SunCoke Energy (NYSE:SXC) used its fourth-quarter earnings call to outline a recovery-focused outlook for 2026 after a challenging 2025 shaped by weaker terminal market conditions, a shift in coke sales mix, and an ongoing contract dispute with customer Algoma. Management also provided details on the integration of Phoenix Global, leadership transitions, and capital allocation priorities centered on dividends and deleveraging.
Leadership changes and 2025 highlights
President and CEO Katherine Gates opened the call by noting CFO Mark Marinko’s previously announced retirement and said Vice President of Finance and Treasurer Shantanu Agrawal has been appointed Chief Financial Officer. Gates also highlighted safety performance, stating the company (excluding Phoenix) finished 2025 with a total recordable incident rate of 0.55.
Gates said SunCoke extended its Granite City coke-making contract with U.S. Steel through December 2026 at similar economics to the 2025 extension, and extended its Haverhill Two contract with Cleveland-Cliffs through December 2028 with key provisions similar to the prior contract. She also pointed to a new take-or-pay coal handling agreement at KRT that began in the second quarter of 2025, which the company expects to benefit from for a full year in 2026. SunCoke returned about $41 million to shareholders through its quarterly dividend in 2025 and said it expects to continue the dividend throughout 2026.
Fourth-quarter and full-year results
Marinko said SunCoke reported a fourth-quarter net loss attributable to the company of $1.00 per share, down $1.28 versus the fourth quarter of 2024. He attributed the decline primarily to one-time items totaling $0.85 per share after tax, including a non-cash asset impairment charge tied primarily to the closure of Haverhill One, site closure costs related mainly to Phoenix operating sites, and restructuring and transaction costs related primarily to the Phoenix acquisition.
For the full year, Marinko said net loss attributable to SunCoke was $0.52 per share, down $1.64 versus 2024. The year’s results included one-time items totaling $0.97 per share after tax, driven by impairment charges linked primarily to Haverhill One’s closure, acquisition-related transaction and restructuring costs, and Phoenix operating site closure costs. Marinko added that full-year results were also pressured by the contract/spot mix shift and lower economics at Granite City, partially offset by lower income tax expense driven by capital investment tax credits.
Consolidated adjusted EBITDA was $56.7 million in the fourth quarter of 2025, down $9.4 million year over year, driven mainly by lower coke sales volumes tied to Algoma’s breach, lower Granite City contract economics, and reduced terminal handling volumes, partially offset by Phoenix. On a full-year basis, adjusted EBITDA of $219.2 million was down $53.6 million from the prior year for similar reasons, again partially offset by Phoenix.
Segment performance and cash flow
Marinko said domestic coke delivered full-year adjusted EBITDA of $170.0 million, down $64.7 million from the prior year, reflecting the sales mix shift, lower Granite City economics, and Algoma’s breach. Industrial services—now incorporating the former logistics segment and Phoenix Global—generated adjusted EBITDA of $62.3 million, up $11.9 million year over year, driven by the addition of Phoenix and partially offset by lower terminal volumes. Corporate and other expenses were $13.1 million, up $0.8 million.
The company generated operating cash flow of $109.1 million in 2025. Marinko said operating cash flow was negatively impacted by (1) $29.3 million of Phoenix management incentive plan and transaction cost cash payments that were included in the acquisition price but flowed through operating cash flow, and (2) a $30 million impact from Algoma’s breach representing outstanding accounts receivable and coke and coal inventory at year-end. Excluding these two items, Marinko said operating cash flow would have been about $59 million higher.
Capital expenditures were $66.8 million, slightly below revised guidance due to timing. SunCoke ended 2025 with $88.7 million in cash and $132 million of availability under its $325 million revolver, which management described as total liquidity of about $221 million.
2026 guidance: recovery expected, deleveraging prioritized
Management guided to consolidated adjusted EBITDA of $230 million to $250 million in 2026. Marinko said domestic coke adjusted EBITDA is expected to be lower by $2 million to $8 million due primarily to about 220,000 fewer contract blast coke sales tons. Industrial services adjusted EBITDA is expected to rise by $28 million to $38 million on a full year of Phoenix and expected improved terminal market conditions. Corporate and other expenses are expected to be higher by $5 million to $9 million, driven by normalized employee bonus expense and Phoenix integration-related IT costs.
Additional 2026 guidance items included:
- Domestic coke adjusted EBITDA: $162 million to $168 million, with sales of about 3.4 million tons (contract, foundry, and spot blast coke).
- Industrial services adjusted EBITDA: $90 million to $100 million.
- Capital expenditures: $90 million to $100 million, reflecting a full year of Phoenix capital requirements.
- Operating cash flow: $230 million to $250 million.
- Free cash flow: $140 million to $150 million.
Marinko said the company expects to use excess free cash flow to pay down borrowings on the revolver and anticipates 2026 year-end gross leverage of about 2.45x, below its long-term target of 3x. Gates reiterated that the company plans to continue returning capital via quarterly dividends, with the dividend reviewed and approved quarterly by the board.
Operational updates: Haverhill One, winter impacts, and Phoenix integration
In discussing domestic coke, Marinko said SunCoke optimized its coke fleet by closing Haverhill One following Algoma’s breach, reducing production and sales by roughly 500,000 tons that he described as the lowest-margin tons. He said the company expects a modest increase in domestic coke adjusted EBITDA per ton in 2026. SunCoke said it will operate at full utilization and is sold out for 2026, with about 3 million tons contracted under long-term take-or-pay agreements and remaining capacity sold out across foundry and spot markets.
On the Q&A, management said Haverhill One could be restarted but would require significant capital investment and take roughly 12 to 18 months, as the facility was taken “completely cold.” The company said it does not expect environmental remediation or reclamation costs for the site, and that savings from the closure include workforce reductions and reduced ongoing operating and maintenance costs, which are incorporated in guidance.
Management also flagged a slower-than-normal start to 2026 due to operational disruptions. Gates said a turbine failure at the Middletown plant during a planned outage is affecting power production; the event is insured and the turbine is expected to be back in operation mid-year. She added that severe winter weather impacted several operations, with the most acute impact at Indiana Harbor. Gates said the combined impact from the Middletown turbine issue and weather-related disruptions is expected to total about $10 million in the first quarter.
Regarding the Algoma dispute, Marinko said SunCoke continues to pursue Algoma in arbitration and expects to prevail, calling it a “clear breach of contract.” He said the breach is ongoing and includes volumes associated with both 2025 and 2026, but declined to provide additional detail given active litigation. He added that SunCoke mitigated some of the potential impact through third-party sales and facility turndown, referencing prior commentary that working-capital impact could have been up to $70 million, compared with a $30 million cash receipt deferral reflected in 2025.
On Phoenix Global, management said integration is progressing and confirmed it still anticipates roughly $60 million of annual EBITDA contribution from Phoenix and synergy opportunities of $5 million to $10 million within the 2026 guidance. Marinko said fourth-quarter one-time items tied to Phoenix included about $3.9 million of site closure costs related to certain international sites identified for closure during due diligence, plus about $0.6 million of transaction costs. The company said 2026 guidance includes partial synergies and expects to continue recognizing synergies in 2027.
SunCoke also announced plans to host a virtual Investor Day on Thursday, February 26, where it expects to discuss recent developments and meet with investors one-on-one.
About SunCoke Energy (NYSE:SXC)
SunCoke Energy, Inc is a leading independent producer of metallurgical coke and related products for the steel and foundry industries. The company specializes in manufacturing both blast furnace coke and foundry coke, offering high‐quality, low‐sulfur coal products that serve as essential inputs in steelmaking and metal casting processes. In addition to coke production, SunCoke provides comprehensive engineering, maintenance and environmental solutions tailored to the needs of integrated steel mills and foundries.
The company operates a network of coke production facilities across the United States, including plants in Indiana, Ohio, West Virginia and Louisiana.
