SunCoke Energy, Inc. 10-Q Summary: Q2 2026
Business Context and Reporting Period
This filing covers the quarterly period ended June 30, 2026. SunCoke Energy, Inc. operates in the cokemaking and industrial services sectors. Following the acquisition of Flame Aggregator, LLC (Phoenix Global) in August 2025, the Company now reports two segments: Domestic Coke and Industrial Services. The Brazil Coke operations are now included in "Corporate and Other."
Key Financial Metrics
| Metric | Q2 2026 (3 Months) | Q2 2025 (3 Months) | YTD 2026 (6 Months) | YTD 2025 (6 Months) |
|---|---|---|---|---|
| Revenue | $475.3 million | $434.1 million | $930.4 million | $870.1 million |
| Net Income (GAAP) | $15.6 million | $3.5 million | $12.2 million | $22.9 million |
| Net Income Attributable to SunCoke | $13.1 million | $1.9 million | $8.7 million | $19.2 million |
| Adjusted EBITDA | $69.6 million | $43.6 million | $126.1 million | $103.4 million |
| Operating Cash Flow | N/A | N/A | $45.5 million | $43.3 million |
| Capital Expenditures | N/A | N/A | $32.9 million | $17.5 million |
| Long-Term Debt | $653.9 million | N/A | $653.9 million | $685.5 million |
| Cash and Equivalents | $42.7 million | N/A | $42.7 million | $186.2 million (YTD 2025 end) |
Material Changes vs. Prior Period
- Revenue Growth: Revenue increased 9.5% in Q2 and 6.9% YTD compared to 2025, primarily driven by the inclusion of Phoenix Global results in the Industrial Services segment.
- Profitability: Q2 Net Income increased significantly ($13.1M vs $1.9M) due to favorable coal-to-coke yields and higher volumes in Industrial Services. However, YTD Net Income decreased ($8.7M vs $19.2M) due to higher depreciation/amortization from the acquisition and increased interest expense.
- Segment Performance:
- Domestic Coke: Revenue declined due to the shutdown of the Haverhill I facility and lower foundry pricing, though Adjusted EBITDA per ton improved.
- Industrial Services: Revenue surged (up 552% YTD) due to the Phoenix Global acquisition and favorable transloading volumes.
- Working Capital: Operating cash flow was impacted by unfavorable changes in receivables due to customer payment timing, partially offset by lower coal inventory levels.
Outlook, Risks, and Unusual Items
- Unusual Items: Results include site closure costs ($0.4M in Q2, $6.8M YTD) related to the Haverhill I shutdown and Phoenix Global site closures. Restructuring costs of $0.3M (Q2) and $0.6M (YTD) were incurred primarily for the Phoenix Global integration.
- Operational Events: The Haverhill I cokemaking facility was shut down in Q1 2026. A turbine failure at the Middletown facility reduced energy revenues.
- Liquidity: As of June 30, 2026, the Company had $42.7 million in cash and $164.5 million available under its Revolving Facility. The Company remains in compliance with all debt covenants.
- Risks: Key risks include volatility in the steel industry, coal supply availability, environmental compliance costs, and the impact of international conflicts on commodity prices. The Company is currently integrating Phoenix Global's internal controls.
- Dividends: A quarterly dividend of $0.12 per share was declared in July 2026, payable in September 2026.
Investor Verification Checklist
- Phoenix Global Integration: Verify the timeline and cost realization for integrating Phoenix Global operations and the impact on future synergies.
- Haverhill I Shutdown Impact: Assess the long-term revenue and cost implications of the permanent shutdown of the Haverhill I facility.
- Working Capital Trends: Monitor receivables aging and customer payment cycles, as timing differences significantly impacted YTD operating cash flow.
- Debt Covenants: Confirm continued compliance with the 4.50:1.00 net leverage ratio and 2.50:1.00 interest coverage ratio given increased interest expenses.
- Coal Pricing Pass-Through: Evaluate the effectiveness of pass-through mechanisms in long-term take-or-pay agreements amidst fluctuating coal prices.