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Jun 30, 2024
Koppers Q2 2024 Earnings Report
Koppers reported mixed results with record sales in RUPS but overall sales decreased slightly due to lower demand in CMC, while PC benefited from cost reductions.
Key Takeaways
Koppers Holdings Inc. reported a decrease in consolidated sales to $563.2 million, a 2.4% decrease compared to the prior year quarter. Net income attributable to Koppers increased to $26.8 million, or $1.25 per diluted share, compared to $24.5 million, or $1.15 per diluted share, in the prior year quarter. Adjusted EPS increased to $1.36 from $1.26 in the prior year quarter. The company reaffirms its 2024 outlook.
RUPS delivered record sales for the quarter, but profitability remained flat due to higher costs and a decline in the crosstie recovery business.
PC segment sales saw a slight decline, but profitability benefited from lower costs and timing of copper hedging.
CMC segment experienced softness in demand, with sales and profitability significantly impacted by lower prices and reduced volumes for carbon pitch globally.
All three business segments showed significant sequential improvement in the second quarter.
Revenue by Segment
Forward Guidance
Koppers expects 2024 sales of approximately $2.15 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. They anticipate capital expenditures of approximately $80 million to $85 million in 2024.
Positive Outlook
- Reaffirming full-year guidance as previously communicated.
- Global team has done a great job of managing the controllables.
- Clear line of sight to another year of top performance.
- Poised to further capitalize on future growth opportunities as markets improve.
- Acquisition of Brown Wood Preserving Company closed on April 1, 2024.
Challenges Ahead
- Challenging across most business lines.
- Ongoing uncertainty associated with geopolitical and supply chain challenges.
- Effective tax rate for adjusted net income attributable to Koppers in 2024 is projected to be approximately 28 percent, slightly above the adjusted tax rate in 2023.
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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