Executive Summary

Q1 2025 was resilient amid a weak spot coke market: Revenue $436.0M, Diluted EPS $0.20, and Adjusted EBITDA $59.8M, with Domestic Coke pressured by Granite City contract extension economics; Logistics performed well on higher CMT volumes .
Results beat Wall Street consensus: EPS $0.20 vs $0.175 and Revenue $436.0M vs $371.6M; estimate breadth was thin (EPS: 2 estimates; Revenue: 1), but the beats were material; guidance was reaffirmed across all categories, including Consolidated Adjusted EBITDA $210–$225M and FCF $100–$115M . Values retrieved from S&P Global.
Management emphasized sold-out 2025 spot and foundry coke sales and strong liquidity ($543.7M), while reiterating Granite City contract extension through September 30, 2025 with an option to extend .
Catalyst watch: subsequent event—definitive agreement to acquire Phoenix Global for $325M (5.4x LTM Adjusted EBITDA) to diversify into mill services and EAF customers, expected to be immediately accretive with $5–$10M annual synergies .

What Went Well and What Went Wrong

What Went Well
- Logistics strength: Adjusted EBITDA rose to $13.7M on higher CMT volumes, despite absence of index price adjustment benefit . “Our logistics business continued to perform well and delivered strong quarterly results” — CEO Katherine Gates .
- Liquidity and leverage: Ended Q1 with $543.7M liquidity; gross leverage 1.89x and net leverage 1.15x on LTM Adjusted EBITDA .
- Corporate and Other improved: Expenses narrowed to ($6.1M) on lower legacy black lung and employee costs .
What Went Wrong
- Domestic Coke headwinds: Adjusted EBITDA fell to $49.9M and sales volumes to 898k tons, driven by weaker spot coke demand and reduced Granite City volumes/pricing under extension economics .
- Revenue compression: Consolidated revenue declined 10.7% YoY to $436.0M, reflecting lower spot volumes and pass-through of lower coal prices .
- EPS down YoY/QoQ: Diluted EPS of $0.20 vs $0.23 YoY and $0.28 in Q4 2024, as Domestic Coke margins compressed .

Financial Results

Metric	Q1 2024	Q4 2024	Q1 2025
Revenues ($USD Millions)	$488.4	$486.0	$436.0
Net Income attributable to SXC ($USD Millions)	$20.0	$23.7	$17.3
Diluted EPS ($)	$0.23	$0.28	$0.20
Adjusted EBITDA ($USD Millions)	$67.9	$66.1	$59.8
EBITDA Margin %	13.88%*	13.17%*	13.53%*
Net Income Margin %	4.10%*	4.88%*	3.97%*

*Values retrieved from S&P Global.

Segment breakdown (Q1 2025):

Segment	Revenues ($M)	Adjusted EBITDA ($M)	Volume/Throughput
Domestic Coke	$405.8	$49.9	898k tons sales; EBITDA/ton $55.57
Logistics	$22.4	$13.7	5,724k tons handled
Brazil Coke	$7.8	$2.3	380k tons production
Corporate & Other	N/A	($6.1)	N/A

KPIs:

KPI	Q1 2025
Liquidity ($M)	$543.7
Cash ($M)	$193.7
Total Debt ($M)	$500
Revolver Availability ($M)	$350
Gross Leverage (LTM)	1.89x
Net Leverage (LTM)	1.15x
Cash from Operations ($M)	$25.8
Capital Expenditure ($M)	$4.9
Domestic Coke Capacity Utilization	91%
Dividend Declared	$0.12 per share

Guidance Changes

Metric	Period	Previous Guidance (Jan 30, 2025)	Current Guidance (Apr 30, 2025)	Change
Consolidated Adjusted EBITDA ($M)	FY 2025	$210–$225	$210–$225	Maintained
Domestic Coke Adjusted EBITDA ($M)	FY 2025	$185–$192	$185–$192	Maintained
Logistics Adjusted EBITDA ($M)	FY 2025	$45–$50	$45–$50	Maintained
Domestic Coke Sales (tons)	FY 2025	~4.0M	~4.0M	Maintained
Domestic Coke EBITDA/ton ($/ton)	FY 2025	$46–$48	$46–$48	Maintained
Operating Cash Flow ($M)	FY 2025	$165–$180	$165–$180	Maintained
Free Cash Flow ($M)	FY 2025	$100–$115	$100–$115	Maintained
Capital Expenditures ($M)	FY 2025	~$65	~$65	Maintained (management noted likely underspend)
Cash Taxes ($M)	FY 2025	$17–$21	$17–$21	Maintained
Dividend	2025	Continue quarterly dividend	Declared $0.12 payable June 2, 2025	Maintained/confirmed

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2024 and Q4 2024)	Current Period (Q1 2025)	Trend
Granite City contract economics	Extension at lower economics bridging GPI delays; impact acknowledged	Extended through Sep 30, 2025, option to extend; lower pricing/volumes pressured Domestic Coke	Continued headwind
GPI project (Granulated Pig Iron)	Strong fundamentals; delayed by government actions and U.S. Steel sale uncertainty	“Top priority”; continued frustration with delays; capital allocation balanced	Pending; timing risk persists
Spot/foundry coke market	2025 expected margin compression; sold out full year	“Essentially all spot blast and foundry sales finalized”; pricing remains challenged	Weak pricing; volumes sold early
Logistics index	API2 benefit in 2024; changed to FOB New Orleans for 2025; no index benefit assumed	Higher CMT volumes; no index benefit in Q1	Neutral to modest positive on volume
Capex cadence	Normal run rate $75–$80M; 2025 guidance ~$65M	Likely underspend vs $65M amid caution; KRT expansion on time/on budget	Deferrals likely in 2025
Coal inventory build	Q3 2024 working capital swing; strong liquidity	Seasonal blend/inventory build; expected reversal; OCF guidance unchanged	Temporary; expected reversal

Management Commentary

“We are pleased with our performance in the first quarter given the headwinds currently facing the steel industry… our domestic coke results were adversely impacted by the Granite City contract extension economics, as well as lower spot blast coke sales volumes.” — Katherine Gates, CEO .
“We have essentially all spot blast and foundry coke sales finalized for the full year.” — Katherine Gates .
“We are reaffirming our full-year 2025 Consolidated Adjusted EBITDA guidance range of $210 million - $225 million.” — Katherine Gates .
“SunCoke ended the quarter with a cash balance of $193.7 million and a fully undrawn revolver of $350 million… total liquidity of $543.7 million.” — Mark Marinko, CFO .
On Capex: “We are likely to not spend the $65 million that we had planned… being very judicious in light of this environment and making appropriate deferrals.” — Katherine Gates .

Q&A Highlights

EBITDA cadence: Domestic Coke EBITDA expected to pick up in 2H as Haverhill II shipments are spread more evenly; lower first-quarter sales expected in guidance .
Capital allocation and growth: Dividend continuation expected; disciplined pursuit of profitable growth beyond GPI; acquisition optionality stated (later evidenced by Phoenix Global deal) .
Coal inventory: Q1 build tied to new blend and seasonality; expected reversal; OCF guidance reaffirmed .
Capex deferrals: KRT project proceeds; non-priority plant projects deferred amid uncertainty; maintenance deferrals possible .
Domestic Coke margin dynamics: Q1 EBITDA/ton above full-year guidance due to minimal low-margin blast spot sales; margins expected to decline later in year as lower-margin sales increase .

Estimates Context

Metric	Consensus (Q1 2025)	Actual (Q1 2025)	Surprise
Primary EPS Consensus Mean	$0.175	$0.200	+$0.025
Revenue Consensus Mean ($M)	$371.6	$436.0	+$64.4
Primary EPS – # of Estimates	2	—	—
Revenue – # of Estimates	1	—	—

Values retrieved from S&P Global.

Implications: Despite thin estimate coverage, SXC delivered clear beats on both EPS and revenue. Given reaffirmed guidance and management commentary on 2H cadence, Street models may need to adjust quarterly phasing rather than full-year totals .

Key Takeaways for Investors

The quarter beat light consensus on both top- and bottom-line, driven by strong Logistics volumes and disciplined cost controls, while Domestic Coke headwinds were consistent with prior guidance . Values retrieved from S&P Global.
Guidance intact across segments and consolidated FCF ($100–$115M), underpinning dividend continuity and balance sheet strength (liquidity $543.7M; leverage sub-2x gross) .
Expect 2H EBITDA cadence improvement as Haverhill II shipments smooth and lower-margin spot volumes flow through; near-term Domestic Coke margin pressure persists due to Granite City economics .
Logistics performance should remain constructive with volume growth and KRT expansion completing on time/budget; no index price tailwind assumed at CMT in 2025 .
Capex discipline likely reduces 2025 spend below ~$65M, supporting FCF resilience; watch for working capital reversal from Q1 coal inventory build .
Strategic optionality validated by Phoenix Global acquisition (closing 2H 2025), diversifying into mill services/EAFs with expected synergies and accretion—an upside narrative beyond cyclical coke markets .
Trading stance: Near term, stock may respond to beats and reaffirmed guidance; medium term, monitor spot coke pricing, Granite City extension outcomes, Haverhill contract renewal path, and integration of Phoenix to gauge multiple support and FCF durability .

SunCoke Energy, Inc. (SXC)·Q1 2025 Earnings Summary