SunCoke Energy, Inc. (SXC) Cash Flow Statement

The gap between net income and operating cash flow is the central signal here, and it appears driven largely by heavy non-cash depreciation of roughly $28M to $59M per quarter and by working capital swings rather than underlying earnings strength. Quarters with negative operating cash flow, such as 2026Q2 at -$7.0M and 2024Q2 at -$9.3M, suggest that conversion is highly episodic and timing-dependent. Investors should monitor whether the strong 2026Q3 conversion reflects a durable improvement or a reversal of prior working capital build.

The magnitude of quarterly swings relative to a fairly stable revenue base of roughly $434M to $487M points to working capital timing and pass-through coal mechanics rather than a steady operating trend. Free cash flow has been positive in seven of the ten quarters shown, but several recent periods were negative or marginal, which warrants caution against extrapolating the latest figure. The reported figures suggest cash generation is real but lumpy, making any single-quarter margin a weak basis for valuation.

The size of working capital movements relative to net income suggests that cash collection and payables timing, potentially linked to pass-through coal costs, explain much of the divergence between earnings and cash. Large inflows in some quarters may partially reverse later, so reported operating cash flow may overstate sustainable generation. Investors should monitor whether working capital reversals continue to pressure cash in subsequent periods.

Summing the visible quarters suggests operating cash flow has exceeded net income over the period, consistent with the depreciation-heavy profile of cokemaking assets. This pattern may be read as evidence of cash earnings power, but it also indicates that accounting profit has been a poor guide to cash generation. Without a full multi-year series and disclosure of non-cash charges, the reliability of this cumulative comparison remains limited.