SunCoke Energy Q3 Adjusted EBITDA rises 30% on higher terminals volumes

Overview

• U.S. coke producer's Q3 revenue was flat yr/yr

• Q3 net income attributable to SunCoke was stable yr/yr

• Adjusted EBITDA rose yr/yr, driven by higher terminals volumes and Phoenix contribution

Outlook

• Company expects to modestly exceed high end of $250 mln-$265 mln 2026 adj EBITDA guidance

• Company sees 2026 net income between $22 mln and $42 mln

• Company expects 2026 domestic coke sales of about 3.4 mln tons

Result Drivers

• TERMINALS VOLUMES & PHOENIX - Co said higher terminals handling volumes and full quarter of Phoenix contribution boosted Industrial Services segment

• SALES MIX & YIELDS - Co said Domestic Coke segment benefited from change in mix of contract and spot coke sales and favorable coal-to-coke yields

• HAVERHILL SHUTDOWN - Co said lower blast coke sales volumes due to Haverhill I shutdown weighed on revenues

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the iron & steel peer group is "buy"

• Wall Street's median 12-month price target for SunCoke Energy Inc is $9.50, about 3.2% below its October 26 closing price of $9.81

• The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 46 three months ago

Reuters Recommended Reads

• Oct 26 - Nucor beats Q3 sales estimates on steel mills unit growth

• Oct 26 - Steelmaker Gerdau's profit rises 40% in Q3 on strong North America operations

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)