Koppers Reports Second Quarter 2024 Results; Reaffirms 2024 Outlook

Core Insights - Koppers Holdings Inc. reported second quarter sales of $563.2 million, a decrease of 2.4% from $577.2 million in the prior year quarter, with net income attributable to Koppers of $26.8 million, or $1.25 per diluted share, compared to $24.5 million, or $1.15 per diluted share in the prior year quarter [1][2][24]. Financial Performance - Adjusted net income attributable to Koppers for the second quarter of 2024 was $29.2 million, or $1.36 per share, compared to $26.9 million and $1.26 per share in the prior year quarter [2][32]. - The Railroad and Utility Products and Services (RUPS) segment achieved record sales of $253.9 million, an increase of 8.3% from $234.4 million in the prior year quarter, driven by pricing increases and higher volumes [3][6]. - The Performance Chemicals (PC) segment saw a slight decline in sales to $176.9 million, down 2.2% from $180.9 million in the prior year quarter, primarily due to lower volumes and pricing decreases [3][6]. - The Carbon Materials and Chemicals (CMC) segment reported sales of $132.4 million, a significant decrease of 18.2% from $161.9 million in the prior year quarter, impacted by lower demand and pricing [4][6]. Operational Highlights - The company’s CEO noted significant sequential improvement across all three business segments, with Performance Chemicals showing the most improvement due to resilient demand for residential wood-treatment preservatives [5]. - Adjusted EBITDA for the second quarter was $77.5 million, compared to $70.3 million in the prior year quarter, reflecting improved profitability in the Performance Chemicals segment [30][31]. Capital Expenditures and Outlook - Capital expenditures for the first half of 2024 were $43.4 million, down from $62.6 million in the prior year period [7]. - Koppers expects 2024 sales to be approximately $2.15 billion, consistent with 2023, and anticipates adjusted EBITDA in the range of $265 million to $280 million [8][9]. Tax and Earnings Projections - The effective tax rate for adjusted net income in 2024 is projected to be around 28%, slightly above the adjusted tax rate in 2023, with adjusted EPS forecasted to be between $4.10 and $4.60 per share [9][10].