SXC

SXC's first annual loss in years (-$44.2M net, -$0.52 EPS) looks worse than the underlying business. Management attributes it largely to a $90.1M ($68.1M net-of-tax) impairment at Haverhill I triggered by Algoma Steel's breach of its coke-supply contract, plus lower Domestic Coke pricing and unfavorable coal-to-coke yields. Strip the impairment and the franchise still threw off $219.2M of Adjusted EBITDA and $109M of operating cash flow. At $7.82 the stock trades at just 0.4x sales and a mid-single-digit EV/EBITDA once you add the $686M of long-term debt — genuinely cheap, and the $0.48/yr dividend yields ~6%. That is the bull case: a punished, cash-generative asset with a fat yield.

The problem is that this is not purely a one-off. Adjusted EBITDA fell ~20% year-over-year ($272.8M→$219.2M), revenue declined 5.1% to $1.84B, and the trend of profits (FY22 $101M, FY24 $95.9M) has clearly rolled over. The Algoma breach is a real forward hit — SunCoke closed Haverhill I in Q4 and is 'actively pursuing' recovery with no assured outcome — and the take-or-pay model that makes this business defensible only works if customers honor contracts. The Haverhill II extension with Cleveland-Cliffs through 2028 (500k tons/yr) is a partial offset that keeps the anchor customer in place.