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COMPANY RESEARCH TEMPLATE
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Company Name:SunCoke Energy, Inc. (SXC)
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What this company does:SunCoke is the largest independent producer of high-quality coke in the Americas. It makes coke (a fuel made from heating metallurgical coal) that steelmakers burn in blast furnaces and foundries use to melt iron, and it also runs a materials-handling/logistics business for steel, coal, and other bulk customers. Note: unlike some peers, SXC does not hold a separate formal "Investor Day"/"Analyst Day" event — its main disclosure cadence is quarterly earnings releases/decks plus an annual "Investor Presentation" (most recent found: Feb 2025).
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Boilerplate risk (control sample):Insurance-adequacy risk (Item 1A): "We maintain insurance policies that provide limited coverage for some, but not all, potential risks and liabilities... insurers may contest their obligations to make payments." Generic language that could appear in almost any industrial 10-K — contrast against the Algoma-specific signal risk below.
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SegmentBrands, Products, & Market ShareKey DriversCompetitorsEnd Markets/Customers
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Domestic CokeBlast furnace coke and foundry coke produced at five U.S. cokemaking facilities — Jewell, Indiana Harbor, Haverhill II, Granite City, and Middletown — with combined nameplate capacity of ~3.7 million tons/year. Also operates the Vitória facility in Brazil (~1.7 million tons/year) under a licensing/operating agreement for ArcelorMittal Brazil. Per the 10-K, Domestic Coke represents approximately 38% of U.S. blast furnace coke market capacity — SunCoke is the only U.S. producer to have built new cokemaking facilities in the past 30+ years.Renewal/extension of long-term take-or-pay coke contracts; coal-to-coke yield performance (yields above contractual standard = gains, below = SunCoke bears the cost); blast furnace production volumes at Cliffs Steel and U.S. Steel; global coke spot/export pricing on non-contracted tons; ability to pass through coal and operating costs under contract terms.

FY2025 revenue/EBITDA driver (sourced from the Feb 17, 2026 earnings release, paraphrased — not a verbatim Item 7 MD&A quote): Domestic Coke Adjusted EBITDA fell from $234.7M in 2024 to $170.0M in 2025, attributed to weaker contract/spot pricing mix, lower Granite City contract economics, lower coal-to-coke yields, and the Algoma Steel contract breach.		DIRECT — merchant coke suppliers: Koppers Inc. (major U.S. merchant coke/carbon compounds producer, competes for third-party coke contracts); international merchant coke exporters from China, Colombia, and Indonesia (regional/state producers, no single dominant named firm).

INDIRECT — captive/in-house coke production by SunCoke's own customers: Cleveland-Cliffs Inc. (operates its own captive coke batteries — notably also SunCoke's largest customer, a real dual dynamic); United States Steel Corp. (operates Clairton Coke Works, the largest coke plant in North America, alongside its SunCoke contract).

INDIRECT — substitute technology (no coke needed at all): Nucor Corporation and Steel Dynamics, Inc., the two largest U.S. electric arc furnace (EAF) steelmakers — EAF now represents the majority of U.S. steel production and is the long-term structural threat to the entire Domestic Coke segment.		Steelmakers under long-term take-or-pay contracts — mainly Cleveland-Cliffs (Cliffs Steel) and U.S. Steel, plus Algoma Steel (in breach as of Q3 2025). Also sells foundry coke to foundries and non-contracted coke into North American spot and export coke markets. Also operates one facility in Brazil for ArcelorMittal Brazil under a licensing/operating agreement.
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Industrial ServicesOperates three logistics terminals — Convent Marine Terminal (CMT, the largest bulk material terminal in the lower U.S.), Kanawha River Terminal (KRT), and SunCoke Lake Terminal — with combined capacity to mix/transload 40+ million tons of coal and other bulk materials annually and ~3 million tons of storage. Also runs about 15 molten slag removal, handling, and processing sites across the U.S., Brazil, Slovakia, and Spain.Steel production volumes (drives scrap/slag demand); global thermal/metallurgical coal export demand and pricing at CMT; domestic coal trade volumes at KRT tied to natural gas prices and electricity demand; growth from the 2025 Phoenix Global acquisition, which expanded slag-handling internationally.

FY2025 revenue/EBITDA driver (sourced from the Feb 17, 2026 earnings release, paraphrased — not a verbatim Item 7 MD&A quote): Industrial Services Adjusted EBITDA grew from $50.4M in 2024 to $62.3M in 2025, driven by the Phoenix Global acquisition despite softer terminal volumes.		DIRECT — bulk terminal/material-handling operators: Kinder Morgan, Inc. (CONFIRMED 8/20/26: operates its International Marine Terminal at Myrtle Grove, LA — ~45 miles from SunCoke's Convent Marine Terminal — plus Deepwater and Houston Bulk terminals in TX; genuine competing Gulf Coast coal export capacity for the same customer base); smaller independent/regional terminal operators along the Gulf Coast and East Coast (no single dominant named firm identified with confidence — recommend a dedicated Perplexity search here before finalizing).

INDIRECT — alternative delivery modes: Class I railroads and regional trucking/logistics providers as substitutes for terminal-based transloading on shorter hauls.		Steel, coal, power, and other bulk-material customers who use its logistics terminals (coal/material handling and mixing). Also provides on-site scrap and molten slag handling and processing directly to steel manufacturing customers.
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Segment 4
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Segment 5
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Segment 6
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Segment 7
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Corporate / Other
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Timeline
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1962 — Jewell facility (Virginia) begins operation, SunCoke's oldest cokemaking plant
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2007 — Vitória facility (Brazil) begins operating under license/operating agreement for ArcelorMittal Brazil
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2008 — Haverhill II facility starts up
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2009 — Granite City facility starts up
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2011 — Middletown facility starts up
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May 2024 — Katherine Gates appointed CEO
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Aug 2024 — $36.0M lump-sum payment to DOL to offload legacy black lung liability, reducing obligation by $45.5M
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2025 — Phoenix Global acquisition completed, expanding Industrial Services (slag handling) into Slovakia and Spain
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Q3 2025 — Notified of Algoma Steel's breach of contract and refusal to accept further coke tons
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Nov 2025 — Haverhill II take-or-pay agreement with Cliffs Steel extended through Dec 2028
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Q4 2025 — $90.1M non-cash impairment on Haverhill I following Algoma breach; decision made to close Haverhill I in Q1 2026
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Jan 2026 — Granite City take-or-pay agreement with U.S. Steel extended through Dec 2026
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Feb 17, 2026 — FY2025 results reported: net loss of $44.2M; 2026 guidance issued ($230–250M Adjusted EBITDA)
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Feb 20, 2026 — FY2025 10-K filed with the SEC
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Apr 30, 2026 — Q1 2026: loss reported (weather/equipment issues); full-year guidance reaffirmed
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SIGNAL RISK TIMING — Q3 2025: Algoma Steel breach notified (triggering event for Q4 2025 impairment)
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FORWARD-LOOKING QUOTE (CEO Katherine Gates, Feb 17, 2026 earnings release): "Looking ahead to 2026, we have optimized our coke fleet with the closure of Haverhill I...we will be running at full utilization and are sold out for the year. Our 2026 Adjusted EBITDA guidance range of $230 million to $250 million reflects our expectations for improvement in market conditions for our terminals and a full year of Phoenix Global."
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Management (e.g. CEO, CFO, Chief Delivery Officer, etc.)
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CEO — Katherine T. Gates (49): Became CEO in May 2024; President since Jan 2023. Joined SunCoke in Feb 2013 as Senior Health, Environment & Safety Counsel; served as SVP, Chief Legal Officer & Chief HR Officer (Nov 2019–Jan 2023) and General Counsel/Chief Compliance Officer (Oct 2015–Nov 2019). Previously a Partner at Beveridge & Diamond, P.C.
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CFO — Shantanu Agrawal: Promoted to CFO effective with the Feb 17, 2026 earnings release, succeeding Mark W. Marinko, who retired. Agrawal is an 11-year SunCoke veteran, most recently VP of Finance & Treasurer. Framed by CEO Gates as a planned internal succession, not a forced departure — continuity signal. [Prior CFO Mark W. Marinko (64): SVP & CFO from March 2022 until his Feb 2026 retirement; previously CFO at Great Lakes Dredge & Dock and President of Consumer Services at TransUnion.]
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SVP, Commercial Operations, Business Development, Terminals & International Coke — P. Michael Hardesty (63): With SunCoke since 2011, 30+ years in the mining industry. Previously SVP at International Coal Group and VP of Commercial Optimization at Arch Coal.
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SVP, Chief Legal and Administrative Officer — Sarah E. Albert (47): Appointed June 2025. Joined SunCoke in Jan 2020, most recently VP/Assistant General Counsel & Chief Compliance Officer. Previously a Partner at Beveridge & Diamond, P.C. (same firm as CEO Gates).
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VP, Engineering & Technology / Chief Technology Officer — John F. Quanci, PhD (64): Joined SunCoke Oct 2010, CTO since May 2019. 35+ years of process research/engineering experience, including roles at Mobil, ExxonMobil, and DuPont Electronic Materials. Holds 100+ patents.
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Positives / Opportunity
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1. Long-term take-or-pay contracts insulate most Domestic Coke revenue from spot price swings.
2. Largest independent U.S. coke producer (~38% of blast furnace coke capacity); only builder of new U.S. capacity in 30+ years.
3. Phoenix Global synergy target ($5–10M) already achieved; Industrial Services EBITDA up from $7.7M to $34.4M YoY (Q2'26).
4. Q2'26 beat-and-raise: EPS $0.15 (vs. $0.08 est.), revenue +9.5% YoY, FY26 guidance raised to $250–265M.
5. Contract extensions (Haverhill II→2028, Granite City→2026) show customer commitment despite the Algoma loss.
6. Legacy black lung liability cut by $45.5M via 2024 settlement; ~5.7% dividend maintained, 28 consecutive quarters.
7. Structural tailwind: ~90% of non-SunCoke U.S. coke capacity is 30+ years old — aging competitor closures could add share. Market share RESOLVED (8/20/26): ~38% of U.S. blast furnace coke capacity per FY2025 10-K (primary source) is the figure to use — an earlier ~34% figure traced back to a low-quality, internally-inconsistent AI-generated site (MatrixBCG.com), not SunCoke's own materials. Discard the 34% figure.
8. Insider signal: 3 executives/directors made open-market purchases in the last 6 months (Hardesty, Marinko, Mikhalevsky), $0 sales.
9. Best-in-class safety (2025 TRIR 0.55 vs. industry 1.9–2.4); CFO answers analyst Q&A with specifics, not deflection.
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Negatives / Risks
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1. Algoma Steel's contract breach (Q3'25) forced the Haverhill I closure and a $90.1M impairment — permanent capacity loss.
2. High customer concentration: bulk of revenue tied to just two steelmakers (Cliffs Steel, U.S. Steel), who are also potential competitors via their own captive coke ovens.
3. Structural threat: EAF steelmaking (Nucor, Steel Dynamics) needs little/no coke and keeps gaining U.S. share.
4. Heavy environmental/regulatory exposure (EPA MACT standards, NAAQS) could raise compliance costs.
5. Pattern risk: a "one-time" charge has shown up every quarter since Q3'25 (Algoma, impairment, weather, transaction costs) — watch if Q3'26 breaks the streak.
6. Q2'26 call: management itself downgraded H2 terminal volume language from "extraordinary" to "normal kind of strong" — a chunk of the beat came from non-repeating seasonal slag sales and a volatile pricing benefit.
7. Q2'26 operating cash flow was negative $27.2M (explained as ~$65M in receipts delayed into July) — confirm it reverses in Q3.
8. ESG-driven valuation overhang: fund flows away from coal-adjacent names, independent of fundamentals.
9. Legacy environmental/reclamation obligations from former coal mining operations remain on the books.
10. Analyst signal lags insider signal: Street coverage is thin (2 analysts) and still Hold-leaning with targets barely above the current price, despite two straight beats.
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Catalysts
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1. Continued Phoenix Global synergy ramp beyond the $5–10M target already achieved (full synergies guided for 2027).
2. Resolution/recovery from the Algoma Steel contract breach litigation.
3. Granite City contract renewal decision, beyond its Dec 2026 expiration.
4. Continued debt paydown and capital return (dividend + potential buybacks) per 2026 guidance.
5. Potential re-rating if analyst targets catch up to the insider-buying signal and recent beat-and-raise execution.
6. Growth in foundry coke and non-contracted export coke sales.
7. Additional accretive M&A in Industrial Services, following the Phoenix Global playbook.
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