SunCoke Energy, Inc.

Previous wording

Operating results for the three months ended March 31, 2026 reflect lower volumes due to the shutdown of our Haverhill I cokemaking facility as well as the impact of severe winter weather and lower energy revenues due to the turbine failure at our Middletown cokemaking facility. Operating results for the three months ended March 31, 2026 also include the results of Flame Aggregator, LLC (“Phoenix Global”). Operating cash flows during the current period primarily reflect favorable changes in primary working capital. See detailed analysis of the quarter's results throughout this MD&A.

Current wording

Operating results for the three and six months ended June 30, 2026 reflect favorable coal-to-coke yields and terminals handling volumes. These increases were partially offset by lower volumes due to the shutdown of our Haverhill I cokemaking facility and lower energy revenues due to the turbine failure at our Middletown cokemaking facility. Additionally, operating results for the six months ended June 30, 2026 were negatively impacted by lower pricing on our foundry sales. Operating results for the three and six months ended June 30, 2026 include the results of Phoenix Global.

Previous wording

The following table sets forth amounts from the Consolidated Statements of Operations for the three months ended March 31, 2026 and 2025, respectively:

Current wording

The following table sets forth amounts from the Consolidated Statements of Operations for the three and six months ended June 30, 2026 and 2025, 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 increased for the three months ended March 31, 2026 compared to the same prior year period, driven by the inclusion of Phoenix Global results. This increase was partially offset by lower volumes as a result of the shutdown of our Haverhill I cokemaking facility, lower blast coke sales volumes due to the impact of severe winter weather, lower energy revenues due to the turbine failure at our Middletown cokemaking facility and the pass-through of lower coal prices on our long-term, take-or-pay agreements.

Current wording

Sales and Other Operating Revenue. Sales and other operating revenue increased for the three and six months ended June 30, 2026 compared to the same prior year periods, driven by the inclusion of Phoenix Global results. These increases were partially offset by lower volumes as a result of the shutdown of our Haverhill I cokemaking facility, lower energy revenues due to the turbine failure at our Middletown cokemaking facility and the pass-through of lower coal prices on our long-term, take-or-pay agreements. Additionally, sales and other operating revenue for the six months ended June 30, 2026 was negatively impacted by lower pricing on our foundry sales.

Previous wording

Selling, General and Administrative Expenses. Selling, general and administrative expenses increased during the three months ended March 31, 2026 reflecting the inclusion of Phoenix Global costs and costs incurred associated with the shutdown of our Haverhill I cokemaking facility.

Current wording

Selling, General and Administrative Expenses. Selling, general and administrative expenses increased during the three and six months ended June 30, 2026 reflecting the inclusion of Phoenix Global costs, costs incurred associated with the shutdown of our Haverhill I cokemaking facility and higher employee-related costs.

Previous wording

Depreciation and Amortization Expense. The increase to depreciation and amortization expense for the three months ended March 31, 2026 reflects the inclusion of Phoenix Global's expense in the current year period.

Current wording

Depreciation and Amortization Expense. The increase to depreciation and amortization expense for the three and six months ended June 30, 2026 reflects the inclusion of Phoenix Global's expenses in the current year periods.

Previous wording

Interest Expense, Net. Interest expense, net, during the three months ended March 31, 2026 increased as a result of interest incurred on higher Revolving Facility borrowings.

Current wording

Interest Expense, Net. Interest expense, net, during the three and six months ended June 30, 2026 increased as a result of interest incurred on higher Revolving Facility borrowings.

Previous wording

Income Tax (Benefit) Expense. Income taxes were a benefit during the three months ended March 31, 2026 as a result of the pretax loss in the current year period, driven by the factors previously discussed, compared to pretax income in the comparative prior year period. See Note 5 Income Taxes to our consolidated financial statements for further detail.

Current wording

Income Tax Expense. Income tax expense increased during the three months ended June 30, 2026 compared to the same prior year period as a result of higher pretax income and decreased during the six months ended June 30, 2026 compared to the same prior year period due to lower pretax income, driven by the factors previously discussed. See Note 5 Income Taxes to our consolidated financial statements for further detail.

Previous wording

(1)Volumes during the three months ended March 31, 2026 decreased due to the shutdown of our Haverhill I cokemaking facility as well as lower blast coke sales volumes as a result of severe winter weather.

Current wording

(1)Volumes during the three and six months ended June 30, 2026 decreased due to the shutdown of our Haverhill I cokemaking facility.

Previous wording

(2)The pass-through of lower coal prices decreased sales and other operating revenue during the three months ended March 31, 2026. Sales and other operating revenue and Adjusted EBITDA for the three months ended March 31, 2026 decreased as a result of lower pricing on our foundry sales.

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, 2026. Adjusted EBITDA for the three and six months ended June 30, 2026 increased due to favorable coal-to-coke yields.

Previous wording

(3)Energy and other during the three months ended March 31, 2026 decreaseddue to the turbine failure at our Middletown cokemaking facility, which was partially offset by favorable pricing during the current year period.

Current wording

(3)Energy and other during the three and six months ended June 30, 2026 decreased due to the turbine failure at our Middletown cokemaking facility partially offset by favorable pricing during the current year periods.

Previous wording

During the three months ended March 31, 2026, sales and other operating revenues, exclusive of intersegment sales, were $85.4 million, compared to $22.4 million in the corresponding prior year period. Adjusted EBITDA, inclusive of the impact of intersegment transactions, during the three months ended March 31, 2026 was $26.2 million compared to $13.7 million in the corresponding prior year period. Industrial services results increased during the current year period due to the inclusion of Phoenix Global results, partially offset by lower transloading volumes.

Current wording

During the three and six months ended June 30, 2026, sales and other operating revenues, exclusive of intersegment sales, were $98.4 million and $183.8 million, respectively, compared to $15.1 million and $37.5 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, 2026 was $34.4 million and $60.6 million, respectively, compared to $7.7 million and $21.4 million, respectively, in the corresponding prior year periods. Industrial services results increased during the current year periods due to the inclusion of Phoenix Global results and favorable transloading volumes and pricing.

Previous wording

Corporate and Other Adjusted EBITDA represented a loss of $5.0 million for the three months ended March 31, 2026, compared to a loss of $3.8 million in the corresponding prior year period. The three months ended March 31, 2026 reflect higher employee related expenses.

Current wording

Corporate and Other Adjusted EBITDA represented a loss of $7.3 million and $12.3 million, respectively, for the three and six months ended June 30, 2026, compared to a loss of $4.6 million and $8.4 million, respectively, in the corresponding prior year periods. The three and six months ended June 30, 2026 reflect higher employee related expenses.

Previous wording

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, gains or losses on derivative instruments, site closure costs 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.

Current wording

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, gains or losses on foreign currency derivative instruments assumed as part of the acquisition of Phoenix Global, site closure costs 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.

Previous wording

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.

Current wording

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.

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 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, 2026, we had $104.4 million of cash and cash equivalents and $158.0 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. As of June 30, 2026, we had $42.7 million of cash and cash equivalents and $164.5 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, 2026 and 2025:

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, 2026 and 2025:

Previous wording

Net cash provided by operating activities increased by $46.9 million to $72.7 million for the three months ended March 31, 2026 as compared to $25.8 million in the corresponding prior year period. The increase primarily reflects favorable changes in primary working capital, which is comprised of accounts receivable, inventories, and accounts payable, driven by lower coal inventory volumes.

Current wording

Net cash provided by operating activities increased by $2.2 million to $45.5 million for the six months ended June 30, 2026 as compared to $43.3 million in the corresponding prior year period. Net cash provided by operating activities during the current period primarily reflects unfavorable changes in primary working capital driven by the timing of customer payments partially offset by lower coal inventory. Current period cash flows from operating activities also includes the results of Phoenix Global.

Previous wording

Net cash used in investing activities increased by $11.1 million to $15.7 million for the three months ended March 31, 2026 as compared to $4.6 million in the corresponding prior year period. The increase is primarily related to the inclusion of capital expenditures for Phoenix Global in the current year period. This increase was partially offset by $1.8 million received primarily related to the settlement of final working capital for the Phoenix Global acquisition during the current year period. Refer to “Capital Requirements and Expenditures” below for further detail.

Current wording

Net cash used in investing activities increased by $12.4 million to $29.6 million for the six months ended June 30, 2026 as compared to $17.2 million in the corresponding prior year period. The increase is primarily related to the inclusion of capital expenditures for Phoenix Global in the current year period. This increase was partially offset by $1.8 million received primarily related to the settlement of final working capital for the Phoenix Global acquisition during the current year period. Refer to “Capital Requirements and Expenditures” below for further detail.

Previous wording

Net cash used in financing activities increased by $24.2 million to $41.3 million for the three months ended March 31, 2026 as compared to $17.1 million in the corresponding prior year period. The increase in net cash used in financing activities was primarily driven by net repayments of $26.0 million on the Revolving Facility and an increase in repayments of finance lease liabilities of $1.8 million. These increases in the current year period were partially offset by lower cash distributions made to noncontrolling interests of $1.5 million as well as lower cash remittances of $2.0 million for taxes related to vestings on equity classified awards.

Current wording

Net cash used in financing activities increased by $32.4 million to $61.9 million for the six months ended June 30, 2026 as compared to $29.5 million in the corresponding prior year period. The increase in net cash used in financing activities was primarily driven by net repayments of $32.5 million on the Revolving Facility and an increase in repayments of finance lease liabilities of $2.8 million. These increases in the current year period were partially offset by lower cash remittances of $1.9 million for taxes related to vestings on equity classified awards.