SunCoke Energy (SXC) Q2 2024 earnings summary

Executive summary

• Consolidated Adjusted EBITDA for Q2 2024 was $63.5 million, reflecting strong operational performance in coke and logistics, with domestic plants running at or near full capacity and logistics terminals handling 6 million tons.

• Quarterly dividend increased by 20% to $0.12 per share, effective September 3, 2024, highlighting business stability and confidence in cash flow.

• Net income attributable to shareholders was $21.5 million ($0.25 per share), up year-over-year, driven by lower depreciation, tax, and interest expenses.

• All spot blast and foundry coke sales for 2024 have been finalized, and new business at domestic logistics terminals drove record first-half volumes.

• Revenues declined to $470.9 million from $534.4 million in Q2 2023, mainly due to lower blast coke sales volumes and lower coal prices.

Financial highlights

• Q2 2024 Adjusted EBITDA was $63.5 million, down from $74.0 million in Q2 2023, mainly due to lower blast coke sales volumes and lower API 2 price adjustment benefit.

• Domestic Coke Adjusted EBITDA was $57.9 million with sales volumes of 973,000 tons; Adjusted EBITDA per ton was $59.51.

• Logistics Adjusted EBITDA was $12.2 million, up from $11.7 million in Q2 2023, with throughput volumes of 6 million tons.

• Brazil Coke contributed $2.5 million in Adjusted EBITDA for Q2 2024, stable year-over-year.

• Q2 2024 cash and cash equivalents were $81.9 million, with $350 million revolver capacity, totaling $431.9 million in liquidity.

Outlook and guidance

• Expect to achieve the high end of full-year consolidated Adjusted EBITDA guidance of $240 million–$255 million.

• Domestic Coke sales ton guidance remains at approximately 4.1 million tons, with Adjusted EBITDA guidance of $238 million–$245 million.

• Logistics segment expected to exceed full-year 2024 Adjusted EBITDA and volume guidance.

• Full-year operating cash flow guidance reaffirmed at $185 million–$200 million; capital expenditures projected at $75 million–$80 million.

• 2024 consolidated net income expected between $67 million and $84 million.