Koppers Holdings narrows FY25 adjusted EPS view to $4.00-$4.15 from $4.00-$4.60

Narrows FY25 revenue view to $1.9B from $1.9B-$2.0B. The company said, “After considering the expected shift in geography of earnings for 2025, which increased the company’s effective tax rate and had an unfavorable impact of 5c on adjusted EPS in the third quarter, as well as the current competitive environment, global economic conditions, and ongoing uncertainty associated with geopolitical and supply chain challenges, Koppers is revising its sales forecast”. And added, ” Accordingly, Koppers is tightening its 2025 financial forecast for adjusted EBITDA to be approximately $255M-$260M.” “The forecasted operating cash flow includes any impact from planned pension terminations and other special items. The company completed the termination of its largest U.S. qualified pension plan in February 2025, which required additional funding of $1.6M in 2024 and $13.9M in 2025.” Commenting on the revised forecast, CEO Leroy Ball said, “I expect that we will finish the year within the middle part of our previously communicated adjusted EBITDA range. Adjusted earnings per share will likely fall into the lower half of our previous range, primarily due to an unfavorable geographical mix of earnings, resulting in a higher-than-expected effective tax rate. On the plus side, free cash flow should be minimally impacted due to lower capital spending. While challenging end markets, other than the utility pole sector, are expected to continue in the near-term, lower interest expense, a lower share count, and a more favorable tax rate in 2026 have us poised for meaningful earnings improvement and free cash flow generation.”