LISLE, Ill.--(BUSINESS WIRE)--SunCoke Energy, Inc. (NYSE: SXC) (the "Company" or "SunCoke") today reported fourth quarter and full-year 2024 results, reflecting record safety performance and strong operational performance from our cokemaking and logistics businesses.

"2024 was another strong year for SunCoke, with our domestic coke fleet continuing to run at full capacity throughout the year. New domestic logistics business and higher API2 price adjustment at Convent Marine Terminal drove favorable results in the Logistics segment. Operational performance, coupled with the one-time gain from the elimination of the majority of our legacy black lung liabilities, resulted in full-year Adjusted EBITDA exceeding the high-end of our revised guidance range," said Katherine Gates, President and CEO of SunCoke Energy, Inc. "We achieved record safety performance in 2024, with an annual Total Recordable Incident Rate (TRIR) of 0.50. This best-in-class performance demonstrates the dedication and commitment of our employees, and I would like to thank them for their contributions. We made excellent progress growing our logistics business during the year, with the execution of a new coal handling agreement at Kanawha River Terminal and extension of the coal handling agreement at Convent Marine Terminal. Additionally, we continued to make progress on our capital allocation goals by increasing the quarterly dividend by 20 percent."

"Looking ahead to 2025, as previously announced, the Granite City cokemaking contract extension at lower economics will adversely impact financial results. Additionally, we anticipate lower margins on higher spot coke sales due to challenging market conditions, with a tepid steel demand outlook and oversupply in the seaborne coke market driving down coke pricing," Gates continued. "With a solid balance sheet and healthy cash flow generation, we are well positioned to navigate through this challenging steel industry cycle. Additionally, we will remain focused on executing against our well-established objectives of exceptional safety performance, operational excellence, and a balanced approach to capital allocation, including the anticipated continuation of the quarterly dividend. We are committed to positioning the Company for sustained success and delivering significant value to SunCoke stakeholders."

(1) See definition and reconciliation of Adjusted EBITDA elsewhere in this release.

CONSOLIDATED RESULTS

Revenues decreased during both the fourth quarter and full-year 2024 as compared to the same prior year periods, primarily reflecting the pass-through of lower coal costs in the Domestic Coke segment.

Net income attributable to SXC for the fourth quarter 2024 increased from the same prior year period, primarily driven by lower depreciation expense. Net income attributable to SXC for the full-year 2024 increased from the same prior year period, primarily driven by lower depreciation expense, the one-time gain of $9.5 million on the elimination of the majority of our legacy black lung liabilities resulting from the U.S. Department of Labor (DOL) exemption recorded in the third quarter of 2024, and lower income tax expense.

Fourth quarter 2024 Adjusted EBITDA increased as compared to the same prior year period, primarily driven by lower planned outage costs in the Domestic Coke segment and higher transloading volumes in the Logistics segment. Full-year 2024 Adjusted EBITDA increased as compared to the same prior year period, primarily driven by the one-time gain of $9.5 million on the elimination of the majority of our legacy black lung liabilities resulting from the DOL exemption recorded in the third quarter of 2024, higher transloading volumes at domestic logistics terminals, and higher API2 price adjustment benefit at CMT, partially offset by lower coal-to-coke yields on our long-term, take-or-pay contracts in the Domestic Coke segment.

SEGMENT RESULTS

Domestic Coke

Domestic Coke consists of cokemaking facilities and heat recovery operations at our Jewell, Indiana Harbor, Haverhill, Granite City and Middletown plants.

The decreases in revenues for both the fourth quarter and full-year 2024 as compared to the same prior year periods primarily reflect the pass-through of lower coal costs.

Fourth quarter 2024 Adjusted EBITDA increased as compared to the same prior year period, primarily driven by lower planned outage costs. Full-year 2024 Adjusted EBITDA decreased as compared to the same prior year period primarily driven by lower coal-to-coke yields on our long-term, take-or-pay contracts.

Logistics

Logistics consists of the handling and mixing services of coal and other aggregates at our Convent Marine Terminal (“CMT”), Lake Terminal, and Kanawha River Terminals (“KRT”).

The increases in revenues and Adjusted EBITDA for the fourth quarter and full-year 2024 as compared to the same prior year periods were driven by higher transloading volumes at domestic logistics terminals and higher API2 price adjustment benefit at CMT.

Brazil Coke

Brazil Coke consists of a cokemaking facility in Vitória, Brazil, which we operate for an affiliate of ArcelorMittal.

Revenues and Adjusted EBITDA for the fourth quarter and full-year 2024 were reasonably consistent with the same prior year periods.

Corporate and Other

Corporate expenses that can be identified with a segment have been included in determining segment results. The remainder is included in Corporate and Other, which is not a reportable segment.

We will host our quarterly earnings call at 11:00 am ET today. The conference call will be webcast live at https://event.choruscall.com/mediaframe/webcast.html?webcastid=6xIbD7GY and archived for replay in the Investors section of www.suncoke.com. Investors and analysts may participate in this call by dialing 1-866-652-5200 in the U.S. or 1-412-902-6510 if outside the U.S., and asking to be joined into the SunCoke Energy, Inc call.

SUNCOKE ENERGY, INC.

SunCoke Energy, Inc. (NYSE: SXC) supplies high-quality coke to domestic and international customers. Our coke is used in the blast furnace production of steel as well as the foundry production of cast iron, with the majority of sales under long-term, take-or-pay contracts. Our logistics business provides export and domestic material handling services to coke, coal, steel, power, and other bulk customers.

SunCoke routinely announces material information to investors and the marketplace using press releases, Securities and Exchange Commission filings, public conference calls, webcasts, and SunCoke's website at www.suncoke.com.

NON-GAAP FINANCIAL MEASURES

In addition to U.S. GAAP measures, this press release contains certain non-GAAP financial measures. These non-GAAP financial measures should not be considered as alternatives to the measures derived in accordance with U.S. GAAP. Reconciliations to the most comparable GAAP financial measures are included following the presentation of financial and operating results included at the end of this press release.

FORWARD-LOOKING STATEMENTS

This press release and related conference call contain “forward-looking statements” (as defined in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended). Forward-looking statements often may be identified by the use of such words as "believe," "expect," "plan," "project," "intend," "anticipate," "estimate," "predict," "potential," "continue," "may," "will," "should," or the negative of these terms, or similar expressions.

For more details on financial statements and cash flow summaries, please refer to the related financial tables.