Koppers Holdings Inc. · NYSE:KOP

Koppers — Q3 2025 Earnings Presentation

38 slides from Koppers's earnings presentation, Nov 7, 2025

  1. Slide 1: Q3 2025 Results

    Q3 2025 Results KOPPER a)

  2. Slide 2: Safe Harbor Statement

    Safe Harbor Statement Certain statements in this presentation are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and may include, but are not limited to, statements about sales levels, acquisitions, restructuring, declines in the value of Kopp

  3. Slide 3: Company Highlights

    KOPPERS = Company Highlights

  4. Slide 4: Key Takeaways: Q3 2025

    Key Takeaways: Q3 2025 HIGHLIGHTS BUSINESS OPTIMIZATION CURRENT MARKET DYNAMICS • Lowered YTD adjusted SG&A by • Completed sale of Koppers Railroad • Most end markets remain soft 14% vs. prior year Structures ✓ PC volumes, excluding previously disclosed • Reduced headcount for 5 market share loss, d

  5. Slide 5: Zero Harm: Q3 2025

    Zero Harm: Q3 2025 2025 vs. 2024 Leading 29% Activities 23 OUT OF 41 Accident-Free Recordable 23% Facilities Injury Rate Business Units with • Europe CMC Serious Safety 72% Zero Recordables: • Europe PC Incidents • Australasia PC 5

  6. Slide 6: Posadas Named to Koppers Board

    Posadas Named to Koppers Board Koppers announced that the company has increased the size of its Board of Directors from eight to nine members and has elected Laura Posadas, Chief Executive Officer of Canlak Coatings Inc., as a director of the company, effective November 5, 2025. 6

  7. Slide 7: Q3 2025 Financials

    KOPPERS = Q3 2025 Financials Ss

  8. Slide 8: Q3 2025: Sales by Segment

    Q3 2025: Sales by Segment (Unaudited) Sales vs. Prior Year $ in Millions $600 $500 -12.4% $554 $485 $400 $300 -6.2% $200 $248 $233 -18.3% $177 -16.4% $100 $144 $130 $108 $0 Q3 2025 Q3 2024 Q3 2025 Q3 2024 Q3 2025 Q3 2024 Q3 2025 Q3 2024 RUPS PC CMC TOTAL Note: Segment amounts may not agree with cons

  9. Slide 9: Q3 2025: Adjusted EBITDA by Segment

    Q3 2025: Adjusted EBITDA by Segment (Unaudited) Adjusted EBITDA $ and % vs. Prior Year $ in Millions $80 14.0% 14.6% $77 $71 $60 22.6% $40 $40 12.5% 18.1% 10.0% $29 $26 $20 14.4% $25 9.8% $16 $13 $0 Q3 2025 Q3 2024 Q3 2025 Q3 2024 Q3 2025 Q3 2024 Q3 2025 Q3 2024 RUPS PC CMC TOTAL Note: Segment amoun

  10. Slide 10: Q3 2025 RUPS Segment

    Q3 2025 RUPS Segment RAILROAD AND UTILITY PRODUCTS AND SERVICES Sales (Unaudited) Adjusted EBITDA (Unaudited) $ in Millions $ in Millions Highlights Highlights $250 • Decrease in sales primarily $248 $30 driven by: • Profitability was higher due to: $233 ✓ $15.8M of lower volumes in $29 $200 Class I

  11. Slide 11: Q3 2025 PC Segment

    Q3 2025 PC Segment PERFORMANCE CHEMICALS Sales (Unaudited) Adjusted EBITDA (Unaudited) $ in Millions $ in Millions $200 Highlights Highlights $40 $177 • Decline in sales was primarily $40 • Profitability was lower due to: $150 due to: ✓ Lower sales volumes $144 ✓ 19% lower volumes, mostly $30 in the

  12. Slide 12: Q3 2025 CMC Segment

    Q3 2025 CMC Segment CARBON MATERIALS AND CHEMICALS Sales (Unaudited) Adjusted EBITDA (Unaudited) $ in Millions $ in Millions $140 $20 Highlights Highlights $130 $120 • Lower sales were primarily • Profitability increased due to: driven by: ✓ Lower operating costs due to $108 ✓ $19.6M of volume decre

  13. Slide 13: Capital Allocation

    Capital Allocation

  14. Slide 14: Uses of Cash: Balanced Approach

    Uses of Cash: Balanced Approach Investing in Our Business Quarterly Dividend • $33.7M capital expenditures YTD • On November 6, Board of Directors 9/30/25, net of insurance proceeds and declared quarterly dividend of $0.08 per sale of assets share • $52M to $55M total capital expenditures (gross) ex

  15. Slide 15: Q3 2025 Capital Expenditures

    Q3 2025 Capital Expenditures ($ in Millions) Growth & Year-to-Date CapEx by Business Unit Maintenance Zero Harm Productivity Total RUPS $11.4 $0.6 $1.6 $13.6 PC 6.6 1.7 1.3 9.6 CMC 12.2 0.9 0.7 13.8 Corporate 0.8 --- 0.6 1.4 Total $31.0 $3.2 $4.2 $38.4 Less: Cash Proceeds 4.7 Capital Expenditures, N

  16. Slide 16: Dividend Declaration

    Dividend Declaration ) KOPPER \ Nn Miu

  17. Slide 17: Declaring Quarterly Cash Dividend

    Declaring Quarterly Cash Dividend November November December 11.6.25 11.28.25 12.16.25 Dividend Record Payment Declaration Date Date The Board of Directors approved a quarterly dividend of $0.08 per share of Koppers common stock. At this quarterly dividend rate, the annual dividend is $0.32 per shar

  18. Slide 18: Business Sentiment

    ~- Business Sentiment « ery

  19. Slide 19: State of the Business: PC

    State of the Business PC: PERFORMANCE CHEMICALS Prior Market Outlook (August 2025): Current Market Outlook: • Overall drab market; Q2 demand similar to • Residential demand experienced increased Q1; 2H not expected to be any different softness in Q3 while industrial ticked up • External markers of d

  20. Slide 20: State of the Business: RUPS Utility and Industrial

    State of the Business RUPS: UTILITY AND INDUSTRIAL PRODUCTS Prior Market Outlook (August 2025): Current Market Outlook: • Best quarterly comparative volume growth • Built upon small volume growth in Q2 with since Q3 2023 which provides confidence that 6.5% improvement in Q3 over prior year demand ma

  21. Slide 21: State of the Business: RUPS Railroad

    State of the Business RUPS: RAILROAD PRODUCTS AND SERVICES Prior Market Outlook (August 2025): Current Market Outlook: • Net sales volume and price increases as well • Treated tie declines in Q3 pushed YTD as lower operating costs resulted in strongest volumes negative but pricing and cost first hal

  22. Slide 22: State of the Business: CMC

    State of the Business CMC: CARBON MATERIALS AND CHEMICALS Prior Market Outlook (August 2025): Current Market Outlook: • Most end markets remain in a tough spot and • Not much positive movement on carbon are still expected to remain that way products markets since prior quarter throughout 2025 • Cent

  23. Slide 23: Strategic Transformation | Catalyst

    Strategic Transformation | Catalyst After finishing the first two phases of Catalyst, Koppers recently launched the third and final multi-year phase of our transformation process, Catalyst. Our Transformation Office has involved hundreds of individuals throughout the Progress organization to identif

  24. Slide 24: 2025 Guidance

    rN O a} ae) m 70) N Ww 2025 Guidance la

  25. Slide 25: 2025 Sales Forecast: ~$1.9B

    2025 Sales Forecast: ~$1.9B Sales ($ in Millions) $2,200 $2.09B $2,100 ($10M) $2,000 ($110M) ~$1.9B $1,900 ($80M) $1,800 $1,700 2024 RUPS PC CMC 2025 25

  26. Slide 26: 2025 Adjusted EBITDA Forecast: $255M-$260M

    2025 Adjusted EBITDA Forecast: $255M- $260M Adjusted EBITDA* ($ in Millions) $310 $300 $28M-$30M $290 $280 $270 $262M $255M-$260M $260 $8M-$9M $250 ($43M)-($41M) $240 $230 2024 RUPS PC CMC 2025 * Excluding special charges 26

  27. Slide 27: 2025 Adjusted EPS Forecast: $4.00 - $4.15

    2025 Adjusted EPS Forecast: $4.00 - $4.15 Adjusted EPS* $5.50 $5.00 $0.54 $4.50 $0.19 $4.00-$4.15 $4.11 ($0.31)-($0.40) $4.00 ($0.21) ($0.32)-($0.08) $3.50 $3.00 $2.50 $2.00 2024 Operations Interest Taxes D&A Other 2025 * Excluding special charges 27

  28. Slide 28: 2025 Capital Expenditures

    2025 Capital Expenditures ($ in Millions) Growth & CapEx by Business Unit Maintenance Zero Harm Productivity 2025 Low High Low High RUPS $15.6 $16.6 $0.6 $1.6 $17.8 $18.8 PC 7.9 8.9 3.5 1.3 12.7 13.7 CMC 16.2 17.2 1.1 0.7 18.0 19.0 Corporate 1.3 1.3 -- 2.2 3.5 3.5 Total Capital Expenditures $41.0 $4

  29. Slide 29: Appendix

    Appendix ) N Ww KOPPER’

  30. Slide 30: Non-GAAP Measures & Guidance

    Non-GAAP Measures & Guidance This presentation includes unaudited “non-GAAP financial measures” as defined in Regulation G under the Securities Exchange Act of 1934, including adjusted EBITDA, adjusted EBITDA margin, adjusted EPS, net debt, adjusted SG&A and net leverage ratio. Koppers believes that

  31. Slide 31: Unaudited Segment Information

    Unaudited Segment Information Three Months Ended September 30, 2025 2024 (Dollars in millions) Net sales: Railroad and Utility Products and Services $ 232.7 $ 248.1 Performance Chemicals 144.3 176.7 Carbon Materials and Chemicals 108.3 129.5 Total $ 485.3 $ 554.3 Adjusted EBITDA: Railroad and Utilit

  32. Slide 32: Reconciliation of Net Income to Adjusted EBITDA and Adjusted EBITDA Margin

    Unaudited Reconciliation of Net Income to Adjusted EBITDA and Adjusted EBITDA Margin Three Months Ended September 30, Year Ended December 31, 2025 2024 2024 (Dollars in millions) Net income $ 23.8 $ 19.0 $ 48.6 Interest expense 16.7 20.2 76.2 Depreciation and amortization 17.6 17.9 67.5 Income tax p

  33. Slide 33: Reconciliations of Net Income to Adjusted Net Income and Adjusted EPS

    Unaudited Reconciliations of Net Income Attributable to Koppers to Adjusted Net Income Attributable to Koppers and Diluted EPS and Adjusted EPS Three Months Ended September 30, Year Ended December 31, 2025 2024 2024 (Dollars in millions, except share and per share amounts) Net income attributable to

  34. Slide 34: Reconciliation of Total Debt to Net Debt and Net Leverage Ratio

    Unaudited Reconciliation of Total Debt to Net Debt and Net Leverage Ratio Twelve Months Ended September 30, 2025 (Dollars in millions) Total Debt $ 923.2 Less: Cash 37.9 Net Debt $ 885.3 Adjusted EBITDA $ 258.7 Net Leverage Ratio 3.4 34

  35. Slide 35: Reconciliation of Net Income to Adjusted EBITDA (LTM)

    Unaudited Reconciliation of Net Income to Adjusted EBITDA (LTM) Twelve Months Ended September 30, 2025 (Dollars in millions) Net income $ 16.1 Interest expense 68.9 Depreciation and amortization 68.9 Income tax provision 11.7 Sub-total 165.6 Adjustments to arrive at adjusted EBITDA: LIFO (benefit)(1

  36. Slide 36: Reconciliation of SG&A to Adjusted SG&A

    Reconciliation of Selling, General & Administrative to Adjusted Selling, General & Administrative Nine Months Ended September 30, 2025 2024 (Dollars in millions) Selling, general and administrative $ 118.1 $ 135.3 Adjustments: Amortization of cloud-based software implementation costs 1.1 0.0 Pension

  37. Slide 37: Koppers Holdings Inc. 436 Seventh Avenue Pittsburgh, PA

    KOPPERS World Headquarters Pittsburgh, Pennsylvania, USA Koppers Holdings Inc. 436 Seventh Avenue Pittsburgh, PA 15219-1800 Koppers is an integrated global provider of essential treated wood products, wood preservation technologies and carbon compounds. Our team of approximately 1,850 employees crea

  38. Slide 38: koppers.com

    — KOPPER —— koppers.com Mugu! \

Koppers Holdings — Q3 2025 Earnings Presentation on 6ix