NYSE$KOP

Koppers Holdings Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported record sales and solid profitability driven by PC and RUPS businesses, while CMC business held its own in a tougher market environment.

Koppers Holdings Inc. reported a strong third quarter with record sales of $550.4 million, a 2.7% increase compared to the prior year. Diluted EPS increased to $1.22 from $0.91, and adjusted EPS rose to $1.32 from $1.19. The RUPS and PC segments delivered record sales and profitability, while the CMC segment experienced declines due to weaker market demand.

  • Koppers achieved record third-quarter sales of $550.4 million, up 2.7% year-over-year.
  • Diluted EPS increased to $1.22, compared to $0.91 in the prior year quarter.
  • Adjusted EPS rose to $1.32, up from $1.19 in the prior year quarter.
  • Record quarterly adjusted EBITDA was achieved in the PC and RUPS businesses.

Headline financials

Total Revenue

$550M

Previous: $536M+2.7%
EPS (adj)

$1.32

Previous: $1.19+10.9%
Adjusted EBITDA

$70.7M

Previous: $68.8M+2.8%
Capital Expenditures

-$91.3M

Previous: -$80M-14.1%
Free Cash Flow

-$65M

Previous: -$60.9M-6.7%
Net Income

$26.3M

Previous: $19.1M+37.7%
Operating Income

$53.3M

Previous: $42.8M+24.5%
Gross Profit

$111M

Previous: $96.4M+15.6%
Cash & Equivalents

$53.5M

Previous: $42.8M+25.0%
Total Assets

$1.81B

Previous: $1.65B+9.5%
Stock-Based Comp

$5.2M

Previous: $3.3M+57.6%

Revenue & EPS history

Koppers · Revenue · Quarterly

$550M

Q3 2023+2.7%vs Q3 2022
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 anticipates full-year 2023 sales of approximately $2.1 billion and adjusted EBITDA in the range of $253 million to $257 million. Adjusted EPS is forecasted to be in the range of $4.35 to $4.55 per share. Capital expenditures are expected to be approximately $110 million to $120 million.

Tailwinds

  • Confident in finishing the year with adjusted EBITDA and adjusted EPS in the range of recently increased guidance.
  • Expects to finish the year with some of the best annual results.
  • Expects to be in the strongest financial condition since 2017.
  • Expects to bring larger capital projects fully online in order to deliver $275 million of adjusted EBITDA in 2024.
  • Anticipates normal seasonality in demand in most markets.

Headwinds

  • Markets remain in short-term turmoil.
  • Global economic conditions.
  • Ongoing uncertainty associated with geopolitical challenges.
  • Ongoing uncertainty associated with supply chain challenges.
  • Normal seasonality in demand in most markets, except perhaps CMC, where markets remain in short-term turmoil.

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 Q3 2023

Historical avgQ3 2023

+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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