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Jun 30, 2023
Koppers Q2 2023 Earnings Report
Koppers' Q2 2023 earnings were reported, marked by record sales and increased profitability in RUPS and PC segments, offset by CMC's profitability being unfavorably impacted by higher raw material costs.
Key Takeaways
Koppers Holdings Inc. reported a record quarter with consolidated sales of $577.2 million, a 14.9% increase compared to the prior year quarter. Diluted EPS was $1.15, up from $0.55 in the prior year quarter, and adjusted EPS was $1.26, compared to $0.97 in the prior year quarter. The RUPS and PC segments delivered record sales and increased profitability, while the CMC segment experienced increased sales but decreased profitability due to higher raw material costs.
Record quarter sales of $577.2 million, a 14.9% increase year-over-year.
Diluted EPS increased to $1.15, compared to $0.55 in the prior year quarter.
Adjusted EPS rose to $1.26, up from $0.97 in the prior year quarter.
RUPS and PC segments achieved record sales and higher profitability, while CMC sales increased but profitability was impacted by higher raw material costs.
Revenue by Segment
Forward Guidance
Koppers expects 2023 sales of approximately $2.1 billion and adjusted EBITDA of approximately $250 million. Adjusted EPS is forecasted to be approximately $4.40. Capital expenditures are anticipated to be approximately $110 million to $120 million.
Positive Outlook
- Residential treated wood volumes are expected to remain resilient.
- The utility pole market remains strong.
- Demand strength in the utility market is expected to continue for the next few years.
- Inventories are being built to benefit from operational efficiencies associated with higher crosstie treatment volumes.
- Well positioned to manage the volatility in CMC for coal tar and end market demand.
Challenges Ahead
- Ongoing uncertainty associated with geopolitical and supply chain challenges.
- Volatility in CMC for coal tar.
- Volatility in CMC for end market demand.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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