SunCoke Energy (SXC) Q4 2024 earnings summary

Executive summary

• Achieved record safety performance in 2024 with a TRIR of 0.5, highlighting safety as a top priority.

• Delivered consolidated Adjusted EBITDA of $272.8 million for 2024, exceeding the high end of guidance, driven by strong logistics performance and a one-time gain from eliminating most legacy black lung liabilities.

• Generated $96 million in free cash flow, surpassing guidance, and increased quarterly dividend by 20% to $0.12 per share.

• Coke plants operated at full capacity, selling all non-contracted tons into foundry and spot blast coke markets; logistics segment benefited from new contracts and customer additions.

• Extended Granite City coke-making contract through June 2025 at lower economics, with an option for further extension.

Financial highlights

• Full year 2024 net income was $95.9 million ($1.12 per share), up $0.44 from 2023, mainly due to lower depreciation, a one-time DOL gain, and lower income tax expense.

• Consolidated Adjusted EBITDA for 2024 was $272.8 million, up $4 million from 2023.

• Operating cash flow reached $168.8 million, with capital expenditures at $72.9 million, below guidance.

• Ended 2024 with $189.6 million in cash and $350 million revolver fully available, totaling $540 million in liquidity.

• 2024 revenues were $1,935.4 million, down from $2,063.2 million in 2023, mainly due to lower coal costs passed through in Domestic Coke.

Outlook and guidance

• 2025 consolidated Adjusted EBITDA expected between $210 million and $225 million, reflecting lower margins in Domestic Coke and logistics segments and absence of the 2024 black lung gain.

• Domestic Coke Adjusted EBITDA projected at $185–$192 million, with 4 million tons in sales, including 3.3 million under long-term contracts.

• Logistics Adjusted EBITDA expected at $45–$50 million, with increased domestic volumes but no index-based price benefit assumed.

• CapEx for 2025 guided at $65 million, below the typical $75–$80 million run rate, due to completion of major projects.

• Free cash flow for 2025 expected between $100 million and $115 million.