Koppers Holdings Inc. reported its Q1 2025 results.Consolidated sales of $456.5 million decreased by $41.1 million, compared with $497.6 million in the prior year quarter.
Operating cash flow for the Q1 2025 was $22.7 million, compared with $12.3 million in the prior year quarter. In the Q1 2025, the company paid $13.9 million related to the termination of its largest U.S. qualified pension plan.
Chief Executive Officer Leroy Ball said, "While volumes got off to a soft start to begin the year, the early returns from our cost reduction measures more than offset the impact from lower sales. Better pricing and lower costs in our Railroad and Utility Products and Services (RUPS) segment and better overall operating performance and lower costs in our Carbon Materials and Chemicals (CMC) business more than offset the negative impact from lower sales volumes in Performance Chemicals (PC). The result was one of our stronger first quarters from a profitability perspective, specifically RUPS and CMC, which is a positive sign of the potential for even greater improvement when demand improves from the current lower run rate."
2025 Outlook
After considering the current competitive environment, global economic conditions, as well as the ongoing uncertainty associated with geopolitical and supply chain challenges, Koppers is updating its sales forecast to be approximately $2.0 billion to $2.2 billion, compared with $2.17 billion previously. The company expects to benefit from continued savings from its cost reduction initiatives and assuming no significant pull-back in demand and that the impact of tariffs can be mitigated as expected, including any impact on the efficiency of copper hedges, Koppers is maintaining its 2025 financial goals for adjusted EBITDA of approximately $280 million, adjusted EPS of $4.75 per share and operating cash flow of $150 million.
Koppers is an integrated global provider of essential treated wood products, wood preservation technologies and carbon compounds.
