SunCoke raises adjusted earnings by $17.8 million despite third-quarter revenue decline
Key Facts
SunCoke Energy reported adjusted EBITDA of $76.9 million in the third quarter of 2026, up $17.8 million from the same period a year earlier, despite lower revenue and net income attributable to the company’s shareholders. Revenue was $485.9 million in the quarter ended September 30, compared with $487.0 million a year earlier. Net income attributable to SunCoke was $21.8 million, or $0.25 per diluted share, compared with $22.2 million and $0.26 per share in the third quarter of 2025. Total net income was $23.8 million, unchanged from the same period. The company said the year-over-year revenue decline was $1.1 million, partially offset by an additional month of Phoenix results and higher terminal throughput.
SunCoke attributed the increase in adjusted earnings mainly to an additional month of Phoenix’s contribution, an improved mix of contract and spot coke sales, a higher coal-to-coke yield, and increased terminal throughput volumes. Chief Executive Katherine Gates said the Industrial Services segment benefited from higher terminal throughput and Phoenix’s contribution throughout the quarter, compared with a partial contribution in the same period a year earlier. The company said lower coke sales following the closure of the Haverhill I facility limited earnings growth. Domestic Coke segment sales volumes fell to 875 thousand tons from 951 thousand tons a year earlier. Still, its adjusted EBITDA rose to $51.1 million from $44.0 million, while the metric per ton increased to $58.40 from $46.27.
In the Industrial Services segment, revenue rose to $96.8 million in the third quarter from $64.1 million a year earlier, and adjusted EBITDA increased to $32.1 million from $18.2 million. The company linked the improvement to higher terminal throughput and Phoenix’s contribution throughout the quarter. SunCoke completed its acquisition of Phoenix Global on August 1, 2025, for $325 million. At the time, it said the deal expanded its business into electric arc furnace services and international markets. The addition of another month of Phoenix results explains part of the year-over-year improvement, alongside increased terminal activity.
On Algoma Steel, SunCoke said it reached a settlement agreement in October 2026 related to its 2025 claim, without disclosing the settlement amount or terms. The chief executive said during the earnings call that the company had resolved its claim, while the settlement terms remained confidential. The claim stemmed from SunCoke notifying Algoma at the end of the third quarter of 2025 of a contract breach and Algoma’s refusal to accept additional tons of coke, according to SunCoke’s annual report. The company said in the report that it was seeking to enforce the contract and recover financial losses. The settlement announcement does not include financial details that would make it possible to determine its impact on results.
SunCoke raised its annual adjusted EBITDA guidance range to $250–265 million in its second-quarter update and estimated 2026 operating cash flow at between $240 and $260 million. After reporting third-quarter results, the company said it expects to slightly exceed the upper end of the adjusted EBITDA range. The declared cash dividend was $0.12 per share, the 29th consecutive quarterly dividend, payable on December 1, 2026. The company held its third-quarter earnings call on October 27, 2026, at 11 a.m. Eastern time. In premarket trading that day, Investing.com reported the stock was up about 9.8% and said earnings per share and revenue beat analysts’ estimates; SXC shares then closed at $10.59, compared with $9.81 on October 26, while Algoma shares, listed under the ticker ASTL, closed at $4.8, compared with $4.86.