SunCoke Energy, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Consolidated revenues for the three months ended September 30, 2026, were $485.9 million, a decrease of $1.1 million compared to $487.0 million in the prior year period.
• Net income attributable to SunCoke Energy, Inc. (SXC) was $21.8 million, or $0.25 per diluted share, compared to $22.2 million, or $0.26 per diluted share in the prior year period.
• Consolidated Adjusted EBITDA was $76.9 million for the quarter, an increase of $17.8 million compared to $59.1 million in the prior year period.
• For the nine months ended September 30, 2026, net income was $36.0 million compared to $46.7 million in the prior year period.
• Net cash provided by operating activities for the nine months ended September 30, 2026, was $140.3 million, compared to $52.5 million in the prior year period.
• Capital expenditures for the nine months ended September 30, 2026, were $53.8 million.
• Long-term debt as of September 30, 2026, was $600.8 million, down from $685.5 million as of December 31, 2025.
• Cash and cash equivalents were $57.6 million as of September 30, 2026, compared to $88.7 million as of December 31, 2025.

Guidance and Future Outlook:

• SunCoke expects to modestly exceed the high-end of its full-year 2026 Consolidated Adjusted EBITDA guidance range of $250 million to $265 million.
• Revised 2026 guidance for Domestic Coke total sales is approximately 3.4 million tons.
• Revised 2026 guidance for Consolidated Net Income is between $22 million and $42 million.
• Revised 2026 guidance for Capital expenditures is between $90 million and $100 million.
• Revised 2026 guidance for Operating cash flow is between $270 million and $285 million.
• Revised 2026 guidance for Net cash tax receipts is between $8 million and $12 million.

Business Segments and Product Lines:

• Domestic Coke:
  • Revenues were $379.4 million, a decrease of $34.4 million compared to $413.8 million in the prior year period.
  • Adjusted EBITDA was $51.1 million, an increase of $7.1 million compared to $44.0 million in the prior year period.
  • Sales volumes were 875 thousand tons, a decrease of 76 thousand tons compared to 951 thousand tons in the prior year period.
  • Adjusted EBITDA per ton was $58.40, an increase of $12.13 compared to $46.27 in the prior year period.
  • Performance drivers included a change in mix of contract and spot coke sales, favorable coal-to-coke yields, and the shutdown of the Haverhill I cokemaking facility which reduced blast coke sales volumes.
• Industrial Services:
  • Revenues were $96.8 million, an increase of $32.7 million compared to $64.1 million in the prior year period.
  • Adjusted EBITDA was $32.1 million, an increase of $13.9 million compared to $18.2 million in the prior year period.
  • Terminals handling volumes were 6,424 thousand tons, an increase of 1,189 thousand tons compared to 5,235 thousand tons in the prior year period.
  • Steel customer volumes serviced were 5,864 thousand tons, an increase of 2,039 thousand tons compared to 3,825 thousand tons in the prior year period.
  • Performance drivers included one additional month of contribution from Phoenix and higher terminals handling volumes.
• Corporate and Other:
  • Adjusted EBITDA was an expense of $6.3 million, compared to an expense of $3.1 million in the prior year period, primarily driven by higher employee-related costs.

Market and Competitive Landscape:

• The Domestic Coke segment benefited from favorable coal-to-coke yields and a change in the mix of contract and spot coke sales.
• The Industrial Services segment benefited from higher terminals handling volumes and the full quarter contribution from Phoenix.
• The company supplies high-quality coke to domestic and international customers, with the majority of sales under long-term, take-or-pay contracts.

Risks and Challenges:

• The shutdown of the Haverhill I cokemaking facility resulted in lower blast coke sales volumes.
• Lower coal prices on long-term, take-or-pay agreements contributed to lower revenues.
• The absence of capital investment tax credits recorded in the third quarter of 2025 impacted net income.
• Forward-looking statements are subject to risks and uncertainties, including those described in the company's Form 10-K and other SEC filings, which could cause actual results to differ materially from expectations.

Management Commentary and Tone:

• Katherine Gates, President and CEO, stated the company is "extremely pleased with the strong performance from our Industrial Services and Domestic Coke businesses in the third quarter."
• Management noted that both segments continue to deliver strong and consistent operating performance.
• Management expressed confidence in being "well positioned to modestly exceed the high end of our full-year 2026 Consolidated Adjusted EBITDA guidance range."

Other Key Points:

• The company reached a settlement agreement with Algoma Steel in October 2026 related to a 2025 claim.
• A cash dividend of $0.12 per share was declared, representing the Company's 29th consecutive quarterly dividend, payable on December 1, 2026.
• Property insurance recoveries from a 2023 Jewell flood event contributed to net income and Adjusted EBITDA.
• The acquisition of Phoenix Global contributed to results, with one additional month of results included in the 2026 quarter compared to a partial quarter in the prior year.