NYSE$KOP

Koppers Holdings Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

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.

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.

Headline financials

Total Revenue

$563M

Previous: $577M-2.4%
EPS

$1.25

Previous: $1.26-0.8%
Adjusted EBITDA

$77.5M

Previous: $70.3M+10.2%
Capital Expenditures

-$43.4M

Previous: -$62.6M+30.7%
Free Cash Flow

-$16.6M

Previous: -$38.1M+56.4%
Net Income

$26.8M

Previous: $24.5M+9.4%
Operating Income

$57.5M

Previous: $54.4M+5.7%
Gross Profit

$122M

Previous: $113M+8.1%
Total Assets

$1.95B

Previous: $1.82B+7.3%
Stock-Based Comp

$5.5M

Previous: $3.8M+44.7%

Revenue & EPS history

Koppers · Revenue · Quarterly

$563M

Q2 2024-2.4%vs Q2 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 $2.15 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.

Tailwinds

  • 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.

Headwinds

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

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 Q2 2024

Historical avgQ2 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%

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