Fri, May 9, 4:23 PM (10 days ago)
**Koppers Holdings Inc. (KOP) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $456.5 million, down 8.3% YoY due to lower sales in Performance Chemicals (PC) and Carbon Materials and Chemicals (CMC) segments. - **Profit Margins:** Operating profit margin was 5.9%, down from 7.0% in Q1 2024. Net margin was -3.0%, compared to 2.6% in Q1 2024. - **Cash Flow:** Net cash used in operating activities was $22.7 million, higher than $12.3 million in Q1 2024 due to working capital usage and pension funding. - **Earnings:** Net loss of $13.9 million, compared to a net income of $13.0 million in Q1 2024, primarily due to impairment and restructuring charges, and a loss on pension settlement. **Segment Performance:** - **Railroad and Utility Products and Services (RUPS):** Revenue up 4.4% YoY, driven by higher volumes and prices. Adjusted EBITDA increased by 44.1% YoY. - **Performance Chemicals (PC):** Revenue down 19.5% YoY due to lower volumes and foreign currency impacts. Adjusted EBITDA decreased by 32.6% YoY. - **Carbon Materials and Chemicals (CMC):** Revenue down 17.8% YoY due to lower volumes and prices. Adjusted EBITDA increased by 147.5% YoY due to lower raw material costs and improved plant performance. **Trends and Uncertainties:** - **Restructuring:** Koppers is undergoing significant restructuring, including the shutdown of phthalic anhydride production and a workforce reduction program. - **Acquisitions:** The acquisition of Brown Wood Preserving Company is expected to increase market presence and offer entry into new geographic markets. - **Environmental and Legal Matters:** Koppers faces ongoing environmental remediation liabilities and legal proceedings, which could impact future financial performance. - **Economic and Market Conditions:** Global economic conditions, trade policies, and commodity price fluctuations pose risks to future operations. **Future Operations Impact:** - **Cost Reduction:** Koppers is focusing on streamlining operations and reducing costs to support profitability and a higher margin profile. - **Market Expansion:** The company aims to expand its presence in key markets and capture new customers to increase market share. - **Strategic Initiatives:** Koppers is investing in projects to increase distillation yields and balance raw material supply with customer demand and pricing. **Ticker:** KOP **Full Name:** Koppers Holdings Inc.