Supported by Strong Cash Flow
Generation
Enhances Shareholder Value through
Disciplined Capital Allocation
PITTSBURGH, Feb. 27,
2025 /PRNewswire/ -- Koppers Holdings Inc. (NYSE:
KOP), an integrated global provider of treated wood products, wood
treatment chemicals and carbon compounds, today announced that its
Board of Directors approved a $100
million share repurchase program. The repurchase
program replaces the company's previous share repurchase program of
$100 million, which was approved in
August 2021 and had approximately
$11 million remaining.
This action reflects the continued confidence that Koppers Board
of Directors and management have in the company's improved free
cash flow profile, which provides the ability to return meaningful
capital to shareholders.
Chief Financial Officer Jimmi Sue
Smith said, "We are pleased with the share repurchase
authorization, which supports Koppers commitment to a flexible and
balanced capital allocation policy that pivots where capital is
deployed based upon strategic needs and expected returns.
With growth investment projects in our 2025 strategic plan
substantially completed, we anticipate lower capital expenditures
and higher free cash flow in 2025 and beyond, which we plan to
allocate to debt reduction and share repurchases. So long as
our trailing enterprise value multiple lags our long-term average
and we see improved future performance, we plan to aggressively
repurchase shares within the constraints of our credit agreement,
while also reducing debt and leverage, which we expect to be within
our long-term targeted range of 2 to 3 times net debt to adjusted
EBITDA by the end of 2025."
Koppers is authorized to repurchase shares and will consider
whether to do so from time to time, based on many factors,
including market and economic conditions, applicable legal
requirements, and other business considerations. The share
repurchase program has no termination date and may be suspended or
discontinued at any time.
About Koppers
Koppers (NYSE: KOP) is an integrated global provider of
essential treated wood products, wood preservation technologies and
carbon compounds. Our team of 2,100 employees create, protect and
preserve key elements of our global infrastructure – including
railroad crossties, utility poles, outdoor wooden structures, and
production feedstocks for steel, aluminum and construction
materials, among others – applying decades of industry-leading
expertise while constantly innovating to anticipate the needs of
tomorrow. Together we are providing safe and sustainable solutions
to enable rail transportation, keep power flowing, and create
spaces of enjoyment for people everywhere. Protecting What Matters,
Preserving The Future. Learn more at Koppers.com.
Inquiries from the media should be directed to Ms. Jessica Franklin Black at
BlackJF@koppers.com or 412-227-2025. Inquiries from the
investment community should be directed to Ms. Quynh McGuire at McGuireQT@koppers.com or
412-227-2049.
Safe Harbor Statement
Certain statements in this press release are "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995 and may include, but are not limited to,
statements about sales levels, acquisitions, restructuring,
declines in the value of Koppers assets and the effect of any
resulting impairment charges, profitability and anticipated
expenses and cash outflows. All forward-looking statements involve
risks and uncertainties.
All statements contained herein that are not clearly historical
in nature are forward-looking, and words such as "outlook,"
"guidance," "forecast," "believe," "anticipate," "expect,"
"estimate," "may," "will," "should," "continue," "plan,"
"potential," "intend," "likely," or other similar words or phrases
are generally intended to identify forward-looking statements. Any
forward-looking statement contained herein, in other press
releases, written statements or other documents filed with the
Securities and Exchange Commission, or in Koppers communications
and discussions with investors and analysts in the normal course of
business through meetings, phone calls and conference calls,
regarding future dividends, expectations with respect to sales,
earnings, cash flows, operating efficiencies, restructurings, cost
reduction efforts, the benefits of acquisitions, divestitures,
joint ventures or other matters as well as financings and debt
reduction, are subject to known and unknown risks, uncertainties
and contingencies.
Many of these risks, uncertainties and contingencies are beyond
our control, and may cause actual results, performance or
achievements to differ materially from anticipated results,
performance or achievements. Factors that might affect such
forward-looking statements include, among other things,
availability of and fluctuations in the prices of key raw
materials, including coal tar, lumber and scrap copper; the impact
of changes in commodity prices, such as oil, copper and
chemicals, on product margins; the extent of the dependence of
certain of our businesses on certain market sectors and customers;
economic, political and environmental conditions in international
markets, including governmental changes, tariffs, restrictions on
trade and restrictions on the ability to transfer capital across
countries; general economic and business conditions; potential
difficulties in protecting our intellectual property; the ratings
on our debt and our ability to repay or refinance our outstanding
indebtedness as it matures; our ability to operate within the
limitations of our debt covenants; unexpected business disruptions;
potential delays in timing or changes to expected benefits from
cost reduction efforts; potential impairment of our goodwill and/or
long-lived assets; demand for Koppers goods and services;
competitive conditions; capital market conditions, including
interest rates, borrowing costs and foreign currency rate
fluctuations; disruptions and inefficiencies in the supply chain;
changes in laws; the impact of environmental laws and regulations;
unfavorable resolution of claims against us, as well as those
discussed more fully elsewhere in this release and in documents
filed with the Securities and Exchange Commission by Koppers,
particularly our latest annual report on Form 10-K and any
subsequent filings by Koppers with the Securities and Exchange
Commission. Any forward-looking statements in this release speak
only as of the date of this release, and we undertake no obligation
to update any forward-looking statement to reflect events or
circumstances after that date or to reflect the occurrence of
unanticipated events.
For Information:
Quynh McGuire, Vice President,
Investor Relations
412 227 2049
McGuireQT@koppers.com
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SOURCE KOPPERS HOLDINGS INC.
