11/4/2025

speaker
Nick
Conference Operator

Good day, and welcome to the Q3 2025 Suncoke Energy, Inc. Earnings Conference Call. All participants will be in a 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. To ask a question, you may press star, then one on a touch-tone phone. To withdraw your question, please press star, then two. Please note, this event is being recorded. I would now like to turn the conference over to Shantanu Agrawal, Vice President, Finance, and Treasurer. Please go ahead, sir.

speaker
Shantanu Agrawal
Vice President, Finance and Treasurer

Thanks, Nick. Good morning, and thank you for joining us to discuss Suncook Energy's third quarter 2025 results. With me today are Catherine Gates, President and Chief Executive Officer, and Mark Marinko, Senior Vice President and Chief Financial Officer. This conference call is being webcast live on the investor relations section of our website, and a replay will be available later today. Following management's prepared remarks, we'll open the call for Q&A. 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 website 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, Dantanu. Good morning, and thank you for joining us on today's call. This morning, we announced Suncoke Energy's third quarter results. I want to share a few highlights before turning it over to Mark to discuss the results in detail. We delivered Q3 2025 consolidated adjusted EBITDA of $59.1 million, representing a sequential improvement over the second quarter, although not to the extent we expected at the end of Q2. We completed the acquisition of Phoenix Global on August 1st and are pleased with the progress we've made on integration activities thus far. We expect to begin recognizing synergies in 2026. Phoenix's financial results will be reported in our new industrial services segment, which also includes our former logistics segment. During the quarter, we also extended our code making agreement with U.S. Steel at Granite City through the end of 2025. With the Phoenix acquisition complete and an updated view of market conditions driving the balance of 2025, we are revising our consolidated adjusted EBITDA guidance range to between $220 million and $225 million. Our updated guidance is inclusive of the addition of five months of Phoenix results, partially offset by the impact of a deferral of the sale of approximately 200,000 Coke tons due to a breach of contract by one of our customers. Our revised guidance contemplates the production and storage and inventory of the 200,000 tons of Coke until there is resolution of the issue. Any changes to these assumptions could impact our guidance range. We are actively pursuing all legal means to enforce the contract. Earlier today, we also announced a quarterly dividend of 12 cents per share, payable to shareholders on December 1st, 2025. This is our 25th consecutive quarter announcing a dividend. While the dividend is evaluated on a quarterly basis by our board, we expect to continue the dividend to reward our long-term shareholders. With that, I'll turn it over to Mark to review our third quarter earnings in detail. Mark?

Disclaimer

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