Koppers Holdings Inc. reported second-quarter 2025 net sales of $504.8 million, a 10.4 percent decrease from $563.2 million in Q2 2024. The company's net income attributable to Koppers was $16.4 million, or $0.81 diluted EPS, down from $26.8 million, or $1.25 diluted EPS, in the prior year quarter. Adjusted net income increased to $29.9 million, or $1.48 adjusted EPS, from $29.2 million, or $1.36 adjusted EPS, in Q2 2024.
Adjusted EBITDA for Q2 2025 was $77.1 million, a slight decrease of 0.5 percent from $77.5 million in Q2 2024. The Railroad and Utility Products and Services (RUPS) segment's adjusted EBITDA increased by 41.1 percent, while the Carbon Materials and Chemicals (CMC) segment's adjusted EBITDA rose by 55.6 percent. However, the Performance Chemicals (PC) segment experienced a 35.2 percent decrease in adjusted EBITDA.
Koppers revised its full-year 2025 sales forecast to approximately $1.9 billion to $2.0 billion, down from the previous range of $2.0 billion to $2.2 billion. The adjusted EBITDA forecast was reduced to $250 million to $270 million, from $280 million, and adjusted EPS was revised to $4.00 to $4.60 per share, down from $4.75. The company maintained its operating cash flow projection of $150 million and further lowered capital expenditures to $52 million to $58 million.
Chief Executive Officer Leroy Ball attributed the revisions to sluggish demand across all business segments and no expectation of demand improvement in most end markets for the second half of the year. Despite the downward revision, the company highlighted that achieving the revised guidance would still represent an approximate 5 percent increase in adjusted EPS at the midpoint over 2024. The Catalyst transformation process has uncovered significant opportunities for a sustainable mid to high teens adjusted EBITDA margin in the next two to three years.
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