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]

Core Viewpoint - Koppers reported quarterly earnings of $0.77 per share, missing the Zacks Consensus Estimate of $0.91 per share, but showing an increase from $0.67 per share a year ago [1][2] Financial Performance - The earnings surprise for the quarter was -15.38%, with the company previously expected to post earnings of $1.25 per share but actually reporting $1.37 per share in the prior quarter, resulting in a positive surprise of 9.60% [2] - Koppers generated revenues of $477 million for the quarter ended December 2024, which was 4.02% below the Zacks Consensus Estimate and a decrease from $513.2 million in the same quarter last year [3] Stock Performance - Koppers shares have declined approximately 0.4% since the beginning of the year, contrasting with the S&P 500's gain of 1.3% [4] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.53 on revenues of $501 million, while for the current fiscal year, the estimate is $4.31 on revenues of $2.13 billion [8] Industry Context - The Chemical - Diversified industry, to which Koppers belongs, is currently ranked in the bottom 17% of over 250 Zacks industries, indicating potential challenges for stock performance [9]

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]

Core Viewpoint - Koppers Holdings Inc. has announced a 14% increase in its quarterly dividend rate for 2025, reflecting confidence in its growth strategies and commitment to returning cash to shareholders [1][2]. Dividend Announcement - The quarterly dividend will rise from $0.07 to $0.08 per share, with an annual dividend rate increasing to $0.32 per share for 2025 [1][2]. - The dividend will be paid on March 24, 2025, to shareholders of record as of March 7, 2025 [1]. Company Strategy - The CEO emphasized that the dividend increase demonstrates the company's confidence in its strategies for sustainable and profitable growth [2]. - Koppers is committed to a balanced capital allocation approach, focusing on both future investments and returning cash to shareholders [2]. Company Overview - Koppers is an integrated global provider of treated wood products, wood preservation technologies, and carbon compounds, employing 2,100 people [3]. - The company plays a crucial role in global infrastructure by providing essential products such as railroad crossties and utility poles, while also focusing on innovation to meet future needs [3].

Company Overview - Koppers Holdings Inc. is an integrated global provider of treated wood products, wood treatment chemicals, and carbon compounds [4] - The company employs approximately 2,100 individuals and focuses on creating, protecting, and preserving essential infrastructure elements [4] Financial Results Announcement - Koppers plans to release its financial results for the fourth quarter and full-year 2024 on February 27, 2025, before market opening [1] - A conference call to discuss the financial results and outlook will take place at 11:00 a.m. Eastern Time on the same day [1] Accessing the Conference Call - Interested parties can access the live audio broadcast toll-free in the U.S. and Canada by dialing 833-366-1128, or 412-902-6774 for international calls [2] - Participants are encouraged to join the call at least five minutes early for registration [2] Audio Replay Information - An audio replay of the conference call will be available approximately two hours after its completion [3] - The replay can be accessed using specific toll-free numbers for the U.S. and Canada, as well as an international number, and will be available until May 27, 2025 [3]

Core Viewpoint - Koppers Holdings Inc. has successfully repriced its seven-year $495 million senior secured Term Loan B, reducing the interest rate margin from 3% to 2.5%, which is part of its strategy to optimize capital structure and lower interest expenses while maintaining leverage and maturity date [1][2]. Financial Performance and Projections - Koppers anticipates sales for 2024 to be approximately $2.1 billion, considering the competitive landscape and global economic conditions [4] - The company expects adjusted EBITDA for 2024 to be in the range of $270-$275 million, including the acquisition of Brown Wood [4] - Projected adjusted earnings per share for 2024 are estimated to be between $4.25 and $4.45 [4] - Capital expenditures for the year are expected to be around $80 million, with operating cash flows estimated at $100-$125 million, excluding any impact from pension termination [4] Market Performance - Koppers' shares have declined by 37.2% over the past year, contrasting with an 8.8% decline in the Zacks Chemicals Diversified industry [3] - The company currently holds a Zacks Rank 3 (Hold), indicating a neutral outlook compared to better-ranked stocks in the basic materials sector [5]

Core Points - Koppers Holdings Inc. has been recognized for the fifth consecutive year on Newsweek's America's Most Responsible Companies 2025 list, achieving its highest ranking at No. 113 out of 600 finalists and No. 9 in the Materials & Chemicals category [1][2] Company Achievements - Koppers achieved a 50% reduction in scope 1 and scope 2 greenhouse gas emissions against a 2007 baseline, seven years ahead of schedule [2] - The company recorded its lowest Total Recordable Injury Rate of 2.67 since 2018 [2] - Koppers introduced a penflufen-based preservative, a patented wood protection technology, marking a significant innovation in extending the life of treated wood [2] - The company updated its materiality assessment in line with the new 2021 GRI standards and published a report on the Taskforce on Climate-Related Financial Disclosures (TCFD) [2] Evaluation Criteria - The recognition was based on environmental, social, and corporate governance information, with scores derived from 30 publicly reported key performance indicators and a reputation survey of over 26,000 U.S. consumers [2]

Core Viewpoint - Koppers Holdings Inc. has successfully repriced its seven-year $495 million senior secured Term Loan B, reducing interest rate margins by 50 basis points, which is part of the company's strategy to optimize its capital structure and reduce interest expenses without altering leverage, covenants, or maturity date [1][2][3]. Group 1: Financial Transaction Details - The interest rate margins for the Term Loan B have been reduced from 3.00% with a floor of 50 basis points to 2.50% with a floor of 50 basis points, based on the adjusted Term SOFR Rate or adjusted Daily Simple SOFR [2]. - The transaction was facilitated by Wells Fargo Bank, National Association, acting as the administrative agent, with several banks serving as joint lead arrangers and bookrunners [3]. Group 2: Company Overview - Koppers Holdings Inc. is an integrated global provider of treated wood products, wood treatment chemicals, and carbon compounds, serving various industries including railroad, specialty chemical, utility, residential lumber, agriculture, aluminum, steel, rubber, and construction [4]. - The company operates a comprehensive global manufacturing and distribution network with facilities located in North America, South America, Australasia, and Europe [4].

Consistent with Strategy to Optimize Business Portfolio and Enhance Free Cash FlowPITTSBURGH, Dec. 5, 2024 /PRNewswire/ -- Koppers Inc., a wholly-owned subsidiary of Koppers Holdings Inc. (NYSE: KOP), today announced that the company will discontinue phthalic anhydride production at its facility in Stickney, Illinois, in 2025.The decision, affecting approximately 25 employees, was driven by significant near-term capital spending requirements that could not be economically justified by end-market projections ...