KOPPERS REPORTS THIRD QUARTER 2025 RESULTS

Core Viewpoint - Koppers Holdings Inc. reported a decline in net sales and adjusted EBITDA for the third quarter of 2025, attributed to market softness, while maintaining profitability through cost control measures and a focus on free cash flow generation [3][5][9]. Financial Performance - Net sales for Q3 2025 were $485.3 million, down from $554.3 million in Q3 2024, representing a decrease of 12.4% [2][5]. - Net income attributable to Koppers was $23.8 million, slightly up from $22.8 million in the prior year [5]. - Diluted earnings per share (EPS) increased to $1.17 from $1.09, while adjusted EPS fell to $1.21 from $1.37, a decrease of 11.7% [5][9]. - Adjusted EBITDA was $70.9 million, down from $77.4 million, reflecting an 8.4% decline [5][9]. Segment Performance - Railroad and Utility Products and Services net sales decreased to $232.7 million from $248.1 million, a decline of 6.2% [4][10]. - Performance Chemicals saw a significant drop in net sales to $144.3 million from $176.7 million, a decrease of 18.3% [4][10]. - Carbon Materials and Chemicals net sales fell to $108.3 million from $129.5 million, a decline of 16.4% [4][10]. Strategic Initiatives - The company is undergoing a transformation process called Catalyst, aimed at improving operational efficiency and financial performance through cost-saving initiatives [7][8]. - Koppers plans to focus on growing its more profitable segments while scaling back on lower-margin businesses, with a goal of achieving an average EPS growth of 10% annually by 2028 [8]. 2025 Outlook - Koppers revised its sales forecast for 2025 to approximately $1.9 billion, tightening its adjusted EBITDA forecast to $255 million to $260 million and adjusted EPS to $4.00 to $4.15 [9][11]. - The company anticipates challenges in end markets, except for the utility pole sector, but expects improvements in earnings and free cash flow generation in 2026 [12].