Koppers Holdings(US:KOP)2025-11-07 17:00Financial Data and Key Metrics Changes - Sales for Q3 2025 were $485 million, down 12% from Q3 2024, reflecting ongoing market headwinds [5][13] - Adjusted EBITDA for Q3 2025 was $70.9 million, compared to $77.4 million in Q3 2024, with an adjusted EPS of $1.21 per share versus $1.37 last year [5][6] - SG&A expenses were down 14% on an adjusted basis compared to the prior year, equating to over $19 million in savings [6][8] Business Line Data and Key Metrics Changes - RPS sales decreased by $15 million (6%), PC sales were down $32 million (18%), and CM&C sales decreased by $21 million (16%) compared to the prior year [13] - RPS generated adjusted EBITDA of $29 million with a 12.5% margin, while PC delivered $26 million with an 18.1% margin, and CM&C reported $16 million with a 14.4% margin [13][14] Market Data and Key Metrics Changes - The utility and industrial products market saw a 6% increase in volumes year-over-year, while residential demand was down by about 5% [19][20] - The railroad products and services business experienced a 7% decline in treated ties sales units compared to the prior year [22] Company Strategy and Development Direction - The company is focusing on cost control and simplifying its business structure, including the sale of its railroad structures business and the closure of the ThioLignin hydride plant [8][9] - The Catalyst initiative aims to enhance operational efficiency and is expected to deliver approximately $80 million in ongoing benefits by the end of 2028 [28][29] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced in 2025 but expressed optimism for future growth, particularly in 2026 [32][33] - The company revised its consolidated sales guidance for 2025 to $1.9 billion, reflecting a soft demand environment across most markets [30][31] Other Important Information - The board declared a quarterly cash dividend of $0.08 per share, representing a 14% increase over the 2024 dividend [17] - The company ended Q3 2025 with a net leverage ratio of 3.4 times and $379 million in available liquidity [18] Q&A Session Summary Question: Concerns about cost management in the Performance Chemicals segment - Management indicated that costs are being managed, but they are cautious about cutting too deeply in PC due to its future potential [34][35] Question: Strategy for growing the utility pole business - The company sees significant market opportunities for growth in the utility pole sector and plans to expand its capabilities [38][39] Question: Outlook for the Performance Chemicals market - Management believes the current market setback is temporary and expects to see growth returning in line with historical trends [41][42]