Inquiries from the media should be directed to Ms. Jessica Franklin Black at [email protected] or 412-227-2025. Inquiries from the investment community should be directed to Ms. Quynh McGuire at [email protected] or 412-227-2049. SOURCE KOPPERS HOLDINGS INC. The report is available for viewing on the company's website in the Investor Relations section and can be accessed here, as well as on the SEC's website at www.sec.gov. About Koppers Koppers (NYSE: KOP) is an integrated global provider of essential trea ...

Manufacturing Institute Award Celebrates Women Demonstrating Leadership ExcellencePITTSBURGH, March 11, 2025 /PRNewswire/ -- Koppers (NYSE: KOP) today announced that Fran Wisniewski, recently retired Vice President of Long-Range Planning, has been honored with The Manufacturing Institute's 2025 Women MAKE Award. She joins more than 100 other women across the country in receiving this distinction, which recognizes women at all levels within the manufacturing industry who have demonstrated leadership and exce ...

Long-only investment, evaluating companies from an operational, buy-and-hold perspective.Quipus Capital does not focus on market-driven dynamics and future price action. Instead, our articles focus on operational aspects, understanding the long-term earnings power of companies, the competitive dynamics of the industries where they participate, and buying companies that we would like to hold independently of how the price moves in the future. Most QC calls will be holds, and that is by design. Only a very sm ...

Core Insights - Koppers Holdings Inc. reported a loss of $10.2 million or 50 cents per share for Q4 2024, compared to a profit of $12.9 million or 59 cents per share in the same quarter last year [1] - Adjusted earnings were 77 cents per share, an increase from 67 cents per share a year ago, but fell short of the Zacks Consensus Estimate of 91 cents [1] - Total revenues for the quarter were $477 million, down approximately 7% year over year, and also missed the Zacks Consensus Estimate of $497 million [2] Segment Performance - The Railroad and Utility Products and Services (RUPS) segment saw sales decline by around 0.4% year over year to $215.6 million, below the consensus estimate of $226.9 million [3] - The Performance Chemicals (PC) segment recorded sales of $147.9 million, down around 10% year over year, missing the consensus estimate of $160.9 million [4] - Sales from the Carbon Materials and Chemicals (CMC) division fell approximately 14% year over year to $113.5 million, also missing the consensus estimate of $127 million [5] Full-Year Results - For the full year 2024, Koppers reported earnings of $2.46 per share, down from $4.14 the previous year, with total sales declining around 3% year over year to approximately $2,092.1 million [6] Financial Position - At the end of 2024, Koppers had cash and cash equivalents of $43.9 million, a decrease of around 34% year over year, while long-term debt rose to $925.9 million, an increase of around 11% from the prior year [7] Future Outlook - Koppers anticipates sales for 2025 to be approximately $2.17 billion, with adjusted EBITDA expected to be around $280 million and adjusted earnings per share projected at $4.75 [8] - The company plans capital expenditures of roughly $65 million for the year and expects operating cash flows of around $150 million in 2025 [9] Stock Performance - Koppers' shares have declined by 48.3% over the past year, in contrast to a 7.6% decline in the Zacks Chemicals Diversified industry [10]

Financial Data and Key Metrics Changes - Consolidated sales for Q4 2024 were $477 million, down from $513 million in the prior year, reflecting a 7% decrease [12][24] - Adjusted EBITDA for Q4 2024 was $55.2 million, compared to $53.9 million in the prior year, resulting in an adjusted EBITDA margin of 11.6% versus 10.5% [12][13] - Full-year 2024 consolidated sales totaled $2.09 billion, a decrease of 3% from $2.15 billion in 2023 [14][15] - Adjusted EBITDA for the full year was a record $261.6 million, with a margin of 12.5%, up from 11.9% in the previous year [15][16] - Diluted earnings per share for Q4 were $0.50, down from $0.59 in the prior year, while adjusted earnings per share were $0.77 compared to $0.67 [13][16] Business Line Data and Key Metrics Changes - Railroad Utility Products and Services (RUPT) sales were flat year-over-year at $216 million, with adjusted EBITDA of $18 million and an 8% margin [24][25] - Performance Chemicals (PC) sales decreased by $16.5 million or 10% to $148 million, with adjusted EBITDA remaining flat at $29 million [24][29] - CMC sales fell by $19 million or 14% to $114 million, but adjusted EBITDA improved to $9 million from $4 million in the prior year [31][32] Market Data and Key Metrics Changes - The market experienced a slowdown in demand, particularly in the last two months of 2024, attributed to various factors including market share loss and customer caution [9][10] - The company noted a significant drop in Class One Crosstie volumes, impacting sales in the railroad products segment [58][112] - The overall market sentiment for 2025 is cautiously optimistic, with expectations of slight organic growth despite challenges [46][68] Company Strategy and Development Direction - The company is focusing on cost control and efficiency gains across all business segments, particularly in light of market share losses and economic uncertainty [49][75] - A virtual investor day is scheduled for September 18, 2025, where the company will unveil its 2030 strategic plan [17][71] - The company aims to improve earnings per share by over 10% annually through 2030, driven by operational improvements and reduced interest expenses [72][75] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment in falling short of financial expectations for Q4 and full year 2024, citing volume slowdowns and external factors [8][10] - The outlook for 2025 includes expectations of improved earnings driven by top-line growth and cost containment measures [11][75] - Management remains optimistic about the company's resilience and the critical nature of its products in the markets served [75] Other Important Information - The company achieved record fourth-quarter operating cash flow of $74.7 million, compared to $66.6 million in the prior year [14] - A new $100 million stock repurchase program was authorized, and the quarterly dividend was increased to $0.08 per share [36][41] - The company ended 2024 with $887 million in net debt and $381 million in available liquidity, with a net leverage ratio of 3.4 times [38][39] Q&A Session Summary Question: What is the competitor strategy regarding market share loss in Performance Chemicals? - Management indicated that the market share loss was anticipated and attributed to competitors investing in capacity and diversifying supply chains [78][80] Question: Are there immediate plans for investment in Utility and Industrial Products? - Management stated that while there are no immediate plans, previous investments are expected to yield growth opportunities in underpenetrated markets [84][86] Question: What is the expected impact of the Stickney plant closure on sales? - The closure is expected to result in a loss of approximately $30 million to $35 million in sales, but it will save significant capital investments in the long term [97][99] Question: How will free cash flow be allocated in 2025? - Management plans to allocate free cash flow towards share repurchases and debt reduction, aiming to improve leverage ratios [107][110] Question: What are the expectations for crosstie volumes and pricing in 2025? - Management projected an 8% increase in crosstie volumes for 2025, with expectations of higher pricing due to contractual agreements [112][113]

Acquisition and Market Position - Koppers Holdings Inc. reported a cash acquisition of Brown Wood Preserving Company for approximately $100 million, enhancing its utility pole business and market presence[24]. - Koppers Holdings Inc. completed the acquisition of Brown Wood Preserving Company for approximately $100 million, enhancing its presence in existing markets and providing entry into new geographic markets for its utility pole business[24]. - The company believes it holds a leading market position in wood preservation chemicals and wood treatment technologies globally[13]. - The company is the largest supplier of railroad crossties to Class I railroads in North America, with approximately 73% of sales under long-term contracts[22]. - The Carbon Materials and Chemicals (CMC) segment is the largest global supplier of creosote to the North American railroad industry, with a competitive advantage due to vertically integrated operations[34]. - The North American utility pole business is the second largest supplier in the U.S. and the largest in Australia, serving eight of the top ten utilities based on customer base and revenue[23]. Operations and Production - The Railroad and Utility Products and Services segment operates 19 wood treating plants and one rail joint bar manufacturing facility across the U.S., Canada, and Australia[17]. - Koppers' Carbon Materials and Chemicals segment processes coal tar into various products, including creosote, which is primarily sold internally to the Railroad and Utility Products and Services segment[14]. - The company operates under a vertically integrated model, allowing for better control over raw material supply and production processes[27]. - The company’s RUPS and CMC operations are vertically integrated, allowing for internal sourcing of creosote and enhancing supply security for customers[14]. - Approximately 70% of the cost of a finished crosstie is attributed to hardwood prices, which fluctuate based on demand from other markets[19]. - The CMC segment has reduced its global number of coal tar distillation facilities to three as part of a restructuring plan initiated in 2014[31]. Financial Performance and Risks - As of December 31, 2024, the company had total outstanding debt of $939.5 million, with approximately $337.0 million of additional unused borrowing capacity under its credit agreement[71]. - The top ten customers accounted for approximately 38% of the company's net sales for the year ended December 31, 2024, indicating a significant reliance on major customers[79]. - The company is highly dependent on the availability and cost of raw materials, including lumber and scrap copper, which are critical for its production processes[68]. - The company may not be able to implement price increases sufficient to offset increased operating and raw material costs, which could adversely affect profitability[82]. - The company is exposed to interest rate risks associated with its variable rate debt, which could impact financial performance[71]. - The company has pledged substantially all of its assets as collateral under its credit facility, increasing financial risk in case of default[75]. - The company may incur additional costs related to warranties for treated-wood products, which could negatively impact profitability[84]. Environmental and Regulatory Compliance - The company has established a Sustainability Committee to oversee its environmental and social governance practices[55]. - Koppers' operations are subject to extensive environmental regulations, with potential significant costs for non-compliance[40]. - Total environmental reserves as of December 31, 2024, were $10.3 million, primarily for environmental remediation[88]. - Capital expenditures related to environmental controls in 2025 are expected to total approximately $10.6 million, funded by operations[88]. - The EU Green Deal aims for a 55% reduction in emissions by 2030 and carbon neutrality by 2050[92]. - Future climate change regulations could increase raw material costs and adversely affect product demand[94]. - The company maintains insurance, but it may not cover all risks associated with environmental compliance and remediation[95]. - The company is involved in various litigation related to environmental matters and toxic tort claims, which could have a material adverse effect on financial condition[101]. Workforce and Labor Relations - Koppers has a total of 2,082 employees, with 970 salaried and 1,112 non-salaried employees across various business segments[42]. - Approximately 460 employees are represented by various labor unions, with contracts for about 150 employees set to expire in 2025[43]. - The company has a robust wellness program that incentivizes employees for participating in health initiatives[52]. - The company offers a tuition reimbursement program to support employees pursuing relevant degrees and certifications[49]. - Koppers' leadership development programs include a nine-month intensive program for high-potential employees, conducted in collaboration with a local university[49]. - Labor shortages and increased turnover rates have led to increased costs, including overtime and wage rates, potentially affecting operational efficiency[112]. Market and Economic Conditions - Demand for treated lumber may decline during winter months, leading to seasonal variations in operating results[37]. - Global economic uncertainties may adversely affect the company's results of operations, financial condition, and cash flows[124]. - Geopolitical events, such as the Russian invasion of Ukraine, have adversely affected the company's supply chain, particularly in coal tar sourcing[69]. - The company is exposed to risks from foreign operations, including legal regulations and economic conditions, which could impact sales and receivables collection[107]. - Future health epidemics or pandemics may adversely affect the company's business and financial results, increasing various risks[129]. - The company operates in highly competitive markets, where selling price is the most significant competitive factor, and failure to respond to competitive conditions could affect product demand[130]. Supply Chain and Raw Material Risks - The company relies on a limited number of freight transportation services, making operations vulnerable to supply disruptions[66]. - Availability and cost of lumber are critical for producing railroad crossties and utility poles, with historical price pressures noted[68]. - Scrap copper availability is essential for producing wood preservation chemicals, with prices subject to sudden market changes[68]. - Increased energy prices have historically raised coal tar costs, which may not always be passed on to customers, affecting profitability[68]. - Certain imported raw materials may face tariffs or trade restrictions, impacting supply chains and costs[68]. - Regional conflicts, such as between China and Taiwan, could disrupt raw material sourcing for the CMC and KPC businesses[68]. Strategic Challenges - The strategy to pursue acquisitions or divestitures may present unforeseen obstacles, and successful integration of acquired businesses is uncertain[134]. - The company relies on its senior management team, and the loss of key employees could adversely affect business operations[135]. - The market price of the company's stock may be extremely volatile, influenced by various external factors including analyst reports and economic conditions[136]. - Future sales of substantial amounts of common stock could depress share prices and impair capital-raising efforts[138]. - The company's ability to raise capital may be limited, and unfavorable terms could restrict operations and lead to dilution for existing shareholders[140].

Core Insights - Koppers reported revenue of $477 million for the quarter ended December 2024, a decrease of 7.1% year-over-year, and EPS of $0.77, up from $0.67 in the same quarter last year [1] - The revenue fell short of the Zacks Consensus Estimate of $497 million, resulting in a surprise of -4.02%, while the EPS also missed the consensus estimate of $0.91 by -15.38% [1] Financial Performance Metrics - Net Sales in Carbon Materials & Chemicals were $113.50 million, below the average estimate of $127.05 million, reflecting a year-over-year decline of -14.3% [4] - Net Sales in Performance Chemicals reached $147.90 million, compared to the average estimate of $160.95 million, marking a year-over-year decrease of -10% [4] - Net Sales in Railroad & Utility Products and Services amounted to $215.60 million, slightly below the average estimate of $226.90 million, with a minimal year-over-year change of -0.4% [4] Stock Performance - Koppers shares have returned +5.8% over the past month, contrasting with a -2.2% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Koppers (KOP) came out with quarterly earnings of $0.77 per share, missing the Zacks Consensus Estimate of $0.91 per share. This compares to earnings of $0.67 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -15.38%. A quarter ago, it was expected that this maker of chemicals, carbon compounds and wood treatment products would post earnings of $1.25 per share when it actually produced earnings of $1.37, delivering a surprise of ...

Sales Performance - Fourth-quarter sales were $477.0 million, a decrease of $36.2 million, or 7.1%, compared to $513.2 million in the prior year quarter[5]. - Full-year sales totaled $2.09 billion, down $62 million, or 2.9%, from $2.15 billion in the prior year[11]. - The RUPS segment reported sales of $215.6 million, a slight decrease of $0.8 million, or 0.4%, compared to the prior year quarter, with adjusted EBITDA of $17.5 million[11]. - The PC segment's sales were $147.9 million, down $16.5 million, or 10.0%, with adjusted EBITDA of $28.6 million, or 19.3%[11]. - The CMC segment experienced sales of $113.5 million, a decline of $18.9 million, or 14.3%, with adjusted EBITDA increasing to $9.1 million, or 8.0%[11]. - The Performance Chemicals segment reported net sales of $147.9 million in Q4 2024, down from $164.4 million in Q4 2023[38]. Net Income and Loss - The net loss attributable to Koppers for Q4 2024 was $10.2 million, or $0.50 per diluted share, compared to a net income of $12.9 million, or $0.59 per diluted share in Q4 2023[3]. - Net loss attributable to Koppers for Q4 2024 was $(10.2) million, a decrease from $12.9 million in Q4 2023[43]. - Adjusted net income attributable to Koppers for the year ended December 31, 2024, was $87.5 million, down from $94.0 million in 2023, representing a 6.9% decline[43]. - Adjusted earnings per share for the year ended December 31, 2024, was $4.11, slightly down from $4.36 in 2023[43]. - Diluted earnings per share for Q4 2024 was $(0.50), compared to $0.59 in Q4 2023[43]. Adjusted EBITDA - Adjusted net income for Q4 2024 was $16.0 million, or $0.77 per share, compared to $14.5 million, or $0.67 per share in the prior year quarter[4]. - Adjusted EBITDA for the total company was $55.2 million in Q4 2024, slightly up from $53.9 million in Q4 2023[38]. - Adjusted EBITDA for Q4 2024 was $55.2 million, compared to $53.9 million in Q4 2023, reflecting a 2.4% increase[40]. - Total adjustments to arrive at adjusted net income for Q4 2024 amounted to $34.8 million, significantly higher than $2.2 million in Q4 2023[43]. Expenses and Charges - The company incurred impairment and restructuring charges of $16.9 million in Q4 2024, compared to no charges in Q4 2023[32]. - Interest expense for the year ended December 31, 2024, increased to $76.2 million from $71.0 million in 2023, marking a 3.5% rise[40]. - Depreciation and amortization for the year ended December 31, 2024, rose to $67.5 million, up from $57.0 million in 2023, indicating an 18.6% increase[40]. Future Projections - For 2025, Koppers expects sales of approximately $2.17 billion and adjusted EBITDA of approximately $280 million[12]. - The projected effective tax rate for adjusted net income in 2025 is approximately 28%, with adjusted EPS forecasted at $4.75 per share[13]. - Capital expenditures are anticipated to be approximately $65 million in 2025, down from $77.4 million in 2024[15]. Balance Sheet and Assets - Total assets increased to $1,890.2 million in 2024 from $1,835.5 million in 2023, indicating growth in the company's asset base[34]. - Long-term debt rose to $925.9 million in 2024, up from $835.4 million in 2023, reflecting increased leverage[34]. - Cash and cash equivalents decreased to $43.9 million at the end of 2024 from $66.5 million at the end of 2023[36]. Operational Performance - Operating profit for Q4 2024 was $6.4 million, down from $37.2 million in Q4 2023, reflecting a significant decline[32]. - The company plans to focus on cost reduction efforts and market expansion strategies to improve future performance[31]. - The diluted weighted average common shares outstanding decreased to 20,864 thousand in Q4 2024 from 21,687 thousand in Q4 2023[43].

Group 1 - Analysts project Koppers (KOP) will announce quarterly earnings of $0.91 per share, a 35.8% increase year over year [1] - Revenues are expected to reach $497 million, reflecting a decline of 3.2% from the same quarter last year [1] - There has been no revision in the consensus EPS estimate over the past 30 days, indicating stability in analysts' projections [1] Group 2 - The average estimate for 'Net Sales- Carbon Materials & Chemicals' is $127.05 million, suggesting a year-over-year change of -4% [4] - 'Net Sales- Performance Chemicals' is estimated to reach $160.95 million, indicating a year-over-year change of -2.1% [4] - 'Net Sales- Railroad & Utility Products and Services' is projected at $226.90 million, reflecting a year-over-year change of +4.9% [4] Group 3 - Koppers shares have recorded a return of +4.2% over the past month, compared to the Zacks S&P 500 composite's -2.3% change [5] - Koppers holds a Zacks Rank 3 (Hold), suggesting its performance will likely align with the overall market in the upcoming period [5]