Koppers Holdings Inc. · NYSE:KOP
Koppers — Q2 2025 Earnings Presentation
43 slides from Koppers's earnings presentation, Aug 8, 2025
Slide 1: Q2 2025 Results
Q2 2025 Results KOPPER a)
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
Slide 3: Q2 2025 Summary
KOPPERS = Q2 2025 Summary
Slide 4: Q2 Key Takeaways
Q2 Key Takeaways HIGHLIGHTS BUSINESS OPTIMIZATION MARKET CHALLENGES • Lowered YTD SG&A by 13% vs. • Sale of Koppers Railroad Structures • Experiencing softer demand across the board prior year expected to close Q3 2025 ✓ PC volumes, excluding previously disclosed • Reduced headcount for 14 market sh
Slide 5: Zero Harm
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Slide 6: Zero Harm: Q2 2025
Zero Harm: Q2 2025 2025 vs. 2024 Leading 27% Activities 26 OUT OF 41 Accident-Free Recordable 3% Facilities Injury Rate Business Units with • Europe CMC Serious Safety 71.5% Zero Recordables: • Europe PC Incidents • Australasia PC 6
Slide 7: 2025 Zero Harm CEO Award: Susquehanna Facility
2025 Zero Harm CEO Award: Susquehanna Facility Congratulations! Award Criteria ✓No critical incidents ✓Leading activity rate must be higher than Koppers rate ✓Total Recordable Plant Manager: Al Rutz Incident Rate, Serious Incident Rate, and Total Located in Montgomery, Pennsylvania, this facility En
Slide 8: Notable Happenings
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Slide 9: Accomplishments
Accomplishments Read the 2024 CSR and learn more about Sustainability at Koppers. Based on three primary dimensions: • Employee Satisfaction Scan the QR code to read the article. • Revenue Growth • Sustainability Transparency (ESG) 9
Slide 10: Sale of Koppers Rail Structures
Sale of Koppers Rail Structures Railroad services business that conducts engineering, design, repair and inspection services for railroad bridges. Headquartered in Madison, Wisconsin | Acquired in August 2014 Expected Closing: 5-Year Sales Average: 5-Year EBITDA Average: Employee Count: Q3 2025 $36
Slide 11: Strategic Transformation | Catalyst
Strategic Transformation | Catalyst Overview Koppers has initiated a strategic transformation—Catalyst—to improve profitability and deliver long-term shareholder value by enhancing business processes, operational efficiency, and capital efficiency. The cost-efficiency actions and associated benefits
Slide 12: Postponed Investor Day
POSTPONED INVESTOR DAY 2026 Date TBD 12
Slide 13: Q2 2025 Financials
KOPPERS = Q2 2025 Financials Ss
Slide 14: Q2 2025: Sales by Segment
Q2 2025: Sales by Segment (Unaudited) Sales vs. Prior Year $ in Millions $600 -10.4% $500 $563 $505 $400 $300 -1.4% $200 $250 $254 -14.8% $177 -21.8% $100 $151 $132 $104 $0 Q2 2025 Q2 2024 Q2 2025 Q2 2024 Q2 2025 Q2 2024 Q2 2025 Q2 2024 RUPS PC CMC TOTAL Note: Segment amounts may not agree with cons
Slide 15: Q2 2025: Adjusted EBITDA by Segment
Q2 2025: Adjusted EBITDA by Segment (Unaudited) Adjusted EBITDA $ and % vs. Prior Year $ in Millions $80 15.3% 13.8% $77 $78 $60 25.0% $40 $44 12.6% 19.0% $32 8.8% $29 $20 16.2% $22 $17 8.2% $11 $0 Q2 2025 Q2 2024 Q2 2025 Q2 2024 Q2 2025 Q2 2024 Q2 2025 Q2 2024 RUPS PC CMC TOTAL Note: Segment amount
Slide 16: Q2 2025 RUPS Segment
Q2 2025 RUPS Segment RAILROAD AND UTILITY PRODUCTS AND SERVICES Sales (Unaudited) Adjusted EBITDA (Unaudited) $ in Millions $ in Millions Highlights Highlights $250 $250 $254 • Decrease in sales primarily $30 $32 • Profitability was higher due to: driven by: $200 ✓ Lower volumes in Class I ✓ $7.7M o
Slide 17: Q2 2025 PC Segment
Q2 2025 PC Segment PERFORMANCE CHEMICALS Sales (Unaudited) Adjusted EBITDA (Unaudited) $ in Millions $ in Millions $200 $50 Highlights Highlights $177 • Decline in sales was primarily $44 • Profitability was lower due to: $40 $150 due to: $151 ✓ Higher raw material costs ✓ 15% lower volumes, mostly
Slide 18: Q2 2025 CMC Segment
Q2 2025 CMC Segment CARBON MATERIALS AND CHEMICALS Sales (Unaudited) Adjusted EBITDA (Unaudited) $ in Millions $ in Millions $140 $20 Highlights Highlights $132 $120 • Lower sales were primarily • Profitability increased due to: driven by: $17 ✓ $11.5M of lower raw material, $100 ✓ $20.4M of volume
Slide 19: Capital Allocation
Capital Allocation
Slide 20: Uses of Cash: Balanced Approach
Uses of Cash: Balanced Approach Investing in Our Business Quarterly Dividend • $21.7M capital expenditures YTD • On August 7, Board of Directors 6/30/25, net of insurance proceeds declared quarterly dividend of $0.08 and sale of assets per share • $52M-$58M total capital expenditures (gross) expecte
Slide 21: Extended Revolving Credit Facility to 2030
Extended Revolving Credit Facility to 2030 • Extends maturity date of Koppers $800M Revolving Credit Facility to January 9, 2030, at the earliest. 21
Slide 22: Q2 2025 Capital Expenditures
Q2 2025 Capital Expenditures ($ in Millions) Growth & Year-to-Date CapEx by Business Unit Maintenance Zero Harm Productivity Total RUPS $7.6 $0.3 $1.4 $9.3 PC 5.1 0.8 --- 5.9 CMC 9.2 0.7 0.3 10.2 Corporate 0.6 --- 0.4 1.0 Total $22.5 $1.8 $2.1 $26.4 Less: Cash Proceeds 4.7 Capital Expenditures, Net
Slide 23: Dividend Declaration
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Slide 24: Declaring Quarterly Cash Dividend
Declaring Quarterly Cash Dividend August August September 8.7.25 8.29.25 9.15.25 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 planned quarterly dividend rate, which is subject to review, the ann
Slide 25: Business Sentiment
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Slide 26: State of the Business: PC
State of the Business PC: PERFORMANCE CHEMICALS Prior Market Outlook (May 2025): Current Market Outlook: • Demand started the year solid but lost steam • Overall drab market; Q2 demand similar to as quarter progressed Q1; 2H not expected to be any different • Worried that economic uncertainty could
Slide 27: State of the Business: RUPS Utility and Industrial
State of the Business RUPS: UTILITY AND INDUSTRIAL PRODUCTS Prior Market Outlook (May 2025): Current Market Outlook: • Demand in early part of 2025 has been similar • Best quarterly comparative volume growth to 2024 levels, which were down compared to since Q3 2023 which provides confidence strong 2
Slide 28: State of the Business: RUPS Railroad
State of the Business RUPS: RAILROAD PRODUCTS AND SERVICES Prior Market Outlook (May 2025): Current Market Outlook: • Despite demand being lower than forecast in • Net sales volume and price increases as well Q1, slightly higher pricing and lower operating as lower operating costs resulted in strong
Slide 29: State of the Business: CMC
State of the Business CMC: CARBON MATERIALS AND CHEMICALS Prior Market Outlook (May 2025): Current Market Outlook: • Most end markets remain in a tough spot and • Most end markets remain in a tough spot and expected to remain that way throughout 2025 are still expected to remain that way throughout
Slide 30: 2025 Guidance
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Slide 31: 2025 Sales Forecast: ~$1.9B - $2.0B
2025 Sales Forecast: ~$1.9B - $2.0B Sales ($ in Millions) $2,200 $0M – $20M $2.09B $2,100 $1.9B - $2.0B $2,000 ($100M) - ($80M) ($80M) – ($40M) $1,900 $1,800 $1,700 2024 RUPS PC CMC 2025 31
Slide 32: 2025 Adjusted EBITDA Forecast: $250M - $270M
2025 Adjusted EBITDA Forecast: $250M - $270M Adjusted EBITDA* ($ in Millions) $310 $30M-$36M $300 $290 $280 $7M-$11M $250M-$270M $270 $262M $260 $250 ($49M) - ($39M) $240 $230 2024 RUPS PC CMC 2025 * Excluding special charges 32
Slide 33: 2025 Adjusted EPS Forecast: $4.00 - $4.60
2025 Adjusted EPS Forecast: $4.00 - $4.60 Adjusted EPS* $5.50 $0.51 $5.00 $0.19 $4.00-$4.60 ($0.54) - $0.41 $4.50 ($0.06) - ($0.41) $4.11 ($0.21) $4.00 $3.50 $3.00 $2.50 $2.00 2024 Operations Interest Taxes D&A Other 2025 * Excluding special charges 33
Slide 34: 2025 Capital Expenditures
2025 Capital Expenditures ($ in Millions) Growth & CapEx by Business Unit Maintenance Zero Harm Productivity 2025 Low High Low High RUPS $14.0 $16.0 $1.3 $1.4 $16.7 $18.7 PC 8.2 10.2 4.5 -- 12.7 14.7 CMC 15.4 17.4 1.7 0.3 17.4 19.4 Corporate 1.6 1.6 -- 3.6 5.2 5.2 Total Capital Expenditures $39.2 $4
Slide 35: Appendix
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Slide 36: 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 37: Unaudited Segment Information
Unaudited Segment Information Three Months Ended June 30, (Dollars in millions) 2025 2024 Net sales: Railroad and Utility Products and Services $ 250.4 $ 253.9 Performance Chemicals 150.8 176.9 Carbon Materials and Chemicals 103.6 132.4 Total $ 504.8 $ 563.2 Adjusted EBITDA: Railroad and Utility Pro
Slide 38: Reconciliation of Net Income to Adjusted EBITDA and Margin
Unaudited Reconciliation of Net Income to Adjusted EBITDA and Adjusted EBITDA Margin Three Months Ended June 30, Year Ended December 31, (Dollars in millions) 2025 2024 2024 Net income $ 16.4 $ 26.8 $ 48.6 Interest expense 17.3 20.6 76.2 Depreciation and amortization 18.0 18.2 67.5 Income tax provis
Slide 39: 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 June 30, Year Ended December 31, (Dollars in millions, except share and per share amounts) 2025 2024 2024 Net income attributable to Kopp
Slide 40: 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 June 30, (Dollars in millions) 2025 Total Debt $ 967.8 Less: Cash 38.4 Net Debt $ 929.4 Adjusted EBITDA $ 265.2 Net Leverage Ratio 3.5 40
Slide 41: Reconciliation of Net Income to Adjusted EBITDA (LTM)
Unaudited Reconciliation of Net Income to Adjusted EBITDA (LTM) Twelve Months Ended June 30, (Dollars in millions) 2025 Net income $ 11.3 Interest expense 72.4 Depreciation and amortization 69.2 Income tax provision 10.3 Sub-total 163.2 Adjustments to arrive at adjusted EBITDA: LIFO (benefit)(1) (0.
Slide 42: Koppers Holdings Inc.
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 2,000 employees create, protect an
Slide 43: koppers.com
— KOPPER —— koppers.com Mugu! \