SunCoke Energy, Inc.
For the period ended Mar 31, 2026. Filed Apr 30, 2026.
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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.
Mar 31, 2026 · Filed Apr 30, 2026
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11. Business Segment Information
- Business Segment Information
Prior to the acquisition of Phoenix Global, the Company consisted ofthree reportable segments, Domestic Coke, Brazil Coke and Logistics. Following the acquisition, the Company has concluded the Phoenix Global operating segment will be included in a reportable segment, Industrial Services, with the Logistics operating segment. The decision to aggregate results from the similarities between the two businesses including, providing material handling services to industrial manufacturing customers under long-term contracts or annual purchase orders, similar economic characteristics, similar equipment and labor force as well as similar types and often overlapping customers. Additionally, the Company historically elected to present the Brazil cokemaking operations as a separate reportable segment without it meeting the quantitative thresholds requiring separate segment reporting. The Company reassessed this election and will no longer present the Brazil cokemaking operations as a separate reportable segment. Based on the materiality of the Brazil cokemaking operations, Brazil Coke is included in “Corporate and Other.” Following these changes, the Company now consists oftwo reportable segments, Domestic Coke and Industrial Services. Accordingly, the Company has recast all segment information for all prior periods presented herein to reflect this change.
Corporate expenses that can be identified with a segment have been included in determining segment results. The remainder is included in Corporate and Other, which is not a reportable segment, but which also includes licensing and operating fees payable to us under long-term contracts with ArcelorMittal Brazil as well as the expenses related to those operations and activity from our legacy coal mining business.
Segment assets are those assets utilized within a specific segment.
In considering the financial performance of the business, the Chief Operating Decision Maker (“CODM”), who is the Company’s President and Chief Executive Officer, evaluates the performance of its segments based on Adjusted EBITDA reportable segments, which is defined as earnings before interest, taxes, depreciation and amortization, adjusted for any impairments, restructuring costs, gains or losses on extinguishment of debt, gains or losses on derivative instruments, site closure costs, transaction costs, and/or corporate/other expenses (“Adjusted EBITDA reportable segments”). The CODM uses this measure to help determine the allocation of costs and resources to our reportable segments. Additionally, other companies may calculate Adjusted EBITDA reportable segments differently than we do, limiting its usefulness as a comparative measure.
The following tables include Adjusted EBITDA reportable segments, as defined above, which is a measure of segment profit or loss reported to the CODM for purposes of allocating resources to the segments and assessing their performance.
| (Dollars in millions) | ||||
|---|---|---|---|---|
| Domestic Coke · Industrial Services · Total | ||||
| Sales and other operating revenue | $361.7 | $85.4 | $447.1 | |
| Intersegment revenues | — | 5.5 | 5.5 | |
| Net revenues | 361.7 | 90.9 | 452.6 | |
| Reconciliation of revenue | ||||
| Corporate and Other | 8.0 | |||
| Elimination of intersegment revenues | (5.5) | |||
| Total consolidated revenues | 455.1 | |||
| Less:(1) | ||||
| Operating and maintenance expense | 74.8 | 55.8 | ||
| Cost of products sold and other expenses(2) | 245.4 | — | ||
| Selling, general and administrative expenses | 6.2 | 8.9 | ||
| Adjusted EBITDA reportable segments | 35.3 | 26.2 | 61.5 | |
| Depreciation and amortization expense | 44.9 | |||
| Interest expense, net(3) | 8.7 | |||
| Loss on derivative forward contracts | 0.3 | |||
| Restructuring costs(4) | 0.3 | |||
| Site closure costs(5) | 6.4 | |||
| Other corporate expenses(6) | 5.2 | |||
| Loss before income tax benefit | $(4.3) | |||
(1)The significant expense categories and amounts align with segment-level information that is regularly provided to the CODM.
(2)Cost of products sold and other expenses includes coal and transportation costs.
(3)Interest expense, net of $8.7 million reflects (i) consolidated interest expense of $9.9 million and (ii) consolidated interest income of $1.2 million.
(4)Restructuring costs include severance and other related charges primarily associated with the acquisition of Phoenix Global within the Industrial Services reportable segment.
(5)Reflects costs incurred associated with the shutdown of our Haverhill I cokemaking facility within the Domestic Coke reportable segment and the closure of certain Phoenix Global operating sites within the Industrial Services reportable segment.
(6)Other corporate expenses represents business expenses not allocated to the Company’s reportable segments as well as the Company's Brazil cokemaking operations and are included in Corporate, which is not a reportable segment.
| (Dollars in millions) | ||||
|---|---|---|---|---|
| Domestic Coke · Industrial Services · Total | ||||
| Sales and other operating revenue | $405.8 | $22.4 | $428.2 | |
| Intersegment revenues | — | 5.6 | 5.6 | |
| Net revenues | 405.8 | 28.0 | 433.8 | |
| Reconciliation of revenue | ||||
| Corporate and Other | 7.8 | |||
| Elimination of intersegment revenues | (5.6) | |||
| Total consolidated revenues | 436.0 | |||
| Less:(1) | ||||
| Operating and maintenance expense | 71.1 | 14.0 | ||
| Cost of products sold and other expenses(2) | 277.9 | — | ||
| Selling, general and administrative expenses | 6.9 | 0.3 | ||
| Adjusted EBITDA reportable segments | 49.9 | 13.7 | 63.6 | |
| Depreciation and amortization expense | 28.8 | |||
| Interest expense, net(3) | 5.2 | |||
| Other corporate expenses(4) | 4.6 | |||
| Income before income tax expense | $25.0 | |||
(1)The significant expense categories and amounts align with segment-level information that is regularly provided to the CODM.
(2)Cost of products sold and other expenses includes coal and transportation costs.
(3)Interest expense, net of $5.2 million reflects (i) consolidated interest expense of $6.8 million and (ii) consolidated interest income of $1.6 million.
(4)Other corporate expenses represents business expenses not allocated to the Company’s reportable segments as well as the Company's Brazil cokemaking operations and are included in Corporate, which is not a reportable segment.
The following table sets forth the Company’s depreciation and amortization expense as well as its capital expenditures:
| Three Months Ended March 31, | ||
|---|---|---|
| 2026 | 2025 | |
| (Dollars in millions) | ||
| Depreciation and amortization expense: | ||
| Domestic Coke | $24.2 | $25.1 |
| Industrial Services | 20.1 | 3.1 |
| Total reportable segments | $44.3 | $28.2 |
| Corporate and Other | 0.6 | 0.6 |
| Total depreciation and amortization expense | $44.9 | $28.8 |
| Capital expenditures: | ||
| Domestic Coke | $7.2 | $2.1 |
| Industrial Services | 9.3 | 2.7 |
| Total reportable segments | $16.5 | $4.8 |
| Corporate and Other | 0.5 | 0.1 |
| Total capital expenditures | $17.0 | $4.9 |
The following table sets forth the Company's segment assets:
| March 31, 2026 | December 31, 2025 | |
|---|---|---|
| (Dollars in millions) | ||
| Segment assets: | ||
| Domestic Coke | $1,133.2 | $1,174.5 |
| Industrial Services | 527.9 | 544.3 |
| Total reportable segments | $1,661.1 | $1,718.8 |
| Corporate and Other | 73.4 | 71.1 |
| Total assets | $1,734.5 | $1,789.9 |
The following table sets forth the Company's segment assets disaggregated by domestic and international:
| March 31, 2026 | December 31, 2025 | |
|---|---|---|
| (Dollars in millions) | ||
| Assets: | ||
| Domestic | $1,594.8 | $1,650.9 |
| International | 139.7 | 139.0 |
| Total assets | $1,734.5 | $1,789.9 |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.