SunCoke Energy, Inc.
For the period ended Jun 30, 2025. Filed Jul 30, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Jul 30, 2025
SXC$9.80+1.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-04-30.
0001514705-25-000007
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-07-30.
0001514705-25-000019
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 84 previous paragraphs and 88 current paragraphs.
59 unchanged; 20 reworded; 9 added; 5 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 7 previous and 7 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (9)
Current report
Second Quarter Key Financial Results
Current report
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.
Current report
•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.
Current report
•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.
Current report
•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.
Current report
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.
Current report
(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.
Current report
(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.
Current report
There have been no significant changes to our accounting policies during the three months ended June 30, 2025.
Removed paragraphs (5)
Previous report
First Quarter Key Financial Results
Previous report
Operating results for the three months ended March 31, 2025 reflect lower volumes and pricing in our Domestic Coke segment as a result of challenging blast furnace coke spot market conditions as well as the impact of the Granite City contract extension economics. These negative impacts were partially offset by higher transloading volumes in our Logistics segment. See detailed analysis of the quarter's results throughout this MD&A.
Previous report
Income Tax Expense. The Company's effective tax rate was 22.4 percent and 25.2 percent for the three months ended March 31, 2025 and 2024, respectively. The effective tax rate for the three months ended March 31, 2025 was impacted by lower state income taxes as compared to the prior year period. See Note 4 to our consolidated financial statements for further detail.
Previous report
(1)Lower volumes during the three months ended March 31, 2025 were primarily driven by lower non-contracted blast furnace coke sales as a result of challenging market conditions in the blast furnace coke spot market, as well as the impact of the Granite City contract extension.
Previous report
In August 2024, the Company reached an agreement with the U.S. Department of Labor’s Division of Coal Mine Workers Compensation (“DCMWC”) for a regulatory exemption that eliminated the majority of the Company's legacy black lung benefit obligations, resulting in a $45.5 million reduction of the Company's black lung liability. As of result, the Company has determined our black lung benefit obligations is no longer considered a critical accounting estimate as it does not involve a significant level of estimation uncertainty that would likely have a material effect on our financial condition or results of operations. For further discussion of the DCMWC agreement, see “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Critical Accounting Policies and Estimates” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024.
Reworded paragraphs (20)
Previous wording
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” at the end of this Item 2.
Current wording
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.
Previous wording
(1)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.
Current wording
(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.
Previous wording
The following table sets forth amounts from the Consolidated Statements of Income for the three months ended March 31, 2025 and 2024, respectively:
Current wording
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:
Previous wording
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 months ended March 31, 2025 compared to the same prior year period, primarily driven by lower volumes due to challenging market conditions in the blast furnace coke spot market and the impact of the Granite City contract extension economics, as well as the impact of the pass-through of lower coal prices on our long-term, take-or-pay agreements.
Current wording
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.
Previous wording
Selling, General and Administrative Expenses. Selling, general and administrative expenses during the three months ended March 31, 2025 benefited from lower employee related expenses and lower expenses related to our legacy coal mining business.
Current wording
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.
Previous wording
Depreciation and Amortization Expense. Depreciation and amortization expense for the three months ended March 31, 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.
Current wording
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.
Previous wording
Interest Expense, Net. Interest expense, net, during the three months ended March 31, 2025 primarily benefited from higher interest income of $0.7 million as compared to the same prior year period.
Current wording
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.
Previous wording
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 below for both the definition of Adjusted EBITDA and the reconciliation from GAAP to the non-GAAP measurement.
Current wording
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.
Previous wording
(2)The pass-through of lower coal prices decreased sales and other operating revenue during the three months ended March 31, 2025. The impact of lower economics on the Granite City contract extension negatively impacted both sales and other operating revenue and Adjusted EBITDA during the current year period. Additionally, Adjusted EBITDA was negatively impacted by lower coal-to-coke yields on our long-term, take-or-pay agreements.
Current wording
(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.
Previous wording
(3)Energy and other during the three months ended March 31, 2025 increased due to favorable energy pricing and volumes.
Current wording
(4)Energy and other during the three and six months ended June 30, 2025 increased due to favorable energy pricing and volumes.
Previous wording
During the three months ended March 31, 2025, sales and other operating revenues, exclusive of intersegment sales, were $22.4 million, compared to $20.6 million, in the corresponding prior year period. Adjusted EBITDA, inclusive of the impact of intersegment transactions, during the three months ended March 31, 2025 was $13.7 million, compared to $13.0 million, in the corresponding prior year period. Logistics results during the three months ended March 31, 2025, as compared to the same prior year period reflect higher transloading volumes at CMT, partially offset by lower transloading pricing at CMT driven by the absence of an index price adjustment benefit.
Current wording
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.
Previous wording
During the three months ended March 31, 2025, sales and other operating revenue and Adjusted EBITDA were $7.8 million and $2.3 million, respectively, which was reasonably consistent with $8.3 million and$2.4 million, respectively, in the corresponding prior year period.
Current wording
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.
Previous wording
Corporate and Other Adjusted EBITDA represented a loss of $6.1 million and $8.9 million for the three months ended March 31, 2025 and 2024, respectively. The three months ended March 31, 2025 benefited from lower employee related expenses and lower expenses related to our legacy coal mining business.
Current wording
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.
Previous wording
(1)Reflects costs incurred related to potential mergers and acquisitions and the granulated pig iron project with U.S. Steel.
Current wording
(1)Reflects costs incurred related to the Phoenix Global acquisition and the granulated pig iron project with U.S. Steel.
Previous wording
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 credit facility (“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. As of March 31, 2025, we had $193.7 million of cash and cash equivalents and $350.0 million of borrowing availability under our Revolving Facility.
Current wording
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.
Previous wording
The following table sets forth a summary of the net cash provided by (used in) operating, investing and financing activities for the three months ended March 31, 2025 and 2024:
Current wording
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:
Previous wording
Net cash provided by operating activities increased by $15.8 million to $25.8 million for the three months ended March 31, 2025 as compared to $10.0 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 lower sales volumes, which was partially offset by higher coal inventory volumes. See Note 7 to our consolidated financial statements for further detail.
Current wording
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.
Previous wording
Net cash used in investing activities decreased by $10.5 million to $4.6 million for the three months ended March 31, 2025 as compared to $15.1 million in the corresponding prior year period. Both periods primarily reflect ongoing capital expenditures. Refer to Capital Requirements and Expenditures below for further detail.
Current wording
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.
Previous wording
Net cash used in financing activities increased by $2.2 million to $17.1 million for the three months ended March 31, 2025 as compared to $14.9 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 $1.9 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.
Current wording
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.
Previous wording
There have been no new accounting standards material to the Company that have been adopted during the three months ended March 31, 2025.
Current wording
There have been no new accounting standards material to the Company that have been adopted during the six months ended June 30, 2025.