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• Consolidated Sales: $456.5 million, down from $497.6 million in the prior year.

• Adjusted EBITDA: $55.5 million, up from $51.5 million in the prior year quarter.

• Adjusted EBITDA Margin: 12.2%, compared to 10.3% in the prior year quarter.

• Diluted Loss Per Share: $0.68, compared to diluted earnings per share of $0.59 in the prior year quarter.

• Adjusted Earnings Per Share: $0.71, up from $0.62 in the prior year quarter.

• Cash Flow Used in Operations: $22.7 million, including a $14 million payment for US pension plan termination.

• Capital Expenditures: $10 million, down from $25.8 million in the prior year quarter.

• Net Debt: $948 million with $320 million in available liquidity.

• Net Leverage Ratio: 3.6 times as of March 31.

• Quarterly Dividend: $0.08 per share, with an expected annual dividend of $0.32 per share for 2025.

• RUPS Sales: $235 million, up from $225 million in the prior year.

• PC Sales: $121 million, down from $150 million in the prior year.

• CM&C Sales: $101 million, down from $122 million in the prior year.

• 2025 Sales Outlook: Expected to reach $2 billion to $2.2 billion.

• 2025 Adjusted EBITDA Forecast: $280 million, compared to $262 million in 2024.

• 2025 Adjusted Earnings Per Share Forecast: $4.75, compared to $4.11 in 2024.

• 2025 Net Capital Spending Projection: $65 million, compared to $74 million in 2024.

• Warning! GuruFocus has detected 6 Warning Signs with KOP.

Release Date: May 09, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Koppers Holdings Inc (NYSE:KOP) reported solid profitability on an adjusted basis despite a decrease in sales for the first quarter of 2025.

• The company achieved an adjusted EBITDA margin of 12.2%, the strongest Q1 margin since 2021.

• Koppers Holdings Inc (NYSE:KOP) reduced its global employee base by 5% and lowered SG&A expenses by $4.1 million compared to Q1 2024.

• The company received recognition for its sustainability efforts, being named to USA Today's list of America's climate leaders for the third consecutive year.

• Koppers Holdings Inc (NYSE:KOP) expanded its capabilities with the acquisition of Brown Wood Preserving Company, enhancing its geographic reach and product offerings.

Negative Points

• First quarter sales decreased by 8% compared to the prior year, with significant declines in the Performance Chemicals and Carbon Materials & Chemicals segments.

• The company reported a diluted loss per share of $0.68, driven by restructuring charges and pension plan termination costs.

• Cash flow used in operations was $22.7 million, including a $14 million payment for pension plan termination.

• The Performance Chemicals segment faced a 21.5% volume decrease due to market share shifts and unfavorable weather conditions.

• Economic uncertainty and high interest rates pose challenges, potentially impacting demand and project enthusiasm in the utility and industrial products business.