Executive Summary

Q3 2025 printed revenue of $487.0M, diluted EPS of $0.26, and Consolidated Adjusted EBITDA of $59.1M; sequential improvement from Q2 on EBITDA, but still down YoY given weaker Domestic Coke mix and lower Granite City economics .
Versus S&P Global consensus, SXC beat across the board: Revenue $487.0M vs $349.3M*, EBITDA $59.1M vs $53.95M*, and S&P “Primary EPS” actual of ~$0.36 vs $0.16*; company-reported diluted EPS was $0.26, reflecting different definitions (see Estimates Context) .
FY2025 guidance was updated: Consolidated Adjusted EBITDA tightened/raised to $220–$225M (from $210–$225M), Domestic Coke lowered to $172–$176M (from $185–$192M), and new Industrial Services at $63–$67M; FCF revised to -$10M to $0 due to a customer breach deferring ~200Kt of coke sales and ~$70M of cash receipts .
Catalysts: resolution of the Algoma breach and recovery of deferred cash, 2026 contract outcomes at Granite City and Haverhill (Cliffs), integration and synergy capture from Phoenix Global, and any update on U.S. Steel’s granulated pig iron (GPI) project .

What Went Well and What Went Wrong

What Went Well
- Industrial Services performed solidly with the addition of Phoenix Global: Q3 Adjusted EBITDA rose to $18.2M from $13.7M YoY; Phoenix volumes serviced were 3.8Mt over two months, with management reiterating an ~+$60M LTM EBITDA baseline for Phoenix .
- Sequential improvement vs Q2: Consolidated Adjusted EBITDA improved to $59.1M from $43.6M, aided by better mix vs Q2 and Phoenix contribution .
- Liquidity remained ample post-acquisition: $80.4M cash, $126M revolver availability, ~$206M total liquidity; quarterly dividend of $0.12 declared for the 25th consecutive quarter .
What Went Wrong
- Domestic Coke pressured by mix and pricing: Adj. EBITDA fell to $44.0M (from $58.1M YoY); EBITDA/ton dropped to $46.27 (from $56.57) on less favorable spot vs contract sales and lower Granite City economics .
- Operational headwinds: lower coal-to-coke yields at Haverhill and a weather event at Indiana Harbor reduced volumes; Logistics terminals saw lower volumes due to weak market conditions .
- Cash flow headwind: a coke customer (identified as Algoma in Q&A) breached its contract, deferring ~200Kt of sales and ~$70M cash receipts in 2025, driving FCF guidance to -$10M to $0; SXC is pursuing enforcement .

Financial Results

Consolidated results by quarter (oldest → newest):

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue ($M)	$436.0	$434.1	$487.0
Net income attributable to SXC ($M)	$17.3	$1.9	$22.2
Diluted EPS ($)	$0.20	$0.02	$0.26
Consolidated Adjusted EBITDA ($M)	$59.8	$43.6	$59.1

Margins (S&P Global)

Margin	Q1 2025	Q2 2025	Q3 2025
Gross Profit Margin %	16.90%*	13.59%*	16.24%*
EBITDA Margin %	13.53%*	8.85%*	11.89%*
EBIT Margin %	6.93%*	2.26%*	4.21%*
Net Income Margin %	3.97%*	0.44%*	4.56%*

Estimates comparison (Q3 2025)

Metric	Actual	S&P Global Consensus	Surprise
Revenue ($M)	$487.0	$349.3*	+$137.7M (beat)
Adjusted EBITDA ($M)	$59.1	$53.95*	+$5.1M (beat)
EPS (S&P Primary EPS) ($)	$0.36 (actual in S&P feed)*	$0.16*	+$0.20 (beat)

Notes: Company-reported diluted EPS was $0.26 . S&P “Primary EPS” reflects S&P methodology/normalization; see Estimates Context.

Segment breakdown (Q3 2025 vs Q3 2024)

Segment	Q3 2025	Q3 2024
Domestic Coke Revenue ($M)	$413.8	$459.9
Domestic Coke Adjusted EBITDA ($M)	$44.0	$58.1
Domestic Coke Sales Volumes (Kt)	951	1,027
Domestic Coke EBITDA/ton ($/t)	$46.27	$56.57
Industrial Services Revenue ($M)	$64.1	$21.4
Intersegment Sales ($M)	$5.3	$6.0
Industrial Services Adjusted EBITDA ($M)	$18.2	$13.7
Logistics Tons Handled (Kt)	5,235	5,843
Phoenix Customer Volumes Serviced (Kt)	3,825	—
Corporate & Other Adjusted EBITDA ($M)	-$3.1	$3.5
Consolidated Adjusted EBITDA ($M)	$59.1	$75.3

KPIs and volumes (trend)

KPI	Q1 2025	Q2 2025	Q3 2025
Domestic Coke Production (Kt)	905	947	982
Domestic Coke Sales (Kt)	898	943	951
Logistics Tons Handled (Kt)	5,724	4,746	5,235
Phoenix Customer Volumes Serviced (Kt)	—	—	3,825

S&P Global disclaimer: Values with an asterisk (*) were retrieved from S&P Global.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Consolidated Adjusted EBITDA	FY2025	$210–$225M	$220–$225M	Raised/narrowed high end
Domestic Coke Adjusted EBITDA	FY2025	$185–$192M	$172–$176M	Lowered
Industrial Services (was Logistics) Adjusted EBITDA	FY2025	$45–$50M (Logistics)	$63–$67M	Raised; reflects Phoenix inclusion
Domestic Coke Sales	FY2025	~4.0M tons	~3.7M tons	Lowered (customer breach deferral)
Domestic Coke Production	FY2025	~4.0M tons	~3.9M tons	Lowered
Domestic Coke EBITDA/ton	FY2025	$46–$48/t	$46–$48/t	Maintained
Total Capex	FY2025	~$60M	~$70M	Raised
Operating Cash Flow	FY2025	$165–$180M	$62–$72M	Lowered
Cash Taxes	FY2025	$5–$9M	$4–$7M	Slightly lowered
Free Cash Flow	FY2025	$103–$118M	-$10–$0	Lowered (customer breach deferral)
Notable Cash Adjustments	FY2025	Transaction/debt costs $12–$14M	Customer deferral -$70M; Phoenix acquisition accounting -$29M; transaction/debt costs -$12M; restructuring -$3–$5M	Added negative items

Dividend: $0.12/share declared, payable Dec 1, 2025 (record Nov 17, 2025) .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 2025)	Previous Mentions (Q2 2025)	Current Period (Q3 2025)	Trend
Domestic Coke mix and Granite City economics	Lower spot blast sales and lower Granite City economics; EBITDA per ton high in Q1 but expected to normalize	Mix favored spot; Granite City lowered economics; Q2 was trough, recovery expected in 2H	Mix and Granite City still headwinds; slight sequential improvement; Haverhill yields/weather impacted	Stabilizing mix; structural headwind at Granite City persists
Phoenix Global integration	N/A	Acquisition closing Aug 1; $5–$10M synergy target; immediate accretion	Integration on track; synergies expected 2026; Q3 contributed within Industrial Services	Positive; 2026 uplift expected
Logistics volumes	Strong Q1; CMT up YoY	Weaker at CMT in May/June; saw pickup in July; reaffirmed guidance	Volumes remained soft; sequential improvement vs Q2; FY guide moderated via Industrial Services mix	Weak but improving modestly
Contracting/2026 outlook (Haverhill/Granite, Cliffs, US Steel)	Active discussions; expect lower spot environment; Granite City through Sept 2025 (+3mo option)	Reiterated discussions; logistics and domestic coke expected to improve in 2H	Actively negotiating; 2026 improvement expected; core pillars: Middletown, Indiana Harbor, Jewell foundry	Outcome TBD; management optimistic for 2026
Regulatory/legal	N/A	N/A	Algoma breach of contract identified in Q&A; pursuing all legal remedies	New negative; legal recovery possible
Capital allocation / dividend	Maintain dividend; balance with GPI project	Reaffirm dividend; revolver amended/extended	25th consecutive dividend; intent to continue, reviewed quarterly	Steady

Management Commentary

“Our updated full-year Consolidated Adjusted EBITDA range of $220 million to $225 million reflects the addition of five months of Phoenix Global results, partially offset by the deferral of approximately 200,000 tons of coke sales due to a breach of contract by one of our coke customers. We are actively pursuing all avenues to enforce the contract.” – Katherine Gates, CEO .
“Third quarter domestic Coke Adjusted EBITDA was $44 million… driven by the change in mix of contract and spot Coke sales… and lower economics and volumes at Granite City from the contract extension. Lower coal-to-coke yields at Haverhill and a weather event at Indiana Harbor resulted in lower production volumes.” – Mark Marinko, CFO .
“We completed the acquisition of Phoenix Global on August 1st… We expect to begin recognizing synergies in 2026.” – Katherine Gates .
“For Q3… ample liquidity of $206 million post-acquisition… Without the impact of two one-time items ($29.3M Phoenix MIP/transaction payments through OCF; $23M timing), operating cash flow would have been ~$52 million higher.” – Mark Marinko .
“Overall, we see the strong fundamentals of our business and expect our 2026 results to be an improvement over 2025.” – Katherine Gates .

Q&A Highlights

Contract breach and exposure: Management confirmed the customer in breach is Algoma; total remaining 2025 exposure is ~200Kt. SXC is pursuing all legal remedies and expects to recover losses .
2026 contract strategy: If unable to extend at Granite City or Haverhill, SXC would pursue profitable spot sales or rationalize capacity; core pillars (Middletown, Indiana Harbor, Jewell foundry) underpin 2026 optimism .
Phoenix contribution: Use ~$60M LTM EBITDA as a baseline proxy; monthly volumes of ~1.9Mt serviced are consistent with that run-rate .
Liquidity/dividend: Despite revolver draws for the acquisition, management remains confident in liquidity and intends to continue the dividend, subject to Board review .
Guidance cadence: Domestic Coke EBITDA per ton expected within the $46–$48/t range; Logistics run-rate improving modestly vs Q2 .

Estimates Context

S&P Global consensus for Q3 2025: Revenue $349.3M*, EBITDA $53.95M*, and Primary EPS $0.16*. S&P “Primary EPS” actual is ~0.36*, which differs from company-reported diluted EPS of $0.26; such differences commonly reflect S&P normalization and tax/nonrecurring adjustments .
Implication: Broad-based beat vs consensus likely requires upward revisions to Industrial Services and recognition that Domestic Coke mix/Granite headwinds are offset near-term by Phoenix and tax credits; 4Q may be pressured by the 200Kt deferral contemplated in guidance .
S&P Global disclaimer: Values marked with an asterisk (*) were retrieved from S&P Global.

Key Takeaways for Investors

Q3 delivered a clear top-line and EBITDA beat vs S&P consensus, aided by Phoenix and better sequential mix; however, Domestic Coke fundamentals remain pressured by Granite City economics and Haverhill yields/weather .
2025 outlook: higher consolidated EBITDA but meaningfully weaker FCF (-$10M to $0) given ~$70M cash deferral from the Algoma breach and ~$29M Phoenix accounting cash impacts; watch for legal recovery timing .
4Q setup: Domestic Coke guide embeds the ~200Kt deferral; near-term prints could remain choppy despite Phoenix contribution .
2026 framework: Potential uplift from a full year of Phoenix, modest Logistics recovery, and core pillars (Middletown/Indiana Harbor/Jewell) even as Granite City/Haverhill contract outcomes are pending .
Balance sheet/liquidity: ~$206M liquidity post-acquisition and manageable leverage (gross 3.05x, net 2.70x) provide cushion while pursuing remedies and integrating Phoenix .
Dividend continuity remains a priority (25th consecutive payout), but cash conversion hinges on resolving the customer breach and operating cadence in Q4 .
Stock reaction likely tied to: (1) clarity on Algoma recovery and timing, (2) visibility on 2026 contracts (Granite/Haverhill), and (3) evidence of Phoenix synergy capture in 2026 .

S&P Global disclaimer: Values marked with an asterisk (*) were retrieved from S&P Global.

SunCoke Energy, Inc. (SXC)·Q3 2025 Earnings Summary