Koppers Holdings Reports Significant Decline in Net Income and Revenue for Six Months Ended June 30, 2025

Koppers Holdings Inc. reported a significant decline in financial performance for the six months ended June 30, 2025, with net income dropping to $2.5 million from $39.8 million in the same period of the previous year. Revenue also fell by 9.4%, totaling $961.3 million compared to $1,060.8 million in 2024. The decrease in revenue was attributed to lower sales across all segments, particularly in Performance Chemicals and Carbon Materials and Chemicals, which saw declines of 16.9% and 19.9%, respectively. The Railroad and Utility Products and Services segment, however, experienced a slight increase in revenue, rising by 1.3% due to pricing increases and higher activity in railroad bridge services.

The company undertook several strategic developments during the reporting period, including the acquisition of Brown Wood Preserving Company, which was completed in April 2024 for approximately $100 million. This acquisition is expected to enhance Koppers' presence in existing markets and facilitate entry into new geographic areas. Additionally, Koppers announced the discontinuation of phthalic anhydride production at its Stickney, Illinois facility, which is part of a broader restructuring initiative aimed at streamlining operations and reducing costs. The restructuring efforts have incurred pre-tax charges estimated between $51 million and $55 million through the end of 2026.

Operationally, Koppers reported a net cash provided by operating activities of $27.8 million, an increase from $14.9 million in the prior year. The company also reduced its capital expenditures to $26.4 million from $43.4 million, reflecting a strategic shift towards managing cash flow more conservatively. The total employee headcount remained stable, with no significant changes reported. The company’s liquidity position was bolstered by approximately $336 million available from its credit facility and cash on hand as of June 30, 2025.

Looking ahead, Koppers anticipates a challenging environment due to ongoing geopolitical uncertainties and competitive pressures. The company plans to implement measures to streamline operations and enhance profitability, focusing on cost management and market expansion. The outlook for the Railroad and Utility Products and Services segment remains cautiously optimistic, with expectations for growth driven by aging infrastructure and increased demand for utility poles. However, the Performance Chemicals segment is expected to face headwinds from market share shifts and reduced volumes, while the Carbon Materials and Chemicals segment will continue to navigate the impacts of declining coal tar supply and pricing pressures.