SunCoke Energy, Inc.SXC
SunCoke Energy, Inc. Segments Disclosure
20. Business Segment Information
Prior to the acquisition of Phoenix Global, the Company consisted of three reportable segments, Domestic Coke, Brazil Coke and Logistics. Following the acquisition, the Company has concluded the Phoenix Global operating segment will be included in a reportable segment, Industrial Services, with the Logistics operating segment. The decision to aggregate results from the similarities between the two businesses including, providing material handling services to industrial manufacturing customers under long-term contracts or annual purchase orders, similar economic characteristics, similar equipment and labor force as well as similar types and often overlapping customers. Additionally, the Company historically elected to present the Brazil cokemaking operations as a separate reportable segment without it meeting the quantitative thresholds requiring separate segment reporting. The Company reassessed this election and will no longer present the Brazil cokemaking operations as a separate reportable segment. Based on the materiality of the Brazil cokemaking operations, Brazil Coke is included in “Corporate and Other.” Following these changes, the Company now consists of two reportable segments, Domestic Coke and Industrial Services. Accordingly, the Company has recast all segment information for all prior periods presented herein to reflect this change.
The Domestic Coke segment includes the Jewell, Indiana Harbor, Haverhill, Granite City and Middletown cokemaking facilities. Each of these facilities produces coke, and all facilities except Jewell recover waste heat which is converted to steam or electricity.
The Industrial Services segment includes the Convent Marine Terminal (“CMT”), Kanawha River Terminal (“KRT”), Lake Terminal, which provides services to our Indiana Harbor cokemaking facility, and fifteen molten slag removal, handling and processing operating sites across the United States, Brazil, Slovakia and Spain.
Corporate expenses that can be identified with a segment have been included in determining segment results. The remainder is included in Corporate and Other, which is not a reportable segment, but which also includes licensing and operating fees payable to us under long-term contracts with ArcelorMittal Brazil as well as the expenses related to those operations and activity from our legacy coal mining business.
Segment assets are those assets utilized within a specific segment.
In considering the financial performance of the business, the CODM, who is the Company’s President and Chief Executive Officer, evaluates the performance of its segments based on Adjusted EBITDA reportable segments, which is defined as earnings before interest, taxes, depreciation and amortization, adjusted for any impairments, restructuring costs, gains or losses on extinguishment of debt, gains or losses on derivative instruments, site closure costs, transaction costs, and/or corporate/other expenses (“Adjusted EBITDA reportable segments”). The CODM uses this measure to help determine the allocation of costs and resources to our reportable segments. Additionally, other companies may calculate Adjusted EBITDA reportable segments differently than we do, limiting its usefulness as a comparative measure.
The following tables include Adjusted EBITDA reportable segments, as defined above, which is a measure of segment profit or loss reported to the chief operating decision maker for purposes of allocating resources to the segments and assessing their performance.
| Year Ended December 31, 2025 | ||||||||||||||||||||
| (Dollars in millions) | ||||||||||||||||||||
| Domestic Coke | Industrial Services | Total | ||||||||||||||||||
| Sales and other operating revenue | $ | 1,613.8 | $ | 187.8 | $ | 1,801.6 | ||||||||||||||
| Intersegment revenues | — | 21.9 | 21.9 | |||||||||||||||||
| Net revenues | 1,613.8 | 209.7 | 1,823.5 | |||||||||||||||||
| Reconciliation of revenue | ||||||||||||||||||||
| Corporate and Other | 35.7 | |||||||||||||||||||
| Elimination of intersegment revenues | (21.9) | |||||||||||||||||||
| Total consolidated revenues | 1,837.3 | |||||||||||||||||||
Less:(1) | ||||||||||||||||||||
| Operating and maintenance expense | 291.8 | 134.9 | ||||||||||||||||||
Cost of products sold and other expenses(2) | 1,124.9 | — | ||||||||||||||||||
| Selling, general and administrative expenses | 27.1 | 12.5 | ||||||||||||||||||
| Adjusted EBITDA reportable segments | 170.0 | 62.3 | 232.3 | |||||||||||||||||
| Depreciation and amortization expense | 153.6 | |||||||||||||||||||
Interest expense, net(3) | 28.4 | |||||||||||||||||||
Long-lived asset impairment(4) | 90.3 | |||||||||||||||||||
| Loss on derivative forward contracts | 0.7 | |||||||||||||||||||
Restructuring costs(5) | 4.4 | |||||||||||||||||||
Site closure costs(6) | 3.9 | |||||||||||||||||||
Other corporate expenses(7) | 23.8 | |||||||||||||||||||
| (Loss) income before income tax expense | $ | (72.8) | ||||||||||||||||||
(1)The significant expense categories and amounts align with segment-level information that is regularly provided to the CODM.
(2)Cost of products sold and other expenses includes coal and transportation costs.
(3)Interest expense, net of $28.4 million reflects (i) consolidated interest expense of $32.9 million and (ii) consolidated interest income of $4.5 million.
(4)Primarily reflects the long-lived asset impairment charge associated with our Haverhill I cokemaking facility asset group within the Domestic Coke reportable segment. See Note 7 to our consolidated financial statements for further detail.
(5)Restructuring costs include severance and other related charges primarily associated with the acquisition of Phoenix Global within the Industrial Services reportable segment.
(6)Primarily reflects costs incurred associated with closing certain Phoenix Global operating sites within the Industrial Services reportable segment.
(7)Other corporate expenses represents business expenses not allocated to the Company’s reportable segments as well as the Company's Brazil cokemaking operations and are included in Corporate, which is not a reportable segment.
| Year Ended December 31, 2024 | ||||||||||||||||||||
| (Dollars in millions) | ||||||||||||||||||||
| Domestic Coke | Industrial Services | Total | ||||||||||||||||||
| Sales and other operating revenue | $ | 1,817.3 | $ | 83.0 | $ | 1,900.3 | ||||||||||||||
| Intersegment revenues | — | 22.9 | 22.9 | |||||||||||||||||
| Net revenues | 1,817.3 | 105.9 | 1,923.2 | |||||||||||||||||
| Reconciliation of revenue | ||||||||||||||||||||
| Corporate and Other | 35.1 | |||||||||||||||||||
| Elimination of intersegment revenues | (22.9) | |||||||||||||||||||
| Total consolidated revenues | 1,935.4 | |||||||||||||||||||
Less:(1) | ||||||||||||||||||||
| Operating and maintenance expense | 306.4 | 53.8 | ||||||||||||||||||
Cost of products sold and other expenses(2) | 1,244.2 | — | ||||||||||||||||||
| Selling, general and administrative expenses | 32.0 | 1.7 | ||||||||||||||||||
| Adjusted EBITDA reportable segments | 234.7 | 50.4 | 285.1 | |||||||||||||||||
| Depreciation and amortization expense | 118.9 | |||||||||||||||||||
Interest expense, net(3) | 23.4 | |||||||||||||||||||
Other corporate expenses(4) | 14.3 | |||||||||||||||||||
| Income before income tax expense | $ | 128.5 | ||||||||||||||||||
(1)The significant expense categories and amounts align with segment-level information that is regularly provided to the CODM.
(2)Cost of products sold and other expenses includes coal and transportation costs.
(3)Interest expense, net of $23.4 million reflects (i) consolidated interest expense of $28.7 million and (ii) consolidated interest income of $5.3 million.
(4)Other corporate expenses represents business expenses not allocated to the Company’s reportable segments as well as the Company's Brazil cokemaking operations and are included in Corporate, which is not a reportable segment.
| Year Ended December 31, 2023 | ||||||||||||||||||||
| (Dollars in millions) | ||||||||||||||||||||
| Domestic Coke | Industrial Services | Total | ||||||||||||||||||
| Sales and other operating revenue | $ | 1,954.0 | $ | 74.0 | $ | 2,028.0 | ||||||||||||||
| Intersegment revenues | — | 22.1 | 22.1 | |||||||||||||||||
| Net revenues | 1,954.0 | 96.1 | 2,050.1 | |||||||||||||||||
| Reconciliation of revenue | ||||||||||||||||||||
| Corporate and Other | 35.2 | |||||||||||||||||||
| Elimination of intersegment revenues | (22.1) | |||||||||||||||||||
| Total consolidated revenues | 2,063.2 | |||||||||||||||||||
Less:(1) | ||||||||||||||||||||
| Operating and maintenance expense | 305.1 | 50.3 | ||||||||||||||||||
Cost of products sold and other expenses(2) | 1,368.6 | — | ||||||||||||||||||
| Selling, general and administrative expenses | 32.5 | 1.5 | ||||||||||||||||||
| Adjusted EBITDA reportable segments | 247.8 | 44.3 | 292.1 | |||||||||||||||||
| Depreciation and amortization expense | 142.8 | |||||||||||||||||||
Interest expense, net(3) | 27.3 | |||||||||||||||||||
Other corporate expenses(4) | 24.2 | |||||||||||||||||||
| Income before income tax expense | $ | 97.8 | ||||||||||||||||||
(1)The significant expense categories and amounts align with segment-level information that is regularly provided to the CODM.
(2)Cost of products sold and other expenses includes coal and transportation costs.
(3)Interest expense, net of $27.3 million reflects (i) consolidated interest expense of $30.0 million and (ii) consolidated interest income of $2.7 million.
(4)Other corporate expenses represents business expenses not allocated to the Company’s reportable segments as well as the Company's Brazil cokemaking operations and are included in Corporate, which is not a reportable segment.
The following table sets forth the Company’s depreciation and amortization expense as well as its capital expenditures:
| Years Ended December 31, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
| (Dollars in millions) | ||||||||||||||||||||
| Depreciation and amortization expense: | ||||||||||||||||||||
| Domestic Coke | $ | 105.5 | $ | 105.2 | $ | 129.4 | ||||||||||||||
| Industrial Services | 45.8 | 12.6 | 12.8 | |||||||||||||||||
| Total reportable segments | $ | 151.3 | $ | 117.8 | $ | 142.2 | ||||||||||||||
| Corporate and Other | 2.3 | 1.1 | 0.6 | |||||||||||||||||
| Total depreciation and amortization expense | $ | 153.6 | $ | 118.9 | $ | 142.8 | ||||||||||||||
| Capital expenditures: | ||||||||||||||||||||
| Domestic Coke | $ | 26.4 | $ | 64.2 | $ | 103.2 | ||||||||||||||
| Industrial Services | 39.8 | 8.0 | 5.1 | |||||||||||||||||
| Total reportable segments | $ | 66.2 | $ | 72.2 | $ | 108.3 | ||||||||||||||
| Corporate and Other | 0.6 | 0.7 | 0.9 | |||||||||||||||||
| Total capital expenditures | $ | 66.8 | $ | 72.9 | $ | 109.2 | ||||||||||||||
The following table sets forth the Company’s segment assets:
| December 31, | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| (Dollars in millions) | ||||||||||||||
| Segment assets: | ||||||||||||||
| Domestic Coke | $ | 1,174.5 | $ | 1,351.1 | ||||||||||
| Industrial Services | 544.3 | 158.2 | ||||||||||||
| Total reportable segments | $ | 1,718.8 | $ | 1,509.3 | ||||||||||
| Corporate and Other | 71.1 | 158.9 | ||||||||||||
| Total assets | $ | 1,789.9 | $ | 1,668.2 | ||||||||||
The following table sets forth the Company's assets disaggregated by domestic and international:
| December 31, | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| (Dollars in millions) | ||||||||||||||
| Assets: | ||||||||||||||
| Domestic | $ | 1,650.9 | $ | 1,658.0 | ||||||||||
| International | 139.0 | 10.2 | ||||||||||||
| Total assets | $ | 1,789.9 | $ | 1,668.2 | ||||||||||
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.