Hedge funds held $98 million worth of positions in the stock as of Q1 2026, placing SunCoke Energy, Inc. (NYSE:SXC) among the best coal stocks to invest in.
SunCoke Energy, Inc. (NYSE:SXC) is entering the second half of 2026 with a cleaner operational setup than its first-quarter results suggested, a point management emphasized during its April 30, 2026, earnings call.
CEO Katherine Gates described a company running at full capacity and sold out for the full year, with its Haverhill I and Granite City cokemaking contracts extended and all spot blast and foundry coke sales finalized.
The core coke business, anchored by what Gates called the three pillars of Indiana Harbor, Middletown, and Jewel Foundry, is set up for a meaningful back-half recovery after Q1 was weighed down by severe winter weather and a turbine failure at the Middletown facility. Management said power production at Middletown is expected to resume late in Q2, removing a headwind that CFO Shantanu Agrawal estimated at roughly $10 million below the quarterly run rate. Q3 and Q4 are where the recovery is expected to show up most clearly.
The Industrial Services segment is another factor expected to drive the company’s second-half recovery.
The Phoenix acquisition, now in its second full quarter under SunCoke Energy, Inc. (NYSE:SXC)’s ownership, is being integrated steadily, with additional cost synergies expected to materialize as software systems are merged and integration drag costs subside. Terminal handling volumes improved meaningfully quarter-over-quarter to 5.6 million tons, and Gates noted that higher international coal demand tied to the Middle East conflict is contributing to a stronger market environment at the terminals, a trend she said showed no signs of weakening.
Additionally, SunCoke Energy, Inc. (NYSE:SXC) reaffirmed its full-year consolidated adjusted EBITDA guidance of $230 million to $250 million, supported by $72.7 million in operating cash flow generated in Q1 and liquidity of $262 million at quarter’s end. The company targets gross leverage below 3x by year-end, with free cash flow directed toward debt paydown and the quarterly dividend, now in its 27th consecutive quarter.
SunCoke Energy, Inc. (NYSE:SXC) supplies coke to customers in domestic and international markets. The company operates through three main segments: Domestic Coke, Brazil Coke, and Logistics.
While we acknowledge the risk and potential of SXC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SXC and that has 10,000% upside potential, check out our report about this cheapest AI stock.
READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.
Disclosure: None. Follow Insider Monkey on Google News.
Hedge Fund Resource Center