SXC — SunCoke Energy, Inc.

Suncoke Energy (SXC) Q2 2026 Earnings Call Summary

1. Key Financial Results and Metrics

• Net Income: $0.15 per share, up from $0.02 in the prior year.
• Consolidated Adjusted EBITDA: $69.6 million, compared to $43.6 million in Q2 2025.
• Domestic Coke Adjusted EBITDA: $42.5 million, with sales volumes of 878,000 tons (down from 943,000 tons year-over-year).
• Industrial Services Adjusted EBITDA: $34.4 million, significantly up from $7.7 million in the prior year.
• Cash Position: Ended Q2 with $42.7 million in cash and $164.5 million in revolver availability, totaling $207 million in liquidity.
• Dividend: Declared a quarterly dividend of $0.12 per share, marking the 28th consecutive quarterly dividend.

2. Strategic Updates and Business Highlights

• The industrial services segment achieved its highest adjusted EBITDA since the acquisition of Phoenix, driven by increased terminal handling volumes.
• The domestic coke segment benefited from favorable coal-to-coke yields, and the Middletown turbine returned to service in May, enhancing power production.
• Suncoke is operating at full capacity and is sold out for the year, indicating strong demand across its segments.
• The company is committed to a balanced capital allocation strategy, focusing on debt reduction and shareholder returns through dividends.

3. Forward Guidance and Outlook

• Full-Year 2026 Adjusted EBITDA Guidance: Increased to $250 million to $265 million.
• Domestic Coke Adjusted EBITDA Guidance: Revised to $172 million to $178 million.
• Industrial Services Adjusted EBITDA Guidance: Increased to $110 million to $115 million.
• Operating Cash Flow Guidance: Increased to $240 million to $260 million, with expectations of normalization in cash flow following timing issues in Q2.

4. Bad News, Challenges, or Points of Concern

• Coke Sales Volumes: Declined due to the Haverhill One shutdown, impacting overall performance in the domestic coke segment.
• Employee Expenses: Increased accruals due to strong financial performance, which could pressure margins.
• Terminal Volumes: While Q2 saw a significant increase, management indicated that future volumes may normalize rather than continue at extraordinary levels, suggesting potential volatility.
• External Factors: Concerns about geopolitical issues, particularly the war in Iran, affecting supply chains and energy prices.

5. Notable Q&A Insights

• Management addressed questions regarding domestic coke yields, indicating that the return of the Middletown turbine and insurance recovery proceeds would contribute positively in the second half of the year.
• Terminal handling volumes increased significantly due to a shift in coal pricing dynamics and supply chain concerns, but future volumes are expected to stabilize.
• The integration of Phoenix is on track, with synergies already realized, contributing to stronger operational performance.
• Management confirmed that price adjustments based on the FOB New Orleans index have had a favorable impact, with expectations for continued benefits in the second half.

Overall, Suncoke Energy reported strong financial results and maintained a positive outlook for the remainder of 2026, despite facing some operational challenges and external market pressures.