

0.7

0.3

Restructuring costs(1)

0.5

3.0

0.9

4.4

0.3

Transaction costs(2)

0.8

4.7

4.6

0.6

10.7

0.2

Site closure costs(3)

3.9

6.4

Long-lived asset impairment(4)

90.3

Adjusted EBITDA

$ 59.8

$ 43.6

$ 59.1

$ 56.7

$ 219.2

$ 56.5

Reflects severance and other related charges primarily associated with the Phoenix acquisition

Reflects costs incurred related to the Phoenix acquisition and the granulated pig iron project with U.S. Steel

Primarily reflects incremental costs incurred associated with closing certain Phoenix operating sites in Q4 '25; primarily reflects incremental costs incurred related to the shutdown of Haverhill I and certain Phoenix operating sites in Q1 '26

Primarily reflects non-cash asset impairment charge due to the shutdown of our Haverhill I cokemaking facility

Adjusted EBITDA and Adjusted EBITDA per ton

Reconciliation of Segment Adjusted EBITDA and Adjusted EBITDA per Ton

($ in millions, except per ton data)

Domestic Coke

Industrial Services(1)

Corporate and Other(2)

Consolidated

Adjusted EBITDA

Sales Volumes, Kt

Adjusted EBITDA per ton

Adjusted EBITDA

Terminals Handling Volumes, Kt

Steel Customer Volumes Serviced, Kt

Q1 2026

$35.3

842

$41.92

$26.2

5,643

5,562

($5.0)

$56.5

FY 2025

$170.0

3,668

$46.35

$62.3

20,320

9,223

($13.1)

$219.3

Q4 2025

$35.6

876

$40.64

$22.7

4,616

5,398

($1.6)

$56.8

Q3 2025

$44.0

951

$46.27

$18.2

5,235

3,825

($3.1)

$59.1

Q2 2025

$40.5

943

$42.95

$7.7

4,746

($4.6)

$43.6

Q1 2025

$49.9

898

$55.57

$13.7

5,724

($3.8)

$59.8

Industrial Services includes the results of our logistics business and Phoenix business

Corporate and Other includes the results of our legacy coal mining business and Brazil cokemaking business

SunCoke Energy"

Disclaimer

SunCoke Energy Inc. published this content on April 30, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 30, 2026 at 11:09 UTC.