SunCoke Energy, Inc. (SXC) | Investment Case

1. Company Snapshot

1.a. Company Description

SunCoke Energy, Inc.operates as an independent producer of coke in the Americas and Brazil.The company operates through three segments: Domestic Coke, Brazil Coke, and Logistics.

It offers metallurgical and thermal coal.The company also provides handling and/or mixing services to steel, coke, electric utility, coal producing, and other manufacturing based customers.In addition, it owns and operates five cokemaking facilities in the United States and one cokemaking facility in Brazil.

SunCoke Energy, Inc.was founded in 1960 and is headquartered in Lisle, Illinois.

Show Full description

1.b. Last Insights on SXC

SunCoke Energy's recent performance was positively driven by its Q4 2025 earnings release, which highlighted the company's excellent safety performance, with a Total Recordable Incident Rate (TRIR) of 0.55. The company also announced a 1-year extension of its cokemaking agreement with United States Steel. Furthermore, SunCoke Energy's executive leadership succession plan was announced, with Shantanu Agrawal set to succeed Mark W. Marinko as CFO. B. Riley Financial has a neutral rating on the stock with a price target of $9.00.

1.c. Company Highlights

Last Price	6.01
Change Percentage	-1.48%
Open	5.86
Previous Close	6.1
Market Cap ( Millions)	509
Volume	1570427
Year High	9.82
Year Low	5.52
M A 50	7.46
M A 200	7.74

FCF Yield	8.31%
Dividend Yield	7.99%
ROE	-6.66%
Debt / Equity	115.20%
Net Debt / EBIDTA	548.90%
Price To Book	0.86
Price Earnings Ratio	-11.64
Price To FCF	12.03
Price To sales	0.28
EV / EBITDA	10.15

2. SunCoke Energy's 2025 Earnings: A Mixed Bag

SunCoke Energy reported a net loss of $1 per share in Q4 2025 and $0.52 per share in FY 2025, largely attributed to one-time items such as a non-cash asset impairment charge and restructuring costs. However, the company's adjusted EBITDA for the full year came in at $219.2 million. The actual EPS for the quarter was $0.12, beating estimates of $0.1. Revenue growth is expected to decline by 1.4% next year. The company's guidance for 2026 expects consolidated adjusted EBITDA to be between $230 million and $250 million.

Publication Date: Feb -22

                                    📋 Highlights
                                    2025 Consolidated Adjusted EBITDA:
                                                $219.2 million despite lower terminal volumes and Algoma contract disruptions.
2026 EBITDA Guidance:
                                                $230–250 million, with Domestic Coke at $162–168 million and Industrial Services at $90–100 million.
2025 Net Loss:
                                                $1/share in Q4, $0.52/share full-year, driven by $4.5 million in one-time costs (impairment, restructuring).
Capital Allocation:
                                                $90–100 million CAPEX in 2026; focus on debt reduction and shareholder returns via free cash flow.
Algoma Contract Dispute:
                                                $10 million Q1 impact from turbine/weather; pursuing legal recovery of losses from breach.

                                

Segment Performance

The Domestic Coke segment was impacted by the Algoma breach of contract, while the Industrial Services segment showed some resilience. Katherine Gates, CEO, stated that SunCoke is pursuing all legal means to recover its losses from the Algoma breach, believing it has an enforceable contract. The company expects to prevail in the litigation.

Outlook and Guidance

For 2026, SunCoke expects consolidated adjusted EBITDA to be between $230 million and $250 million, with the Domestic Coke segment delivering adjusted EBITDA between $162 million and $168 million. The company anticipates CapEx in 2026 between $90 million and $100 million and expects 2026 operating cash flow to be between $230 million and $250 million.

Valuation and Dividend Yield

With a P/E Ratio of -12.05, P/B Ratio of 0.89, and EV/EBITDA of 5.64, the company's valuation appears reasonable. The Dividend Yield is 7.72%, indicating an attractive return for income investors. The Free Cash Flow Yield is 8.03%, suggesting the company generates sufficient cash to support its dividend payments.

Operational Highlights

The company's safety performance was notable, with a total recordable incident rate of 0.55. SunCoke plans to utilize its free cash flow to support its capital allocation priorities, including paying down its revolver balance and returning capital to shareholders. The company will host a virtual Investor Day to discuss recent developments and have one-on-one conversations.

Phoenix Global Acquisition

The acquisition of Phoenix Global is expected to contribute $60 million in annual EBITDA, with synergies of $5 million to $10 million. The company incurred one-time integration costs of $3.9 million in Q4 2025, related to site closure costs, and $0.6 million in transaction costs.

3. NewsRoom

SunCoke Energy (NYSE:SXC) Stock Price Down 7% on Analyst Downgrade

Feb -20

Source: defenseworld.net

SunCoke Energy, Inc. (SXC) Q4 2025 Earnings Call Transcript

Feb -17

Source: seekingalpha.com

Suncoke Energy, Inc. Announces 2025 Results and Provides Full-Year 2026 Guidance

Feb -17

Source: businesswire.com

14 Ideal 'Safer' Dividend Buys From 29 Of 69 February Graham Value All-Stars (GVAS)

Feb -06

Source: seekingalpha.com

SunCoke Energy (NYSE:SXC) Share Price Crosses Above Two Hundred Day Moving Average – Should You Sell?

Jan -30

Source: defenseworld.net

SunCoke Energy, Inc. Announces Fourth Quarter 2025 Earnings Date

Jan -29

Source: businesswire.com

SunCoke Energy, Inc. Announces Extension of Granite City Cokemaking Agreement

Jan -22

Source: businesswire.com

Alliance Resource Partners (NASDAQ:ARLP) versus SunCoke Energy (NYSE:SXC) Head-To-Head Survey

Jan -19

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.83%)

6. Segments

Domestic Coke

Expected Growth: 4.83%

SunCoke Energy's Domestic Coke segment growth of 4.83% is driven by increasing demand from steel manufacturers, favorable pricing, and operational efficiencies. Additionally, the company's strategic investments in logistics and transportation infrastructure have improved supply chain reliability, further supporting growth.

Logistics

Expected Growth: 4.83%

SunCoke Energy's Logistics segment growth of 4.83% is driven by increased demand for coal transportation services, strategic partnerships with major coal producers, and investments in infrastructure expansion, enabling efficient and cost-effective transportation of coal to domestic and international markets.

Brazil Coke

Expected Growth: 4.83%

Brazil Coke's 4.83% growth is driven by increasing demand from the steel industry, government investments in infrastructure, and rising exports. Additionally, SunCoke Energy's cost savings initiatives and operational efficiencies have contributed to the growth. Furthermore, the company's strategic partnerships and expansion into new markets have also boosted revenue.

7. Detailed Products

Metallurgical Coke

A type of coke used in blast furnaces to produce iron and steel

Thermal Coal

A type of coal used to generate electricity

Logistics and Handling Services

Services provided to manage and transport coal and coke products

Coal Mining

The process of extracting coal from the earth

8. SunCoke Energy, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for SunCoke Energy, Inc. is medium due to the availability of alternative energy sources such as natural gas and renewable energy.

Bargaining Power Of Customers

The bargaining power of customers for SunCoke Energy, Inc. is low due to the company's strong market position and limited customer concentration.

Bargaining Power Of Suppliers

The bargaining power of suppliers for SunCoke Energy, Inc. is medium due to the company's dependence on a few key suppliers and the availability of alternative suppliers.

Threat Of New Entrants

The threat of new entrants for SunCoke Energy, Inc. is low due to the high barriers to entry in the industry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry for SunCoke Energy, Inc. is high due to the competitive nature of the industry, with several major players competing for market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	44.51%
Debt Cost	8.58%
Equity Weight	55.49%
Equity Cost	9.77%
WACC	9.24%
Leverage	80.20%

11. Quality Control: SunCoke Energy, Inc. passed 5 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Natural Resource Partners

A-Score: 6.9/10

Value: 6.0

Growth: 5.6

Quality: 9.6

Yield: 9.0

Momentum: 3.5

Volatility: 8.0

1-Year Total Return ->

Dorian LPG

A-Score: 6.7/10

Value: 5.7

Growth: 6.8

Quality: 5.5

Yield: 10.0

Momentum: 7.0

Volatility: 5.3

1-Year Total Return ->

NACCO

A-Score: 6.2/10

Value: 7.9

Growth: 3.3

Quality: 6.2

Yield: 5.0

Momentum: 9.5

Volatility: 5.3

1-Year Total Return ->

SunCoke Energy

A-Score: 5.4/10

Value: 8.2

Growth: 5.0

Quality: 3.8

Yield: 9.0

Momentum: 1.0

Volatility: 5.7

1-Year Total Return ->

Ramaco Resources

A-Score: 5.4/10

Value: 7.0

Growth: 7.3

Quality: 3.2

Yield: 5.0

Momentum: 9.0

Volatility: 1.0

1-Year Total Return ->

Hallador Energy

A-Score: 3.8/10

Value: 5.5

Growth: 1.4

Quality: 3.6

Yield: 0.0

Momentum: 10.0

Volatility: 2.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

5.23%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

9.24%

SunCoke Energy, Inc. - US86722A1034

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on SXC

1.c. Company Highlights

Stable Momentum

Average Yield

Average Quality

Earnings Beats

Revenues Beats

Fairly Valued

Average Growth

Higher Yield

Medium Volatility

Earnings Miss

Cheaper

2. SunCoke Energy's 2025 Earnings: A Mixed Bag

Segment Performance

Outlook and Guidance

Valuation and Dividend Yield

Operational Highlights

Phoenix Global Acquisition

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.83%)

6. Segments

Domestic Coke

Expected Growth: 4.83%

Logistics

Expected Growth: 4.83%

Brazil Coke

Expected Growth: 4.83%

7. Detailed Products

Metallurgical Coke

Thermal Coal

Logistics and Handling Services

Coal Mining

8. SunCoke Energy, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: SunCoke Energy, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

6.01$

Current Price

6.01$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA