Koppers Holdings Inc. reported a decline in net income for the third quarter and the first nine months of 2024 compared to the same periods in 2023. For the three months ended September 30, 2024, net income attributable to Koppers was $22.8 million, down from $26.3 million in 2023. For the nine months, net income decreased to $62.6 million from $76.3 million. Basic earnings per share also fell, with $1.12 for Q3 2024 compared to $1.27 in Q3 2023, and $3.01 for the nine months ended September 30, 2024, down from $3.66 in the prior year.

Total net sales for Q3 2024 were $554.3 million, a slight increase from $550.4 million in Q3 2023. The Railroad and Utility Products and Services (RUPS) segment saw a revenue increase to $248.1 million, up 6.0% from $234.0 million, driven by price increases and higher domestic utility pole sales. However, the Performance Chemicals (PC) segment experienced a decline in sales due to the exclusion of revenue from the recently acquired Brown Wood Preserving Company, which Koppers acquired for approximately $100 million in cash on April 1, 2024. The Carbon Materials and Chemicals (CMC) segment reported a decrease in sales primarily due to lower prices for carbon pitch.

Adjusted EBITDA for the third quarter increased to $77.4 million, up from $70.7 million in the prior year, with notable improvements in the Performance Chemicals and CMC segments. The RUPS segment's adjusted EBITDA remained flat despite increased sales, as higher raw material and operating costs offset gains.

Koppers' total equity rose to $532.6 million as of September 30, 2024, compared to $476.0 million a year earlier. Retained earnings also increased to $502.0 million from $432.4 million. The company’s total debt increased to $989.4 million from $849.4 million at the end of 2023, reflecting higher borrowings to finance the acquisition.

In addition to financial performance, Koppers announced a workforce reduction program on November 8, 2024, aimed at streamlining operations, which will involve a voluntary exit program for approximately 90 employees in the U.S. The company anticipates incurring significant pre-tax restructuring charges related to this initiative.

Koppers continues to navigate challenges in its CMC segment due to a slowdown in manufacturing and declining coal tar supply, while also focusing on integrating the Brown Wood acquisition to enhance its market presence.