SunCoke Energy, Inc.
For the period ended Dec 31, 2025. Filed Feb 20, 2026.
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FY2025 · Filed Feb 20, 2026
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14. Leases
- Leases
The Company's operating leases consist primarily of leases for land, office space, equipment, railcars and locomotives. The Company's finance leases consist primarily of equipment. Certain of our long-term leases includeone or more options to renew or to terminate, with renewal terms that can extend the lease term fromone month to 50 years.
The components of lease expense were as follows:
| Years ended December 31, | ||
|---|---|---|
| 2025 | 2024 | |
| (Dollars in millions) | ||
| Operating leases: | ||
| Cost of products sold and operating expenses | $2.4 | $2.4 |
| Selling, general and administrative expenses | 0.5 | 0.5 |
| Operating lease cost | $2.9 | $2.9 |
| Finance Leases: | ||
| Depreciation of Right of Use ("ROU") assets | $7.1 | 0.2 |
| Interest on lease liabilities | 0.3 | — |
| Finance lease cost | $7.4 | $0.2 |
| Short-term leases: | ||
| Cost of products sold and operating expenses(1)(2) | 9.6 | 5.5 |
| Total lease expense | $19.9 | $8.6 |
(1)Includes expenses for month-to-month equipment leases, which are classified as short-term as the Company is not reasonably certain to renew the lease term beyond one month.
(2)Includes variable lease expenses, which are immaterial to the consolidated financial statements.
Supplemental balance sheet information related to leases are as follows:
| Years ended December 31, | |||
|---|---|---|---|
| Financial Statement Classification | 2025 | 2024 | |
| (Dollars in millions) | |||
| Operating Leases: | |||
| Operating ROU assets | Deferred charges and other assets | $12.2 | $11.5 |
| Operating lease liabilities: | |||
| Current operating lease liabilities | Accrued liabilities | $2.8 | $2.4 |
| Noncurrent operating lease liabilities | Other deferred credits and liabilities | 8.9 | 8.5 |
| Total operating lease liabilities | $11.7 | $10.9 | |
| Finance Leases: | |||
| Finance ROU Assets | Properties, plants and equipment | $10.6 | $0.6 |
| Finance lease liabilities: | |||
| Current finance lease liabilities | Accrued liabilities | $3.8 | $0.3 |
| Long-term finance lease liabilities | Long-term finance lease liability | 2.6 | 0.2 |
| Total finance lease liabilities | $6.4 | $0.5 | |
The weighted average remaining lease term and weighted average discount rate were as follows:
| Years ended December 31, | ||
|---|---|---|
| 2025 | 2024 | |
| Weighted average remaining lease term of operating leases | 7.6 | 8.4 |
| Weighted average discount rate of operating leases | 5.3% | 5.0% |
| Weighted average remaining lease term of finance leases | 2.2 | 1.8 |
| Weighted average discount rate of finance leases | 5.6% | 6.4% |
Supplemental cash flow information related to leases was as follows:
| Years ended December 31, | ||
|---|---|---|
| 2025 | 2024 | |
| (Dollars in millions) | ||
| Operating cash flow information: | ||
| Cash paid for amounts included in the measurement of operating lease liabilities | $2.9 | $2.6 |
| Cash paid for amounts included in the measurement of finance lease liabilities(1) | $10.3 | $0.2 |
| Non-cash activity: | ||
| ROU assets obtained in exchange for new operating lease liabilities | $0.4 | $2.3 |
(1)The year ended December 31, 2025 includes $5.5 million of payments related to finance lease buyouts executed in the current year period.
Maturities of operating and finance lease liabilities as of December 31, 2025 are as follows:
| Operating Leases · Finance Leases | ||
|---|---|---|
| (Dollars in millions) | ||
| 2026 | $3.2 | 4.0 |
| 2027 | 2.4 | 1.3 |
| 2028 | 2.3 | 1.0 |
| 2029 | 2.0 | 0.4 |
| 2030 | 0.6 | 0.1 |
| 2031-Thereafter | 3.9 | — |
| Total lease payments | 14.4 | 6.8 |
| Less: imputed interest | 2.7 | 0.4 |
| Total lease liabilities | $11.7 | $6.4 |
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