SunCoke Energy, Inc. (SXC): Business Model Canvas [Dec-2025 Updated]

You're looking at SunCoke Energy, Inc. right now, probably trying to square the stability of those long-term coke contracts against the recent turbulence from the Phoenix Global integration and those tough contract issues. As someone who's mapped out industrial plays for two decades, I can tell you the model is surprisingly clear: it's a play on essential, mission-critical services underpinning the domestic steel backbone. The numbers for 2025 tell the story-they are guiding for $220 million to $225 million in Adjusted EBITDA, while still planning about $70 million in CapEx. Honestly, understanding how they generate that cash flow, from heat recovery to slag handling, is the key to valuing the risk you see today. Dive in below for the full, defintely precise breakdown of their nine building blocks.

SunCoke Energy, Inc. (SXC) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that keep SunCoke Energy, Inc. running, especially as they integrate a major acquisition and navigate customer contract dynamics through late 2025. These partnerships are the backbone of their revenue generation, so the details matter a lot.

Major domestic steel producers form the bedrock of the Domestic Coke segment, relying heavily on long-term, take-or-pay agreements. The relationship with U.S. Steel at the Granite City facility has been under strain; the contract was extended through September 2025, with an option for an additional three months, but this extension carried less favorable economics. The Haverhill facility's contract with Cleveland-Cliffs, covering 950,000 tons annually (about 22% of SXC's coke facility capacity), was set to expire by the end of December 2025. However, a new 3-year extension was agreed upon, commencing January 1, 2026, to supply 500 thousand tons of metallurgical coke annually from Haverhill. The Indiana Harbor facility, SXC's largest U.S. plant, has a separate, long-term agreement with Cleveland-Cliffs extending through September 2035 for 1.22 million tons per year.

The performance impact of these customer relationships is clear in the Q3 2025 figures. Domestic Coke adjusted EBITDA for the third quarter was $44.0 million, a year-over-year decrease of 24.3% from Q3 2024's $58.1 million. This segment's sales volumes in Q3 2025 were 951,000 tons, down from 1,027,000 tons in the prior year period. The Granite City contract accounts for approximately 15% of the company's total coke facility capacity.

The ArcelorMittal affiliate relationship centers on the Brazil cokemaking operation in Vitória. This heat-recovery plant utilizes 320 ovens and produces about 1.7 million tons (or 1.55 million metric tons) of coke annually. The operation is also a power partner, delivering superheated steam to ArcelorMittal's adjacent facility, which can produce approximately 160 megawatts of electricity per hour. In 2024, the Brazil Coke segment produced 1,579 thousand tons.

For coal and other bulk material suppliers, the Logistics segment is key. This segment handles material mixing and transloading services. The logistics terminals collectively have the capacity to mix and transload more than 40 million tons of material each year. In 2024, the Logistics segment handled 22,540 thousand tons of materials.

The acquisition of Phoenix Global significantly enhanced SunCoke Energy, Inc.'s role as a supplier of industrial services, diversifying its customer base to include Electric Arc Furnace (EAF) operators. The deal closed on August 1, 2025, for a total consideration of $325 million. This implied an acquisition multiple of approximately 5.4 times Phoenix Global's LTM adjusted EBITDA of $61 million as of March 31, 2025. The acquired business is expected to generate $5 million to $10 million in annual synergies.

Key metrics related to the Phoenix Global partnership include:

• Acquisition cost: $325 million cash free/debt free.
• Phoenix Global LTM Adjusted EBITDA (3/31/2025): $61 million.
• Phoenix Global capital investment since 2023: approximately $72 million.
• Phoenix Global customer sites served: 19 across multiple continents.
• Phoenix Global contribution to Q3 2025 Industrial Services EBITDA: Included in the segment's $18.2 million total.
• Full-year 2025 Industrial Services adjusted EBITDA guidance: $63-$67 million.

Regarding legal counsel for contract enforcement, a significant event in 2025 was a customer contract breach that forced SunCoke Energy, Inc. to defer approximately 200,000 tons of coke sales in Q3 2025. This breach directly impacted the company's liquidity outlook, leading to a reduction in full-year 2025 operating cash flow guidance to a range of $62-$72 million, down from the original $165-$180 million. For the Phoenix Global transaction, Latham & Watkins served as SunCoke Energy, Inc.'s legal advisor.

SunCoke Energy, Inc. (SXC) - Canvas Business Model: Key Activities

You're looking at the core things SunCoke Energy, Inc. does every day to make money, which is essential for understanding their financial structure as of late 2025. The company's activities center on transforming raw materials into essential steel inputs and managing complex logistics.

High-quality metallurgical coke production (Domestic and Brazil Coke) remains central. The Domestic Coke segment facilities in the U.S. have a collective nameplate capacity of approximately 4.2 million tons of blast furnace coke per year, while the Brazil facility has a capacity of 1.7 million tons. For the full-year 2025, the revised guidance for Domestic Coke total production is approximately 3.9 million tons. To be fair, the actual production through the third quarter of 2025 was 2,834 thousand tons for the Domestic Coke segment.

The company's cokemaking ovens incorporate an innovative heat-recovery technology. This is key because it captures excess heat from the cokemaking process. This captured heat is then used to create steam or electricity for sale, which is the core of operating heat-recovery power generation facilities. While specific power output figures for 2025 aren't always broken out separately, this activity is integral to the Domestic Coke segment's operations.

Material handling and transloading at logistics terminals is another major activity. The logistics terminals have a collective capacity to mix and transload more than 40 million tons of material each year, serving coke, coal, steel, power, and other bulk customers. The second quarter of 2025 saw the terminals handle combined throughput volumes of 4,800,000 tons.

The recent acquisition of Phoenix Global, which closed on August 1, 2025, significantly enhances the activity of providing mission-critical industrial services, such as slag and scrap handling. This is now reported under the Industrial Services segment. This segment showed strong growth, posting revenues of $64.1 million in the third quarter of 2025, up from $21.4 million in the prior year period.

Finally, SunCoke Energy, Inc. focuses heavily on managing long-term, take-or-pay customer contracts. The majority of sales from the Domestic Coke segment are under these agreements, which provide revenue stability. For instance, the Granite City cokemaking contract with U.S. Steel was extended through December 31, 2025. The economics of these contracts, including the pass-through of coal costs, directly influence quarterly revenue, as seen in the first quarter of 2025 results.

Here's a quick look at the segment performance underpinning these activities through the third quarter of 2025:

The operational focus areas driving these activities include:

• Maintaining exceptional safety performance, achieving a Total Recordable Incident Rate (TRIR) of 0.50 in 2024.
• Executing on operational excellence across all five U.S. and one Brazil facility.
• Managing the integration of Phoenix Global, expecting between $5,000,000 and $10,000,000 in annual synergies.
• Meeting minimum volume requirements in coke sales agreements.

The company's overall financial expectation for these activities is reflected in the revised full-year 2025 Consolidated Adjusted EBITDA guidance, set between $220 million and $225 million.

SunCoke Energy, Inc. (SXC) - Canvas Business Model: Key Resources

You're looking at the core assets SunCoke Energy, Inc. relies on to generate revenue and maintain its market position as of late 2025. These aren't just buildings and equipment; they represent contractual stability and technological differentiation.

Cokemaking Facilities and Capacity Breakdown

For context on recent operations, the Domestic Coke segment produced approximately 4,032 thousand tons in 2024, while the Brazil Coke segment produced 1,579 thousand tons.

Logistics Infrastructure and Throughput Capability

SunCoke Energy, Inc. maintains logistics terminals strategically positioned to serve key U.S. ports and international markets. The collective capacity for mixing and transloading materials across these terminals exceeds the benchmark mentioned.

The Logistics segment handled combined throughput volumes of 4,800,000 tons in the second quarter of 2025.

Technological and Contractual Assets

The operational backbone includes proprietary technology and secured revenue streams.

• Innovative heat-recovery cokemaking technology captures excess heat for steam or electrical power generation.
• The company is the only North American coke producer utilizing this heat recovery technology.
• The majority of coke sales are secured under long-term, take-or-pay contracts.
• These contracts feature key provisions for pass-through of coal, operating, and transportation costs, which insulates SunCoke Energy, Inc. from commodity price volatility.

Industrial Services Expansion

SunCoke Energy, Inc. completed the acquisition of Phoenix Global assets on August 1, 2025, significantly diversifying its portfolio into industrial services, including electric arc furnace operations.

The financial details of this key resource addition are:

• Total acquisition cost was $325 million on a cash-free, debt-free basis.
• The transaction was funded with cash on-hand and borrowings under the revolving credit facility.
• The implied acquisition multiple was approximately 5.4 times on March 31, 2025, LTM Adjusted EBITDA of $61 million.
• Anticipated annual synergies from the integration are projected to be between $5 million and $10 million.

The addition of Phoenix Global contributed to the revised 2025 Consolidated Adjusted EBITDA guidance range of $220 million and $225 million.

Finance: draft 13-week cash view by Friday.

SunCoke Energy, Inc. (SXC) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose SunCoke Energy, Inc. (SXC) over alternatives; these are the promises the company makes to its key stakeholders, grounded in its operational reality as of late 2025.

Reliable supply of high-quality coke for blast furnaces

SunCoke Energy, Inc. delivers an essential, high-specification raw material-coke-for blast furnace steel production and foundry cast iron. The company expects its domestic coke production for the full year 2025 to be approximately 3.9 million tons. For the third quarter of 2025 specifically, sales volumes for the Domestic Coke segment were 951,000 tons. The majority of these sales are locked in via long-term, take-or-pay contracts, which is the bedrock of supply stability. For instance, the Granite City cokemaking contract with U.S. Steel is secured through December 31, 2025. SunCoke Energy, Inc. operates facilities across the Americas, including sites in East Chicago, Indiana; Haverhill, Ohio; and Vitória, Brazil, all geared toward meeting customer quality specifications. It's a simple value: consistent, high-spec material when the steel mill needs it.

Environmentally advantaged cokemaking (average asset age ~25 years)

The company's asset base offers a significant environmental and efficiency edge compared to older facilities in the region. SunCoke Energy, Inc.'s cokemaking facilities boast an average age of approximately 24 years, which is substantially younger than the industry average. This modern profile means lower maintenance capital expenditure-projected at only $65 million for 2025-and easier adherence to stringent environmental rules. The technology employed sets the U.S. Environmental Protection Agency's (EPA) Maximum Achievable Control Technology (MACT) standard for heat-recovery cokemaking in the U.S. This translates directly into a superior environmental signature for customers who are increasingly focused on Scope 1 emissions reduction.

Here's a quick comparison of asset age:

Stable supply via long-term, take-or-pay contracts

Stability is a key deliverable, especially in commodity-linked businesses. SunCoke Energy, Inc. secures the bulk of its Domestic Coke sales through long-term, take-or-pay agreements with major integrated steelmakers, including Cleveland-Cliffs and U.S. Steel. This structure provides a stable revenue foundation, insulating a significant portion of the business from immediate spot market volatility. The company's full-year 2025 Consolidated Adjusted EBITDA guidance range of $220 million to $225 million is anchored by this contract stability, even while navigating customer-specific challenges, such as a contract breach that deferred approximately 200,000 tons of expected coke sales in Q3 2025.

Diversified, mission-critical industrial services for steelmakers

Beyond coke production, SunCoke Energy, Inc. provides mission-critical logistics and handling services. The Industrial Services segment, bolstered by the August 2025 acquisition of Phoenix Global, handles coal and other aggregates. The logistics terminals, including Convent Marine Terminal (CMT), Lake Terminal, and Kanawha River Terminals (KRT), collectively possess the capacity to mix and/or transload more than 40 million tons of material annually. These services are vital for the inbound supply chain of steelmakers and power customers.

• Handling and mixing of coal and aggregates.
• Transloading services to Gulf Coast, East Coast, and Great Lakes ports.
• Molten slag removal services (post-Phoenix Global acquisition).
• Logistics terminals storage capacity of approximately 3 million tons.

Capturing excess heat for steam or electrical power generation

The heat-recovery technology is a core differentiator, turning a waste product into a revenue stream and efficiency gain. At the East Chicago, Indiana facility, the Waste Heat to Power (WHP) Combined Heat and Power (CHP) system generates power from the coke-making process exhaust. This system produces enough electricity to power over 60,000 homes each year. Specifically, the system recovers waste heat to generate approximately 929,000 lb/hr of steam. This recovered energy offsets roughly 50% of the associated steel plant's process heating needs and about 25% of its power requirements. This fuel-free system lowers emissions, with the East Chicago site reducing CO2 emissions by 515,000 tons annually. The excess steam and electricity generated are sold directly to the customer or the grid.

Finance: draft 13-week cash view by Friday.

SunCoke Energy, Inc. (SXC) - Canvas Business Model: Customer Relationships

SunCoke Energy, Inc. maintains relationships heavily weighted toward long-term agreements, which is key to stabilizing capacity utilization for its cokemaking assets. The majority of coke sales are under long-term, take-or-pay contracts, insulating a significant portion of revenue from global coke price fluctuations.

Formal contract extension negotiations are a recurring, high-stakes activity, particularly with major integrated steel producers. For instance, the cokemaking contract at Granite City with U.S. Steel was extended through the end of 2025. The initial extension agreed upon in late 2024 was through June 30, 2025, supplying 295 thousand tons of coke during that initial six-month term. However, the economics of these extensions can be less favorable; Q3 2025 results specifically noted lower contract extension economics at Granite City impacting Domestic Coke Adjusted EBITDA.

When contract terms are breached, SunCoke Energy, Inc. moves to active legal enforcement. A material breach by a customer, identified as Algoma, resulted in the deferral and storage of approximately 200,000 tons of coke for the 2025 fiscal year. Management confirmed they are pursuing all legal remedies to recover any financial losses incurred from this breach. This single event had a significant, quantifiable impact, causing an unfavorable revision of $70 million to the 2025 free cash flow guidance, pushing the estimate to a range of negative $10 million to 0.

For the Industrial Services and Logistics segments, customer relationships are managed through standardized service delivery, often under contracts with guaranteed revenue structures. The newly integrated Phoenix Global business, acquired on August 1, 2025, operates under long-term contracts featuring contractually guaranteed fixed revenue and pass-through components. The company emphasizes its role as a reliable provider of mission-critical services to steelmaking customers.

Here's a quick look at the recent segment performance that reflects these customer service relationships:

• Domestic Coke sales volumes in Q3 2025 were 951,000 tons.
• Logistics terminals handled combined throughput volumes of 4,800,000 tons in Q2 2025.
• The Logistics segment anticipates similar volumes year-over-year for the 2025 outlook.
• The company declared its 25th consecutive quarterly cash dividend of $0.12 per share for December 1, 2025.

The financial contribution from these customer-facing segments in 2025 shows the diversification benefit:

The company's overall liquidity position as of September 30, 2025, stood at approximately $206 million, with total debt at $699 million. Finance: draft 13-week cash view by Friday.

SunCoke Energy, Inc. (SXC) - Canvas Business Model: Channels

Direct sales from cokemaking plants to domestic steel producers form the bedrock of SunCoke Energy, Inc.'s revenue generation, primarily through the Domestic Coke segment. This segment includes operations at the Jewell, Indiana Harbor, Haverhill, Granite City, and Middletown plants. For the third quarter of 2025, the Domestic Coke segment recorded revenues of $413.8 million, a decrease from $459.9 million in the prior year period. Sales volumes for this segment in Q3 2025 were 951,000 tons, down from 1,027,000 tons year-over-year. Full-year 2025 Domestic Coke total production is expected to be approximately 3.9 million tons. A key channel relationship is the cokemaking contract at Granite City with U.S. Steel, which was extended through the end of December 31, 2025.

Logistics terminals, specifically the Convent Marine Terminal (CMT) and Kanawha River Terminal (KRT), along with Lake Terminal, serve as critical channels for transloading and export services for coke, coal, steel, power, and other bulk customers. These logistics assets have the collective capacity to mix and transload more than 40 million tons of material annually. In Q2 2025, lower transloading volumes at CMT due to challenging market conditions contributed to a revenue decrease of $5.1 million for the Logistics segment compared to the prior year period. Management's initial full-year 2025 guidance projected Logistics adjusted EBITDA between $45 million and $50 million.

Direct service delivery at customer sites is now significantly bolstered by the Industrial Services segment, which includes the recently acquired Phoenix Global business. SunCoke Energy completed the acquisition of Phoenix Global on August 1, 2025, for $325 million. This channel saw a substantial increase in Q3 2025 revenues, surging to $64.1 million from $21.4 million in Q3 2024, reflecting two months of Phoenix Global results. The acquisition is intended to expand and diversify the customer base and enhance industrial services capabilities for steelmaking customers.

The seaborne market facilitates international coke sales, as SunCoke Energy exports its high-quality product to overseas blast furnace operators. While specific export volumes aren't detailed quarterly, the overall business context shows a shift. The company's Trailing Twelve Month (TTM) revenue as of September 30, 2025, stood at $1.84B. Analyst projections for the full-year 2025 revenue, reflecting challenging spot coke market conditions and an oversupply in the seaborne market, anticipated a decline to $1.56 billion.

Here's a quick look at the financial scale across these channels as of late 2025 data points:

The primary means of reaching steel producers include:

• Long-term, take-or-pay contracts for blast furnace coke supply.
• Spot market sales for immediate or near-term coke requirements.
• Contract extensions, such as the one with U.S. Steel at Granite City through December 31, 2025.

The logistics operations utilize their terminals to serve multiple end-markets:

• Handling and mixing services for coke and coal.
• Transloading capabilities reaching the Gulf Coast, East Coast, and Great Lakes ports.
• New take-or-pay coal handling agreement execution at Kanawha River Terminal.

SunCoke Energy, Inc. (SXC) - Canvas Business Model: Customer Segments

You're looking at the core customer base for SunCoke Energy, Inc. (SXC) as of late 2025, which is heavily concentrated in the steel and industrial materials sectors. The business model clearly segments its focus across domestic steel, international operations, and growing industrial services.

The company's primary revenue drivers remain tied to the health of the North American steel industry, though the recent acquisition of Phoenix Global is diversifying this exposure into broader industrial services.

Here is a look at the key customer groups and their associated financial scale based on the latest available 2025 figures:

The core of the business is clearly the supply of coke to domestic producers, which forms the bulk of the company's top line. For instance, the Domestic Coke segment's revenue for the third quarter of 2025 was $413.8 million, despite pressures from contract mix changes.

The company's customer base is further defined by the specific operations serving them:

• Domestic blast furnace steel producers: These customers utilize coke from facilities like Jewell, Indiana Harbor, Haverhill, Granite City, and Middletown plants.
• International/Overseas steelmakers: This group is served partly by the Brazil Coke facility, which operates for an affiliate of ArcelorMittal.
• Foundry producers: These customers use SunCoke Energy, Inc.'s high-quality coke in casted iron manufacturing.
• Electric utility and other bulk material customers: These are served by the Logistics segment, which handles coal and other aggregates at terminals like CMT, Lake Terminal, and KRT.
• Global steel producers requiring on-site industrial services: This is a growing segment, significantly boosted by the August 1, 2025, acquisition of Phoenix Global.

The full-year 2025 outlook reflects the combined customer base, with Domestic Coke production anticipated to be approximately 3.9 million tons, while the consolidated Adjusted EBITDA guidance is set between $220 million and $225 million.

SunCoke Energy, Inc. (SXC) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive SunCoke Energy, Inc.'s operations as of late 2025, especially after integrating the Phoenix Global acquisition and navigating market headwinds.

Cost of products sold (primarily coal and operating expenses)

The primary ongoing cost is the Cost of products sold and operating expenses. For the first six months ended June 30, 2025, these costs decreased compared to the same prior year periods. This decrease was mainly due to lower pricing in the Domestic Coke segment, the impact of the Granite City contract extension economics, and the pass-through of lower coal prices on long-term contracts. The Domestic Coke segment saw revenues decline to $413.8 million in the third quarter of 2025, down from $459.9 million year-over-year, reflecting these underlying cost and pricing pressures.

Here's a look at the operational context influencing these costs, based on Q3 2025 performance:

Capital expenditures projected at approximately $70 million for 2025

SunCoke Energy, Inc. has a capital-intensive model, requiring significant investment. The latest full-year 2025 projection for capital expenditures is approximately $70 million. This figure was revised from an earlier projection of $65 million.

Selling, General, and Administrative (SG&A) expenses (includes acquisition costs)

What falls under general overhead and administrative costs, often categorized as Corporate and Other, shows fluctuations. You need to account for specific, non-recurring transaction costs as well. The costs related to the Phoenix Global acquisition were a notable expense.

• Corporate and Other expense for the second quarter of 2025 was $7.2 million.
• Corporate and Other expense for the third quarter of 2025 was $3.1 million.
• Transaction costs related to the Phoenix Global acquisition impacted Q2 2025 earnings by $5,200,000.
• Transaction and restructuring costs totaled $7.6 million in the third quarter of 2025.

Debt service and interest expense (following the $325 million Phoenix acquisition)

The acquisition of Phoenix Global was executed for $325 million on a cash-free, debt-free basis. This transaction, funded with cash and revolver borrowing, significantly altered the debt structure. The debt load increased substantially from the end of 2024.

• Total debt stood at $500 million as of Q2 2025.
• Total debt rose to $699 million as of September 30, 2025.
• The Q3 2025 gross leverage ratio was 3.05x, with a net leverage of 2.70x.

Interest expense is a direct function of this higher debt balance, though the exact dollar amount for the full year isn't explicitly stated here.

Costs associated with contract deferrals and legal actions

A major cost factor in the latter half of 2025 stems from a customer contract breach, which necessitates legal action and results in deferred revenue/cash flow. This is a direct, quantifiable hit to expected performance.

• Approximately 200,000 tons of coke sales were deferred due to a customer contract breach.
• This deferral is projected to have an unfavorable impact of $70 million on the full-year 2025 free cash flow guidance.
• The company is actively pursuing enforcement of the contract.

Finance: draft 13-week cash view by Friday.

SunCoke Energy, Inc. (SXC) - Canvas Business Model: Revenue Streams

SunCoke Energy, Inc.'s revenue streams are primarily derived from its Domestic Coke operations, supplemented by its growing Industrial Services segment, which now includes the Phoenix Global business acquired in 2025. The majority of coke sales are secured under long-term, take-or-pay contracts with integrated steelmakers at facilities like Indiana Harbor and Middletown. The Granite City cokemaking contract with U.S. Steel was extended through the end of 2025, albeit at lower economics. The mix of sales has been a key factor, with Q3 2025 results being impacted by an unfavorable mix of contract versus spot coke sales. A significant event impacting 2025 revenue visibility was the deferral of approximately 200,000 tons of blast furnace coke sales due to a breach of contract by a customer, identified as Algoma Steel.

The Industrial Services segment revenue is driven by handling and mixing services for coal and other aggregates at logistics terminals, including Convent Marine Terminal (CMT), Lake Terminal, and Kanawha River Terminals (KRT), plus the newly added mill services from Phoenix Global. In Q3 2025, this segment generated an Adjusted EBITDA of $18.2 million, reflecting two months of Phoenix Global results following its acquisition on August 1, 2025. The Logistics business specifically saw lower transloading volumes at CMT due to market conditions, though the segment is expected to contribute significantly to the full-year outlook.

Specific per-ton throughput fees for logistics and transloading are not explicitly detailed, but the Logistics segment's performance is tied to inbound tons handled. For the second quarter of 2025, the terminals handled combined throughput volumes of 4,800,000 tons. The Domestic Coke segment's revenue performance is also tied to production, with total production expected to be approximately 3.9 million tons for the full year 2025.

The overall financial expectations for the full year 2025 are anchored by the following guidance figures:

The segment-level guidance further breaks down the expected Adjusted EBITDA contribution to the consolidated total:

• Domestic Coke Adjusted EBITDA guidance for 2025 is set between $172 million to $176 million.
• Industrial Services segment guidance for 2025 Adjusted EBITDA is set to $63 million to $67 million.

To give you a snapshot of the segment performance driving these streams in the third quarter of 2025:

• Domestic Coke Adjusted EBITDA was $44 million on sales volumes of 951,000 tons.
• Industrial Services Adjusted EBITDA was $18.2 million.

Finance: draft 13-week cash view by Friday.