SunCoke Energy, Inc. — Cyborg Score 5/10

Mixed
Metallurgical Coke Production & Industrial Logistics

Strategic Profile

SunCoke utilizes innovative heat-recovery technology that captures excess heat for steam or electrical power generation. The industrial services business provides export and domestic material handling services to coke, coal, steel, power and other bulk customers, with logistics terminals having the collective capacity to mix and transload more than 40 million tons of material each year. The company is positioned as an integrated coke and logistics provider serving cyclical steel markets with long-term contracts.

Cyborg Score Rationale

SunCoke had a negative net margin of 2.41% in recent results. The company faces headwinds from a breach of contract by Algoma, closure of Haverhill I with significant asset impairment charges, and operational disruptions including a turbine failure at the Middletown coke plant. However, the Phoenix Global acquisition is progressing well with expected contributions of roughly $60 million from EBITDA and synergies of $5-10 million in 2026.

Top Insights

  • SunCoke extended key contracts including the Granite City coke-making contract through December 2026 and the Haverhill II contract through December 2028
  • The Algoma breach of contract impacts domestic coke sales in both 2025 and 2026, with litigation ongoing and expectations to recover losses
  • The company delivered consolidated adjusted EBITDA of $219.2 million in 2025, reflecting the addition of Phoenix Global
  • A turbine failure at Middletown coke plant and severe winter weather create a $10 million EBITDA impact in Q1 2026, with insurance expected to cover losses and outage expected to continue until midyear

Named Competitors

  • Integrated Coking Operations — Captive coke production with integrated steelmaking
  • Integrated Coking Operations — Steel producer with internal coke supply
  • Independent Coke Producer — Coal and coke producer competing on cost

Recent Developments

  • (February 2026) CFO Mark Marinko retiring March 13, 2026; Shantanu Agrawal appointed as successor
  • (February 2026) Q4 2025 earnings: net loss of $1.00 per share, revenue of $480.2 million, adjusted EBITDA $219.2 million
  • (January 2026) Granite City contract extension with U.S. Steel through December 2026
  • (November 2025) Phoenix Global acquisition progressing with growth and synergy potential

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