Koppers Holdings(KOP) - 2025 Q3 - Quarterly Results

Financial Performance - Net sales for Q3 2025 were $485.3 million, a decrease of 12.4% from $554.3 million in Q3 2024[3] - Net income attributable to Koppers increased to $23.8 million, up 4.4% from $22.8 million in the prior year[3] - Adjusted EBITDA for Q3 2025 was $70.9 million, down 8.4% from $77.4 million in Q3 2024[3] - Net income attributable to Koppers for the nine months ended September 30, 2025, was $26.3 million, down 58.0% from $62.6 million in 2024[26] - Operating profit for the three months ended September 30, 2025, was $51.8 million, an increase of 4.2% from $49.7 million in the same period of 2024[26] - Adjusted net income attributable to Koppers for the nine months ended September 30, 2025, was $68.9 million, compared to $71.5 million for the same period in 2024, reflecting a decrease of 3.6%[35] - Basic earnings per share attributable to Koppers common shareholders for the three months ended September 30, 2025, were $1.21, up from $1.12 in 2024[26] - Diluted earnings per share for the three months ended September 30, 2025, were $1.17, up from $1.09 in the prior year, indicating a growth of 7.3%[35] Sales and Revenue Forecast - Koppers is revising its 2025 sales forecast to approximately $1.9 billion, down from a previous range of $1.9 billion to $2.0 billion[11] - Total net sales for the three months ended September 30, 2025, were $485.3 million, a decrease of 12.5% compared to $554.3 million for the same period in 2024[33] - Performance Chemicals segment net sales decreased to $144.3 million in Q3 2025 from $176.7 million in Q3 2024, a decline of 18.3%[33] Operational Efficiency and Strategy - The company completed the sale of its Railroad Structures business in August 2025, simplifying its business portfolio[4] - The Catalyst transformation process is in its final phase, focusing on operational efficiency and financial performance improvements[7] - The company aims to grow adjusted EPS by an average of 10% annually and maintain EBITDA margins above 15% by 2028[10] Cash Flow and Capital Expenditures - Operating cash flow for the nine months ending September 30, 2025, was $77.4 million, compared to $44.7 million in the prior year[8] - Capital expenditures for 2025 are expected to be between $52 million and $55 million, down from $77 million in 2024[12] - Capital expenditures for the nine months ended September 30, 2025, were $38.4 million, down from $58.8 million in 2024[30] Assets and Liabilities - Total assets as of September 30, 2025, were $1,894.8 million, slightly up from $1,890.2 million at the end of 2024[28] - Cash and cash equivalents decreased to $37.9 million as of September 30, 2025, from $43.9 million at the end of 2024[28] - Long-term debt as of September 30, 2025, was $918.3 million, a slight decrease from $925.9 million at the end of 2024[28] Costs and Expenses - The company incurred impairment and restructuring costs of $10.2 million for the three months ended September 30, 2025, compared to $0.0 million in the same period of 2024[26] - Interest expense for the three months ended September 30, 2025, was $16.7 million, down from $20.2 million in the same period last year, a reduction of 17.3%[34] Adjusted EBITDA - Adjusted EBITDA for the three months ended September 30, 2025, was $70.9 million, down from $77.4 million in the prior year, representing a decline of 8.4%[34] - The adjusted EBITDA margin for Railroad and Utility Products and Services improved to 12.5% in Q3 2025 from 10.0% in Q3 2024[33] - Total adjustments to arrive at adjusted EBITDA for the three months ended September 30, 2025, amounted to $0.8 million, compared to $9.7 million in Q3 2024[34]