Koppers (KOP) Earnings Surpass Estimates, Sales Lag in Q2
In This Article:
Koppers Holdings Inc. KOP logged profits (attributable to the company) of $26.8 million or $1.25 per share for the second quarter of 2024, up from a profit of $24.5 million or $1.15 per share a year ago.
Barring one-time items, adjusted earnings were $1.36 per share for the quarter, up from $1.26 per share a year ago. It beat the Zacks Consensus Estimate of $1.32.
Koppers recorded revenues of $563.2 million for the quarter, down around 2% year over year. The top line missed the Zacks Consensus Estimate of $598 million. The Railroad and Utility Products and Services (“RUPS”) segment delivered record sales on higher pricing and increased crosstie and utility poles volumes. Performance Chemicals (PC) segment sales fell on lower volumes and prices. The Carbon Materials and Chemicals (“CMC”) segment saw lower sales on reduced prices and volumes amid softer demand.
Koppers Holdings Inc. Price, Consensus and EPS Surprise
Koppers Holdings Inc. price-consensus-eps-surprise-chart | Koppers Holdings Inc. Quote
Segment Highlights
Sales from the RUPS segment rose around 8% year over year to $253.9 million in the reported quarter. It was below the consensus estimate of $283 million. Sales were driven by increased pricing across several markets and higher volumes for crossties and utility poles.
The PC segment recorded sales of $176.9 million in the quarter, down around 2% year over year. It was below the consensus estimate of $183 million. Sales were impacted by reduced volumes in the Americas and weaker pricing globally.
Sales from the CMC division fell around 18% year over year to $132.4 million. It was below the consensus estimate of $141 million. The year-over-year downside was due to weaker demand, especially in Europe, and lower prices globally.
Financials
Koppers ended the quarter with cash and cash equivalents of $48.9 million, flat sequentially. Long-term debt was $986.7 million, up around 14% sequentially.
Outlook
Koppers noted that it remains focused on expanding and optimizing its business and making progress toward its long-term financial goals.
The company anticipates sales for 2024 to be roughly $2.15 billion. It also expects adjusted EBITDA to be in the band of $265-$280 million for the year, including the acquisition of Brown Wood, which was completed on Apr 1, 2024. Koppers sees adjusted earnings per share to be $4.10-$4.60 for 2024.
The company also expects capital expenditures of roughly $80-$85 million for this year.
Price Performance
Koppers’ shares are down 10.2% in a year compared with a 10% decline recorded by the industry.