Raw Materials
November 4, 2025
SunCoke guides lower on domestic coke, cites Algoma breach and weak spot demand
Written by Laura Miller
SunCoke Energy Inc.
| Third quarter ended Sept. 30 | 2025 | 2024 | Change |
|---|---|---|---|
| Net sales | $487.0 | $490.1 | -0.6% |
| Net earnings (loss) | $22.2 | $30.7 | -27.7% |
| Per diluted share | $0.26 | $0.36 | -27.8% |
| Nine months ended Sept. 30 | |||
| Net sales | $1,357.1 | $1,449.4 | -6.4% |
| Net earnings (loss) | $41.4 | $72.2 | -42.7% |
| Per diluted share | $0.48 | $0.85 | -43.5% |
SunCoke Energy’s earnings declined in the third quarter as weaker domestic coke sales and contract economics weighed on results.
All told, Q3’25 revenue of $487 million was off just 0.6% from a year earlier, while net earnings attributable to the Lisle, Ill.-based coke producer dropped 28% to $22.2 million.
Domestic coke sales volumes totaled 951,000 tons, down 7.4% from the same quarter of 2024, with adjusted EBITDA sliding 24% year over year to $44 million. Management cited a less favorable mix of contract versus spot sales, lower yields at the Haverhill facility in Ohio, and weather-related disruptions at its Indiana Harbor operations in East Chicago, Ind.
President and CEO Katherine Gates noted on a conference call that the “Haverhill plant is tied to Cleveland-Cliffs, Algoma, and the spot market, which remains weak.”
Algoma breach of contract
A breach of contract by struggling Canadian producer Algoma Steel forced SunCoke to defer roughly 200,000 tons of blast furnace coke into inventory, pressuring full-year guidance, executives said on the call.
The company now expects 2025 domestic coke EBITDA to be between $172 million and $176 million, down from its prior forecast of $185 million to $192 million.
SunCoke believes its take-or-pay contract with Algoma is enforceable and is pursuing all legal remedies to recover any financial losses.
Contract extension and negotiations
The supply backdrop remains challenging: US electric-arc furnace producers continue to rely heavily on scrap and DRI, keeping spot coke demand muted. SunCoke highlighted that its long-term take-or-pay contracts with integrated steelmakers at Indiana Harbor and Middletown (Ohio) remain the backbone of its coke business, while foundry coke sales out of Jewell continue to perform well.
On the contract front, SunCoke extended its Granite City Works agreement with U.S. Steel through December 2025, though at reduced economics and volumes. Executives noted the plant’s future is closely tied to U.S. Steel’s granulated pig iron project. Absent an extension, operations there could be curtailed, it warned.
“We’re in active discussions with U.S. Steel regarding the extension of that contract,” Gates said. “But if we aren’t able to extend that contract either because of their not needing coke or we’re not moving forward with the GPI project, in that instance, then, we would not expect to continue to run that facility, because it’s just so tied to U.S. Steel.”
Recall the GPI granulated pig iron project plan calls for SunCoke to purchase the two blast furnaces at the USS Granite City Works in Illinois and convert them to pig iron production.
Negotiations with Cleveland-Cliffs over Haverhill volumes are also ongoing, according to Gates.
Outlook
Despite the near-term softness, SunCoke reaffirmed its full-year consolidated adjusted EBITDA outlook of $220 million to $225 million, supported by the August acquisition of Phoenix Global, which is now integrated into its Industrial Segment.
Management expects synergies from Phoenix to begin flowing in 2026. That’s when it anticipates results will improve due to steadier coke contracts and a modest recovery in logistics markets.
