SunCoke Energy (NYSE:SXC) reported third-quarter 2026 consolidated adjusted EBITDA of $76.9 million, up $17.8 million from the prior-year period, as both its Domestic Coke and Industrial Services segments posted stronger results. The company said it now expects to modestly exceed the high end of its full-year adjusted EBITDA guidance range of $250 million to $265 million.
Net income attributable to SunCoke was $0.25 per share for the quarter, down $0.01 from the prior-year period. Senior Vice President and Chief Financial Officer Shantanu Agrawal said operating improvements and insurance recoveries tied to the 2023 Jewell flood event were offset by the absence of capital investment tax credits recorded in the third quarter of 2025.
“Excluding that item, the underlying earnings performance improved materially,” Agrawal said.
Domestic Coke Results Benefit From Sales Mix and Yields
Domestic Coke adjusted EBITDA rose to $51.1 million in the third quarter from $44 million a year earlier. Coke sales volumes declined to 875,000 tons from 951,000 tons, reflecting the shutdown of Haverhill I.
Agrawal said the segment’s higher earnings were driven primarily by a more favorable mix of contract and spot coke sales, as well as favorable coal-to-coke yields. Those benefits were partly offset by lower sales volumes.
During the question-and-answer session, Agrawal said the contract-versus-spot sales mix was the larger factor in the year-over-year improvement in EBITDA per ton. He also noted that coal-to-coke yields tend to be stronger in the second and third quarters than in the colder, wetter first and fourth quarters.
The company said it is positioned to achieve the high end of its full-year Domestic Coke adjusted EBITDA guidance range of $172 million to $178 million. President and Chief Executive Officer Katherine Gates said SunCoke has finalized its spot blast and foundry coke sales and is sold out for the full year. The company’s long-term coke business is supported by its Indiana Harbor, Middletown and Jewell Foundry operations, she said.
Industrial Services Earnings Increase on Phoenix, Terminal Volumes
Industrial Services adjusted EBITDA increased to $32.1 million from $18.2 million in the third quarter of 2025. The increase reflected an additional month of results from Phoenix compared with the prior-year period and higher terminal handling volumes.
Third-quarter terminal handling volumes totaled 6.4 million tons, while steel customer volume serviced was 5.9 million tons. SunCoke now expects Industrial Services adjusted EBITDA to exceed the high end of its prior full-year guidance range of $110 million to $115 million.
Agrawal cautioned that Industrial Services is the company’s most variable business, with performance influenced by steel-mill operating rates and bulk-product volumes moving through U.S. waterways. He said the company expects full-year terminal and Phoenix volumes to exceed the 24 million tons and 22 million tons, respectively, outlined at the start of the year.
However, he said fourth-quarter Industrial Services results are expected to be closer to first-quarter levels, or between first- and third-quarter levels, as steel mills generally slow during the Thanksgiving and Christmas holiday periods. Agrawal also said SunCoke is receiving a price-related kicker at Convent under its revised New Orleans price-based mechanism.
Algoma Settlement and Insurance Developments
SunCoke said it executed a settlement agreement in October related to its 2025 claim against Algoma Steel. Gates said the company was “made whole,” though she declined to disclose the financial terms because the agreement is confidential.
According to Gates, the impact of the company’s actions to mitigate the rejected contract and the settlement itself are fully reflected in SunCoke’s 2026 guidance. Agrawal said the settlement, along with operating performance, supports the company’s expectation to modestly exceed its adjusted EBITDA guidance range.
SunCoke received $8.7 million in insurance recoveries related to the 2023 Jewell flood event, including $6.9 million received during the third quarter. Agrawal said $1.8 million of the total recovery was included in adjusted EBITDA, while the balance was primarily related to property damage and excluded from that measure.
Gates said the company’s turbine at Middletown returned to service in May, but the related insurance claims process may not be completed until early 2027. Potential insurance proceeds from that claim are not included in SunCoke’s guidance. If payment is received during 2026, Gates said the company would “significantly exceed” the high end of its guidance range.
Cash Flow, Debt Reduction and Dividend
SunCoke ended the third quarter with approximately $276 million of liquidity and gross leverage of 2.34 times trailing 12-month adjusted EBITDA. Cash provided by operating activities totaled $94.8 million during the quarter.
The company used $53.5 million to reduce its revolver balance, spent $20.9 million on capital expenditures and paid $10.1 million in dividends. SunCoke raised its full-year free cash flow outlook to $180 million to $185 million, including the impact of the Algoma settlement.
SunCoke also declared a quarterly dividend of $0.12 per share, payable Dec. 1, 2026. Gates said the payment marks the company’s 29th consecutive quarterly dividend. While the dividend is reviewed quarterly by the board, she said the company expects it to remain part of its capital-allocation strategy alongside debt repayment and investment in profitable growth opportunities.
Looking toward 2027, Gates said SunCoke is in active discussions regarding the Javelin contract at CMT and its contract with U.S. Steel Nippon at Granite City Works, both of which are scheduled to expire in December 2026. She said the company expects to move forward with both parties, while noting it could not provide additional details.
About SunCoke Energy (NYSE:SXC)
SunCoke Energy, Inc (NYSE:SXC) is a producer of metallurgical coke, a carbon-based fuel and reducing agent used in blast-furnace steelmaking. The company converts coal into coke through high-temperature processing and captures the resulting heat to generate energy, which can support its facilities and be sold to customers.
SunCoke operates coke-making facilities and related coal-handling, storage and logistics assets, primarily serving integrated steel producers in the United States. Its operations are designed to provide customers with a consistent supply of coke while also generating electricity and recovering other byproducts from the coke-production process.
The company was separated from Sunoco and became a publicly traded company in 2011.
