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Dec 31, 2022
Koppers Q4 2022 Earnings Report
Koppers reported record quarter sales and increased profitability in RUPS, driven by pricing and volume improvements, while PC sales hit a record but profitability was impacted by higher raw material costs; CMC sales remained strong due to favorable pricing.
Key Takeaways
Koppers Holdings Inc. reported a net income of $13.8 million, or $0.65 per diluted share, for Q4 2022, compared to $22.2 million, or $1.01 per diluted share, in the prior year quarter. Adjusted net income was $23.0 million, or $1.09 per share, compared to $16.9 million, or $0.77 per share, in the prior year quarter. Consolidated sales reached a quarterly record of $482.6 million, up 19.1% from the prior year.
Koppers reported record quarter sales of $482.6 million, up from $405.3 million in the prior year quarter.
Net income attributable to Koppers was $13.8 million, or $0.65 per diluted share, compared to $22.2 million, or $1.01 per diluted share, in the prior year quarter.
Adjusted net income attributable to Koppers was $23.0 million, or $1.09 per share, compared to $16.9 million, or $0.77 per share, in the prior year quarter.
The Railroad and Utility Products and Services (RUPS) business achieved record fourth-quarter sales and higher year-over-year profitability.
Revenue by Segment
Forward Guidance
Koppers expects 2023 sales of approximately $2.1 billion and adjusted EBITDA of approximately $250 million. The 2023 adjusted EPS is forecasted to be approximately $4.40.
Positive Outlook
- Largest year-over-year leap in profitability since 2015 is expected.
- Pricing in PC business is expected to recapture remaining cost increases.
- RUPS is expected to take another step forward as larger multi-year projects complete.
- Cost expected to be taken out of the organization through greater efficiency in RUPS.
- Focused on reaching 2025 goal of $300 million in adjusted EBITDA.
Challenges Ahead
- Ongoing uncertainty associated with geopolitical and supply chain challenges.
- CMC will see some natural margin compression as market dynamics intensify on both the supply and demand side.
- Global economic conditions
- Effective tax rate for adjusted net income attributable to Koppers in 2023 is projected to be approximately 31 percent.
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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