SunCoke Energy Reports Strong 2024 Performance and Projects Modest 2025 Outlook
SunCoke Energy, Inc. (NYSE: SXC), a leader in the cokemaking and logistics sectors, has announced its full-year results for 2024, reflecting a year of operational strength and record safety achievements. The company reported net income attributable to SXC of $95.9 million, or $1.12 per diluted share, for the full year 2024. For the fourth quarter of 2024, net income was $23.7 million, or $0.28 per diluted share.
The company’s consolidated Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the full year was $272.8 million, with the fourth quarter contributing $66.1 million. Operating cash flow for the full year was $168.8 million, underlining the company’s strong financial position.
Operational Performance and Safety Milestones
SunCoke’s domestic coke fleet operated at full capacity throughout 2024, contributing to solid financial results. Additionally, the company’s logistics business saw significant growth, driven by a new domestic logistics venture and favorable adjustments in the API2 price at the Convent Marine Terminal. This resulted in favorable outcomes for the Logistics segment, enhancing overall performance for the year.
A standout achievement for SunCoke in 2024 was its record safety performance. The company achieved a Total Recordable Incident Rate (TRIR) of 0.50, which is a best-in-class metric for the industry. This performance underscores SunCoke’s commitment to safety and operational excellence, reflecting the dedication of its employees, as noted by Katherine Gates, President and CEO.
Growth in Logistics and Capital Allocation
In 2024, SunCoke made excellent progress expanding its logistics business. Notably, the company secured a new coal handling agreement at the Kanawha River Terminal and extended its existing coal handling agreement at the Convent Marine Terminal. This expansion supports SunCoke’s long-term growth strategy in logistics and enhances its position in the coal-handling market.
Alongside operational success, SunCoke made strides in its capital allocation goals. The company increased its quarterly dividend by 20%, reflecting its financial strength and commitment to delivering value to shareholders.
Outlook for 2025: Challenges in the Steel Industry
Looking ahead to 2025, SunCoke is preparing for a more challenging market environment. As previously announced, the Granite City cokemaking contract will be extended at lower economics, which is expected to negatively impact financial results. Additionally, the company anticipates lower margins on higher spot coke sales, driven by weaker steel demand and an oversupply in the seaborne coke market. These market dynamics are expected to exert downward pressure on coke pricing.
Despite these challenges, SunCoke is confident in its ability to navigate through the difficult steel industry cycle. The company’s solid balance sheet and healthy cash flow generation provide a strong foundation for addressing the anticipated headwinds in 2025. The company’s focus on maintaining exceptional safety performance, operational excellence, and a balanced approach to capital allocation will continue to guide its actions.
2025 Financial Guidance
For the full year 2025, SunCoke expects consolidated Adjusted EBITDA to range between $210 million and $225 million, reflecting the anticipated market challenges. The company also expects to continue its quarterly dividend, maintaining its commitment to delivering consistent returns to shareholders while investing in its long-term growth.
As SunCoke enters 2025, it is clear that the company will face headwinds in the steel industry, but its strong operational foundations, commitment to safety, and strategic growth in logistics put it in a good position to weather the storm and continue to generate value for its stakeholders.
