Cash Generation / Free Cash FlowDespite a weak 2025 earnings year, SunCoke still produced positive operating and free cash flow, which is a durable fundamental that supports continued dividend payments, capex funding and the stated deleveraging plan. Positive cash conversion gives financial flexibility across cycles and underpins the company’s ability to pay down revolver borrowings and fund Phoenix integration without immediate equity raises.
Industrial Services Growth (Phoenix Acquisition)The Phoenix acquisition materially enlarges and diversifies SunCoke’s Industrial Services franchise, driving meaningful EBITDA uplift and expected incremental Phoenix EBITDA in 2026. A larger services mix reduces pure exposure to cyclical domestic coke prices, provides cross-selling and logistics scale, and creates medium-term synergy opportunities that can stabilize consolidated margins and cash flow durability.
Contracted Volume Visibility With Major Steel CustomersExtensions with key customers like U.S. Steel provide volume visibility and revenue stability for core cokemaking assets. Long-term commercial relationships and contract extensions reduce downside volume risk, support plant utilization and predictable throughput, which helps sustain operating margins and capital planning over a multi-quarter horizon.