Suncoke Energy, Inc. · NYSE:SXC
Suncoke Energy — Q4 2024 Earnings Presentation
25 slides from Suncoke Energy's earnings presentation, Jan 30, 2025
Slide 1: Q4 & FY 2024 Earnings and 2025 Guidance Conference Call
SunCoke Energy, Inc. Q4 & FY 2024 Earnings and 2025 Guidance Conference Call
Slide 2: Forward-Looking Statements
Forward-Looking Statements 2 This presentation should be reviewed in conjunction with the Fourth Quarter and Full-Year 2024 earnings release of SunCoke Energy, Inc. (SunCoke) and conference call held on January 30, 2025 at 11:00 a.m. ET. This presentation contains “forward-looking statements” (as de
Slide 3: 2024 Year In Review
2024 Year In Review 3 Delivered FY 2024 Adjusted EBITDA(1) above increased guidance; added new Logistics business; increased quarterly dividend; eliminated majority of black lung liabilities FY 2024 Objective 2024 Achievements Commentary Continue to deliver strong safety • Achieved Total Recordable
Slide 4: Q4 & FY 2024 Financial Performance
Q4 & FY 2024 Financial Performance 4 Q4 and FY 2024 Earnings Review Q4 2024 EPS of $0.28 per share, up $0.12 versus prior ($/share) ($ in millions) year quarter (1) Diluted EPS Adj. EBITDA • Primarily driven by lower depreciation expense +$0.44 +$4.0 FY 2024 EPS of $1.12, up $0.44 per share from the
Slide 5: Adjusted EBITDA – FY 2023 to FY 2024
(1) Adjusted EBITDA – FY 2023 to FY 2024 5 FY 2024 performance driven by gain on elimination of black lung liabilities and favorable Logistics performance, partially offset by lower coal-to-coke yields in the Domestic Coke segment ($ in millions) $268.8 $272.8 ($12.3) $10.2 $6.1 Gain on elimination
Slide 6: FY 2024 Capital Deployment
FY 2024 Capital Deployment 6 Maintained strong liquidity position of $539.6M; cash flow deployed strategically towards operational capital needs and increased dividends to shareholders (Consolidated) 12/31/2023 12/31/2024 Revolver Total Debt $500M $500M Availability: Gross Leverage (1) 1.86x 1.83x $
Slide 7: 2025 Guidance
2025 GUIDANCE )
Slide 8: Projected 2025 Adjusted EBITDA Guidance
(1) Projected 2025 Adjusted EBITDA Guidance 8 Expect 2025 Consolidated Adjusted EBITDA(1) of $210M - $225M; Granite City contract extension at lower economics and lower margins on higher spot sales at Haverhill ($ in millions) $272.8 ($43) – ($50) $0 – ($1) $0 – ($5) ($9.5) $3 - $5 $210 - $225 • GCO
Slide 9: 2025 Domestic Coke Business Outlook
2025 Domestic Coke Business Outlook 9 2025 Domestic Coke Adjusted EBITDA estimated to be $185M - $192M; lower margins at Granite City and Haverhill Domestic Coke Performance 2025 Domestic Coke outlook impacted by Granite City contract extension at lower (Coke Sales, Kt) economics and lower margins o
Slide 10: 2025 Logistics Business Outlook
2025 Logistics Business Outlook 10 2025 Logistics Adjusted EBITDA estimated to be $45M - $50M; anticipate similar volumes across the segment year-over-year Logistics Performance 2025 Logistics business outlook similar to 2024 operating performance (Tons Handled, Kt) • Extended the take-or-pay coal h
Slide 11: Adjusted EBITDA and FCF Trend
(1) (2) Adjusted EBITDA and FCF Trend 11 (2) (2) Track record of steady Free Cash Flow generation; effective use of FCF for dividends and debt paydown; expect continuation of dividends in 2025 ($ in millions, except per share amounts) $0.44 $0.48 $0.36 $0.28 $0.24 $0.24 $298 $275 $269 $273 $218 $206
Slide 12: 2025 Guidance Summary
2025 Guidance Summary 12 Expect 2025 Consolidated Adjusted EBITDA(1) of $210M - $225M; 2025 Free Cash Flow(2) of $100M - $115M 2024 2025 Metric Results Guidance* (1) Adjusted EBITDA Consolidated $272.8M $210M - $225M Domestic Coke EBITDA $234.7M $185M - $192M Logistics EBITDA $50.4M $45M - $50M Dome
Slide 13: 2025 Key Initiatives
2025 Key Initiatives 13 Continued Safety and Environmental Excellence • Continue to deliver strong safety and environmental performance Deliver Operational Excellence and Optimize Asset Utilization • Successfully execute on operational and capital plan • Continue to provide reliable, high-quality pr
Slide 14: Appendix
APPENDIX )
Slide 15: Domestic Coke Business Summary
Domestic Coke Business Summary 15 FY 2024 Domestic Coke Adjusted EBITDA driven by lower coal-to-coke yields; lower margins at Granite City and Haverhill for 2025 Domestic Coke Performance (Coke Production, Kt) $234.7M $185M - $192M $61.4M $57.9M $58.1M $57.3M $55.2M 4,033 3,988 1,025 1,031 1,023 583
Slide 16: Logistics Business Summary
Logistics Business Summary 16 FY 2024 Logistics Adjusted EBITDA results driven by higher transloading volumes at domestic terminals and higher API2 price adjustment benefit at CMT; similar year-over-year coal export volumes at CMT and higher volumes at domestic terminals driving 2025 outlook Logisti
Slide 17: Non-GAAP Financial Measures Definitions
17 NON-GAAP FINANCIAL MEASURES In order to assist readers in understanding the core operating results that our management uses to evaluate the business, we describe our non-GAAP measures referenced in this presentation below. In addition to U.S. GAAP measures, this presentation contains certain non-
Slide 18: Coke Facility Capacity and Contract Duration/Volume
Coke Facility Capacity and Contract Duration/Volume 18 (1) Contract Contract Facility Capacity Customer Expiry Volume Indiana Harbor 1,220 Kt Cliffs Steel Sep. 2035 Capacity Middletown 550 Kt (2) Cliffs Steel Dec. 2032 Capacity Haverhill II 550 Kt Cliffs Steel Jun. 2025 Capacity (3) Granite City 650
Slide 19: Balance Sheet & Debt Metrics
Balance Sheet & Debt Metrics 19 As of 12/31/2024 As of 12/31/2023 ($ in millions) Cash $ 190 $ 140 Available Revolver Capacity $ 350 $ 350 Total Liquidity $ 540 $ 490 Gross Debt (Long and Short-term) $ 500 $ 500 Net Debt (Total Debt less Cash) $ 310 $ 360 LTM Adjusted EBITDA $ 273 $ 269 Gross Debt /
Slide 20: 2025 Guidance Reconciliation and Free Cash Flow Reconciliation
2025 Guidance Reconciliation 20 ($ in millions) Low High Net Income $52 $69 Depreciation and amortization expense 121 117 Interest expense, net 26 24 Income tax expense 11 15 Adjusted EBITDA (Consolidated) $210 $225 Free Cash Flow Reconciliation 2024 2025E ($ in millions) Actuals Low High Operating
Slide 21: Net Income to FCF Reconciliation
Net Income to FCF Reconciliation 21 2025E ($ in millions) Low End High End Net Income $52 $69 Depreciation and amortization expense 121 117 Interest expense, net 26 24 Income tax expense 11 15 Adjusted EBITDA (Consolidated) $210 $225 Cash interest, net (23) (21) Cash taxes (17) (21) Total capex (65)
Slide 22: Reconciliation to Adjusted EBITDA
Reconciliation to Adjusted EBITDA 22 ($ in millions) Q4 '23 FY '23 Q1 '24 Q2 '24 Q3 '24 Q4 '24 FY '24 Net Income $ 15.3 $ 63.5 $ 21.1 $ 23.3 $ 33.3 $ 25.8 $ 103.5 Depreciation and amortization expense 35.6 142.8 33.3 28.7 28.1 28.8 118.9 Interest expense, net 6.3 27.3 6.3 5.8 5.7 5.6 23.4 Income tax
Slide 23: Adjusted EBITDA and Adjusted EBITDA per ton
Adjusted EBITDA and Adjusted EBITDA per ton 23 Reconciliation of Segment Adjusted EBITDA and Adjusted EBITDA per Ton Corporate and Domestic Coke Brazil Coke Logistics Consolidated ($ in millions, except per ton data) Other(1) FY 2024 Adjusted EBITDA $234.7 $9.9 $50.4 ($22.2) $272.8 Sales Volume (tho
Slide 24: Historical Reconciliations to Adjusted EBITDA and Free Cash Flow
Historical Reconciliations to Adjusted EBITDA 24 ($ in millions) FY '20 FY '21 FY '22 FY '23 Net Income $ 8.8 $ 48.8 $ 104.9 $ 63.5 Depreciation and amortization expense 133.7 133.9 142.5 142.8 (Gain) Loss on extinguishment of debt, net (5.7) 31.9 - - Interest expense, net 56.3 42.5 32.0 27.3 Income
Slide 25: SunCoke Energy
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