Koppers Reports Mixed Results, Looks to 2025 for Growth

Koppers Holdings Inc. (NYSE: KOP), a global provider of treated wood products, wood treatment chemicals, and carbon compounds, reported mixed results for the fourth quarter and full year of 2024. The company's net loss of $10.2 million for the fourth quarter, or $0.50 per diluted share, compared to net income of $12.9 million, or $0.59 per diluted share, in the prior year quarter. Adjusted net income attributable to Koppers and adjusted earnings per share (EPS) were $16.0 million, or $0.77 per share for the fourth quarter of 2024, compared to $14.5 million, or $0.67 per share in the prior year quarter. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the fourth quarter of 2024 were $55.2 million, compared with $53.9 million in the prior year quarter.

Consolidated sales of $477.0 million decreased by $36.2 million, or 7.1 percent, compared with $513.2 million in the prior year quarter. The Railroad and Utility Products and Services (RUPS) business reported lower sales and profitability primarily as a result of lower volumes for Class I crossties and higher costs, despite fourth-quarter records in operating profit and adjusted EBITDA achieved by the domestic utility pole business. The Performance Chemicals (PC) segment had decreased sales and slightly lower profitability primarily driven by lower volumes of preservatives and higher raw material costs; however, the segment saw improved margin due to cost savings initiatives. The Carbon Materials and Chemicals (CMC) segment experienced a sales decline primarily driven by decreased prices across most products, while profitability increased due to lower raw material and overhead costs, as well as a bad debt reserve in the prior year period.

Chief Executive Officer Leroy Ball stated, "While 2024 results fell short of our expectations for performance, I am proud of the many accomplishments of Koppers team members worldwide that enabled us to make continued progress on our journey of creating the foundation for a connected world through our diverse portfolio of leading products and services. Record safety performance, continued advancements in sustainability, and financial performance in the final three quarters of the year that exceeded prior year in several key metrics are all highlights to build upon in 2025. While a pullback in sales activity in the last six weeks of the year in all segments proved to be too much to overcome, the cost actions we began taking in the fourth quarter are setting us up nicely to weather the uncertainty ahead that's brought on by the unpredictable economic and policy environment."



Looking ahead to 2025, Koppers plans to focus on cost-cutting measures and strategic initiatives to improve its financial performance. The company will continue to invest in its core businesses and explore new opportunities to drive growth. Koppers will also prioritize sustainability efforts and safety initiatives to maintain its strong track record in these areas.



In conclusion, Koppers' mixed results for 2024 reflect the challenges faced by the company in the latter part of the year. However, the company's focus on cost-cutting measures and strategic initiatives, along with its strong safety and sustainability record, positions it well for growth in 2025. Investors should closely monitor Koppers' progress as it works to overcome the headwinds it faced in 2024 and capitalize on new opportunities in the coming year.