• Consolidated Adjusted EBITDA: $59.8 million for Q1 2025, down from $67.9 million in Q1 2024.
• Net Income: $0.20 per share for Q1 2025, down $0.03 from the prior year period.
• Domestic Coke Adjusted EBITDA: $49.9 million for Q1 2025.
• Coke Sales Volumes: 898,000 tons for Q1 2025.
• Logistics Adjusted EBITDA: $13.7 million for Q1 2025, up from $13 million in Q1 2024.
• Terminals Throughput Volumes: 5.7 million tons for Q1 2025, up from 5.5 million tons in Q1 2024.
• Cash Balance: $193.7 million at the end of Q1 2025.
• Liquidity Position: $543.7 million at the end of Q1 2025.
• Net Cash Provided by Operating Activities: $25.8 million for Q1 2025.
• Capital Expenditures: $4.9 million for Q1 2025.
• Dividends Paid: $10.9 million at a rate of $0.12 per share for Q1 2025.
• Full Year Consolidated Adjusted EBITDA Guidance: Reaffirmed at $210 million to $225 million.

• Warning! GuruFocus has detected 4 Warning Sign with SXC.

Release Date: April 30, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• SunCoke Energy Inc (NYSE:SXC) delivered strong consolidated adjusted EBITDA of $59.8 million for Q1 2025.
• The logistics business performed well, with an increase in adjusted EBITDA driven by higher transloading volumes at CMT.
• The company announced a $0.12 per share dividend, maintaining shareholder returns.
• SunCoke Energy Inc (NYSE:SXC) ended the quarter with a strong liquidity position of $543.7 million.
• The Granite City Coke supply agreement with US Steel has been extended, providing stability in operations.

Negative Points

• Net income per share decreased by $0.03 compared to the prior year period.
• Consolidated adjusted EBITDA decreased from $67.9 million in the prior year period, primarily due to lower economics on the Granite City contract extension.
• The domestic coke business faced challenges with lower spot blast coke sales volumes due to market conditions.
• The steel industry outlook remains uncertain and volatile, impacting future performance expectations.
• Capital expenditures are expected to be lower than the initially planned $65 million due to cautious spending in the current environment.

Q & A Highlights

Q: Your annual guidance implies an uplift in quarterly adjusted EBITDA. Can you speak to the cadence, especially regarding assumptions in the second half with more spot exposure? A: Shantanu Agrawal, Vice President - Finance, Treasurer, explained that the cadence is affected by the expiration of the Cliffs contract at Haverhill in June 2025. They are working to spread shipments evenly throughout the year, which will result in margins from these shipments appearing in the second half, leading to stronger EBITDA in the latter part of the year.

Q: What are your updated views on capital allocation priorities, especially with the GPI project on hold? A: Katherine Gates, President and CEO, stated that they are looking for profitable growth opportunities beyond the GPI project. They remain disciplined in seeking growth that rewards long-term shareholders. They plan to continue dividends in 2025 while preserving cash for the Granite City project.

Q: What drove the inventory build on the coal side? Was it due to weaker spot demand or shipment timing? A: Mark Marinko, CFO, clarified that the inventory build was due to the beginning-of-year coal blend buildup, which is a normal seasonal occurrence. They expect this to reverse, reaffirming their cash flow guidance.

Q: Can you provide more details on CapEx spending, given the low first-quarter expenditure and full-year guidance of $65 million? A: Katherine Gates mentioned that they are being judicious with spending due to uncertainties. They might not spend the full $65 million planned for the year, focusing on essential projects like the KRT expansion while deferring less critical investments.

Q: Could you provide insights into the health of the foundry and export coke markets? A: Katherine Gates noted that the pricing environment is challenging, and they have sold early in the year to mitigate risks. They are in continuous dialogue with Cliffs regarding contracts, but the market outlook remains uncertain.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.