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Koppers Holdings Inc. KOP logged profits (attributable to the company) of $22.8 million or $1.09 per share for the third quarter of 2024, down from a profit of $26.3 million or $1.22 per share a year ago. Barring one-time items, adjusted earnings were $1.37 per share for the quarter, up from $1.32 per share a year ago. It topped the Zacks Consensus Estimate of $1.25.

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Koppers recorded revenues of $554.3 million for the quarter, up around 1% year over year. The top line missed the Zacks Consensus Estimate of $571.8 million. The Railroad and Utility Products and Services (“RUPS”) segment delivered record sales on higher pricing. KOP saw lower sales across Performance Chemicals (PC) and Carbon Materials and Chemicals (“CMC”) segments in the reported quarter.

Koppers Holdings Inc. Price, Consensus and EPS Surprise

Koppers Holdings Inc. price-consensus-eps-surprise-chart | Koppers Holdings Inc. Quote

KOP's Segment Highlights

Sales from the RUPS segment rose around 6% year over year to $248.1 million in the reported quarter. It was below the consensus estimate of $258.9 million. Sales were driven by increased pricing across several markets and increased activity in the railroad bridge services business, partly masked by reduced activity in the crosstie recovery business.

The PC segment recorded sales of $176.7 million in the quarter, down around 1.5% year over year. It was below the consensus estimate of $183.1 million. Sales were impacted as sales to Brown Wood now being affiliated sales.

Sales from the CMC division fell 5.5% year over year to $129.5 million. It missed the consensus estimate of $132.2 million. The downside was due to reduced sales prices across most products and lower volumes of carbon black feedstock.

Koppers' Financials

Koppers ended the quarter with cash and cash equivalents of $44.5 million, down around 9% sequentially. Long-term debt was $975.9 million, down around 1% sequentially.

KOP's Outlook

Koppers anticipates sales for 2024 to be roughly $2.1 billion factoring in the current competitive landscape, global economic conditions and the prevailing uncertainty associated with geopolitical and supply chain challenges. It expects adjusted EBITDA to be in the band of $270-$275 million for the year, including the acquisition of Brown Wood, which was completed on April 1, 2024. Koppers sees adjusted earnings per share to be $4.25-$4.45 for 2024.

The company also expects capital expenditures of roughly $80 million for this year. It sees operating cash flows of around $100-$125 million in 2024, barring any impact from pension termination.

KOP Stock’s Price Performance

Koppers’ shares have lost 13.4% in the past year compared with the Zacks Chemicals Diversified industry’s 4.6% rise.

Ashland Inc. ASH recorded fourth-quarter fiscal 2024 (ended Sept. 30, 2024) adjusted earnings of $1.26 per share, up from 41 cents in the prior-year quarter. The bottom line lagged the Zacks Consensus Estimate of $1.33.

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Sales for the reported quarter were up around 1% year over year to $522 million. It beat the Zacks Consensus Estimate of $518.7 million. ASH saw higher sales volumes in Personal Care, Specialty Additives and Intermediates segments, partly masked by lower volumes in Life Sciences due to portfolio optimization initiatives. Pricing was weaker year over year in a modestly deflationary raw material environment.

Ashland Inc. Price, Consensus and EPS Surprise

Ashland Inc. price-consensus-eps-surprise-chart | Ashland Inc. Quote

ASH’s Segment Highlights

Life Sciences: Sales in the segment fell 5% from the prior-year quarter to $192 million in the reported quarter. The downside reflects the CMC and nutraceuticals portfolio optimization actions, partly offset by gains in pharma and crop-care sales. The figure was above the Zacks Consensus Estimate of $182.5 million.

Personal Care: Sales in the division were up 11% year over year to $162 million. The upside was driven by higher sales volume in skin care and hair care on an uptick in demand in most regions. The figure missed the Zacks Consensus Estimate of $173.7 million.

Specialty Additives: Sales in the segment were flat year over year at $144 million. Higher volumes in coatings and performance specialties were offset by MC and CMC portfolio optimization and reduced pricing. The figure beat the Zacks Consensus Estimate of $139.7 million.

Intermediates: Sales in the segment went down 3% year over year to $36 million. Merchant sales fell due to lower n-methyl-2-pyrrolidone pricing, partly offset by higher merchant butanediol volumes. The figure beat the Zacks Consensus Estimate of $34 million.

Ashland’s Financials

Operating activities generated $80 million in cash flows in the reported quarter compared with $130 million in the same period last year. Ongoing free cash flow was $88 million, down from $104 million.

ASH’s Outlook

For fiscal 2025, the company expects sales in the range of $1.90-$2.05 billion and adjusted EBITDA to be in the band of $430-$470 million. ASH expects to grow volumes in fiscal 2025 to offset increased pricing competition.

The company noted that it is initiating a restructuring plan to reduce its cost structure, boost manufacturing productivity and cut its product cost, especially in HEC and VP&D businesses.

ASH Stock’s Price Performance

Shares of Ashland have gained 7.7% in the past year compared with the Zacks Chemicals Specialty industry’s 2.8% decline.