Koppers Holdings Inc. (KOP) Q3 2025 Earnings Call Transcript
Sales for Q3 2025 $485 million, down $69 million or 12% from Q3 2024. The decline was driven by lower volumes across all segments: RUPS (-6%), PC (-18%), and CM&C (-16%).
Adjusted EBITDA for Q3 2025 $70.9 million, down from $77.4 million in Q3 2024. The decrease was due to lower sales volumes, partially offset by cost containment efforts.
Adjusted EPS for Q3 2025 $1.21 per share, down from $1.37 in Q3 2024. The decline was due to lower top-line performance, partially offset by cost containment and reduced interest costs.
SG&A Costs (Year-to-date) Down 14% or over $19 million compared to the prior year, driven by cost control measures.
RUPS Segment Sales for Q3 2025 $233 million, down $15 million or 6% from Q3 2024. The decline was due to lower volumes of Class I crossties and maintenance-of-way business, partially offset by higher commercial crosstie volumes and price increases.
RUPS Adjusted EBITDA for Q3 2025 $29 million, up from $25 million in Q3 2024. The increase was due to lower SG&A and operating expenses, as well as net sales price increases, despite lower sales volumes.
PC Segment Sales for Q3 2025 $144 million, down $33 million or 18% from Q3 2024. The decline was due to lower volumes, primarily from market share shifts in the U.S.
PC Adjusted EBITDA for Q3 2025 $26 million, down from $40 million in Q3 2024. The decline was due to lower sales volumes and higher raw material costs, partially offset by lower logistics costs and SG&A expenses.
CM&C Segment Sales for Q3 2025 $108 million, down $22 million or 16% from Q3 2024. The decline was primarily due to the discontinuation of phthalic anhydride production.
CM&C Adjusted EBITDA for Q3 2025 $16 million, up from $13 million in Q3 2024. The increase was due to lower operating and raw material costs, despite lower sales prices.
Net Debt as of September 30, 2025 $885 million, approximately $45 million lower than June 30, 2025, due to free cash flow deployment toward debt reduction.
Capital Expenditures (Year-to-date) $33.7 million net, with a full-year projection of $52-$55 million, down from $74 million in 2024, reflecting a focus on free cash flow.
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Koppers Schedules 2025 Q4 and Full-Year Earnings Call
- Earnings Release Schedule: Koppers Holdings Inc. plans to announce its Q4 and full-year 2025 financial results before the market opens on February 26, 2026, indicating a commitment to transparency and investor communication.
- Conference Call Details: The call is set for 11:00 a.m. Eastern Time, with participants requested to register five minutes early, reflecting the company's professionalism and focus on participant experience in investor relations.
- Audio Replay Service: An audio replay will be available approximately two hours after the call, lasting until May 26, 2026, ensuring that investors who cannot attend live can access critical information, enhancing information accessibility.
- Company Background: Koppers is a global leader in treated wood products and carbon compounds, employing around 1,850 people dedicated to providing safe and sustainable solutions that support global infrastructure, highlighting its significant role in the industry.
Koppers CFO Jimmi Sue Smith to Retire in 2026, Interim CFO Appointed
- Executive Transition: Koppers Holdings announced the retirement of CFO Jimmi Sue Smith effective January 5, 2026, with Chief Accounting Officer Bradley Pearce appointed as interim CFO, demonstrating the company's agility in executive succession planning.
- Financial Optimization Achievements: Under Smith's leadership, the company successfully optimized its capital structure and achieved record free cash flow returns over the past two years, returning more dollars to shareholders than at any point in its history, thereby enhancing investor confidence.
- Successor Search: The company is conducting an external search for Smith's permanent successor, a process that may impact its financial strategy and future direction, particularly in capital management and cash flow optimization.
- Stock Price Reaction: Koppers' stock closed up 2.56% at $27.62 on the New York Stock Exchange, reflecting a positive market reaction to the executive change and potentially signaling investor optimism regarding future financial performance.
