# SunCoke Energy, Inc.: Form 10-Q for the period ended Jun 30, 2025

- Company: [SunCoke Energy, Inc.](/companies/sxc.md) (CIK 1514705)
- Form: 10-Q
- Filed: 2025-07-30
- Accepted by EDGAR: Jul 30, 2025, 11:42 ET
- Period: 2025-06-30
- Accession: 0001514705-25-000019
- Inline XBRL: yes
- Main document: https://www.sec.gov/Archives/edgar/data/1514705/000151470525000019/sxc-20250630.htm
- All documents and exhibits: https://www.sec.gov/Archives/edgar/data/1514705/000151470525000019/

## Figures reported in this filing

Standardized XBRL line items for the period ended 2025-06-30.

| Line item | Period | Value | XBRL concept |
| --- | --- | ---: | --- |
| Revenue | 3 months, 2025-04-01 to 2025-06-30 | $434.1m | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax |
| Revenue | 6 months, 2025-01-01 to 2025-06-30 | $870.1m | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax |
| Selling, general and administrative | 3 months, 2025-04-01 to 2025-06-30 | $20.6m | us-gaap:SellingGeneralAndAdministrativeExpense |
| Selling, general and administrative | 6 months, 2025-01-01 to 2025-06-30 | $35.3m | us-gaap:SellingGeneralAndAdministrativeExpense |
| Operating income | 3 months, 2025-04-01 to 2025-06-30 | $9.8m | us-gaap:OperatingIncomeLoss |
| Operating income | 6 months, 2025-01-01 to 2025-06-30 | $40.0m | us-gaap:OperatingIncomeLoss |
| Interest expense | 3 months, 2025-04-01 to 2025-06-30 | $7.0m | us-gaap:InterestExpenseNonoperating |
| Interest expense | 6 months, 2025-01-01 to 2025-06-30 | $13.8m | us-gaap:InterestExpenseNonoperating |
| Income tax | 3 months, 2025-04-01 to 2025-06-30 | $900.0k | us-gaap:IncomeTaxExpenseBenefit |
| Income tax | 6 months, 2025-01-01 to 2025-06-30 | $6.5m | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months, 2025-04-01 to 2025-06-30 | $1.9m | us-gaap:NetIncomeLoss |
| Net income | 6 months, 2025-01-01 to 2025-06-30 | $19.2m | us-gaap:NetIncomeLoss |
| Diluted EPS | 3 months, 2025-04-01 to 2025-06-30 | $0.02 | us-gaap:EarningsPerShareDiluted |
| Diluted EPS | 6 months, 2025-01-01 to 2025-06-30 | $0.22 | us-gaap:EarningsPerShareDiluted |
| Basic EPS | 3 months, 2025-04-01 to 2025-06-30 | $0.02 | us-gaap:EarningsPerShareBasic |
| Basic EPS | 6 months, 2025-01-01 to 2025-06-30 | $0.22 | us-gaap:EarningsPerShareBasic |
| Diluted shares (weighted) | 3 months, 2025-04-01 to 2025-06-30 | 85,600,000 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Diluted shares (weighted) | 6 months, 2025-01-01 to 2025-06-30 | 85,600,000 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Operating cash flow | 6 months, 2025-01-01 to 2025-06-30 | $43.3m | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Capital expenditure | 6 months, 2025-01-01 to 2025-06-30 | $17.5m | us-gaap:PaymentsToAcquirePropertyPlantAndEquipment |
| Dividends paid | 6 months, 2025-01-01 to 2025-06-30 | $21.1m | us-gaap:PaymentsOfDividends |
| Cash and equivalents | at 2025-06-30 | $186.2m | us-gaap:CashAndCashEquivalentsAtCarryingValue |
| Current assets | at 2025-06-30 | $484.0m | us-gaap:AssetsCurrent |
| Total assets | at 2025-06-30 | $1.64bn | us-gaap:Assets |
| Current liabilities | at 2025-06-30 | $185.1m | us-gaap:LiabilitiesCurrent |
| Total liabilities | at 2025-06-30 | $934.4m | us-gaap:Liabilities |
| Long-term debt | at 2025-06-30 | $493.4m | us-gaap:LongTermDebtNoncurrent |
| Shareholders' equity | at 2025-06-30 | $677.7m | us-gaap:StockholdersEquity |

## Management's discussion and analysis

As filed, 30,131 characters.

*This Quarterly Report on Form 10-Q for the quarter ended June 30, 2025 (this “Quarterly Report on Form 10-Q”) contains certain forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. This discussion contains forward-looking statements about our business, operations and industry that involve risks and uncertainties, such as statements regarding our plans, objectives, expected future developments, expectations and intentions, and they involve known and unknown risks that are difficult to predict. As a result, our future results and financial condition may differ materially from those we currently anticipate as a result of the factors we describe in our filings with the Securities and Exchange Commission (the “SEC”), including our Annual Report on Form 10-K for the year ended December 31, 2024 (the “Annual Report on Form 10-K”), and as updated in this Quarterly Report on Form 10-Q, and other quarterly and current reports, which are on file with the SEC and are available at the SEC's website (www.sec.gov). Additionally, please see our “Cautionary Statement Concerning Forward-Looking Statements” located elsewhere in this Quarterly Report on Form 10-Q.*

*This Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is based on financial data derived from the financial statements prepared in accordance with the United States generally accepted accounting principles (“GAAP”) and certain other financial data that is prepared using a non-GAAP measure. For a reconciliation of the non-GAAP measure to its most comparable GAAP component, see “Non-GAAP Financial Measures” in this Item 2.*

*Our MD&A is provided in addition to the accompanying consolidated financial statements and notes to assist readers in understanding our results of operations, financial condition and cash flow.*

### Overview

SunCoke Energy, Inc. (“SunCoke Energy,” “SunCoke,” “Company,” “we,” “our” and “us”) is the largest independent producer of high-quality coke in the Americas, as measured by tons of coke produced each year, and has more than 60 years of coke production experience. Coke is produced by heating metallurgical coal in a refractory oven, which releases certain volatile components from the coal, thus transforming the coal into coke. Our coke is primarily used as a principal raw material in the blast furnace steelmaking process as well as in the foundry production of casted iron, and the majority of our sales are derived from blast furnace coke sales made under long-term, take-or-pay agreements. We also sell coke produced utilizing capacity in excess of that reserved for our long-term, take-or-pay agreements to customers in both the export and North American domestic coke markets seeking high-quality product for their blast furnaces. We have designed, developed and built, and we currently own and operate, five cokemaking facilities in the United States (“U.S.”) with collective nameplate capacity to produce approximately 4.2 million tons of blast furnace coke per year. Additionally, we designed and currently operate one cokemaking facility in Brazil under licensing and operating agreements on behalf of ArcelorMittal Brasil S.A. (“ArcelorMittal Brazil”), which has approximately 1.7 million tons of annual cokemaking capacity. Our cokemaking ovens utilize efficient, modern heat recovery technology designed to combust the coal’s volatile components liberated during the cokemaking process and use the resulting heat to create steam or electricity for sale.

We also own and operate a logistics business that provides export and domestic material handling and/or mixing services to steel, coke (including some of our domestic cokemaking facilities), electric utility, coal producing and other manufacturing based customers. Our logistics terminals, which are strategically located to reach Gulf Coast, East Coast, Great Lakes and international ports, have the collective capacity to mix and/or transload more than 40 million tons of coal and other products annually and has storage capacity of approximately 3 million tons.

### Market Discussion

Our long-term, take-or-pay Domestic Coke sales agreements, which largely consume our capacity, are not impacted by the fluctuations of global coke prices. Non-contracted blast furnace coke, which is produced utilizing capacity in excess of that reserved for long-term, take-or-pay Domestic Coke sales agreements, is sold in the global market and sales can be impacted by fluctuations in both global coke prices and demand.

Our Convent Marine Terminal (“CMT”) serves certain customers impacted by seaborne export market dynamics. Volumes through CMT are impacted by fluctuations in global energy needs and benchmark pricing for coal exports out of the U.S. Gulf Coast, which can be impacted by weather conditions, natural gas prices, geopolitical issues, U.S. thermal coal supply and global thermal coal demand. Our Kanawha River Terminal (“KRT”) serves two primary domestic markets, metallurgical coal trade and thermal coal trade. Metallurgical markets are primarily impacted by steel prices and blast furnace operating levels whereas thermal markets are impacted by natural gas prices and electricity demand.

### Second Quarter Key Financial Results

Our consolidated results of operations were as follows:

*(Dollars in millions)*

|  | Three Months Ended June 30, 2025 | 2024 | Increase (Decrease) 2025 | Six Months Ended June 30, 2024 |  | Increase (Decrease) |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Net income | $3.5 | $23.3 | $(19.8) | $22.9 | $44.4 | $(21.5) |
| Net cash provided by (used in) operating activities | $17.5 | $(9.3) | $26.8 | $43.3 | $0.7 | $42.6 |
| Adjusted EBITDA(1) | $43.6 | $63.5 | $(19.9) | $103.4 | $131.4 | $(28.0) |

(1) See the “Non-GAAP Financial Measures” section for both the definition of Adjusted EBITDA and the reconciliation from GAAP to the non-GAAP measurement.

Operating results for the first half of 2025 primarily reflect lower pricing in our Domestic Coke segment mainly driven by the mix of contracted and non-contracted blast coke sales in the current year period, lower volumes due to unfavorable coal-to-coke yields, the impact of the Granite City contract extension economics and lower volumes in our Logistics segment. Operating cash flows during the current period primarily reflect a favorable year-over-year change in primary working capital, primarily due to timing of customer payments in the prior year. See detailed analysis of the quarter's results throughout this MD&A.

### Recent Developments

- ***Acquisition of Phoenix Global.*** On May 28, 2025, we entered into a definitive Merger Agreement (the “Merger Agreement”) pursuant to which we will acquire all of the common units of Flame Aggregator, LLC, which, together with its subsidiaries, operates as Phoenix Global, a privately held provider of mission-critical mill services to major steel producing companies (the “Phoenix Global acquisition”). Under the terms of the Merger Agreement, we will acquire Flame Aggregator for a base purchase price of $325 million in cash, subject to customary adjustments for net working capital, cash and cash equivalents, indebtedness and unpaid transaction expenses. The Phoenix Global acquisition is expected to be completed during the third quarter of 2025.
- ***One Big Beautiful Bill Act.*** On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted into law. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. We expect these legislative changes could have a favorable impact on our future cash taxes but continue to evaluate the impact of the OBBBA on the consolidated financial statements. The estimated impact of the OBBBA to the Company is a decrease in our cash taxes in 2025.
- ***Revolving Facility Extension.*** In July 2025, we amended and extended the maturity of our revolving credit facility (“Revolving Facility”) to July 2030 under substantially similar terms. The amendment also reduced the Revolving Facility capacity by $25.0 million to $325.0 million.
- ***Granite City Contract Extension.*** In April 2025, the Granite City long-term, take-or-pay agreement with United States Steel Corporation (“U.S. Steel”) was extended through September 30, 2025, with an option for U.S. Steel to extend for an additional three months through December 31, 2025. The provisions and economics of this extension remain unchanged from those included in the extension executed in 2024.

### Results of Operations

The following table sets forth amounts from the Consolidated Statements of Income for the three and six months ended June 30, 2025 and 2024, respectively:

*(Dollars in millions)*

| Revenues | Three Months Ended June 30, 2025 | 2024 | Increase (Decrease) 2025 | Six Months Ended June 30, 2024 |  | Increase (Decrease) |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Sales and other operating revenue | $434.1 | $470.9 | $(36.8) | $870.1 | $959.3 | $(89.2) |
| **Costs and operating expenses** |  |  |  |  |  |  |
| Cost of products sold and operating expenses | 375.1 | 389.7 | (14.6) | 737.4 | 791.9 | (54.5) |
| Selling, general and administrative expenses | 20.6 | 17.8 | 2.8 | 35.3 | 36.2 | (0.9) |
| Depreciation and amortization expense | 28.6 | 28.7 | (0.1) | 57.4 | 62.0 | (4.6) |
| Total costs and operating expenses | 424.3 | 436.2 | (11.9) | 830.1 | 890.1 | (60.0) |
| **Operating income** | 9.8 | 34.7 | (24.9) | 40.0 | 69.2 | (29.2) |
| Interest expense, net | 5.4 | 5.8 | (0.4) | 10.6 | 12.1 | (1.5) |
| Income before income tax expense | 4.4 | 28.9 | (24.5) | 29.4 | 57.1 | (27.7) |
| Income tax expense | 0.9 | 5.6 | (4.7) | 6.5 | 12.7 | (6.2) |
| Net income | 3.5 | 23.3 | (19.8) | 22.9 | 44.4 | (21.5) |
| Less: Net income attributable to noncontrolling interests | 1.6 | 1.8 | (0.2) | 3.7 | 2.9 | 0.8 |
| **Net income attributable to SunCoke Energy, Inc.** | $1.9 | $21.5 | $(19.6) | $19.2 | $41.5 | $(22.3) |

***Sales and Other Operating Revenue and Costs of Products Sold and Operating Expenses.*** Sales and other operating revenue and costs of products sold and operating expenses decreased for the three and six months ended June 30, 2025 compared to the same prior year periods, primarily driven by lower pricing in our Domestic Coke segment mainly driven by the mix of contracted and non-contracted blast coke sales in the current year period, the impact of the Granite City contract extension economics and the impact of the pass-through of lower coal prices on our long-term, take-or-pay agreements. Additionally, sales and other operating revenue for the three and six months ended June 30, 2025 were negatively impacted by lower volumes due to unfavorable coal-to-coke yields.

***Selling, General and Administrative Expenses.*** Selling, general and administrative expenses during the three and six months ended June 30, 2025 reflect costs incurred related to the Phoenix Global acquisition. These increased costs were partially offset and more than offset, respectively, during the three and six months ended June 30, 2025 by lower employee related expenses and lower expenses related to our legacy coal mining business.

***Depreciation and Amortization Expense.*** Depreciation and amortization expense for the three months ended June 30, 2025 was reasonably consistent with the same prior year period. Depreciation and amortization expense for the six months ended June 30, 2025 decreased as a result of the expiration of the useful lives of assets in our Domestic Coke segment placed into service in prior periods.

***Interest Expense, Net.*** Interest expense, net, during the three and six months ended June 30, 2025 primarily benefited from higher interest income of $0.2 million and $0.9 million, respectively, as compared to the same prior year periods.

***Income Tax Expense.*** Income tax expense during the three and six months ended June 30, 2024 benefited from the release of valuation allowances established on deferred tax assets related to state net operating loss carryforwards, partially offset by the revaluation of certain deferred tax liabilities due to changes in apportioned state tax rates, with no similar events occurring in the current year period. See Note 4 to our consolidated financial statements for further detail.

***Noncontrolling Interest.*** Net income attributable to noncontrolling interests represents a 14.8 percent third-party interest in our Indiana Harbor cokemaking facility and fluctuates with the financial performance of that facility.

### Results of Reportable Business Segments

We report our business results through three reportable segments:

- Domestic Coke consists of our Jewell facility, located in Vansant, Virginia, our Indiana Harbor facility, located in East Chicago, Indiana, our Haverhill facility, located in Franklin Furnace, Ohio, our Granite City facility located in Granite City, Illinois, and our Middletown facility located in Middletown, Ohio.
- Brazil Coke consists of operations in Vitória, Brazil, where we operate the ArcelorMittal Brazil cokemaking facility.
- Logistics consists of CMT, located in Convent, Louisiana, KRT, located in Ceredo and Belle, West Virginia, and Lake Terminal, located in East Chicago, Indiana. Lake Terminal is located adjacent to our Indiana Harbor cokemaking facility.

Corporate expenses that can be identified with a segment have been included in determining segment results. The remainder is included in Corporate and Other, including activity from our legacy coal mining business, which is not considered a reportable segment and therefore, not included in our segment information in Note 12. However, we have included Corporate and Other within our operating data below.

Management believes Adjusted EBITDA is an important measure of operating performance, which is used by the chief operating decision maker as one of the measurements to help determine the allocation of costs and resources to our reportable segments. Adjusted EBITDA should not be considered a substitute for the reported results prepared in accordance with GAAP. See the “Non-GAAP Financial Measures” section for both the definition of Adjusted EBITDA and the reconciliation from GAAP to the non-GAAP measurement.

### Segment Financial and Operating Data

The following tables set forth financial and operating data by segment:

*(Dollars in millions)*

| Sales and Other Operating Revenues: | Three Months Ended June 30, 2025 | 2024 | Increase (Decrease) 2025 | Six Months Ended June 30, 2024 |  | Increase (Decrease) |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Domestic Coke | $410.4 | $441.6 | $(31.2) | $816.2 | $901.1 | $(84.9) |
| Brazil Coke | 8.6 | 9.1 | (0.5) | 16.4 | 17.4 | (1.0) |
| Logistics | 15.1 | 20.2 | (5.1) | 37.5 | 40.8 | (3.3) |
| Logistics intersegment sales | 5.9 | 5.9 | — | 11.5 | 11.8 | (0.3) |
| Elimination of intersegment sales | (5.9) | (5.9) | — | (11.5) | (11.8) | 0.3 |
| Total sales and other operating revenues | $434.1 | $470.9 | $(36.8) | $870.1 | $959.3 | $(89.2) |
| **Adjusted EBITDA:** |  |  |  |  |  |  |
| Domestic Coke | $40.5 | $57.9 | $(17.4) | $90.4 | $119.3 | $(28.9) |
| Brazil Coke | 2.6 | 2.5 | 0.1 | 4.9 | 4.9 | — |
| Logistics | 7.7 | 12.2 | (4.5) | 21.4 | 25.2 | (3.8) |
| Corporate and Other, net(1) | (7.2) | (9.1) | 1.9 | (13.3) | (18.0) | 4.7 |
| Total Adjusted EBITDA(2) | $43.6 | $63.5 | $(19.9) | $103.4 | $131.4 | $(28.0) |
| **Coke Operating Data:** |  |  |  |  |  |  |
| Domestic Coke capacity utilization(3) | 95% | 99% | (4)% | 93% | 99% | (6)% |
| Domestic Coke production volumes (thousands of tons) | 947 | 978 | (31) | 1,852 | 1,978 | (126) |
| Domestic Coke sales volumes (thousands of tons) | 943 | 973 | (30) | 1,841 | 1,969 | (128) |
| Domestic Coke Adjusted EBITDA per ton(4) | $42.95 | $59.51 | $(16.56) | $49.10 | $60.59 | $(11.49) |
| Brazilian Coke production—operated facility (thousands of tons) | 371 | 397 | (26) | 751 | 768 | (17) |
| **Logistics Operating Data:** |  |  |  |  |  |  |
| Tons handled (thousands of tons) | 4,746 | 5,982 | (1,236) | 10,470 | 11,435 | (965) |

(1) Corporate and Other, net is not a reportable segment.

(2) See the “Non-GAAP Financial Measures” section below for both the definition of Adjusted EBITDA and the reconciliation from GAAP to the non-GAAP measurement.

(3) The production of foundry coke tons does not replace blast furnace coke tons on a ton for ton basis, as foundry coke requires longer coking time. The Domestic Coke capacity utilization is calculated assuming a single ton of foundry coke replaces approximately two tons of blast furnace coke.

(4) Reflects Domestic Coke Adjusted EBITDA divided by Domestic Coke sales volumes.

### Analysis of Segment Results

### Domestic Coke

The following table sets forth year-over-year changes in the Domestic Coke segment's sales and other operating revenues and Adjusted EBITDA results:

*(Dollars in millions)*

|  | Three Months Ended June 30, 2025 vs. 2024 Sales and other operating revenue | Adjusted EBITDA | Six Months Ended June 30, 2025 vs. 2024 Sales and other operating revenue | Adjusted EBITDA |
| --- | ---: | ---: | ---: | ---: |
| Prior year period | $441.6 | $57.9 | $901.1 | $119.3 |
| Volume(1) | (14.4) | (9.3) | (53.2) | (16.6) |
| Price(2) | (17.3) | (18.1) | (34.1) | (24.3) |
| Operating and maintenance costs(3) | N/A | 8.6 | N/A | 8.2 |
| Energy and other(4) | 0.5 | 1.4 | 2.4 | 3.8 |
| Current year period | $410.4 | $40.5 | $816.2 | $90.4 |

(1) Volumes during the three and six months ended June 30, 2025 were negatively impacted by lower coal-to-coke yields as well as the impact of the Granite City contract extension.

(2) The pass-through of lower coal prices decreased sales and other operating revenue during the three and six months ended June 30, 2025. Sales and other operating revenue and Adjusted EBITDA decreased for the three and six months ended June 30, 2025 as a result of lower pricing on our non-contracted blast coke sales and the impact of lower economics on the Granite City contract extension. Additionally, Adjusted EBITDA was negatively impacted by lower coal-to-coke yields on our long-term, take-or-pay agreements.

(3) Operating and maintenance costs during the three and six months ended June 30, 2025 benefited from lower planned maintenance outage costs in the current year as well as the timing of other maintenance costs.

(4) Energy and other during the three and six months ended June 30, 2025 increased due to favorable energy pricing and volumes.

### Logistics

During the three and six months ended June 30, 2025, sales and other operating revenues, exclusive of intersegment sales, were $15.1 million and $37.5 million, respectively, compared to $20.2 million, and $40.8 million, respectively, in the corresponding prior year periods. Adjusted EBITDA, inclusive of the impact of intersegment transactions, during the three and six months ended June 30, 2025 were $7.7 million and $21.4 million, respectively, compared to $12.2 million and $25.2 million, respectively, in the corresponding prior year periods. Logistics results during the three and six months ended June 30, 2025, as compared to the same prior year periods reflect lower transloading volumes and lower transloading pricing at CMT driven by the absence of an index price adjustment benefit.

### Brazil

During the three and six months ended June 30, 2025, sales and other operating revenue were $8.6 million and $16.4 million, respectively, which was reasonably consistent with $9.1 million and $17.4 million, respectively, in the corresponding prior year periods. Adjusted EBITDA during the three and six months ended June 30, 2024 were $2.6 million and $4.9 million, respectively, which was reasonably consistent with $2.5 million and $4.9 million, respectively, in the corresponding prior year periods.

### Corporate and Other

Corporate and Other Adjusted EBITDA represented a loss of $7.2 million and $13.3 million, respectively, for the three and six months ended June 30, 2025, compared to $9.1 million and $18.0 million, respectively, in the corresponding prior year periods. The three and six months ended June 30, 2025 benefited from lower employee related expenses and lower expenses related to our legacy coal mining business.

### Non-GAAP Financial Measures

In addition to the GAAP results provided in this Quarterly Report on Form 10-Q, we have provided a non-GAAP financial measure, Adjusted EBITDA. Our management, as well as certain investors, use this non-GAAP measure to analyze our current and expected future financial performance. This measure is not in accordance with, or a substitute for, GAAP and may be different from, or inconsistent with, non-GAAP financial measures used by other companies.

The Company evaluates the performance of its segments based on segment Adjusted EBITDA, which is defined as earnings before interest, taxes, depreciation and amortization (“EBITDA”), adjusted for any impairments, restructuring costs, gains or losses on extinguishment of debt, and/or transaction costs (“Adjusted EBITDA”). EBITDA and Adjusted EBITDA do not represent and should not be considered alternatives to net income or operating income under GAAP and may not be comparable to other similarly titled measures in other businesses.

Management believes Adjusted EBITDA is an important measure in assessing operating performance. Adjusted EBITDA provides useful information to investors because it highlights trends in our business that may not otherwise be apparent when relying solely on GAAP measures and because it eliminates items that have less bearing on our operating performance. EBITDA and Adjusted EBITDA are not measures calculated in accordance with GAAP, and they should not be considered a substitute for net income, or any other measure of financial performance presented in accordance with GAAP. Additionally, other companies may calculate Adjusted EBITDA differently than we do, limiting its usefulness as a comparative measure.

### Reconciliation of Non-GAAP Financial Measures

Below is a reconciliation of Adjusted EBITDA to net income, which is its most directly comparable financial measure calculated and presented in accordance with GAAP:

*(Dollars in millions)*

|  | Three Months Ended June 30, 2025 | 2024 | Six Months Ended June 30, 2025 | 2024 |
| --- | ---: | ---: | ---: | ---: |
| **Net income** | $3.5 | $23.3 | $22.9 | $44.4 |
| Add: |  |  |  |  |
| Depreciation and amortization expense | 28.6 | 28.7 | 57.4 | 62.0 |
| Interest expense, net | 5.4 | 5.8 | 10.6 | 12.1 |
| Income tax expense | 0.9 | 5.6 | 6.5 | 12.7 |
| Transaction costs(1) | 5.2 | 0.1 | 6.0 | 0.2 |
| **Adjusted EBITDA** | $43.6 | $63.5 | $103.4 | $131.4 |

(1) Reflects costs incurred related to the Phoenix Global acquisition and the granulated pig iron project with U.S. Steel.

### Liquidity and Capital Resources

Our primary liquidity needs are to fund working capital and investments, service our debt, maintain cash reserves and replace partially or fully depreciated assets and other capital expenditures. Our sources of liquidity include cash generated from operations, borrowings under our Revolving Facility and, from time to time, debt and equity offerings. We believe our current resources are sufficient to meet our working capital requirements for our current business for at least the next 12 months and thereafter for the foreseeable future. We will fund the $325 million acquisition of Phoenix Global with existing cash and availability under our Revolving Facility. As of June 30, 2025, we had $186.2 million of cash and cash equivalents and $350.0 million of borrowing availability under our Revolving Facility.

We may, from time to time, seek to retire or purchase additional amounts of our outstanding equity and/or debt securities through cash purchases and/or exchanges for other securities, in open market purchases, privately negotiated transactions or otherwise. Such repurchases or exchanges, if any, will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors. The amounts involved may be material. Refer to “Part II Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds.”

#### Cash Flow Summary

The following table sets forth a summary of the net cash provided by (used in) operating, investing and financing activities for the six months ended June 30, 2025 and 2024:

*(Dollars in millions)*

|  | Six Months Ended June 30, 2025 | 2024 |
| --- | ---: | ---: |
| Net cash provided by operating activities | $43.3 | $0.7 |
| Net cash used in investing activities | (17.2) | (33.4) |
| Net cash used in financing activities | (29.5) | (25.5) |
| Net decrease in cash and cash equivalents | $(3.4) | $(58.2) |

#### Cash Flows from Operating Activities

Net cash provided by operating activities increased by $42.6 million to $43.3 million for the six months ended June 30, 2025 as compared to $0.7 million in the corresponding prior year period. The increase primarily reflects a favorable year-over-year change in primary working capital, which is comprised of accounts receivable, inventories, and accounts payable, driven by the timing of customer payments in the prior year.

#### Cash Flows from Investing Activities

Net cash used in investing activities decreased by $16.2 million to $17.2 million for the six months ended June 30, 2025 as compared to $33.4 million in the corresponding prior year period. The decrease was primarily driven by capital spending in connection with certain upgrades to improve the long-term reliability and operational performance of our assets in the prior year period. Additionally, the timing of payments related to ongoing capital expenditures further contributed to the decrease in the current year as compared to the same prior year period. Refer to “Capital Requirements and Expenditures” below for further detail.

#### Cash Flows from Financing Activities

Net cash used in financing activities increased by $4.0 million to $29.5 million for the six months ended June 30, 2025 as compared to $25.5 million in the corresponding prior year period. The increase in net cash used in financing activities was primarily driven by an increase to dividends paid of $3.7 million as compared to the prior year period, primarily as a result of an increase in the dividend per share amount, and higher cash distributions made to noncontrolling interests of $0.8 million.

#### Dividends

On April 30, 2025, SunCoke's Board of Directors declared a cash dividend of $0.12 per share of the Company's common stock. This dividend was paid on June 2, 2025, to stockholders of record on May 16, 2025.

Additionally, on July 30, 2025, SunCoke's Board of Directors declared a cash dividend of $0.12 per share of the Company's common stock. This dividend will be paid on September 2, 2025, to stockholders of record on August 15, 2025.

#### Covenants

As of June 30, 2025, we were in compliance with all applicable debt covenants. We do not anticipate a violation of these covenants nor do we anticipate that any of these covenants will restrict our operations or our ability to obtain additional financing. See Note 6 to the consolidated financial statements for details on debt covenants.

### Capital Requirements and Expenditures

Our operations are capital intensive, requiring significant investment to upgrade or enhance existing operations and to meet environmental and operational regulations. The level of future capital expenditures will depend on various factors, including market conditions, regulatory requirements and customer requirements, and may differ from current or anticipated levels. Material changes in capital expenditure levels may impact financial results, including but not limited to the amount of depreciation, interest expense and repair and maintenance expense.

Our capital requirements have consisted, and are expected to consist, primarily of:

- Ongoing capital expenditures required to maintain equipment reliability, the integrity and safety of our coke ovens, steam generators and assets at our logistics terminals and to comply with environmental regulations. Ongoing capital expenditures are made to replace partially or fully depreciated assets in order to maintain the existing operating capacity of the assets and/or to extend their useful lives and also include new equipment that

improves the efficiency, reliability or effectiveness of existing assets. Ongoing capital expenditures do not include normal repairs and maintenance expenses, which are expensed as incurred;

- Expansion capital expenditures to acquire and/or construct complementary assets to grow our business and to expand existing facilities as well as capital expenditures made to grow our business through new markets or enable the renewal of a coke sales agreement and/or logistics service agreement and on which we expect to earn a reasonable return; and
- Environmental project expenditures to ensure that our existing facilities operate in accordance with changing regulations.

The following table summarizes our capital expenditures:

*(Dollars in millions)*

|  | Six Months Ended June 30, 2025 | 2024 |
| --- | ---: | ---: |
| Ongoing capital | $9.5 | $30.4 |
| Expansion capital | 8.0 | 2.6 |
| Total capital expenditures(1) | $17.5 | $33.0 |

(1) Reflects actual cash payments during the periods presented for our capital requirements.

### Critical Accounting Policies

There have been no significant changes to our accounting policies during the three months ended June 30, 2025.

### Recent Accounting Standards

There have been no new accounting standards material to the Company that have been adopted during the six months ended June 30, 2025.

## Market risk

As filed, 169 characters.

There have been no material changes to the Company's exposure to market risk previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2024.

## Controls and procedures

As filed, 1,791 characters.

### Management’s Evaluation of Disclosure Controls and Procedures

The Company maintains disclosure controls and procedures, (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended) that are designed to ensure that information required to be disclosed in its reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to the Company’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.

The Company carried out an evaluation, under the supervision and with the participation of management, including its Chief Executive Officer and Chief Financial Officer, of the effectiveness of the Company’s disclosure controls and procedures as of the end of the period covered by this report. Based on this evaluation, the Company’s Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures were effective at a reasonable assurance level as of the end of the period covered by this report.

### Changes in Internal Control over Financial Reporting

There have been no changes in the Company’s internal control over financial reporting that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting during the quarter ended June 30, 2025.

## Risk factors

As filed, 157 characters.

There have been no material changes with respect to risk factors previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2024.

Filed Jul 30, 2025.
Source: SEC EDGAR, the filing index for accession 0001514705-25-000019. Last ingested by Listed: Nov 10, 2026, 17:30 ET. No prices; not investment advice.