[Management View]
SunCoke Energy reported Q2 2025 consolidated adjusted EBITDA of $43.6 million, down from $63.5 million in the prior year period. The decrease was driven by lower contract coke sales, less favorable Granite City economics, and reduced logistics volumes. The company announced the acquisition of Phoenix Global for $325 million, expected to close on August 1, 2025. The acquisition is anticipated to bring annual synergies of $5 million-$10 million.

[Outlook]
SunCoke reaffirmed its full-year consolidated adjusted EBITDA guidance of $210 million to $225 million for 2025. The company expects higher contract coke sales in the second half of the year and projects annual coke sales volume of approximately 4 million tons. The logistics segment is expected to benefit from the KRT terminal's expansion project.

[Financial Performance]
- Consolidated Adjusted EBITDA: $43.6 million, down from $63.5 million YoY.
- Domestic Coke Segment EBITDA: $40.5 million.
- Logistics Segment EBITDA: $7.7 million.
- Liquidity Position: $536.2 million.
- Dividend Declared: $0.12 per share.

[Q&A Highlights]
Question 1: Can you walk us through the drivers of the improvement from here? What are your assumptions around last coke sales volumes?
Answer: Q1 domestic coke adjusted EBITDA per ton was $55, and Q2 was around $42 a ton. For Q3 and Q4, we expect to normalize to $46-$48 per ton. We project 2-2.1 million tons of coke sales in the second half, reaching approximately 4 million tons for the year. Logistics volumes are expected to pick up in Q3, supporting our full-year adjusted EBITDA guidance of $210 million to $225 million.

Question 2: Can you talk about the macro drivers of Phoenix Global?
Answer: We will provide more details post-acquisition. We are excited about the EAF exposure, which diversifies our customer base. Phoenix had a trailing adjusted EBITDA of about $61 million, and we see opportunities for organic growth by expanding services at existing sites and bringing on new business.

Question 3: Can you discuss the recent conversations with your largest customer and the potential for renewal of the Haverhill contract?
Answer: We are in active discussions with Cliff regarding contract renewal. Despite Cliff's comments about not needing more coke in 2025, we continue to explore profitable avenues for selling our coke, including foundry and blast coke sales.

Question 4: How do you view export coal demand over the next few quarters?
Answer: We move various products through CMT, with coal being the majority. Higher domestic pricing and demand can impact international volumes. We reaffirm our logistics guidance based on current market conditions and do not expect price adjustments under the new contract.

Question 5: Does the lower revolver capacity impact your plans for financing Phoenix and the GPI project?
Answer: We expect to borrow $200-$210 million on the revolver for Phoenix, leaving enough capacity for working capital. The GPI project will require separate financing, likely through a term loan or note.

Question 6: Are there any updates on the GPI project and discussions with Nippon?
Answer: We are in active discussions with US Steel and Nippon but have no updates to share at this point.

[Sentiment Analysis]
Analysts and management maintained a cautious yet optimistic tone. Management emphasized strategic growth and operational improvements, while analysts focused on understanding the drivers behind future performance and contract renewals.

[Quarterly Comparison]
| Metric | Q2 2025 | Q2 2024 |
|-------------------------------|---------------|---------------|
| Consolidated Adjusted EBITDA | $43.6 million | $63.5 million |
| Domestic Coke Segment EBITDA | $40.5 million | N/A |
| Logistics Segment EBITDA | $7.7 million | N/A |
| Liquidity Position | $536.2 million| N/A |
| Dividend | $0.12/share | N/A |

[Risks and Concerns]
- Lower contract coke sales and unfavorable Granite City economics.
- Reduced logistics volumes due to market conditions.
- Acquisition-related transaction costs impacting earnings.
- Potential disruptions in supply-demand balance for coke.

[Final Takeaway]
SunCoke Energy's Q2 2025 performance was impacted by lower contract coke sales and logistics volumes. However, the company remains optimistic about the second half of the year, driven by higher contract coke sales and the integration of Phoenix Global. The acquisition is expected to diversify the customer base and bring operational synergies. Management reaffirmed full-year guidance, indicating confidence in achieving improved performance in the coming quarters.