SunCoke Energy, Inc. Q1 FY2026 earnings call

• Pleased with first quarter performance, delivering consolidated adjusted EBITDA of $56.5 million. • Industrial services business performed well with sequential improvement in terminals handling volumes and Phoenix performing to expectations. • Co-plants impacted by severe winter weather and Middletown turbine failure. • Announced a quarterly dividend of $0.12 per share payable on June 2, 2026, 27th consecutive quarter. • Strong operating cash flow generation of $72.7 million and ended the quarter with ample liquidity of $262 million. • Running at full capacity and sold out for the full year. • Confident of achieving full year 2026 consolidated adjusted EBITDA within $230 to $250 million guidance range. • Safety is first priority, excellent safety performance continued into 2026. • Confident in operations for 2026 with profitable long-term Coke business underpinned by Indiana Harbor, Middletown and Jewel Foundry. • Haverhill 2 and Granite City Coke making contracts extended, all spot blast and foundry Coke sales finalized and sold out for full year. • Positive outlook for industrial services segment with full year of Phoenix adjusted EBITDA contribution and improvement in market conditions at terminals. • Focus on utilizing free cash flow to support capital allocation priorities, including paying down revolver balance and returning capital via dividends.

Domestic Coke Business: First quarter domestic coke adjusted EBITDA was $35.3 million and coke sales volumes were 842,000 tons compared to $49.9 million and 898,000 tons in the prior year period. The decrease was primarily driven by severe winter weather impacting operations, lower power sales due to the turbine failure at Milltown and lower coke sales volume due to the Haverhill 1 shutdown. Reaffirms full-year domestic coke adjusted EBITDA guidance of $162 to $168 million. Industrial Services Segment: Generated $26.2 million of adjusted EBITDA in the first quarter of 2026, compared to $13.7 million in the prior year period. The increase was primarily driven by the addition of Phoenix results, partially offset by a change in mix of products handled at the terminals. First quarter total terminal handling volumes were 5.6 million tons. Reaffirms full year 2026 industrial services adjusted EBITDA guidance range of $90 to $100 million.

• Reaffirms full-year 2026 consolidated adjusted EBITDA within guidance range of $230 to $250 million. • Reaffirms full-year domestic coke adjusted EBITDA guidance of $162 to $168 million. • Reaffirms full year 2026 industrial services adjusted EBITDA guidance range of $90 to $100 million. • Expect Middletown turbine to resume power production late in the second quarter, expecting improvement in performance from Q3 and Q4.

Q: Within the domestic Coke segment, adjusted EBITDA per ton was roughly $42.00 below the $48 to $50 per ton four-year guidance. What was the main driver or drivers?

A: Main drivers were winter weather impact to operations and Middletown turbine impact, roughly $10 million off versus run rate, with Middletown turbine expected to be back in late Q2 leading to improvement in Q3 and Q4.

Q: Shifting to the industrial segments, revenues flat to slightly down quarter over quarter. Any cost savings or efficiency gains?

A: Improvement in terminal volumes expected to continue, Phoenix synergies to come through with some drag costs now but expected to improve, SG&A difference due to 2025 vs 2026 bonus accrual with Q1 2026 being run rate for rest of year.

Q: To what extent could logistics terminals be a beneficiary of the Section 303 DPA determination on coal supply chains and export terminals? Could you guys pursue potential DOD funding?

A: Market improving throughout the year, but not seen as drivers to additional growth throughput necessarily, market driven by international demand for coal.

Q: Given the conflict in the Middle East, seen sizable increase in export thermal tons?

A: Seeing higher pricing leading to higher demand, with higher demand due to conflict and focus on coal, no signs of weakening.