NYSE$KOP

Koppers Holdings Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Reported first quarter results and provided updated 2024 outlook.

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.

Headline financials

Total Revenue

$498M

Previous: $513M-3.1%
EPS (adj)

$0.62

Previous: $1.12-44.6%
Capital Expenditures

-$26.3M

Previous: -$30.4M+13.5%
Free Cash Flow

-$13.3M

Previous: -$4.9M-171.4%
Net Income

$13M

Previous: $25.5M-49.0%
Operating Income

$34.6M

Previous: $50.3M-31.2%
Gross Profit

$96.2M

Previous: $104M-7.6%
Total Assets

$1.85B

Previous: $1.8B+2.5%
Stock-Based Comp

$5.4M

Previous: $4M+35.0%

Revenue & EPS history

Koppers · Revenue · Quarterly

$498M

Q1 2024-3.1%vs Q1 2023
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Koppers · $550M total across 3 segments · Q3 2023

  • Railroad & Utility Products
    $234M+12.7%
  • Performance Chemicals
    $179M+17.2%
  • Carbon Materials & Chemicals
    $137M-21.8%

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.

Tailwinds

  • 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.

Headwinds

  • 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.
  • 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.
  • An estimated $25 million of funding will be required when the U.S. qualified pension plan termination is completed, which will impact operating cash flow in 2025.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

+0.1%

Avg return

Earnings day

+1.2%

Avg return

5 days after

+1.7%

Avg return

30 days after

44%

30 / 68 earnings

Positive

+26.3%

Q3 2019

Best reaction

-30.0%

Q3 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+7.0%+3.7%-1.0%
Q4 2025+7.6%+6.4%+9.8%
Q3 2025-4.0%+2.6%+0.6%
Q1 2025+3.5%+16.4%+23.1%
Q4 2024-9.4%-13.5%-13.6%
Q3 2024-0.7%-0.3%-5.4%
Q2 2024-1.0%+4.1%+3.7%
Q1 2024-18.5%-15.7%-16.2%
Q4 2023+6.8%+0.0%+4.1%
Q3 2023-0.2%+2.2%+20.8%
Q2 2023+2.5%+2.2%+5.3%
Q1 2023+3.4%+1.4%+1.0%
Q4 2022+4.5%+9.3%-0.5%
Q3 2022+17.1%+10.8%+26.2%
Q2 2022-1.7%+0.8%-6.6%
Q1 2022-3.7%-4.9%+10.2%
Q4 2021+3.5%+4.3%+3.0%
Q3 2021-9.7%-10.1%-16.5%
Q2 2021+0.8%+6.2%+10.0%
Q1 2021+3.4%-4.1%-4.2%
Q4 2020-6.9%-5.9%-4.9%
Q3 2020+1.0%+1.7%+20.4%
Q2 2020+2.4%+3.9%-7.8%
Q1 2020+24.5%+7.3%+70.4%
Q4 2019-7.3%-16.9%-68.0%
Q3 2019+26.3%+22.2%+7.5%
Q2 2019+16.7%+21.2%+11.6%
Q1 2019+8.7%+11.3%-0.1%
Q4 2018+8.0%+8.3%+5.7%
Q3 2018-30.0%-23.9%-36.8%
Q2 2018-7.1%-7.5%-9.2%
Q1 2018-8.1%-11.2%-7.3%
Q4 2017-2.7%+0.2%-1.0%
Q3 2017+1.9%+0.5%+4.0%
Q2 2017+10.5%+8.5%+12.6%
Q1 2017-4.3%-4.3%-12.4%
Q4 2016-2.3%+0.5%-5.4%
Q3 2016-1.7%+2.0%+23.3%
Q2 2016+8.7%+7.7%+10.1%
Q1 2016+2.5%
Q4 2015+6.3%
Q3 2015+12.8%
Q2 2015+8.8%
Q1 2015+16.0%
Q4 2014-13.5%
Q3 2014-13.7%
Q2 2014-6.2%
Q1 2014-14.3%
Q4 2013-1.5%
Q3 2013+14.0%
Q2 2013-1.3%
Q1 2013-2.2%
Q4 2012-3.2%
Q3 2012-4.9%
Q2 2012-9.2%
Q1 2012-1.4%
Q4 2011-0.6%
Q1 2010-0.6%
Q3 2011-0.5%
Q2 2011-6.2%
Q1 2011+2.7%
Q4 2008-6.7%
Q4 2010-6.7%
Q3 2009+6.3%
Q3 2010+6.3%
Q2 2009-7.8%
Q4 2009-7.8%
Q2 2010-7.8%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro