SunCoke Energy announced its fourth quarter and full-year 2024 financial result
Highlighting record safety achievements and strong operational performance in its cokemaking and logistics divisions.
2024 was another excellent year for SunCoke, with our domestic Coke facilities operating at full capacity. The Logistics segment benefitted from a new domestic logistics contract and an improved API2 price adjustment at Convent Marine Terminal,” said Katherine Gates, President and CEO. “Our operational excellence, along with a one-time gain from the elimination of most legacy black lung liabilities, enabled us to surpass the high-end of our revised Adjusted EBITDA guidance.
SunCoke reported a record annual Total Recordable Incident Rate (TRIR) of 0.50, reflecting strong safety commitments. Key achievements included a new coal handling agreement at Kanawha River Terminal and an extension at Convent Marine Terminal. The company also increased its quarterly dividend by 20% as part of its capital allocation strategy.
Looking ahead, SunCoke anticipates financial headwinds in 2025 due to the extension of the Granite City cokemaking contract at lower margins and softer pricing in the seaborne coke market. However, Gates emphasized the company’s financial resilience, commitment to safety, and operational discipline to navigate market challenges while continuing dividend payments.
Financial Performance:
- Fourth quarter 2024 revenue: $486.0 million (down from $520.6 million in Q4 2023)
- Full-year 2024 revenue: $1.935 billion (down from $2.063 billion in 2023)
- Net income for 2024: $95.9 million (up from $57.5 million in 2023)
- Adjusted EBITDA for 2024: $272.8 million (up from $268.8 million in 2023)
Revenue declines were driven by lower coal costs in the Domestic Coke segment. Net income improved due to lower depreciation expenses and a $9.5 million gain from black lung liability exemptions. Adjusted EBITDA gains stemmed from higher transloading volumes at logistics terminals and improved price adjustments at CMT, despite lower coal-to-coke yields.
Segment Performance:
- Domestic Coke: Revenue fell to $1.817 billion due to lower coal pass-through costs, while Adjusted EBITDA declined to $234.7 million due to reduced coal-to-coke yields.
- Logistics: Revenue increased to $83.0 million, with Adjusted EBITDA rising to $50.4 million, driven by higher transloading volumes and improved API2 pricing.
- Brazil Coke: Revenue remained stable at $35.1 million, with Adjusted EBITDA at $9.9 million.
- Corporate & Other: Full-year Adjusted EBITDA improved, primarily due to the black lung liability exemption gain.
2025 Outlook: SunCoke expects financial pressures from lower-priced contracts and weak steel demand but remains focused on maintaining operational efficiency, disciplined capital allocation, and strong shareholder returns.
The company continues to prioritize long-term growth and value creation despite near-term industry challenges.
