MONTREAL, July 10, 2025 (GLOBE NEWSWIRE) -- Stella-Jones Inc. (TSX:SJ). OPEN TO:Investors, analysts and all interested parties DATE:Thursday, August 7, 2025 TIME:10:00 AM Eastern Daylight TimeLIVE WEBCAST:https://meetings.lumiconnect.com/400-675-688-704 CALL:1-800-206-4400 THE PRESS RELEASE WILL BE PUBLISHED BEFORE MARKET OPENS THE DAY OF THE CONFERENCE CALL THROUGH GLOBE NEWSWIRE. Please log on or dial in 15 minutes before the conference begins. If you are unable to attend at this time, you may access ...

Koppers (KOP) Conference Summary - June 12, 2025 Company Overview - Koppers is a leading supplier in critical infrastructure products, particularly in the railroad and utility sectors, with significant market shares in North America and Australia [12][13] Key Points and Arguments Strategic Focus - Koppers has been implementing a strategy over the past five years aimed at improving profitability through internal projects, resulting in lower expected capital spending in the near term, which is anticipated to enhance cash flow [6][7] Market Leadership - The company holds a number one or two position in critical end markets, including railroad products and utility poles, supplying major utilities and railroads in North America [12][13] Product Portfolio - Koppers' product offerings include: - Railroad crossties, with a significant market share among Class 1 railroads in North America - Utility poles, supplying eight of the ten largest utilities in the U.S. - Performance chemicals for wood treatment, serving the top ten lumber treating companies in the U.S. [12][13][14] Financial Performance - In the first quarter, Koppers reported a decrease in top-line revenue by approximately $40 million, primarily due to reduced performance in the chemicals business, but managed to increase adjusted EBITDA by around $44 million [29][30] - The adjusted EBITDA margin improved to 12%, with a long-term goal of reaching mid-teens [31] Capital Expenditures and Debt Management - Capital expenditures are projected to be around $65 million for the year, down from over $100 million in previous years due to the completion of major projects [32] - The company is focused on debt reduction, with current debt around $909 million and a long-term leverage target of 2-3 times [33][55] Share Repurchase and Dividends - Koppers has a share repurchase program, having repurchased $15 million in stock in the first quarter, with plans for opportunistic buying [34][51] - The company has steadily increased its dividend, currently at 8 cents per quarter [35] Growth Drivers - The performance chemicals business is driven by repair and remodeling spending, which has remained strong despite inflation [36] - The carbon materials and chemicals segment is linked to the aluminum industry, with demand driven by overall economic strength [37] Market Dynamics - The railroad sector is experiencing increased volume driven by maintenance and repair needs, with a cyclical nature to spending [42][44] - Pricing dynamics in contracts with railroads and utility providers can limit price increases, but there is more flexibility in utility contracts [46][48] Market Perception - Koppers' diversified business model allows for steady earnings streams, which may not be fully recognized by the market [50] Additional Important Insights - The company has reduced its carbon materials and chemicals business from 11 plants to 3 core plants over the past decade due to changing market conditions [26] - The utility pole business has a significant replacement demand, with 2-3 million poles needing replacement annually [21] This summary encapsulates the key insights from the Koppers conference, highlighting the company's strategic direction, market position, financial performance, and growth opportunities.

Q1 2025 Results Safe Harbor Statement Certain statements in this presentation are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and may include, but are not limited to, statements about sales levels, acquisitions, restructuring, declines in the value of Koppers assets and the effect of any resulting impairment charges, profitability and anticipated expenses and cash outflows. All forward-looking statements involve risks and uncertainties. All stateme ...

Koppers (KOP) Q1 2025 Earnings Call May 09, 2025 11:00 AM ET Company Participants Quynh McGuire - Vice President-Investor RelationsLeroy Ball - CEO & Board chairmanJimmi Sue Smith - Chief Financial OfficerLiam Burke - Managing DirectorGary Prestopino - Managing DirectorJames Wilen - President & CCO Conference Call Participants David Marsh - Equity Analyst Operator Good morning, and gentlemen. Thank you for standing by. Welcome to Koppers First Quarter twenty twenty five Earnings Conference Call and Webcast. ...

Core Points - Stella-Jones Inc. announced the results of its director election following the Annual Meeting of Shareholders held on May 7, 2025 [1] - All nominees proposed as directors were elected by a majority of votes cast by shareholders [2] - The advisory vote on executive compensation received 88.98% approval [2] Election Results - Michelle Banik received 44,324,929 votes for (99.85%) and 66,759 votes against (0.15%) [2] - Robert Coallier received 44,196,728 votes for (99.56%) and 194,961 votes against (0.44%) [2] - Anne E. Giardini received 44,214,196 votes for (99.60%) and 177,451 votes against (0.40%) [2] - Karen Laflamme received 44,192,661 votes for (99.55%) and 199,027 votes against (0.45%) [2] - Katherine A. Lehman received 44,225,747 votes for (99.63%) and 165,942 votes against (0.37%) [2] - Douglas Muzyka received 44,328,595 votes for (99.86%) and 63,093 votes against (0.14%) [2] - Simon Pelletier received 43,768,177 votes for (98.60%) and 623,512 votes against (1.40%) [2] - Éric Vachon received 44,376,962 votes for (99.97%) and 14,727 votes against (0.03%) [2] Company Overview - Stella-Jones Inc. is a leading North American manufacturer focused on infrastructure products essential for electrical distribution and railway transportation [4] - The company supplies treated wood utility poles to major electrical utilities and treated wood railway ties to North America's Class 1, short line, and commercial railroad operators [4] - Stella-Jones also manufactures industrial products such as timbers for railway bridges and marine pilings, as well as premium treated residential lumber for outdoor applications [4]

Financial Data and Key Metrics Changes - The company reported a consolidated adjusted EBITDA growth of 26%, outpacing a 12% revenue growth in the first quarter of 2025, with a margin expansion of 190 basis points [6][21] - The net debt to adjusted EBITDA ratio was maintained at 2.9 times, with expectations to reduce leverage to a target of 2 to 2.5 times over the next twelve months [7][19] Business Line Data and Key Metrics Changes - **Construction Products**: Revenues increased by 5%, driven by the Stabola acquisition, but organic revenues declined by 6% due to lower freight revenues and divestitures [11][12] - **Engineered Structures**: Revenues increased by 23%, largely due to higher wind tower volumes and the inorganic impact from the Amaron acquisition, with adjusted segment EBITDA increasing by 90% [15][16] - **Transportation Products**: Revenues were up 6%, with adjusted segment EBITDA increasing by 13%, driven by higher tank barge volumes [17] Market Data and Key Metrics Changes - The aggregates business represented 69% of construction materials revenues, with average organic pricing up 7% year-over-year and total pricing up 10% due to the Stabola acquisition [10][12] - The company expects continued investment in U.S. infrastructure to benefit operations, with strong demand conditions in various end markets [8][9] Company Strategy and Development Direction - The company is focused on executing its strategic vision, with a commitment to reducing leverage and enhancing operational efficiency [5][7] - The integration of the Stabola acquisition is expected to contribute positively in the second quarter, with a strong outlook for construction products and engineered structures [20][23] - The company anticipates sustained demand growth in utility structures due to increased electrification and renewable energy needs [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the evolving macroeconomic environment, citing strong demand in most end markets and solid visibility from backlogs [8][9] - The company expects a strong 2025, reiterating full-year guidance with anticipated revenue of $2.9 billion and adjusted EBITDA of $570 million, reflecting a 17% and 30% increase, respectively [21][22] Other Important Information - The company reaffirmed its capital expenditure guidance of $145 to $165 million for the full year, with a focus on maintenance CapEx [20] - Free cash flow for the quarter was negative $30 million, but management expects improvement in the second half of the year [20] Q&A Session Summary Question: Can you elaborate on the wind tower contribution to sales and profit dollars in the quarter? - Management highlighted strong demand and volume growth in utility structures, with the wind tower facility ramping up effectively, contributing positively to margins [36][38] Question: What are the expectations for the construction products business moving forward? - Management indicated no surprises in the Stabola operations, with good demand and orders expected to improve significantly in the second quarter [66][71] Question: How is the company managing pricing versus volume declines in aggregates? - The company is focusing on margin rather than volume, with local decision-making to balance cost absorption and pricing strategies [92][93] Question: What is the outlook for the housing market and its impact on the business? - Management expects stabilization and a potential recovery in the housing market in the second half of the year, although not a booming market [104][105]

Financial Performance - Stella-Jones reported sales of CAD 773 million for Q1 2025, a slight decrease from CAD 775 million in Q1 2024, with pressure-treated wood sales down by CAD 36 million or 5% due to lower volumes across most product categories [4][6] - Gross profit for the quarter was CAD 168 million, resulting in a gross profit margin of 21.7%, down from 22.2% in the previous year [3][7] - Operating income increased to CAD 143 million, up from CAD 124 million in Q1 2024, aided by an insurance settlement of CAD 38 million [8][9] - EBITDA rose to CAD 179 million, with an EBITDA margin of 23.2%, compared to CAD 156 million and a margin of 20.1% in the same period last year [8][9] Acquisition Strategy - The company announced a definitive agreement to acquire Locweld Inc. for CAD 58 million, enhancing its infrastructure offerings in the steel transmission structure industry [2][14] - The acquisition is expected to unlock investment opportunities and create more value for customers and shareholders [2][14] Liquidity and Capital Resources - Stella-Jones maintained robust liquidity of CAD 691 million at the end of the quarter and a net debt-to-EBITDA ratio of 2.6x [10][32] - The company utilized its liquidity to support seasonal working capital needs, repurchase CAD 15 million of shares, and declared a dividend of CAD 17 million [10][13] Segment Performance - Utility poles sales increased to CAD 419 million, while railway ties sales decreased to CAD 208 million, reflecting a 14% decline in volumes [12] - Residential lumber sales remained stable at CAD 88 million, and industrial product sales increased to CAD 39 million [12]

Company Overview - Stella-Jones Inc. has announced the acquisition of Locweld Inc., a designer and manufacturer of lattice transmission towers and steel poles, with the deal expected to close today [1][3]. - Locweld, based in Candiac, Quebec, has over 75 years of experience and employs approximately 220 people [2]. Strategic Implications - The acquisition allows Stella-Jones to enter the approximately $5 billion steel transmission structure market, enhancing its current utility poles business and creating new growth opportunities [3]. - The CEO of Stella-Jones emphasized that this strategic move will leverage the company's extensive sales and distribution network to better serve customers and expand its market reach [3]. Financial Details - The acquisition price is set at $58 million on a cash-free, debt-free basis, with potential additional performance-based payments of up to $7 million contingent on achieving specific milestones [5]. - Stella-Jones plans to invest approximately $15 million in capital expenditures to increase Locweld's output and optimize operational efficiencies [5]. - Locweld reported sales of approximately $55 million for the year ending September 30, 2024 [5]. Management Transition - Following the acquisition, Michael Cyr, the CEO of Locweld, will step down, while key management members will remain to support the business [5].

Group 1 - Stella-Jones Inc. will hold a conference call on May 7, 2025, at 8:00 AM Eastern Daylight Time to discuss its first quarter results [1] - The annual meeting of shareholders will also take place on May 7, 2025, at 11:00 AM Eastern Daylight Time, both in-person and virtually [2] - Registered shareholders and duly appointed proxyholders will have the opportunity to participate, ask questions, and vote during the meeting [4] Group 2 - Stella-Jones Inc. is a leading North American manufacturer focused on infrastructure products essential for electrical distribution and railway transportation systems [6] - The company supplies treated wood utility poles to major electrical utilities and treated wood railway ties to Class 1, short line, and commercial railroad operators [6] - Stella-Jones also manufactures and distributes premium treated residential lumber and accessories for outdoor applications [7]

Group 1 - Stella-Jones Inc. announced the appointment of Wesley Bourland as Senior Vice-President and Chief Operating Officer, effective April 14, 2025 [1] - Mr. Bourland has extensive experience in operations, having served as COO for a leading hardwood lumber supplier and held various leadership roles in a steel structures manufacturer [3][4] - He is a trained Mechanical Engineer with a Bachelor of Science from the University of Texas at Austin, and will focus on manufacturing, strategic planning, and process optimization [5] Group 2 - Eric Vachon, President and CEO of Stella-Jones, expressed enthusiasm for Mr. Bourland's appointment, highlighting his results-driven leadership and ability to drive operational excellence [6][7] - Stella-Jones is a leading North American manufacturer of products essential for electrical distribution, transmission, and railway transportation systems [8] - The company supplies treated wood utility poles and railway ties to major electrical utilities and railroad operators across North America [8]