Koppers Holdings Inc. · NYSE:KOP
Koppers — Q4 2024 Earnings Presentation
43 slides from Koppers's earnings presentation, Feb 27, 2025
Slide 1: Q4 & 2024 Results
Q4 & 2024 Results KOPPER a)
Slide 2: Forward Looking Statement
Forward Looking 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
Slide 3: Q4 & 2024 Summary
KOPPERS = Q4 & 2024 Summary
Slide 4: Q4 2024 Summary of Key Metrics
Q4 2024 Summary of Key Metrics HIGHLIGHTS Consolidated Sales of $477.0M vs. $513.2M in prior year quarter Adjusted EBITDA of $55.2M vs. $53.9M in prior year quarter ❖ Fourth-quarter record in profitability Adjusted EBITDA Margin of 11.6% vs. 10.5% in prior year quarter Diluted Earnings Per Share of
Slide 5: 2024 Summary of Key Metrics
2024 Summary of Key Metrics HIGHLIGHTS Consolidated Sales of $2.09B vs. $2.15B in prior year ❖ Record year in sales for RUPS, driven by utility pole and North American railroad volumes Adjusted EBITDA of $261.6M vs. $256.4M in prior year ❖ Record year in profitability Adjusted EBITDA Margin of 12.5%
Slide 6: 2025 Virtual Investor Day Save the Date
SAVE DATE THE 2025 VIRTUAL Thursday, September 18, 2025 INVESTOR DAY 9 a.m. Eastern Time FEATURING 2030 Strategic Plan Sustainability Overview Business Overview Financial Overview Leroy Ball, Chief Executive Officer Stephanie Apostolou, Chief Legal and James Sullivan, President and Jimmi Sue Smith,
Slide 7: Zero Harm
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Slide 8: Zero Harm 2024
Zero Harm 2024 2024 vs. 2023 Leading 8% Activities 23 OUT OF 47 Accident-Free Recordable Facilities 10.5% Injury Rate Business Units with • Europe CMC Serious Safety 41% Zero Recordables: • Europe PC Incidents 8
Slide 9: Notable Happenings
Notable Happenings “/y ) (9 uuu! KOPPER
Slide 10: Commitment to Sustainability
Commitment to Sustainability Koppers is honored to be named by Newsweek as one of America’s Most Responsible Companies, for the fifth consecutive year. merica s ost esponsible ompanies 10
Slide 11: 2024 Global Engagement Survey
2024 Global Engagement Survey The Global Engagement Survey is an opportunity for team members to provide honest and anonymous feedback. It is one of our most significant tools for making meaningful changes that reflect the needs and wants of our people. PARTICIPANT RESPONSE ENGAGEMENT AT A GLANCE EN
Slide 12: Q4 & 2024 Financials
KOPPERS = Q4 & 2024 Financials
Slide 13: Q4: Sales by Segment
Q4: Sales by Segment (Unaudited) Q4 2024 Sales vs. Prior Year $ in Millions $600 $500 -7.1% $513 $477 $400 $300 -0.4% $200 $216 $216 -10.0% -14.3% $100 $148 $164 $132 $114 $0 Q4 2024 Q4 2023 Q4 2024 Q4 2023 Q4 2024 Q4 2023 Q4 2024 Q4 2023 RUPS PC CMC TOTAL Note: Segment amounts may not agree with co
Slide 14: 2024: Sales by Segment
2024: Sales by Segment (Unaudited) 2024 Sales vs. Prior Year $ in Millions $2,500 -2.9% $2,000 $2,154 $2,092 $1,500 $1,000 5.0% $943 -3.0% $898 -14.9% $500 $652 $672 $585 $498 $0 2024 2023 2024 2023 2024 2023 2024 2023 RUPS PC CMC TOTAL Note: Segment amounts may not agree with consolidated totals du
Slide 15: Q4: Adjusted EBITDA by Segment
Q4: Adjusted EBITDA by Segment (Unaudited) Q4 2024 Adjusted EBITDA $ and % vs. Prior Year $ in Millions $70 $60 11.6% 10.5% $50 $55 $54 $40 19.3% 17.9% $30 $29 $29 9.6% $20 8.1% $18 $21 8.0% $10 $9 2.9% $4 $0 Q4 2024 Q4 2023 Q4 2024 Q4 2023 Q4 2024 Q4 2023 Q4 2024 Q4 2023 RUPS PC CMC TOTAL Note: Seg
Slide 16: 2024: Adjusted EBITDA by Segment
2024: Adjusted EBITDA by Segment (Unaudited) 2024 Adjusted EBITDA $ and % vs. Prior Year $ in Millions $300 12.5% 11.9% $250 $262 $256 $200 $150 21.9% $143 18.3% $123 $100 9.4% 8.7% $82 8.4% $50 $84 7.4% $49 $37 $0 2024 2023 2024 2023 2024 2023 2024 2023 RUPS PC CMC TOTAL Note: Segment amounts may n
Slide 17: Q4 2024 RUPS Segment
Q4 2024 RUPS Segment RAILROAD AND UTILITY PRODUCTS AND SERVICES Sales (Unaudited) Adjusted EBITDA (Unaudited) $ in Millions $ in Millions Highlights Highlights $250 $25 • Sales slightly lower due to: • Profitability declined primarily ✓ Decreased volumes of Class due to: $200 $216 $216 I crossties,
Slide 18: Q4 2024 PC Segment
Q4 2024 PC Segment PERFORMANCE CHEMICALS Sales (Unaudited) Adjusted EBITDA (Unaudited) $ in Millions $ in Millions $200 Highlights Highlights $30 • Lower year-over-year sales, • Profitability was slightly lower $150 $164 primarily from: $29 $29 due to: $148 ✓ Lower volumes of residential ✓ Volume de
Slide 19: Q4 2024 CMC Segment
Q4 2024 CMC Segment CARBON MATERIALS AND CHEMICALS Sales (Unaudited) Adjusted EBITDA (Unaudited) $ in Millions $ in Millions $140 Highlights Highlights $132 $120 • Profitability increased due to: • Decrease in sales primarily $10 driven by: ✓ Lower raw material costs $114 $100 ✓ Lower allocated SG&A
Slide 20: Capital Allocation
Capital Allocation
Slide 21: Uses of Cash: Balanced Approach
Uses of Cash: Balanced Approach Investing in Our Business Reducing Leverage(1) • Net capital expenditures of • $887M net debt and $381M liquidity $74M in 2024 at 12/31/24 • $65M total capital expenditures • 3.4x net leverage at 12/31/24 expected in 2025 • Long-term target of 2x-3x net leverage ratio
Slide 22: Term Loan B: Repriced December 2024
Term Loan B: Repriced December 2024 • Repriced Term Loan B (TLB) in December 2024 ✓ Senior secured TLB due April 2030 • Reduces TLB interest rate margins by 50 basis points ✓ From 3.00% with a floor of 50 bps to 2.50% with a floor of 50 bps at adjusted Term SOFR Rate or adjusted Daily Simple SOFR En
Slide 23: 2024 Capital Expenditures
2024 Capital Expenditures ($ in Millions) Growth & CapEx by Business Unit Maintenance Zero Harm Productivity 2024 RUPS $18.2 $0.6 $13.3 $32.1 PC 10.6 3.1 1.5 15.2 CMC 23.5 1.8 2.2 27.5 Corporate 1.8 -- 0.8 2.6 Total $54.1 $5.5 $17.8 $77.4 Less: Cash Proceeds 3.4 Capital Expenditures, Net $74.0 23
Slide 24: Dividend Declaration
Dividend Declaration ) KOPPER \ Nn Miu
Slide 25: Increasing Quarterly Cash Dividend
Increasing Quarterly Cash Dividend February March March 2.12.25 3.7.25 3.24.25 Dividend Record Payment Declaration Date Date Board of Directors approved 14% increase in planned quarterly dividend to $0.08 per share of Koppers common stock in 2025. 25
Slide 26: Business Sentiment
~- Business Sentiment « ery
Slide 27: State of the Business: Performance Chemicals
State of the Business PC: PERFORMANCE CHEMICALS 2025 Market Outlook: • Expect solid year overall in 2025 but will not repeat all-time best performance in 2024; anticipate net market share loss in residential chemical business; some conversion occurred in Q4 2024 • Further diversified customer base b
Slide 28: State of the Business: Utility and Industrial Products
State of the Business RUPS: UTILITY AND INDUSTRIAL PRODUCTS 2025 Market Outlook: • Q4 sales and adjusted EBITDA were records, fueled by strength from hurricane response and contribution from Brown Wood but demand was down in Nov-Dec; recorded Q4 inventory charge in Australia • Demand recovered in ea
Slide 29: State of the Business: Railroad Products and Services
State of the Business RUPS: RAILROAD PRODUCTS AND SERVICES 2025 Market Outlook: • Demand declined more than expected in Q4 with 18% decrease year over year in sales volumes, lower sales for all but one Class I account, and steeper rate of decline than first 3 quarters • Commercial volumes also down
Slide 30: State of the Business: Carbon Materials and Chemicals
State of the Business CMC: CARBON MATERIALS AND CHEMICALS 2025 Market Outlook: • Q4 improved much from prior year but lower than expectations, driven by softer volumes due to pullbacks in latter half of quarter • In process of winding down phthalic anhydride production at plant in Stickney, Illinois
Slide 31: 2025 Guidance
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Slide 32: 2025 Sales Forecast: ~$2.17B
2025 Sales Forecast: ~$2.17B Sales ($ in Millions) $2,200 $105 ~$2.17B $21 $2,150 ($42) $2.09B $2,100 $2,050 $2,000 2024 RUPS PC CMC 2025 32
Slide 33: 2025 Adjusted EBITDA Forecast: ~$280M
2025 Adjusted EBITDA Forecast: ~$280M Adjusted EBITDA* ($ in Millions) $300 $35M $290 $14M ~$280M $280 $270 $261.6M ($30M) $260 $250 $240 $230 $220 2024 RUPS PC CMC 2025 * Excluding special charges 33
Slide 34: 2025 Adjusted EPS Forecast: ~$4.75
2025 Adjusted EPS Forecast: ~$4.75 Adjusted EPS* $6.00 $5.50 $0.48 $5.00 $0.83 $0.06 ~$4.75 ($0.53) $4.50 ($0.20) $4.11 $4.00 $3.50 $3.00 2024 Operations Interest Taxes D&A Other 2025 * Excluding special charges 34
Slide 35: 2025 Capital Expenditures
2025 Capital Expenditures ($ in Millions) Growth & CapEx by Business Unit Maintenance Zero Harm Productivity 2025 RUPS $15.0 $2.0 $1.5 $18.5 PC 8.4 6.6 1.0 16.0 CMC 20.0 2.0 -- 22.0 Corporate 2.0 -- 6.5 8.5 Total Capital Expenditures $45.4 $10.6 $9.0 $65.0 35
Slide 36: Appendix
Appendix ) N Ww KOPPER’
Slide 37: 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 and net leverage ratio. Koppers believes that the presentati
Slide 38: Unaudited Segment Information
Unaudited Segment Information Three Months Ended Year Ended December 31, December 31, (Dollars in millions) 2024 2023 2024 2023 Net sales: Railroad and Utility Products and Services $ 215.6 $ 216.4 $ 942.7 $ 897.9 Performance Chemicals 147.9 164.4 651.6 671.6 Carbon Materials and Chemicals 113.5 132
Slide 39: Reconciliation of Net Income to Adjusted EBITDA and Margin
Unaudited Reconciliation of Net Income to Adjusted EBITDA and Adjusted EBITDA Margin Three Months Ended Year Ended December 31, December 31, (Dollars in millions) 2024 2023 2024 2023 Net income (loss) $ (10.2) $ 13.0 $ 48.6 $ 89.8 Interest expense 18.3 17.7 76.2 71.0 Depreciation and amortization 15
Slide 40: Reconciliation 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 Year Ended December 31, December 31, (Dollars in millions, except share and per share amounts) 2024 2023 2024 2023 2022 2021 2020 Net inc
Slide 41: Reconciliation of Total Debt to Net Debt and Net Leverage Ratio
Unaudited Reconciliation of Total Debt to Net Debt and Net Leverage Ratio Year Ended December 31, (Dollars in millions) 2024 2023 Total Debt $ 930.8 $ 840.4 Less: Cash 43.9 66.5 Net Debt $ 886.9 $ 773.9 Adjusted EBITDA $ 261.6 $ 256.4 Net Leverage Ratio 3.4 3.0 41
Slide 42: Koppers World Headquarters and company description
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 2,200 employees create, protect an
Slide 43: koppers.com
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