Koppers Announces $100 Million Share Repurchase Program
Koppers Holdings (NYSE: KOP) has announced a new $100 million share repurchase program, replacing its previous August 2021 program which had $11 million remaining. The decision stems from the company's improved free cash flow profile and completed 2025 strategic plan investments.
CFO Jimmi Sue Smith highlighted that with lower anticipated capital expenditures and higher free cash flow expected in 2025 and beyond, Koppers plans to focus on debt reduction and share repurchases. The company aims to maintain its leverage within a targeted range of 2-3 times net debt to adjusted EBITDA by end-2025.
The repurchase program has no termination date and can be suspended anytime, with implementation decisions based on market conditions, legal requirements, and business considerations.
Koppers Holdings (NYSE: KOP) ha annunciato un nuovo programma di riacquisto di azioni da 100 milioni di dollari, che sostituisce il precedente programma di agosto 2021, che aveva 11 milioni di dollari rimanenti. La decisione deriva dal miglioramento del profilo di flusso di cassa libero dell'azienda e dagli investimenti completati nel piano strategico 2025.
Il CFO Jimmi Sue Smith ha sottolineato che, con minori spese in conto capitale previste e un flusso di cassa libero più elevato atteso nel 2025 e oltre, Koppers intende concentrarsi su riduzione del debito e riacquisti di azioni. L'azienda mira a mantenere il proprio rapporto di indebitamento all'interno di un intervallo mirato di 2-3 volte il debito netto rispetto all'EBITDA rettificato entro la fine del 2025.
Il programma di riacquisto non ha una data di scadenza e può essere sospeso in qualsiasi momento, con decisioni di attuazione basate sulle condizioni di mercato, requisiti legali e considerazioni aziendali.
Koppers Holdings (NYSE: KOP) ha anunciado un nuevo programa de recompra de acciones de 100 millones de dólares, que reemplaza su programa anterior de agosto de 2021, que tenía 11 millones de dólares restantes. La decisión proviene de la mejora en el perfil de flujo de caja libre de la empresa y de las inversiones completadas en el plan estratégico 2025.
El CFO Jimmi Sue Smith destacó que, con menores gastos de capital anticipados y un mayor flujo de caja libre esperado en 2025 y más allá, Koppers planea centrarse en la reducción de deuda y las recompras de acciones. La empresa tiene como objetivo mantener su apalancamiento dentro de un rango objetivo de 2-3 veces la deuda neta sobre el EBITDA ajustado para finales de 2025.
El programa de recompra no tiene fecha de finalización y puede ser suspendido en cualquier momento, con decisiones de implementación basadas en condiciones de mercado, requisitos legales y consideraciones comerciales.
Koppers Holdings (NYSE: KOP)는 이전 2021년 8월 프로그램을 대체하는 1억 달러 규모의 자사주 매입 프로그램을 발표했습니다. 이전 프로그램에는 1100만 달러가 남아 있었습니다. 이 결정은 회사의 자유 현금 흐름 프로필 개선과 2025년 전략 계획 투자 완료에서 비롯되었습니다.
CFO 짐미 수 스미스는 2025년 이후 예상되는 낮은 자본 지출과 높은 자유 현금 흐름을 바탕으로 Koppers가 부채 감소 및 자사주 매입에 집중할 계획이라고 강조했습니다. 회사는 2025년 말까지 조정된 EBITDA 대비 순부채 비율을 2-3배로 유지하는 것을 목표로 하고 있습니다.
자사주 매입 프로그램은 종료 날짜가 없으며 언제든지 중단될 수 있으며, 시행 결정은 시장 상황, 법적 요구 사항 및 비즈니스 고려 사항에 따라 달라집니다.
Koppers Holdings (NYSE: KOP) a annoncé un nouveau programme de rachat d'actions de 100 millions de dollars, remplaçant son précédent programme d'août 2021, qui avait 11 millions de dollars restants. Cette décision découle de l'amélioration du profil de flux de trésorerie disponible de l'entreprise et des investissements réalisés dans le plan stratégique 2025.
Le directeur financier Jimmi Sue Smith a souligné qu'avec des dépenses en capital anticipées plus faibles et un flux de trésorerie disponible plus élevé prévu en 2025 et au-delà, Koppers prévoit de se concentrer sur la réduction de la dette et les rachats d'actions. L'entreprise vise à maintenir son ratio d'endettement dans une fourchette cible de 2 à 3 fois la dette nette par rapport à l'EBITDA ajusté d'ici fin 2025.
Le programme de rachat n'a pas de date d'expiration et peut être suspendu à tout moment, les décisions de mise en œuvre étant basées sur les conditions du marché, les exigences légales et les considérations commerciales.
Koppers Holdings (NYSE: KOP) hat ein neues Aktienrückkaufprogramm über 100 Millionen US-Dollar angekündigt, das das vorherige Programm aus August 2021 ersetzt, bei dem noch 11 Millionen US-Dollar verblieben. Diese Entscheidung resultiert aus dem verbesserten freien Cashflow-Profil des Unternehmens und den abgeschlossenen Investitionen im strategischen Plan 2025.
CFO Jimmi Sue Smith betonte, dass Koppers aufgrund der niedrigeren erwarteten Investitionsausgaben und des höheren freien Cashflows, der für 2025 und darüber hinaus erwartet wird, plant, sich auf Schuldenabbau und Aktienrückkäufe zu konzentrieren. Das Unternehmen strebt an, sein Verschuldungsverhältnis bis Ende 2025 innerhalb eines Zielbereichs von 2-3 mal Netto-Schulden zu bereinigtem EBITDA zu halten.
Das Rückkaufprogramm hat kein Ablaufdatum und kann jederzeit ausgesetzt werden, wobei die Umsetzungsentscheidungen auf Marktbedingungen, gesetzlichen Anforderungen und geschäftlichen Überlegungen basieren.
- New $100M share repurchase program authorized
- Improved free cash flow profile
- Lower capital expenditures expected for 2025+
- Strategic growth investments substantially completed
- Enterprise value multiple currently lags long-term average
- Repurchase execution subject to credit agreement constraints
Insights
Koppers' new
This announcement signals three important developments:
- Transition from growth to harvest phase - With strategic growth projects now "substantially completed," Koppers is pivoting from capital expenditure to shareholder returns, suggesting the company has entered a more mature business stage.
- Improved cash generation capability - Management's willingness to commit
$100 million to buybacks while simultaneously reducing debt indicates confidence in sustainable free cash flow generation. - Management's belief in undervaluation - The stated intention to "aggressively repurchase shares" while the enterprise value multiple remains below long-term averages indicates management views current share prices as attractive.
The dual focus on debt reduction and share repurchases suggests a balanced approach. By targeting a 2-3x net debt to EBITDA ratio by year-end 2025, Koppers aims to maintain financial flexibility while returning capital. The open-ended timeline provides management significant discretion on execution timing, allowing them to be opportunistic during market volatility.
For investors, this program represents a meaningful catalyst that could support share prices through increased demand while simultaneously improving per-share metrics through reduced share count - a particularly impactful combination for a small-cap company with relatively trading liquidity.
Supported by Strong Cash Flow Generation
Enhances Shareholder Value through Disciplined Capital Allocation
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.
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