Koppers Holdings(KOP)

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Koppers Holdings(KOP) - 2025 Q1 - Earnings Call Transcript
2025-05-09 16:02
Financial Data and Key Metrics Changes - Consolidated sales for Q1 2025 were $456.5 million, down from $497.6 million in the prior year, representing a decrease of 8% [8][15] - Adjusted EBITDA for Q1 was $55.5 million, compared to $51.5 million in the prior year, with an adjusted EBITDA margin of 12.2%, up from 10.3% [9][16] - First quarter diluted loss per share was $0.68, compared to diluted earnings per share of $0.59 in the prior year, primarily due to restructuring charges [9] - Adjusted earnings per share for the quarter were $0.71, up from $0.62 in the prior year [10] - Cash flow used in operations was $22.7 million, including a $14 million payment related to the termination of the U.S. pension plan [10] Business Line Data and Key Metrics Changes - The RUPS business generated sales of $235 million, an increase of 4% year-over-year, driven by higher volumes and price increases [17] - Performance Chemicals (PC) sales decreased by 19.5% to $121 million, with a 21.5% volume decrease in wood treatment preservatives [15][19] - CMMC sales were $101 million, down from $122 million, impacted by lower volumes and prices [20] Market Data and Key Metrics Changes - Year-over-year first quarter crosstie procurement was down 19%, with treatment lower by 3% [18] - The average pricing of major products increased by 5% compared to the prior quarter, while average coal tar costs were higher by 6% [20] Company Strategy and Development Direction - The company is focusing on improving business performance and margins through cost structure adjustments and resizing the employee base [7][8] - The acquisition of Brownwood Preserving Company is expected to enhance product offerings and geographic reach [12][13] - The company aims to maintain a balanced approach to capital allocation, targeting $65 million in net capital expenditures for 2025 [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about economic uncertainty affecting discretionary spending on home projects, impacting the Performance Chemicals business [26] - The company anticipates a volume pickup in the second half of the year, driven by feedback from the market and increased activity in new geographic markets [28][52] - Despite challenges, management remains optimistic about long-term growth and profitability improvements across business segments [36] Other Important Information - The company reported a quarterly cash dividend of $0.08 per share, with an expected annual dividend of $0.32 per share for 2025, a 14% increase over 2024 [23] - The company has approximately $85 million remaining in its $100 million share repurchase program [22] Q&A Session Summary Question: How does the utility pole product mix help margins going forward? - The utility pole segment historically generates better margin performance, and growth in this area is expected to positively impact overall margins [42][43] Question: Is there still work to do on contracts with Class 1s? - There is still work to improve contracts, but the situation has improved compared to previous periods [45] Question: What drives the expected growth in the second half of the year? - Growth expectations are based on market feedback and increased activity in newer markets [51][52] Question: How will the company manage costs if sales trend towards the lower end of guidance? - The company has several cost measures in place to manage expenses and maintain EBITDA targets [63] Question: What are the priority uses of cash flow? - The focus is on share repurchases and deleveraging the balance sheet [72] Question: Are there attractive M&A opportunities due to economic uncertainty? - The company remains active in discussions for potential acquisitions, particularly in the utility and industrial products business [75][76] Question: Why not accelerate stock buybacks given the low share price? - There are limitations within credit agreements on annual buyback amounts, but the company is monitoring the situation for opportunities [82][84]
Koppers Holdings(KOP) - 2025 Q1 - Earnings Call Transcript
2025-05-09 16:00
Financial Data and Key Metrics Changes - Consolidated sales for Q1 2025 were $456.5 million, down from $497.6 million in the prior year, representing an 8% decrease [7][14] - Adjusted EBITDA for Q1 was $55.5 million, compared to $51.5 million in the prior year, with an adjusted EBITDA margin of 12.2%, up from 10.3% [8][14] - First quarter diluted loss per share was $0.68, compared to diluted earnings per share of $0.59 in the prior year, primarily due to restructuring charges [8] - Adjusted earnings per share for the quarter were $0.71, up from $0.62 in the prior year [9] - Cash flow used in operations was $22.7 million, including a $14 million payment related to the termination of the U.S. pension plan [9] Business Line Data and Key Metrics Changes - The RUPS segment saw sales increase by $10 million or 4%, while the Performance Chemicals (PC) segment sales decreased by $29 million or 19.5%, and CMMC sales decreased by $22 million or 18% [14] - RUPS generated adjusted EBITDA of $26 million with an 11% margin, while PC delivered adjusted EBITDA of $20 million with a 17% margin [15] - CMMC sales were $101 million, down from $122 million in the prior year, but adjusted EBITDA improved to $10 million from $4 million due to lower raw material costs [18] Market Data and Key Metrics Changes - In the Performance Chemicals business, there was a 21.5% volume decrease in residential and industrial wood treatment preservatives in the Americas [17] - The average pricing of major products increased by 5% compared to the prior quarter, while average coal tar costs were higher by 6% [18] - Year-over-year, first quarter crosstie procurement was down 19% [16] Company Strategy and Development Direction - The company is focusing on improving business performance and margins through cost structure adjustments and resizing the employee base [6] - The acquisition of Brownwood Preserving Company is expected to enhance product offerings and geographic reach [11] - The company aims to maintain a balanced approach to capital allocation, targeting $65 million in net capital expenditures for 2025 [19][32] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about economic uncertainty affecting demand, particularly in the Performance Chemicals segment [23][24] - There is an expectation for a volume pickup in the second half of the year based on market feedback, despite worries about high interest rates [25][46] - The company anticipates consolidated sales of $2 billion to $2.2 billion in 2025, with adjusted EBITDA forecasted at $280 million [30][31] Other Important Information - The company was recognized for its sustainability efforts, being named to USA Today's list of America's climate leaders for the third consecutive year [12] - A quarterly cash dividend of $0.08 per share was declared, representing a 14% increase over the previous year's dividend [21] Q&A Session Summary Question: How does the utility pole product mix help margins going forward? - The utility pole business historically generates better margin performance, and growth in this area is expected to positively impact margins [38] Question: Are contracts with Class 1s satisfactory? - There is still work to be done on contracts, but the situation has improved [40] Question: What drives the expected growth in the second half of the year? - Feedback from the market indicates a volume pickup, along with increased activity in newer markets [46] Question: How does the company plan to manage costs if sales trend towards the lower end of guidance? - The company has several cost measures in place to maintain EBITDA guidance even with lower sales [57] Question: What are the priority uses of cash flow? - The focus is on share repurchases and deleveraging the balance sheet [68] Question: Are there attractive M&A opportunities due to economic disruption? - The company remains active in discussions for potential acquisitions, particularly in the utility and industrial products business [70] Question: Why not accelerate stock buybacks given the low share price? - There are limitations within credit agreements, but the company intends to be consistent in its share repurchase approach [78]
Koppers (KOP) Tops Q1 Earnings Estimates
ZACKS· 2025-05-09 14:05
Core Viewpoint - Koppers (KOP) reported quarterly earnings of $0.71 per share, exceeding the Zacks Consensus Estimate of $0.56 per share, and showing an increase from $0.62 per share a year ago [1][2] Financial Performance - The earnings surprise for the quarter was 26.79%, while the previous quarter saw a negative surprise of -15.38% with actual earnings of $0.77 compared to an expected $0.91 [2] - Koppers' revenues for the quarter were $456.5 million, missing the Zacks Consensus Estimate by 6.46%, and down from $497.6 million year-over-year [3] Stock Performance - Koppers shares have declined approximately 19.3% since the beginning of the year, contrasting with the S&P 500's decline of -3.7% [4] - The current Zacks Rank for Koppers is 3 (Hold), indicating expected performance in line with the market in the near future [7] Future Outlook - The consensus EPS estimate for the upcoming quarter is $1.33 on revenues of $580 million, and for the current fiscal year, it is $4.25 on revenues of $2.17 billion [8] - The Chemical - Diversified industry, to which Koppers belongs, is currently ranked in the bottom 23% of over 250 Zacks industries, which may impact stock performance [9]
Koppers Holdings(KOP) - 2025 Q1 - Quarterly Results
2025-05-09 12:19
Exhibit 99.1 News Release FOR IMMEDIATE RELEASE For Information: Quynh McGuire Vice President, Investor Relations 412 227 2049 McGuireQT@koppers.com Koppers Holdings Inc. 436 Seventh Avenue Pittsburgh, PA 15219-1800 Tel 412 227 2001 www.koppers.com KOPPERS REPORTS FIRST QUARTER 2025 RESULTS; MAINTAINS 2025 OUTLOOK FOR ADJUSTED EBITDA AND EPS PITTSBURGH, May 9, 2025 – Koppers Holdings Inc. (NYSE: KOP), an integrated global provider of treated wood products, wood treatment chemicals, and carbon compounds, tod ...
KOPPERS REPORTS FIRST QUARTER 2025 RESULTS; MAINTAINS 2025 OUTLOOK FOR ADJUSTED EBITDA AND EPS
Prnewswire· 2025-05-09 11:55
Core Insights - Koppers Holdings Inc. reported a decline in net sales for Q1 2025, totaling $456.5 million, down 8.3% from $497.6 million in Q1 2024 [2][5] - The company experienced a net loss of $13.9 million in Q1 2025, compared to a net income of $13.0 million in the same quarter of the previous year, marking a significant change of -206.9% [2][5] - Adjusted net income attributable to Koppers increased to $14.6 million, up 7.4% from $13.6 million in Q1 2024 [2][5] - The adjusted EBITDA for the quarter was $55.5 million, reflecting a 7.8% increase from $51.5 million in the prior year [2][5] Financial Performance - Net sales by segment for Q1 2025: - Railroad and Utility Products and Services: $235.0 million, up 4.4% from $225.1 million [4][29] - Performance Chemicals: $120.9 million, down 19.5% from $150.1 million [4][29] - Carbon Materials and Chemicals: $100.6 million, down 17.8% from $122.4 million [4][29] - Adjusted EBITDA by segment for Q1 2025: - Railroad and Utility Products and Services: $25.5 million, up 44.1% from $17.7 million [4][29] - Performance Chemicals: $20.1 million, down 32.6% from $29.8 million [4][29] - Carbon Materials and Chemicals: $9.9 million, up 147.5% from $4.0 million [4][29] 2025 Outlook - Koppers updated its sales forecast for 2025 to approximately $2.0 billion to $2.2 billion, down from the previous estimate of $2.17 billion [6][7] - The company aims to achieve adjusted EBITDA of approximately $280 million and adjusted EPS of $4.75 per share for 2025 [6][7] - Capital expenditures are projected to be $65 million for 2025, down from $77.4 million in 2024 [7] Management Commentary - CEO Leroy Ball noted that cost reduction measures have positively impacted profitability despite lower sales volumes [3][8] - The company remains cautiously optimistic about achieving its adjusted earnings per share guidance of $4.75 for the year, citing opportunities for improved profitability [8]
Koppers Holdings Announces Availability of 2024 Annual Report
Prnewswire· 2025-03-31 11:55
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 ...
Koppers Fran Wisniewski Earns 2025 Women MAKE Award
Prnewswire· 2025-03-11 12:30
Company Highlights - Koppers announced that Fran Wisniewski, the recently retired Vice President of Long-Range Planning, received The Manufacturing Institute's 2025 Women MAKE Award, recognizing her leadership and excellence in the manufacturing industry [1][4] - Wisniewski has had a 45-year career at Koppers, holding various leadership roles, including Vice President of the Utility and Construction division and Global Director of Business Development and Analysis, contributing to the company's strategic acquisitions and business optimization [2][4] - As a founding member of Koppers' employee resource group LINKwomen, she developed a scholarship program for female relatives of employees and mentored many young female employees [3] Industry Recognition - The Women MAKE Awards celebrate women in science, technology, engineering, and production careers, encouraging award winners to mentor the next generation of female talent in manufacturing [4] - The Manufacturing Institute aims to build a workforce prepared for 21st-century challenges, providing solutions to workforce issues and promoting community prosperity [7] Company Overview - Koppers is an integrated global provider of treated wood products, wood preservation technologies, and carbon compounds, employing 2,200 individuals [5] - The company focuses on creating and preserving essential infrastructure elements, including railroad crossties and utility poles, while innovating to meet future needs [5]
Koppers Guides Aggressively For FY25, But As The Business Declines, I Prefer To Wait
Seeking Alpha· 2025-02-28 16:29
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 ...
Koppers Earnings and Revenues Fall Short of Estimates in Q4
ZACKS· 2025-02-28 13:15
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]
Koppers Holdings(KOP) - 2024 Q4 - Earnings Call Transcript
2025-02-27 21:38
Koppers Holdings Inc. (NYSE:KOP) Q4 2024 Results Conference Call February 27, 2025 11:00 AM ET Company Participants Quynh McGuire - Vice President-Investor Relations Leroy Ball - Chief Executive Officer Jimmi Sue Smith - Chief Financial Officer Conference Call Participants Liam Burke - B. Riley FBR Gary Prestopino - Barrington Research Operator Good morning, ladies and gentlemen. Thank you for standing by. Welcome to Koppers Holdings Inc.'s Fourth Quarter 2024 Earnings Conference Call and Webcast. At this t ...