SunCoke's Terminal Surge Powers Q2 Beat and Raised Guidance
Geopolitical tailwinds and Phoenix integration drive a sharp improvement, sending shares up over 50% in 90 days.
SXC · Earnings Call · 2026-07-30
A Strong Rebound
After a weather- and turbine-plagued start to the year, SunCoke delivered an impressive second quarter. Consolidated adjusted EBITDA came in at $69.6 million, up from $43.6 million a year ago, and the company raised its full-year 2026 guidance to $250–265 million. Catherine Gates said, “We're very pleased with our second quarter results with strong consolidated adjusted EBITDA of $69.6 million.” — Sharon Doyle, Unknown · 2026-07-30 The improvement was broad-based, but the standout was the Industrial Services segment, which posted its best adjusted EBITDA since the Phoenix acquisition.Terminal Volumes: The Surprise Driver
Terminal handling volumes jumped nearly 20% sequentially to 6.7 million tons, propelled by higher international coal prices and supply-chain concerns tied to the conflict in Iran. As Shantanu Agrawal noted: “this was really an extraordinary quarter for the terminals... I think that there's supply chain concern and energy concern with respect to the war in Iran that's probably driving some of these prices higher.” — Shantanu Agrawal, Senior Vice President and Chief Financial Officer · 2026-07-30 The segment is now expected to deliver $110–115 million in adjusted EBITDA this year, up from prior guidance.Coke and Phoenix: On Track
The domestic coke segment benefited from favorable coke yields, and the Middletown turbine returned to service in May. “The increase in adjusted EBITDA was primarily driven by the addition of Phoenix, higher terminal handling volumes, and favorable cold to coke yields, partially offset by lower Coke sales volumes due to the Haverhill One shutdown.” — Shantanu Agrawal, Senior Vice President and Chief Financial Officer · 2026-07-30 Phoenix, acquired in 2025, is on track to achieve its $60–61 million baseline plus the expected $5–10 million synergies.While the company still faces challenges—net income was slightly negative due to one-time items—free cash flow remains strong. At $55 million in the quarter, free cash flow (less SBC) more than doubled year-over-year, underwriting the company's ability to maintain its dividend and pay down debt. The recent 90-day stock move of +54.8% reflects the market's recognition of this operational turnaround. With the company sold out for the year and terminal volumes potentially benefiting from ongoing geopolitical disruptions, the setup remains favorable. As Shantanu noted in the prior call, “the two main factors of us performing lower versus kind of our full year guidance is the winter weather impact to our operations and the Middletown turbine impact” — Shantanu Agrawal, Senior Vice President and Chief Financial Officer · 2026-04-30—both of which are now behind the company. And as Katherine reminded investors earlier this year, “We are very excited about having the EAF exposure... we see opportunities with our technical and our engineering teams to look to the customers and expand the suite of services” — Katherine T. Gates, President and Chief Executive Officer · 2025-07-30—a clear signal of continued growth potential.With a solid outlook through the second half of the year, we are increasing our full year 2026 consolidated adjusted EBITDA guidance range to $250 to $265 million.