SunCoke Energy, Inc.

Previous 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.

Current wording

Operating results for the three months ended September 30, 2026 reflect one additional month of Phoenix Global results, the mix of contracted and non-contracted blast coke sales, favorable coal-to-coke yields, and higher terminals handling volumes, partially offset by lower volumes due to the shutdown of our Haverhill I cokemaking facility. Operating results for the nine months ended September 30, 2026 reflect seven additional months of Phoenix Global results, the mix of contracted and non-contracted blast coke sales, favorable coal-to-coke yields, and higher terminals handling volumes, 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.

Previous wording

Net income for the three months ended June 30, 2026 increased compared to the same prior year period driven by the favorable operating results discussed above, partially offset by higher interest expense due to higher Revolving Facility borrowings. Net income for the six months ended June 30, 2026 decreased compared to the same prior year period driven by higher depreciation and amortization expense as a result of the inclusion of Phoenix Global results and higher interest expense due to higher Revolving Facility borrowings, partially offset by the favorable operating results discussed above.

Current wording

Net income for the three months ended September 30, 2026 is consistent with the prior year period due to the favorable operating results discussed above and an insurance recovery from a 2023 flood event at our Jewell cokemaking facility, offset by the absence of an income tax benefit related to capital investment tax credits recognized in the prior year and higher depreciation and amortization expense as a result of the inclusion of Phoenix Global results. Net income for the nine months ended September 30, 2026 decreased compared to the same prior year period driven by the absence of an income tax benefit related to capital investment tax credits recognized in the prior year, higher interest expense due to higher Revolving Facility borrowings and higher depreciation and amortization expense as a result of the inclusion of Phoenix Global results, partially offset by the favorable operating results discussed above and an insurance recovery from a 2023 flood event at our Jewell cokemaking facility.

Previous 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:

Current wording

The following table sets forth amounts from the Consolidated Statements of Operations for the three and nine months ended September 30, 2026 and 2025, respectively:

Previous wording

Costs of Products Sold and Operating Expenses. Costs of products sold and operating expenses decreased slightly for the three months ended June 30, 2026 as compared to the prior year period driven by lower volumes as a result of the shutdown of our Haverhill I cokemaking facility and the pass-through of lower coal prices on our long-term, take-or-pay agreements, offset by the inclusion of Phoenix Global results. Costs of products sold and operating expenses increased for the six months ended June 30, 2026 as compared to the 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 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 decreased for the three months ended September 30, 2026 compared to the same prior year period, driven by lower volumes as a result of the shutdown of our Haverhill I cokemaking facility and the pass-through of lower coal prices on our long-term, take-or-pay agreements, mostly offset by one additional month of Phoenix Global results and higher terminals handling volumes. Sales and other operating revenue increased for the nine months ended September 30, 2026 compared to the same prior year period, driven by the inclusion of seven additional months of Phoenix Global results and higher terminals handling volumes, 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.

Previous 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.

Current wording

Costs of Products Sold and Operating Expenses. Costs of products sold and operating expenses decreased for the three and nine months ended September 30, 2026 compared to the same prior year periods driven by lower volumes as a result of the shutdown of our Haverhill I cokemaking facility and the pass-through of lower coal prices on our long-term, take-or-pay agreements, partially offset by one and seven additional months of Phoenix Global results, respectively.

Previous 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.

Current wording

Selling, General and Administrative Expenses. Selling, general and administrative expenses decreased during the three months ended September 30, 2026 as compared to the same prior year period driven by the absence of transaction costs related to the acquisition of Phoenix Global, partially offset by the inclusion of one additional month of Phoenix Global costs and higher employee-related costs. Selling, general and administrative expenses increased during the nine months ended September 30, 2026 as compared to the same prior year period reflecting the inclusion of seven additional months of Phoenix Global costs, higher employee-related costs and costs incurred associated with the shutdown of our Haverhill I cokemaking facility, partially offset by the absence of transaction costs related to the acquisition of Phoenix Global.

Previous 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.

Current wording

Depreciation and Amortization Expense. The increase to depreciation and amortization expense for the three and nine months ended September 30, 2026 as compared to the same prior year periods reflects the inclusion of one and seven additional months of Phoenix Global's expenses in the current year periods, respectively.

Previous 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.

Current wording

Interest Expense, Net. Interest expense, net, increased during the three and nine months ended September 30, 2026 as compared to the same prior year periods as a result of interest incurred on higher Revolving Facility borrowings.

Previous 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.

Current wording

Income Tax Expense. Income tax expense increased during the three and nine months ended September 30, 2026 compared to the same prior year periods as a result of the absence of an income tax benefit related to capital investment tax credits recognized in the prior year and higher pretax income. See Note 6 Income Taxes to our consolidated financial statements for further detail.

Previous wording

•Domestic Coke consists of our Jewell facility, located in Virginia, our Indiana Harbor facility, located in Indiana, our Granite City facility located in Illinois, and our Middletown and Haverhill facilities located in Ohio.

Current wording

•Domestic Coke consists of our Jewell facility, located in Virginia, our Indiana Harbor facility, located in Indiana, our Granite City facility located in Illinois, and our Middletown and Haverhill II facilities located in Ohio.

Previous wording

•Industrial Services consists of logistics terminals including CMT, located in Louisiana, KRT, located in West Virginia, and Lake Terminal, located in Indiana. Lake Terminal is located adjacent to our Indiana Harbor cokemaking facility. Additionally, Industrial Services includes fifteen molten slag removal, handling and processing operating sites across the United States, Brazil, Slovakia and Spain.

Current wording

•Industrial Services consists of logistics terminals including Convent Marine Terminal, located in Louisiana, Kanawha River Terminal, located in West Virginia, and Lake Terminal, located in Indiana. Lake Terminal is located adjacent to our Indiana Harbor cokemaking facility. Additionally, Industrial Services includes fifteen molten slag removal, handling and processing operating sites across the United States, Brazil, Slovakia and Spain.

Previous wording

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

Current wording

(1)Volumes during the three and nine months ended September 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 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.

Current wording

(2)The pass-through of lower coal prices decreased sales and other operating revenue during the three and nine months ended September 30, 2026. Adjusted EBITDA for the three and nine months ended September 30, 2026 increased due to favorable coal-to-coke yields and higher pricing driven by the mix of contracted and non-contracted blast coke sales in the current year period.

Previous 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.

Current wording

(3)Energy and other during the three months ended September 30, 2026 was consistent with the prior year period. Energy and other during the nine months ended September 30, 2026 decreased due to the turbine failure at our Middletown cokemaking facility, partially offset by favorable pricing during the current year period.

Previous 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.

Current wording

During the three and nine months ended September 30, 2026, sales and other operating revenues, exclusive of intersegment sales, were $96.8 million and $280.6 million, respectively, compared to $64.1 million and $101.6 million, respectively, in the corresponding prior year periods. Adjusted EBITDA, inclusive of the impact of intersegment transactions, during the three and nine months ended September 30, 2026 was $32.1 million and $92.7 million, respectively, compared to $18.2 million and $39.6 million, respectively, in the corresponding prior year periods. Industrial services results increased during the current year periods due to the inclusion of an additional one and seven months of Phoenix Global results, respectively, and higher terminals handling volumes.

Previous 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.

Current wording

Corporate and Other Adjusted EBITDA represented a loss of $6.3 million and $18.6 million, respectively, for the three and nine months ended September 30, 2026, compared to a loss of $3.1 million and $11.5 million, respectively, in the corresponding prior year periods. The three and nine months ended September 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 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.

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 recoveries, property insurance recoveries 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.

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. Additionally, other companies may calculate Adjusted EBITDA differently than we do, limiting its usefulness as a comparative measure.

Previous wording

(2)Reflects costs incurred related to the acquisition of Phoenix Global.

Current wording

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

Previous wording

(3)Reflects costs incurred associated with the shutdown of our Haverhill I cokemaking facility and the closure of certain Phoenix Global operating sites.

Current wording

(3)Reflects costs and recoveries associated with the shutdown of our Haverhill I cokemaking facility and the closure of certain Phoenix Global operating sites.

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 June 30, 2026, we had $42.7 million of cash and cash equivalents and $164.5 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 September 30, 2026, we had $57.6 million of cash and cash equivalents and $218.0 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 six months ended June 30, 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 nine months ended September 30, 2026 and 2025:

Previous 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.

Current wording

Net cash used in financing activities increased by $280.7 million to $127.8 million for the nine months ended September 30, 2026 as compared to net cash provided by financing activities of $152.9 million in the corresponding prior year period. The increase in net cash used in financing activities was primarily driven by net repayments of $86.0 million on the Revolving Facility in the current year period as compared to net borrowings of $199.0 million on the Revolving Facility in the prior year period, related to funding the acquisition of Phoenix Global. The increase in net cash used in financing activities in the current year period was partially offset by lower cash remittances of $1.9 million for taxes related to vestings on equity classified awards and debt issuance costs of $2.0 million related to the amendment and extension of the Revolving Facility in the prior year period.