KOPPERS REPORTS SECOND QUARTER 2025 RESULTS; REVISES 2025 OUTLOOK
Koppers Holdings Inc. (NYSE: KOP) reported Q2 2025 results with sales of $504.8 million, down 10.4% from $563.2 million in Q2 2024. Net income decreased to $16.4 million ($0.81 per share) from $26.8 million ($1.25 per share) year-over-year. However, adjusted EPS improved to $1.48 from $1.36.
The company revised its 2025 outlook, lowering sales forecast to $1.9-2.0 billion from $2.0-2.2 billion, and adjusted EBITDA to $250-270 million. The company's Catalyst transformation process has shown early positive results, with an 11% reduction in global workforce since April 2024. Operating cash flow improved to $27.8 million for H1 2025, and the company completed its largest U.S. qualified pension plan termination.
Koppers Holdings Inc. (NYSE: KOP) ha riportato i risultati del secondo trimestre 2025 con vendite pari a 504,8 milioni di dollari, in calo del 10,4% rispetto ai 563,2 milioni di dollari del secondo trimestre 2024. L'utile netto è diminuito a 16,4 milioni di dollari (0,81 dollari per azione) rispetto a 26,8 milioni di dollari (1,25 dollari per azione) anno su anno. Tuttavia, l'utile per azione rettificato è migliorato a 1,48 dollari da 1,36 dollari.
L'azienda ha rivisto le previsioni per il 2025, abbassando la stima delle vendite a 1,9-2,0 miliardi di dollari da 2,0-2,2 miliardi, e l'EBITDA rettificato a 250-270 milioni di dollari. Il processo di trasformazione Catalyst della società ha mostrato risultati positivi iniziali, con una riduzione dell'11% della forza lavoro globale da aprile 2024. Il flusso di cassa operativo è migliorato a 27,8 milioni di dollari nel primo semestre 2025, e l'azienda ha completato la più grande cessazione di un piano pensionistico qualificato negli Stati Uniti.
Koppers Holdings Inc. (NYSE: KOP) reportó resultados del segundo trimestre de 2025 con ventas de 504,8 millones de dólares, una disminución del 10,4% desde 563,2 millones en el segundo trimestre de 2024. El ingreso neto bajó a 16,4 millones de dólares (0,81 dólares por acción) desde 26,8 millones (1,25 dólares por acción) interanual. Sin embargo, las ganancias ajustadas por acción mejoraron a 1,48 dólares desde 1,36 dólares.
La compañía revisó su perspectiva para 2025, reduciendo la previsión de ventas a 1,9-2,0 mil millones de dólares desde 2,0-2,2 mil millones, y el EBITDA ajustado a 250-270 millones de dólares. El proceso de transformación Catalyst de la empresa ha mostrado resultados positivos iniciales, con una reducción del 11% en la fuerza laboral global desde abril de 2024. El flujo de caja operativo mejoró a 27,8 millones de dólares en el primer semestre de 2025, y la compañía completó la terminación de su plan de pensiones calificado más grande en EE.UU.
Koppers Holdings Inc. (NYSE: KOP)는 2025년 2분기 실적을 발표하며 매출이 5억 4,800만 달러로 2024년 2분기 5억 6,320만 달러 대비 10.4% 감소했다고 밝혔습니다. 순이익은 전년 동기 대비 1,640만 달러(주당 0.81달러)로, 2,680만 달러(주당 1.25달러)에서 감소했습니다. 그러나 조정 주당순이익(EPS)은 1.48달러로 1.36달러에서 개선되었습니다.
회사는 2025년 전망을 수정하여 매출 전망을 기존 19억~20억 달러에서 19억~20억 달러로 낮추고, 조정 EBITDA를 2억 5,000만~2억 7,000만 달러로 조정했습니다. Catalyst 전환 프로세스는 2024년 4월 이후 전 세계 인력의 11% 감축 등 초기 긍정적 결과를 보여주고 있습니다. 2025년 상반기 영업 현금 흐름은 2,780만 달러로 개선되었으며, 회사는 미국 내 최대 규모의 적격 연금 계획 종료를 완료했습니다.
Koppers Holdings Inc. (NYSE : KOP) a publié ses résultats du deuxième trimestre 2025 avec un chiffre d'affaires de 504,8 millions de dollars, en baisse de 10,4 % par rapport à 563,2 millions de dollars au deuxième trimestre 2024. Le bénéfice net a diminué à 16,4 millions de dollars (0,81 dollar par action) contre 26,8 millions de dollars (1,25 dollar par action) d'une année sur l'autre. Cependant, le BPA ajusté s'est amélioré à 1,48 dollar contre 1,36 dollar.
L'entreprise a révisé ses prévisions pour 2025, abaissant ses prévisions de ventes à 1,9-2,0 milliards de dollars contre 2,0-2,2 milliards, et l'EBITDA ajusté à 250-270 millions de dollars. Le processus de transformation Catalyst de la société a montré des résultats positifs précoces, avec une réduction de 11 % des effectifs mondiaux depuis avril 2024. Le flux de trésorerie opérationnel s'est amélioré à 27,8 millions de dollars pour le premier semestre 2025, et la société a achevé la résiliation de son plus grand régime de retraite qualifié aux États-Unis.
Koppers Holdings Inc. (NYSE: KOP) meldete Ergebnisse für das zweite Quartal 2025 mit einem Umsatz von 504,8 Millionen US-Dollar, was einem Rückgang von 10,4 % gegenüber 563,2 Millionen US-Dollar im zweiten Quartal 2024 entspricht. Der Nettogewinn sank auf 16,4 Millionen US-Dollar (0,81 US-Dollar je Aktie) von 26,8 Millionen US-Dollar (1,25 US-Dollar je Aktie) im Jahresvergleich. Allerdings verbesserte sich das bereinigte Ergebnis je Aktie auf 1,48 US-Dollar von 1,36 US-Dollar.
Das Unternehmen hat seine Prognose für 2025 angepasst und die Umsatzprognose auf 1,9 bis 2,0 Milliarden US-Dollar von zuvor 2,0 bis 2,2 Milliarden US-Dollar gesenkt sowie das bereinigte EBITDA auf 250 bis 270 Millionen US-Dollar reduziert. Der Catalyst-Transformationsprozess des Unternehmens zeigt erste positive Ergebnisse mit einer 11%igen Reduzierung der globalen Belegschaft seit April 2024. Der operative Cashflow verbesserte sich im ersten Halbjahr 2025 auf 27,8 Millionen US-Dollar, und das Unternehmen schloss die größte Beendigung eines qualifizierten US-Rentenplans ab.
- Adjusted EPS increased 8.8% to $1.48 from $1.36 year-over-year
- Operating cash flow improved to $27.8 million from $14.9 million in prior year
- 11% reduction in global workforce through Catalyst transformation process
- Railroad and Utility Products segment's Adjusted EBITDA increased 41.1%
- Carbon Materials and Chemicals segment's Adjusted EBITDA margin improved by 8%
- Sales declined 10.4% to $504.8 million due to sluggish demand across all segments
- Net income decreased 38.8% to $16.4 million from $26.8 million year-over-year
- Lowered 2025 sales forecast to $1.9-2.0 billion from previous $2.0-2.2 billion guidance
- Performance Chemicals segment's Adjusted EBITDA decreased 35.2%
- Higher raw material costs impacting Performance Chemicals segment
Insights
Koppers shows operational resilience despite sales decline; cost-cutting initiatives offset revenue weakness while management revises guidance downward.
Koppers reported Q2 2025 results that demonstrate the company's ability to maintain profitability despite significant top-line pressure. Sales dropped
However, looking beyond these headline figures reveals a more nuanced performance. Adjusted EPS actually increased
The company's transformation process, "Catalyst," is already yielding benefits through substantial cost reductions. The workforce has declined for 14 consecutive months, representing an
Segment performance shows interesting dynamics: Railroad and Utility Products saw modest revenue decline (
Cash flow metrics are improving, with YTD capital expenditures of
Management has revised its 2025 outlook downward, with sales now expected between
The company's strategic focus on cost efficiency and transformation appears to be offsetting persistent weakness in end markets, though management doesn't anticipate demand improvement in the second half of 2025. Their long-term outlook suggests potential for mid-to-high teens EBITDA margins within 2-3 years through continued operational improvements.
- Sales of
$504.8 Million $563.2 Million - Net income attributable to Koppers of
$16.4 Million $26.8 Million - Diluted EPS of
$0.81 $1.25 - Adjusted EPS of
$1.48 $1.36 - Adjusted EBITDA of
$77.1 Million $77.5 Million - Year-to-date capital expenditures of
$26.4 Million $43.4 Million - Year-to-date capital expenditures, net of insurance proceeds and sale of assets, of
$21.7 Million $41.8 Million
Three Months Ended June 30, | ||||||||||||||||
(Dollars in millions, except per share amounts) | 2025 | 2024 | Change | % Change | ||||||||||||
Net sales | $ | 504.8 | $ | 563.2 | $ | (58.4) | -10.4 | % | ||||||||
Net income attributable to Koppers | $ | 16.4 | $ | 26.8 | $ | (10.4) | -38.8 | % | ||||||||
Adjusted net income attributable to Koppers(1) | $ | 29.9 | $ | 29.2 | $ | 0.7 | 2.4 | % | ||||||||
Diluted earnings per share (EPS) | $ | 0.81 | $ | 1.25 | $ | (0.44) | -35.2 | % | ||||||||
Adjusted earnings per share(1) | $ | 1.48 | $ | 1.36 | $ | 0.12 | 8.8 | % | ||||||||
Adjusted EBITDA(1) | $ | 77.1 | $ | 77.5 | $ | (0.4) | -0.5 | % | ||||||||
(1) | Non-GAAP financial measure. See Non-GAAP Financial Measures for additional information and reconciliations to the most directly comparable financial measure determined and reported in accordance with |
Chief Executive Officer Leroy Ball said, "I am extremely happy with our second quarter performance in every category other than top line revenue, where sluggish demand continued across all business segments. Our team's amazing commitment to our transformation process, Catalyst, is already bearing fruit, as evidenced by our ability to offset the impact on profitability from the sales decline through various cost-saving actions. Our global employee base has declined for 14 consecutive months, representing an 11 percent drop from its high point in April 2024. The decision to exit our phthalic anhydride business has also showed early returns and contributed positively to our margins in the quarter. Finally, strong operating cash flow and lower capital expenditures enabled us to reduce debt and return capital to shareholders through share repurchases and quarterly dividends."
Second Quarter Financial Performance
Three Months Ended June 30, | ||||||||||||||||
2025 | 2024 | Change | % Change | |||||||||||||
(Dollars in millions) | ||||||||||||||||
Net sales: | ||||||||||||||||
Railroad and Utility Products and Services | $ | 250.4 | $ | 253.9 | $ | (3.5) | -1.4 | % | ||||||||
Performance Chemicals | 150.8 | 176.9 | (26.1) | -14.8 | % | |||||||||||
Carbon Materials and Chemicals | 103.6 | 132.4 | (28.8) | -21.8 | % | |||||||||||
Total | $ | 504.8 | $ | 563.2 | $ | (58.4) | -10.4 | % | ||||||||
Adjusted EBITDA: | ||||||||||||||||
Railroad and Utility Products and Services | $ | 31.6 | $ | 22.4 | $ | 9.2 | 41.1 | % | ||||||||
Performance Chemicals | 28.7 | 44.3 | (15.6) | -35.2 | % | |||||||||||
Carbon Materials and Chemicals | 16.8 | 10.8 | 6.0 | 55.6 | % | |||||||||||
Total(1) | $ | 77.1 | $ | 77.5 | $ | (0.4) | -0.5 | % | ||||||||
Adjusted EBITDA margin as a percentage of GAAP sales: | ||||||||||||||||
Railroad and Utility Products and Services | 12.6 | % | 8.8 | % | 3.8 | % | 43.2 | % | ||||||||
Performance Chemicals | 19.0 | % | 25.0 | % | -6.0 | % | -24.0 | % | ||||||||
Carbon Materials and Chemicals | 16.2 | % | 8.2 | % | 8.0 | % | 97.6 | % | ||||||||
(1) | Non-GAAP financial measure. See Non-GAAP Financial Measures for additional information and reconciliations to the most directly comparable financial measure determined and reported in accordance with |
- RUPS net sales decreased due to lower volumes from Class I crosstie customers and lower activity in the crosstie recovery business. These decreases were partly offset by higher volumes in the commercial crosstie business, price increases and an increase in activity in the railroad bridge services business. Adjusted EBITDA increased due to
$7.7 million - PC net sales decreased due primarily to a 15 percent volume decrease mostly in the
Americas resulting from a shift in U.S. market share. Adjusted EBITDA decreased due primarily to higher raw material costs and lower sales volumes, partly offset by lower selling, general and administrative expenses of$2.2 million - CMC net sales decreased mainly due to volume decreases of phthalic anhydride of
$20.4 million $11.0 million Australasia . These decreases were partly offset by volume increases for refined tar, naphthalene and creosote. Foreign currency changes compared to the prior year period from international markets had a$1.8 million $11.5 million North America , along with a favorable sales mix, partly offset by price decreases and lower utilization from discontinuing phthalic anhydride production. - Operating cash flow for the six months ended June 30, 2025 was
$27.8 million $14.9 million $13.9 million U.S. qualified pension plan.
2025 Outlook
After considering the current competitive environment, global economic conditions, as well as the ongoing uncertainty associated with geopolitical and supply chain challenges, Koppers is revising its sales forecast to be approximately
2025 Forecast | 2024 Actual | |||
Net sales | ||||
Adjusted EBITDA | ||||
Effective tax rate | 30 % | 26 % | ||
Adjusted EPS | ||||
Operating cash flow | ||||
Capital expenditures |
The forecasted operating cash flow includes any impact from planned pension terminations and other special items. The company completed the termination of its largest
Commenting on the revised forecast, Mr. Ball said, "With the second quarter under our belt and no expectation of demand improvement in most of our end markets for the back half of this year, we are adjusting our full-year guidance accordingly. Achieving the revised guidance would represent an increase of approximately 5 percent in adjusted EPS, at the midpoint, over 2024 and one of our higher adjusted EBITDA margin levels. We remain confident in our original operating cash flow forecast and revised our capital spending targets lower to reflect no near-term needs for major projects. We plan to use the majority of the free cash flow generated over the back half of this year to reduce borrowings.
"The Catalyst transformation process, which we initiated at the beginning of this year, has already uncovered significant opportunity that suggests a consolidated sustainable mid to high teens adjusted EBITDA margin is achievable in the next two to three years. As volumes recover across our end markets, we expect an outsized impact on profitability and cash flow from Catalyst, reaping the benefits of a leaner organization with better tools and technology that position us as a supplier of choice."
Koppers does not provide reconciliations of guidance for adjusted EBITDA, adjusted EBITDA margin, and adjusted EPS to comparable GAAP measures, in reliance on the unreasonable efforts exception. Koppers is unable, without unreasonable efforts, to forecast certain items required to develop meaningful comparable GAAP financial measures. These items include, but are not limited to, restructuring and impairment charges, acquisition-related costs, mark-to-market commodity hedging, and LIFO adjustments that are difficult to forecast for a GAAP estimate and may be significant. Forward-looking statements, including the guidance above, are based upon current expectations and are subject to factors that could cause actual results to differ materially from those set forth above. Please see the "Safe Harbor Statement" below for more information.
Investor Conference Call and Webcast
Koppers management will conduct a conference call this morning, beginning at 11:00 a.m. Eastern Time to discuss the company's results for the second quarter of 2025. Presentation materials will be available at least 15 minutes before the call on www.koppers.com in the Investor Relations section of the company's website.
Interested parties may access the live audio broadcast toll free by dialing 833-366-1128 in
An audio replay will be available approximately two hours after the completion of the call at 877-344-7529 for
About Koppers
Koppers (NYSE: KOP) is an integrated global provider of essential treated wood products, wood preservation technologies and carbon compounds. Our team of 2,100 employees create, protect and preserve key elements of our global infrastructure – including railroad crossties, utility poles, outdoor wooden structures, and production feedstocks for steel, aluminum and construction materials, among others – applying decades of industry-leading expertise while constantly innovating to anticipate the needs of tomorrow. Together we are providing safe and sustainable solutions to enable rail transportation, keep power flowing, and create spaces of enjoyment for people everywhere. Protecting What Matters, Preserving The Future. Learn more at Koppers.com.
Inquiries from the media should be directed to Ms. Jessica Franklin Black at BlackJF@koppers.com or 412-227-2025. Inquiries from the investment community should be directed to Ms. Quynh McGuire at McGuireQT@koppers.com or 412-227-2049.
Non-GAAP Financial Measures
This press release contains certain non-GAAP financial measures. Koppers believes that adjusted EBITDA, adjusted net income attributable to Koppers, and adjusted earnings per share provide information useful to investors in understanding the underlying operational performance of the company, its business and performance trends, and facilitates comparisons between periods. The exclusion of certain items permits evaluation and a comparison between periods of results for ongoing business operations, and it is on this basis that Koppers management internally assesses the company's performance. In addition, the Board of Directors and executive management team use adjusted EBITDA as a performance measure under the company's annual incentive plans and for certain performance share units granted to management.
Although Koppers believes that these non-GAAP financial measures enhance investors' understanding of its business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP basis financial measures and should be read in conjunction with the relevant GAAP financial measure. Other companies in a similar industry may define or calculate these measures differently than the company, limiting their usefulness as comparative measures. Because of these limitations, these non-GAAP financial measures should not be considered in isolation or as substitutes for performance measures calculated in accordance with GAAP.
See the attached tables for the following reconciliations of non-GAAP financial measures included in this press release: Unaudited Reconciliation of Net Income to Adjusted EBITDA and Unaudited Reconciliations of Net Income Attributable to Koppers to Adjusted Net Income Attributable to Koppers and Diluted Earnings Per Share and Adjusted Earnings Per Share.
Safe Harbor Statement
Certain statements in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and may include, but are not limited to, statements about sales levels, acquisitions, restructuring, declines in the value of Koppers assets and the effect of any resulting impairment charges, profitability and anticipated expenses and cash outflows. All forward-looking statements involve risks and uncertainties.
All statements contained herein that are not clearly historical in nature are forward-looking, and words such as "outlook," "guidance," "forecast," "believe," "anticipate," "expect," "estimate," "may," "will," "should," "continue," "plan," "potential," "intend," "likely," or other similar words or phrases are generally intended to identify forward-looking statements. Any forward-looking statement contained herein, in other press releases, written statements or other documents filed with the Securities and Exchange Commission, or in Koppers communications and discussions with investors and analysts in the normal course of business through meetings, phone calls and conference calls, regarding future dividends, expectations with respect to sales, earnings, cash flows, operating efficiencies, restructurings, cost reduction efforts, product introductions or expansions, the benefits of acquisitions, divestitures, joint ventures or other matters as well as financings and debt reduction, are subject to known and unknown risks, uncertainties and contingencies.
Many of these risks, uncertainties and contingencies are beyond our control, and may cause actual results, performance or achievements to differ materially from anticipated results, performance or achievements. Factors that might affect such forward-looking statements include, among other things, availability of and fluctuations in the prices of key raw materials, including coal tar, lumber and scrap copper; the impact of changes in commodity prices, such as oil, copper and chemicals, on product margins; the successful implementation of multi-year cost mitigation programs; the extent of the dependence of certain of our businesses on certain market sectors and customers; economic, political and environmental conditions in international markets, including governmental changes, tariffs, restrictions on trade and restrictions on the ability to transfer capital across countries; general economic and business conditions; potential difficulties in protecting our intellectual property; the ratings on our debt and our ability to repay or refinance our outstanding indebtedness as it matures; our ability to operate within the limitations of our debt covenants; unexpected business disruptions; potential delays in timing or changes to expected benefits from cost reduction efforts; potential impairment of our goodwill and/or long-lived assets; demand for Koppers goods and services; competitive conditions; capital market conditions, including interest rates, borrowing costs and foreign currency rate fluctuations; disruptions and inefficiencies in the supply chain; changes in laws; the impact of environmental laws and regulations and compliance therewith; unfavorable resolution of claims against us, as well as those discussed more fully elsewhere in this release and in documents filed with the Securities and Exchange Commission by Koppers, particularly our latest annual report on Form 10-K and any subsequent filings by Koppers with the Securities and Exchange Commission. Any forward-looking statements in this release speak only as of the date of this release, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after that date or to reflect the occurrence of unanticipated events.
KOPPERS HOLDINGS INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Dollars in millions, except share and per share amounts) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
Net sales | $ | 504.8 | $ | 563.2 | $ | 961.3 | $ | 1,060.8 | ||||||||
Cost of sales | 390.6 | 441.6 | 741.3 | 843.0 | ||||||||||||
Depreciation and amortization | 18.0 | 18.2 | 36.0 | 34.3 | ||||||||||||
Selling, general and administrative | 39.5 | 45.9 | 80.6 | 91.4 | ||||||||||||
Impairment and restructuring | 17.6 | 0.0 | 37.6 | 0.0 | ||||||||||||
(Gain) on sale of assets | 0.0 | 0.0 | (0.3) | 0.0 | ||||||||||||
Operating profit | 39.1 | 57.5 | 66.1 | 92.1 | ||||||||||||
Other income, net | 2.1 | 0.1 | 3.5 | 0.0 | ||||||||||||
Interest expense | 17.3 | 20.6 | 33.9 | 37.7 | ||||||||||||
Loss on pension settlement | 0.0 | 0.0 | 29.0 | 0.0 | ||||||||||||
Income before income taxes | 23.9 | 37.0 | 6.7 | 54.4 | ||||||||||||
Income tax provision | 7.5 | 10.2 | 4.2 | 14.6 | ||||||||||||
Net income | 16.4 | 26.8 | 2.5 | 39.8 | ||||||||||||
Net income attributable to noncontrolling interests | 0.0 | 0.0 | 0.0 | 0.0 | ||||||||||||
Net income attributable to Koppers | $ | 16.4 | $ | 26.8 | $ | 2.5 | $ | 39.8 | ||||||||
Earnings per common share attributable to Koppers common | ||||||||||||||||
Basic | $ | 0.83 | $ | 1.29 | $ | 0.13 | $ | 1.90 | ||||||||
Diluted | $ | 0.81 | $ | 1.25 | $ | 0.12 | $ | 1.83 | ||||||||
Weighted average shares outstanding (in thousands): | ||||||||||||||||
Basic | 19,883 | 20,901 | 20,123 | 20,983 | ||||||||||||
Diluted | 20,235 | 21,559 | 20,456 | 21,709 | ||||||||||||
KOPPERS HOLDINGS INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET (Dollars in millions, except share and per share amounts) | ||||||||
June 30, 2025 | December 31, 2024 | |||||||
Assets | ||||||||
Cash and cash equivalents | $ | 38.4 | $ | 43.9 | ||||
Accounts receivable, net of allowance of | 211.7 | 191.8 | ||||||
Inventories, net | 405.4 | 404.6 | ||||||
Derivative contracts | 8.2 | 1.5 | ||||||
Other current assets | 44.3 | 38.8 | ||||||
Total current assets | 708.0 | 680.6 | ||||||
Property, plant and equipment, net of accumulated depreciation | 654.5 | 660.8 | ||||||
Goodwill | 319.0 | 317.1 | ||||||
Intangible assets, net | 111.5 | 119.0 | ||||||
Operating lease right-of-use assets | 101.3 | 89.8 | ||||||
Deferred tax assets | 8.4 | 8.4 | ||||||
Other assets | 28.1 | 14.5 | ||||||
Total assets | $ | 1,930.8 | $ | 1,890.2 | ||||
Liabilities | ||||||||
Accounts payable | $ | 168.7 | $ | 179.1 | ||||
Accrued liabilities | 72.0 | 115.1 | ||||||
Current operating lease liabilities | 26.7 | 26.7 | ||||||
Current maturities of long-term debt | 4.9 | 4.9 | ||||||
Total current liabilities | 272.3 | 325.8 | ||||||
Long-term debt | 962.9 | 925.9 | ||||||
Operating lease liabilities | 75.0 | 64.4 | ||||||
Accrued postretirement benefits | 13.1 | 14.9 | ||||||
Deferred tax liabilities | 36.2 | 25.9 | ||||||
Other long-term liabilities | 44.2 | 44.3 | ||||||
Total liabilities | 1,403.7 | 1,401.2 | ||||||
Commitments and contingent liabilities | ||||||||
Equity | ||||||||
Senior Convertible Preferred Stock, | 0.0 | 0.0 | ||||||
Common Stock, | 0.3 | 0.3 | ||||||
Additional paid-in capital | 326.1 | 317.2 | ||||||
Retained earnings | 489.3 | 490.3 | ||||||
Accumulated other comprehensive loss | (61.2) | (120.6) | ||||||
Treasury stock, at cost, 6,445,702 and 5,480,230 shares | (227.7) | (198.5) | ||||||
Total Koppers shareholders' equity | 526.8 | 488.7 | ||||||
Noncontrolling interests | 0.3 | 0.3 | ||||||
Total equity | 527.1 | 489.0 | ||||||
Total liabilities and equity | $ | 1,930.8 | $ | 1,890.2 | ||||
KOPPERS HOLDINGS INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Dollars in millions) | ||||||||
Six Months Ended | ||||||||
June 30, | ||||||||
2025 | 2024 | |||||||
Cash provided by (used in) operating activities: | ||||||||
Net income | $ | 2.5 | $ | 39.8 | ||||
Adjustments to reconcile net income to net cash provided by operating | ||||||||
Depreciation and amortization | 36.0 | 34.3 | ||||||
Depreciation in impairment and restructuring | 18.0 | 0.0 | ||||||
Stock-based compensation | 8.3 | 10.9 | ||||||
Change in derivative contracts | (9.8) | (3.0) | ||||||
Non-cash interest expense | 1.9 | 1.6 | ||||||
(Gain) on sale of assets | (1.0) | (0.1) | ||||||
Insurance proceeds | (2.2) | (1.0) | ||||||
Deferred income taxes | 1.0 | 0.5 | ||||||
Pension settlement | 29.0 | 0.0 | ||||||
Change in other liabilities | 3.0 | (5.6) | ||||||
Other - net | (3.8) | 0.8 | ||||||
Changes in working capital: | ||||||||
Accounts receivable | (14.1) | (20.7) | ||||||
Inventories | 9.5 | 3.1 | ||||||
Accounts payable | (13.3) | (17.1) | ||||||
Accrued liabilities | (34.3) | (25.0) | ||||||
Other working capital | (2.9) | (3.6) | ||||||
Net cash provided by operating activities | 27.8 | 14.9 | ||||||
Cash (used in) provided by investing activities: | ||||||||
Capital expenditures | (26.4) | (43.4) | ||||||
Acquisitions | 0.0 | (99.8) | ||||||
Insurance proceeds | 2.2 | 1.0 | ||||||
Sale of assets | 2.5 | 0.6 | ||||||
Divestiture of KCCC | (7.6) | 0.0 | ||||||
Other investing activities | (10.0) | 0.0 | ||||||
Net cash used in investing activities | (39.3) | (141.6) | ||||||
Cash provided by (used in) financing activities: | ||||||||
Borrowings of credit facility | 271.5 | 475.7 | ||||||
Repayments of credit facility | (231.8) | (421.9) | ||||||
Borrowings of long-term debt | 0.0 | 100.0 | ||||||
Repayments of long-term debt | (2.5) | (3.2) | ||||||
Issuances of Common Stock | 0.6 | 4.1 | ||||||
Repurchases of Common Stock | (29.2) | (39.1) | ||||||
Payment of debt issuance costs | (2.1) | (0.9) | ||||||
Dividends paid | (3.2) | (3.1) | ||||||
Net cash provided by financing activities | 3.3 | 111.6 | ||||||
Effect of exchange rate changes on cash | 2.7 | (2.5) | ||||||
Net decrease in cash and cash equivalents | (5.5) | (17.6) | ||||||
Cash and cash equivalents at beginning of period | 43.9 | 66.5 | ||||||
Cash and cash equivalents at end of period | $ | 38.4 | $ | 48.9 | ||||
UNAUDITED SEGMENT INFORMATION (Dollars in millions) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
Net sales: | ||||||||||||||||
Railroad and Utility Products and Services | $ | 250.4 | $ | 253.9 | $ | 485.4 | $ | 479.0 | ||||||||
Performance Chemicals | 150.8 | 176.9 | 271.7 | 327.0 | ||||||||||||
Carbon Materials and Chemicals | 103.6 | 132.4 | 204.2 | 254.8 | ||||||||||||
Total | $ | 504.8 | $ | 563.2 | $ | 961.3 | $ | 1,060.8 | ||||||||
Adjusted EBITDA: | ||||||||||||||||
Railroad and Utility Products and Services | $ | 31.6 | $ | 22.4 | $ | 57.1 | $ | 40.1 | ||||||||
Performance Chemicals | 28.7 | 44.3 | 48.8 | 74.1 | ||||||||||||
Carbon Materials and Chemicals | 16.8 | 10.8 | 26.7 | 14.8 | ||||||||||||
Total(1) | $ | 77.1 | $ | 77.5 | $ | 132.6 | $ | 129.0 | ||||||||
Adjusted EBITDA margin as a percentage of GAAP sales: | ||||||||||||||||
Railroad and Utility Products and Services | 12.6 | % | 8.8 | % | 11.8 | % | 8.4 | % | ||||||||
Performance Chemicals | 19.0 | % | 25.0 | % | 18.0 | % | 22.7 | % | ||||||||
Carbon Materials and Chemicals | 16.2 | % | 8.2 | % | 13.1 | % | 5.8 | % | ||||||||
(1) The table below describes the adjustments to arrive at adjusted EBITDA. |
UNAUDITED RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA (Dollars in millions) | ||||||||||||||||||||
Three Months Ended | Six Months Ended | Year Ended | ||||||||||||||||||
June 30, | June 30, | December 31, | ||||||||||||||||||
2025 | 2024 | 2025 | 2024 | 2024 | ||||||||||||||||
Net income | $ | 16.4 | $ | 26.8 | $ | 2.5 | $ | 39.8 | $ | 48.6 | ||||||||||
Interest expense | 17.3 | 20.6 | 33.9 | 37.7 | 76.2 | |||||||||||||||
Depreciation and amortization | 18.0 | 18.2 | 36.0 | 34.3 | 67.5 | |||||||||||||||
Income tax provision | 7.5 | 10.2 | 4.2 | 14.6 | 20.7 | |||||||||||||||
Sub-total | 59.2 | 75.8 | 76.6 | 126.4 | 213.0 | |||||||||||||||
Adjustments to arrive at adjusted EBITDA: | ||||||||||||||||||||
LIFO (benefit) expense(1) | (0.7) | 1.5 | (2.5) | 4.1 | 6.1 | |||||||||||||||
Impairment, restructuring and plant closure costs | 17.6 | 0.0 | 37.6 | 0.0 | 17.3 | |||||||||||||||
(Gain) loss on sale of assets | 0.0 | 0.0 | (0.3) | 0.0 | 10.7 | |||||||||||||||
Mark-to-market commodity hedging (gains) losses | (0.7) | (1.3) | (9.8) | (3.0) | 7.9 | |||||||||||||||
Acquisition inventory step-up amortization | 0.0 | 1.5 | 0.0 | 1.5 | 2.3 | |||||||||||||||
Amortization of cloud-based software implementation | 0.5 | 0.0 | 0.8 | 0.0 | 0.3 | |||||||||||||||
Pension settlement and expense | 1.2 | 0.0 | 30.2 | 0.0 | 4.0 | |||||||||||||||
Total adjustments | 17.9 | 1.7 | 56.0 | 2.6 | 48.6 | |||||||||||||||
Adjusted EBITDA | $ | 77.1 | $ | 77.5 | $ | 132.6 | $ | 129.0 | $ | 261.6 | ||||||||||
(1) The LIFO expense adjustment removes the entire impact of LIFO and effectively reflects the results as if we were on a FIFO inventory basis. |
UNAUDITED RECONCILIATIONS OF NET INCOME ATTRIBUTABLE TO KOPPERS TO ADJUSTED NET INCOME ATTRIBUTABLE TO KOPPERS AND DILUTED EARNINGS PER SHARE AND ADJUSTED EARNINGS PER SHARE (Dollars in millions, except share and per share amounts) | ||||||||||||||||||||
Three Months Ended | Six Months Ended | Year Ended | ||||||||||||||||||
June 30, | June 30, | December 31, | ||||||||||||||||||
2025 | 2024 | 2025 | 2024 | 2024 | ||||||||||||||||
Net income attributable to Koppers | $ | 16.4 | $ | 26.8 | $ | 2.5 | $ | 39.8 | $ | 52.4 | ||||||||||
Adjustments to arrive at adjusted net income: | ||||||||||||||||||||
LIFO (benefit) expense(1) | (0.7) | 1.5 | (2.5) | 4.1 | 6.1 | |||||||||||||||
Impairment, restructuring and plant closure costs | 17.6 | 1.5 | 37.6 | 1.5 | 17.3 | |||||||||||||||
(Gain) loss on sale of assets | 0.0 | 0.0 | (0.3) | 0.0 | 10.7 | |||||||||||||||
Mark-to-market commodity hedging (gains) losses | (0.7) | (1.3) | (9.8) | (3.0) | 7.9 | |||||||||||||||
Acquisition inventory step-up amortization | 0.0 | 1.5 | 0.0 | 1.5 | 2.3 | |||||||||||||||
Amortization of cloud-based software implementation | 0.5 | 0.0 | 0.8 | 0.0 | 0.3 | |||||||||||||||
Pension settlement and expense | 1.2 | 0.0 | 30.2 | 0.0 | 4.0 | |||||||||||||||
Total adjustments | 17.9 | 3.2 | 56.0 | 4.1 | 48.6 | |||||||||||||||
Adjustments to income tax and noncontrolling interests: | ||||||||||||||||||||
Income tax on adjustments to pre-tax income | (4.4) | (0.8) | (14.0) | (1.1) | (9.6) | |||||||||||||||
Noncontrolling interest | 0.0 | 0.0 | 0.0 | 0.0 | (3.9) | |||||||||||||||
Effect on adjusted net income | 13.5 | 2.4 | 42.0 | 3.0 | 35.1 | |||||||||||||||
Adjusted net income attributable to Koppers | $ | 29.9 | $ | 29.2 | $ | 44.5 | $ | 42.8 | $ | 87.5 | ||||||||||
Diluted weighted average common shares outstanding (in | 20,235 | 21,559 | 20,456 | 21,709 | 21,291 | |||||||||||||||
Diluted earnings per share | $ | 0.81 | $ | 1.25 | $ | 0.12 | $ | 1.83 | $ | 2.46 | ||||||||||
Adjusted earnings per share | $ | 1.48 | $ | 1.36 | $ | 2.18 | $ | 1.97 | $ | 4.11 | ||||||||||
(1) The LIFO expense adjustment removes the entire impact of LIFO and effectively reflects the results as if we were on a FIFO inventory basis. |
For Information:
Quynh McGuire
Vice President, Investor Relations
412 227 2049
McGuireQT@koppers.com
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SOURCE KOPPERS HOLDINGS INC.
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