SunCoke Energy Inc. (NYSE:SXC) posted a sizeable fourth-quarter loss on Tuesday, missing Wall Street earnings expectations despite reporting stronger-than-anticipated revenue.
Shares dropped 3.38% in pre-market trading as investors reacted to the earnings shortfall and the impact of significant one-off charges.
The coke producer and industrial services provider reported a net loss of $85.6 million, or -$1.00 per diluted share, for the fourth quarter, compared with net income of $23.7 million, or $0.28 per share, in the same period a year earlier.
The result was well below analyst projections of $0.14 per share. Quarterly revenue totaled $480.2 million, exceeding the $398.85 million consensus estimate.
Performance was heavily affected by unfavorable one-time items amounting to $95.7 million, or $72.7 million after tax.
These charges included a large non-cash asset impairment tied mainly to the shutdown of the Haverhill I facility following a contract breach by Algoma Steel Group Inc.. Consolidated adjusted EBITDA for the quarter declined to $56.7 million from $66.1 million in the prior-year period.
“Our fourth quarter and full-year results, when compared to prior year periods, were impacted by the closure of our Haverhill I facility, resulting in a non-cash asset impairment charge, the breach of contract by Algoma, lower Granite City contract extension economics, and the change in mix of contract and spot coke sales,” said Katherine Gates, President and CEO of SunCoke Energy.
Domestic Coke sales volumes fell to 876,000 tons in the quarter from 1,032,000 tons a year earlier, while segment adjusted EBITDA dropped to $35.6 million from $57.3 million.
Looking ahead, SunCoke issued 2026 guidance projecting consolidated adjusted EBITDA between $230 million and $250 million and net income in a range of $25 million to $43 million.
The company noted that it has streamlined its coke fleet following the Haverhill I closure, bringing Domestic Coke production capacity to roughly 3.7 million tons.
“With extended contracts at Granite City and Haverhill II, and having finalized all foundry and spot coke sales, we will be running at full utilization and are sold out for the year,” Gates added. “We plan to use our excess cash flow in 2026 to pay down debt, continue the distribution of the quarterly dividend, and continue to assess growth opportunities.”