SunCoke Q2 net income and EBITDA miss estimates

Overview

• SunCoke Q2 attributable net income misses analyst expectations, falling to $1.9 mln

• Adjusted EBITDA for Q2 misses estimates, reflecting segment challenges

• Co says all regulatory approvals have been received for Phoenix Global acquisition; expected to close on Aug 1

Outlook

• SunCoke reaffirms full-year 2025 Adjusted EBITDA guidance of $210 mln-$225 mln

• Company expects higher H2 2025 Adjusted EBITDA from improved coke sales mix

• SunCoke anticipates 2025 net income between $40 mln and $59 mln

• Operating cash flow for 2025 estimated at $165 mln-$180 mln

• Capital expenditures are projected to be approximately $60 million

Result Drivers

• CONTRACT AND SALES MIX - Timing and mix of contract and spot coke sales in Domestic Coke segment negatively impacted Q2 results, per CEO Katherine Gates

• LOGISTICS CHALLENGES - Lower transloading volumes at Convent Marine Terminal due to challenging market conditions affected Q2 performance

• GRANITE CITY IMPACT - Lower volumes and pricing due to contract extension economics at Granite City contributed to decreased revenue and Adjusted EBITDA

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the iron & steel peer group is "buy"

• Wall Street's median 12-month price target for SunCoke Energy Inc is $12.00, about 31% above its July 29 closing price of $8.28

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nBw7Jn55ya