NYSE$KOP

Koppers Holdings Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

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.

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.

Headline financials

Total Revenue

$577M

Previous: $503M+14.9%
EPS (adj)

$1.26

Previous: $0.97+29.9%
Adjusted EBITDA

$70.3M

No prior period
Capital Expenditures

-$62.6M

Previous: -$55.8M-12.2%
Free Cash Flow

-$38.1M

Previous: -$44.1M+13.6%
Net Income

$24.5M

Previous: $11.7M+109.4%
Operating Income

$54.4M

Previous: $29.1M+86.9%
Gross Profit

$113M

Previous: $83.1M+35.4%
Cash & Equivalents

$48.2M

Previous: $40.4M+19.3%
Total Assets

$1.82B

Previous: $1.69B+7.6%
Stock-Based Comp

$3.8M

Previous: $3.2M+18.8%

Revenue & EPS history

Koppers · Revenue · Quarterly

$577M

Q2 2023+14.9%vs Q2 2022
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Koppers · $577M total across 3 segments · Q2 2023

  • Railroad & Utility Products
    $234M+14.8%
  • Performance Chemicals
    $181M+20.9%
  • Carbon Materials & Chemicals
    $162M+8.9%

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.

Tailwinds

  • 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.

Headwinds

  • Ongoing uncertainty associated with geopolitical and supply chain challenges.
  • Volatility in CMC for coal tar.
  • Volatility in CMC for end market demand.
  • Balancing the volatility in CMC for coal tar and end market demand.
  • Global economic conditions

Historical earnings impact

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

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+0.1%

Avg return

Earnings day

+1.2%

Avg return

5 days after

+1.8%

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+6.9%+3.6%
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 2010+6.3%
Q3 2009+6.3%
Q2 2010-7.8%
Q2 2009-7.8%
Q4 2009-7.8%

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