SunCoke Energy Reports Revenue Decline to $436M in Q1 2025

SunCoke Energy, Inc. reported a decline in financial performance for the first quarter of 2025, with total revenues of $436.0 million, down from $488.4 million in the same period of 2024. The decrease in revenue was primarily attributed to lower sales volumes and pricing in the Domestic Coke segment, which faced challenging market conditions. Net income for the quarter was $19.4 million, a decrease from $21.1 million year-over-year, while net income attributable to SunCoke Energy, Inc. was $17.3 million, down from $20.0 million. Earnings per share also fell, with basic and diluted EPS at $0.20 compared to $0.24 and $0.23, respectively, in the prior year.

The company's operational costs also saw a reduction, with total costs and operating expenses decreasing to $405.8 million from $453.9 million. This decline was driven by lower costs of products sold and operating expenses, which fell to $362.3 million from $402.2 million, as well as a reduction in selling, general, and administrative expenses. The decrease in depreciation and amortization expense, from $33.3 million to $28.8 million, further contributed to the overall reduction in costs. Despite these improvements, operating income decreased to $30.2 million from $34.5 million, reflecting the impact of lower sales volumes.

In terms of strategic developments, SunCoke extended its long-term, take-or-pay agreement with United States Steel Corporation for the Granite City facility through September 2025, with an option for an additional three-month extension. This agreement's provisions and economics remain unchanged from the previous extension executed in 2024. The company continues to focus on its logistics segment, which reported increased transloading volumes, partially offsetting the declines in the Domestic Coke segment.

Operationally, SunCoke's Domestic Coke production volumes decreased to 905,000 tons from 1,000,000 tons in the prior year, with capacity utilization dropping to 91% from 100%. The logistics segment handled 5.7 million tons, an increase from 5.5 million tons in the previous year. The company reported a total of 100.1 million shares outstanding as of March 31, 2025, reflecting a slight increase in share count compared to the previous year.

Looking ahead, SunCoke Energy anticipates continued challenges in the blast furnace coke market, which may impact future revenues. However, the company remains committed to its operational strategies and is focused on maintaining compliance with its debt covenants, with $193.7 million in cash and cash equivalents and $350.0 million available under its revolving credit facility as of the end of the quarter. The management's outlook suggests a cautious approach, considering market conditions and potential growth opportunities in the foundry coke market.