Strategic Performance Drivers – The Industrial Services segment achieved its highest adjusted EBITDA since the Phoenix acquisition, fueled by a significant step-up in terminal handling volumes. – Domestic Coke performance was bolstered by favorable coal-to-coke yields resulting…
om improved operating conditions across the fleet. – The Middletown turbine was successfully returned to service in May, earlier than anticipated, restoring power production capabilities for the remainder of the year. – Management confirmed the company is sold out for the full year 2026, with all spot glass and foundry coke sales finalized and long-term contracts in place. – The acquisition of Phoenix is delivering ahead of expectations, with management already achieving the targeted $5 million to $10 million in annual synergies. – A shift in coal pricing dynamics, where international prices rose relative to domestic prices, drove higher-than-expected volumes through the company’s terminals. Outlook and Guidance Assumptions – Full-year 2026 consolidated adjusted EBITDA guidance was raised to a range of $250 million to $265 million, reflecting strong first-half momentum. – Management expects terminal volumes to ‘normalize’ in the second half of the year, moving from ‘extraordinary’ Q2 levels back toward more typical strong run rates. – The second-half outlook for the Domestic Coke segment includes anticipated insurance recovery proceeds related to the Middletown turbine outage. – Operating cash flow guidance was increased to $240 million to $260 million, assuming a normalization of working capital after $65 million in late-quarter receipts were delayed into July. – Capital allocation will remain balanced between maintaining the quarterly dividend, paying down revolver debt, and evaluating opportunistic growth across all business areas
Operational and Market Factors – The Haverhill 1 shutdown acted as a headwind to Coke sales volumes during the quarter, partially offsetting yield gains. -…