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Mar 31, 2024
Koppers Q1 2024 Earnings Report
Reported first quarter results and provided updated 2024 outlook.
Key Takeaways
Koppers Holdings Inc. reported a decrease in net sales and net income for the first quarter of 2024 compared to the prior year. While the RUPS and PC segments showed year-over-year improvement in profitability, these gains were offset by slumping CMC markets, weather-related plant outages, and higher costs.
First quarter sales were $497.6 million, down from $513.4 million in the prior year quarter.
Diluted EPS was $0.59, compared to $1.19 in the prior year quarter.
Adjusted EPS was $0.62, compared to $1.12 in the prior year quarter.
The company completed the acquisition of Brown Wood Preserving Company.
Revenue by Segment
Forward Guidance
Koppers expects 2024 sales of approximately $2.25 billion and adjusted EBITDA of approximately $265 million to $280 million. Adjusted EPS is forecasted to be in the range of $4.10 to $4.60 per share.
Positive Outlook
- PC business overall is in good shape and expected to sustain its first quarter outperformance through the rest of this year.
- Actively working on several initiatives in CMC that will result in long-term improvement
- Expect to exceed original 2025 adjusted EBITDA goal of $300 million
- Expect to reach the communicated range of $315 million to $325 million which includes the addition of Brown.
- Koppers continues to expand and optimize its business and make further progress on the company's strategic pillars toward its long-term financial goals.
Challenges Ahead
- Lower than originally forecast volumes for RUPS, driven by certain utility pole customers right sizing inventories and a temporary slowdown in project spend.
- CMC will show definite improvement the remainder of this year, it will be difficult to make up the first quarter gap that was created by its poor results without an upward turn in our end markets before year end.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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