Koppers Holdings Inc. reported net income for the Q3 2023 of $26.3 million, or $1.22 per diluted share, compared to $19.1 million, or $0.91 per diluted share, in the prior year quarter.
Adjusted net income and adjusted earnings per share (EPS) were $28.6 million and $1.32 per share for the Q3 2023, compared to $25.1 million and $1.19 per share in the prior year quarter.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the Q3 2023 was $70.7 million, compared with $68.8 million in the prior year quarter.
Consolidated sales of $550.4 million, a Q3 record, increased by $14.3 million, or 2.7%, compared with $536.1 million in the prior year quarter.
2023 Outlook
Koppers remains committed to expanding and optimizing its business and making continued progress on the company's strategic pillars toward its long-term financial goals. After considering global economic conditions, as well as the ongoing uncertainty associated with geopolitical and supply chain challenges, Koppers continues to expect 2023 sales of approximately $2.1 billion, compared with $1.98 billion in the prior year. Adjusted EBITDA is anticipated to be in the range of $253 million to $257 million in 2023, compared with $228.1 million in the prior year.
The effective tax rate for adjusted net income in 2023 is projected to be approximately 28 percent, which is slightly below the adjusted tax rate in 2022. Accordingly, 2023 adjusted EPS is forecasted to be in the range of $4.35 to $4.55 per share, compared with $4.14 per share in the prior year.
Koppers anticipates capital expenditures of approximately $110 million to $120 million in 2023, including capitalized interest, with $40 million to $50 million of the total allocated to discretionary projects that are expected to generate returns on investment of over 20 percent. Net of cash received from asset sales and property insurance recoveries, the net investment in capital expenditures is expected to be $105 million to $115 million.
Commenting on the forecast, President and CEO Leroy Ball said, "As we prepare to close out 2023, we remain confident in finishing the year with adjusted EBITDA and adjusted EPS in the range of our recently increased guidance. For the fourth quarter, we anticipate normal seasonality in demand in most markets, except perhaps CMC, where markets remain in short-term turmoil. I believe we will finish the year with some of our best annual results and in the strongest financial condition since 2017. Looking ahead, we expect to bring our larger capital projects fully online in order to deliver $275 million of adjusted EBITDA in 2024."
Koppers, with corporate headquarters in Pittsburgh, Pennsylvania, is an integrated global provider of treated wood products, wood treatment chemicals, and carbon compounds.
