SunCoke Energy (NYSE:SXC) released first-quarter financial results and hosted an earnings call on Thursday. Read the complete transcript below.
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The full earnings call is available at https://event.choruscall.com/mediaframe/webcast.html?webcastid=RDZPXkjz
Summary
SunCoke Energy reported a consolidated adjusted EBITDA of $56.5 million for Q1 2026, reflecting strong operational execution despite severe winter weather and turbine failure impacts.
The company announced a quarterly dividend of $0.12 per share, marking the 27th consecutive quarter of dividend distribution, indicating a commitment to shareholder returns.
SunCoke Energy reaffirmed its full-year 2026 consolidated adjusted EBITDA guidance range of $230 to $250 million, driven by strong operational execution and improved market conditions.
The industrial services segment saw a significant increase in adjusted EBITDA to $26.2 million, primarily due to the integration of Phoenix and improved terminal handling volumes.
SunCoke Energy ended Q1 with a cash balance of $104.4 million and total liquidity of $262 million, enabling continued debt paydown and dividend payouts.
Full Transcript
OPERATOR
Good day and welcome to the Q1 2026 SunCoke Energy, Inc. Earnings Conference call. All participants will be in a listen only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today’s presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on a touchtone phone. To withdraw your question, please press star and then two. Please note this event is being recorded. I would now like to turn the conference over to Sharon Doyle, IR Manager. Please go ahead.
Sharon Doyle (IR Manager)
Thanks, Nick Good morning and thank you for joining us to discuss SunCoke Energy first quarter 2026 results. With me today are Kathryn Gates, President and Chief Executive Officer and Shantanu Agrawal, Senior Vice President and Chief Financial Officer. This conference call is being webcast live on the Investor Relations section of our website and a replay will be available later today. Following management’s prepared remarks, we will open the call for Q and A. If we do not get to your questions on the call today, please feel free to reach out to our investor relations team. Before I turn things over to Kathryn, let me remind you that the various remarks we make on today’s call regarding future expectations constitute forward looking statements. The cautionary language regarding forward looking statements in our SEC filings apply to the remarks we make today. These documents are available on our website as are reconciliations to non GAAP financial measures discussed on today’s call. With that, I’ll now turn things over to Kathryn.
Kathryn Gates
Thanks Sharon. Good morning and thank you for joining us on today’s call. This morning we announced SunCoke Energy first quarter results. I want to share a few highlights before turning it over to Shantanu to discuss the results in detail. We’re pleased with our performance in the first quarter delivering consolidated adjusted EBITDA of $56.5 million, reflecting strong operational execution. Our industrial services business performed well during the quarter with sequential improvement in terminals handling volumes and with Phoenix, performing to our expectations. As discussed on our fourth quarter 2025 earnings call, our Coke plants were impacted by severe winter weather and the Middletown turbine failure. Earlier today we also announced a quarterly dividend of $0.12 per share payable to shareholders on June 2, 2026. This is our 27th consecutive quarter announcing a dividend. While the dividend is evaluated on a quarterly basis by our board, we expect the dividend to continue as part of our well balanced capital allocation strategy. We had strong operating cash flow generation of $72.7 million and ended the quarter with ample liquidity of $262 million. As previously discussed, we are running at full capacity and sold out for the full year. With the continued seamless integration of Phoenix, the resumption of power production at Middletown and continued strong operational execution, we are confident we will achieve full year 2026 consolidated adjusted EBITDA within our guidance range of 230 to $250 million. With that, I’ll turn it over to Shantanu to review our first quarter earnings in detail.
Shantanu Agrawal (Senior Vice President and Chief Financial Officer)
Thanks, Kathryn Turning to Slide 4, net loss attributable to SunCoke was $0.05 per share in the first quarter of 2026 down $0.25 versus the prior year period. The decrease was primarily driven by higher depreciation expense, the shutdown of our Haverhill 1 Coke making facility, severe winter weather and the lower power sales due to Middletown turbine failure partially offset by lower income tax expense. Consolidated adjusted EBITDA for the first quarter of 2026 was $56.5 million compared to $59.8 million in the prior year period. The decrease in adjusted EBITDA was primarily driven by the impact of severe winter weather on our Coke operations, lower power sales from the Middletown turbine failure and the shutdown of Haverhill 1 mostly offset by the addition of Phoenix. Moving to slide 5 to discuss our domestic Coke business performance in detail. First quarter domestic Coke adjusted EBITDA was $35.3 million and Coke sales volumes were 842,000 tons compared to $49.9 million and 898,000 tons in the prior year period. The decrease in adjusted EBITDA was primarily driven by severe winter weather impacting our operations, lower power sales due to the turbine failure at Middletown and lower Coke sales volume due to the Haverhill 1 shutdown. While we experienced a slow start to the year, we are already seeing improvement in our Coke operations in the second quarter. With more favorable weather conditions, we are confident we’ll make up the lost …
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