4/30/2025

speaker
Conference Operator
Call Moderator

Good day and welcome to the CERN Coke Energy Q1 2025 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. You may press star, then one on your telephone keypad. To withdraw your question, please press star, then two. Please note, this event has been recorded. I would now like to turn the conference over to Mr. Shantanu Agarwal, Vice President, Finance and Treasurer. Please go ahead.

speaker
Shantanu Agarwal
Vice President, Finance and Treasurer

Good morning, and thank you for joining us this morning to discuss Suncoke Energy's first quarter 2025 results. With me today are Catherine Gates, President and Chief Executive Officer, and Mark Marinko, Senior Vice President and Chief Financial Officer. Following management's prepared remarks, we'll open the call for Q&A. This conference call is being webcast live on the investor relations section of our website, and a replay will be available later today. If we do not get your questions on the call today, please feel free to reach out to our investor relations team. Before I turn things over to Catherine, let me remind you that the various remarks we make on today's call regarding future expectations constitute forward-looking statements. The cautionary language regarding forward-looking statements in our SEC filings apply to the remarks we make today. These documents are available on our websites as are reconciliations to non-GAAP financial measures discussed on today's call. With that, I'll now turn things over to Catherine.

speaker
Catherine Gates
President and Chief Executive Officer

Thanks, Shantanu. Good morning, and thank you for joining us on today's call. This morning, we announced Suncoke Energy's first quarter results. I want to share a few highlights before turning it over to Mark to discuss the results in detail. We delivered strong results for the quarter, And I want to thank all of our employees for their contributions to our results. Our logistics business continued to perform well, and as expected, our domestic Coke business was impacted by the Granite City contract extension economics, as well as the weak spot Coke market. Together, we delivered consolidated adjusted EBITDA of $59.8 million during the quarter. As we discussed on our prior call, the Spot Blast Coke pricing environment continues to be highly challenged, but there is demand for our Coke, and we have essentially all Spot Blast and Foundry Coke sales finalized for the full year. Earlier today, we also announced a $0.12 per share dividend payable to shareholders on June 2, 2025. From a balance sheet perspective, we ended the first quarter with a strong liquidity position of $543.7 million. Our gross leverage was approximately 1.89 times on a trailing 12-month adjusted EBITDA basis at the end of the quarter. Looking ahead, we have extended our Granite City Coke Supply Agreement with U.S. Steel through September 30, 2025, with the option for U.S. Steel to extend for an additional three months. We continuously monitor the challenging market conditions, but do not see a significant impact to our operations at this time. As a result, we are reaffirming our full-year consolidated adjusted EBITDA guidance range of $210 to $225 million. With that, I will turn it over to Mark to review our first quarter earnings in detail. Mark?

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