SunCoke Expects to Exceed 2026 EBITDA Range After Q3 Gain

SunCoke Energy said it expects to modestly exceed the upper end of its 2026 consolidated adjusted EBITDA guidance after third-quarter earnings benefited from stronger Industrial Services activity and improved Domestic Coke performance. The company reported quarterly adjusted EBITDA of $76.9 million, up $17.8 million from a year earlier, even as diluted earnings per share slipped by one cent to $0.25.

The current full-year adjusted EBITDA guidance range is $250 million to $265 million, compared with the original range of $230 million to $250 million. SunCoke also increased its 2026 free cash flow guidance to $180 million to $185 million, based on expected operating cash flow of $270 million to $285 million and capital expenditures of $90 million to $100 million.

Industrial Services leads growth

Industrial Services adjusted EBITDA rose to $32.1 million from $18.2 million in the prior-year quarter. SunCoke attributed the increase primarily to an additional month of results from Phoenix Global compared with Q3 2025 and higher terminal handling volumes.

Terminal handling volumes increased to 6.42 million tons from 5.24 million tons, while steel customer volumes serviced climbed to 5.86 million tons from 3.83 million tons. Management said the segment is positioned to surpass the top of its revised full-year adjusted EBITDA guidance range of $110 million to $115 million. The original range was $90 million to $100 million.

Domestic Coke adjusted EBITDA increased to $51.1 million from $44 million. A more favorable mix of contract and spot coke sales, improved coal-to-coke yields and strong operating performance outweighed lower sales volumes associated with the shutdown of the Haverhill I facility.

Domestic Coke sales fell to 875,000 tons from 951,000 tons a year earlier. Adjusted EBITDA per ton nevertheless increased to $58.40 from $46.27. SunCoke said the business is positioned to reach the upper end of its revised 2026 adjusted EBITDA guidance of $172 million to $178 million, while full-year coke sales and production are each expected to be about 3.4 million tons.

Corporate and Other adjusted EBITDA was a loss of $6.3 million, compared with a $3.1 million loss in Q3 2025, reflecting higher employee-related expenses. Third-quarter results also included $6.9 million of property insurance recoveries tied to the 2023 flood at the Jewell facility. Adjusted EBITDA excludes those recoveries under the company’s non-GAAP definition.

Liquidity and capital allocation

SunCoke ended the quarter with $276 million of liquidity, consisting of $58 million in cash and $218 million of available revolving-credit capacity. Total debt was $607 million, down from $693 million at the end of 2025, while net debt declined to $549 million from $604 million.

Gross leverage was 2.34 times trailing-12-month adjusted EBITDA, compared with 3.16 times at the end of 2025. Net leverage fell to 2.11 times from 2.76 times. The company’s capital-allocation priorities remain growth opportunities, debt reduction and shareholder returns.

SunCoke declared a quarterly cash dividend of $0.12 per share, payable December 1, 2026. It marks the company’s 29th consecutive quarterly dividend.

Customer contracts and operating priorities

The company reached a settlement agreement with Algoma Steel in October concerning its 2025 claim. Algoma had stopped accepting additional coke from Haverhill I as of Q3 2025, and the facility has since been shut down. The presentation did not disclose the settlement’s financial terms.

SunCoke’s 2026 priorities include expanding its foundry market share, broadening the Industrial Services customer and product base, executing its operating and capital plans, and maintaining safety and environmental performance.

The outlook remains subject to the company’s current estimates and assumptions, which may change or involve factors outside its control. Operational uncertainties include the effects of the Haverhill I closure, while contracts covering Granite City volumes and certain Algoma volumes are scheduled to expire in December 2026. SunCoke also cautioned that adjusted EBITDA and free cash flow are non-GAAP measures and may not be directly comparable with similarly named metrics reported by other companies.