Koppers Holdings Inc. reported net income for the Q2 2023 of $24.5 million, or $1.15 per diluted share, compared to $11.7 million, or $0.55 per diluted share, in the prior year quarter.
Adjusted net income and adjusted earnings per share (EPS) were $26.9 million and $1.26 per share for the Q2 2023, compared to $20.5 million and $0.97 per share in the prior year quarter.
Consolidated sales of $577.2 million, which was a record quarter, increased by $74.7 million, or 14.9%, compared with $502.5 million in the prior year quarter. Excluding a $4.3 million unfavorable impact from foreign currency changes, sales increased by $79.0 million, or 15.7%.
2023 Outlook
Koppers remains committed to expanding and optimizing its business and making continued 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 continues to expect 2023 sales of approximately $2.1 billion, compared with $1.98 billion in the prior year, and 2023 adjusted EBITDA of approximately $250 million, compared with $228.1 million in the prior year.
Commenting on the forecast, President and CEO Leroy Ball said, "As we close the first half of 2023, I remain confident in our ability to meet and possibly exceed our $250 million adjusted EBITDA forecast for the year. I also believe that we remain on track to reach our $300 million adjusted EBITDA target in 2025, with several attractive opportunities that can take Koppers even further. In the near term, we expect residential treated wood volumes to remain resilient and buck the softening trends seen in most other building products categories. The utility pole market remains as strong as ever, and our customer base is anticipating that the demand strength will continue for the next few years, at minimum. The railroad industry must maintain its infrastructure for safety and reliability; therefore, we are building our inventories and expect to benefit from operational efficiencies associated with higher crosstie treatment volumes. As expected, our current challenge is balancing the volatility in CMC for coal tar and end market demand; however, we are well positioned to manage through it. Serving a diversified mix of infrastructure-related markets through our unique, vertically integrated business model continues to serve us well and remains the biggest driver to our ongoing success."
Koppers, with corporate headquarters in Pittsburgh, Pennsylvania, is an integrated global provider of treated wood products, wood treatment chemicals, and carbon compounds.
