Oct 27, 2026 earnings call — Strong quarter and Algoma settlement announced
Consolidated Adjusted EBITDA was $76.9 million, and management expects to modestly exceed the high end of 2026 guidance.
Revenue $0.5B (est $0.5B) · EPS $0.25 (est $0.12)
Key quotes
"Consolidated Adjusted EBITDA for the third quarter of 2026 was $76.9 million, an increase of $17.8 million from the prior year period."
"The agreement was executed in October, and we can confirm that we were made whole."
"Year-to-date, we have reduced debt substantially while simultaneously increasing our free cash flow outlook to $180 million-$185 million, which reflects the impact of the settlement agreement with Algoma."
Analyst Q&A 2
Algoma settlement and turbine insurance timing
Q (Nathan Martin · StoneX Financial): He asked the amount of the Algoma settlement and how it affects fourth-quarter results. He also asked whether turbine insurance proceeds will arrive in Q4 and whether Jewell proceeds offset any delay.
A: They said the Algoma settlement is confidential and they will not disclose the amount, but they were made whole and the Algoma matter's effect is reflected in 2026 guidance. They said the turbine insurance claim may not finish in 2026 so that recovery is not included in guidance, and if payment arrived in 2026 they would significantly exceed the high end of guidance. Shantanu added the Jewell proceeds totaled $8.7 million with $1.8 million included in Adjusted EBITDA and $6.9 million running through net income; Industrial Services Q4 volumes are expected closer to Q1 levels and the Convent price kicker is now New Orleans price-driven.
"You can appreciate that this is a confidential settlement, and beyond that, we don't talk about the economics of specific customers or specific contracts." — Katherine Gates (CEO)
Coke margins and contract renewals
Q (Henry Hearle · B. Riley): He asked how much of the higher Adjusted EBITDA per ton came from contract vs spot mix versus coal-to-coke yield. He also asked whether expiring contracts will be extended into 2027.
A: Shantanu said the quarter had a bigger portion of contract coke versus spot, which was the larger reason for higher Adjusted EBITDA per ton, and that coal-to-coke yields are seasonal with higher yields in Q2 and Q3. He said both factors contributed but the contract-versus-spot mix was the bigger factor. Katherine said they are in active discussions on the Javelin contract at CMT and the U.S. Steel Nippon contract at Granite City Works and expect to move forward with them in 2027, but cannot give more detail now.
"If you are thinking about the Javelin contract at CMT and the contract with U.S. Steel Nippon at Granite City Works, we are in active discussions with both of those parties and expect to move forward with them in 2027." — Katherine Gates (CEO)