CORRECTED-SunCoke Energy Q4 revenue beats estimates

Overview

• Coke supplier's Q4 revenue beat analyst expectations

• Adjusted EBITDA for Q4 missed analyst estimates, impacted by contract breach and lower sales

• Company extended Granite City and Haverhill II coke supply agreements through 2026 and 2028

Outlook

• SunCoke expects 2026 Adjusted EBITDA between $230 mln and $250 mln

• Company projects 2026 net income between $25 mln and $43 mln

• SunCoke anticipates 2026 domestic coke sales of approximately 3.4 mln tons

Result Drivers

• ALGOMA CONTRACT BREACH - Breach of contract by Algoma led to lower coke sales volumes and contributed to a significant asset impairment charge

• HAVERHILL I CLOSURE - Closure of Haverhill I facility resulted in a non-cash asset impairment charge, impacting net income

• PHOENIX GLOBAL ADDITION - Acquisition of Phoenix Global positively impacted Industrial Services segment, offsetting some declines

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 $10.00, about 25.2% above its February 13 closing price of $7.99

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

Press Release: ID:nBw7yMlTKa

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