Koppers Holdings sees FY24 adjusted EPS $4.60-$4.80, consensus $4.71

Sees FY24 revenue $2.25B, consensus $2.19B. Koppers continues to expand and optimize its business and make further 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 expects 2024 sales of approximately $2.25B, compared with $2.15B in 2023. Sees FY24 adjusted EBITDA $275M, compared with $256.4M in 2023. Sees FY24 effective tax rate for adjusted net income attributable to Koppers 28%, slightly above the adjusted tax rate in 2023. Koppers expects operating cash flows of approximately $150M in 2024, excluding any impact from pension termination. The company is pursuing a termination of its U.S. qualified pension plan and is targeting this effort for completion in the Q4. An estimated $25M of funding will be required when this is completed, which will impact operating cash flow. Koppers anticipates capital expenditures of approximately $100M in 2024, including capitalized interest, with approximately $29M allocated to discretionary projects. Commenting on the forecast, CEO Leroy Ball said, “I feel good about meeting our 2024 targets, as long as demand in our segments meets our projections of flat to slightly up from 2023 in existing markets. Factors driving the 7% increase in adjusted EBITDA include some carry-over pricing benefits from prior year; contributions from our Leesville, Louisiana, facility coming online to feed the Texas pole market; and the benefits of a full year of cost efficiencies from our North Little Rock, Arkansas, treating facility. We anticipate softer results in early 2024 versus strong comps from the first quarter of 2023 as we emerge from the bottom of the carbon markets cycle and recover from the intense winter storm activity in the U.S. which affected much of Koppers and our customers’ operating network. I expect that as the year progresses, we will make up any ground lost in the first quarter and deliver another year of record performance.”