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Koppers Holdings Inc. Initiates $100 Million Share Repurchase Program

Koppers Holdings Inc. (NYSE: KOP), a global provider specializing in treated wood products, wood treatment chemicals, and carbon compounds, has made headlines with the announcement of a new share repurchase program valued at $100 million. The decision, ratified by the Board of Directors, marks a pivotal move to enhance shareholder returns and reflects Koppers' reaffirmed confidence in its financial health and prospects. This initiative replaces the previous $100 million share repurchase program that was approved back in August 2021, which still had around $11 million remaining.

The Board and management's confidence stems from Koppers' improved free cash flow profile, which positions the company well for returning significant capital to its shareholders. CFO Jimmi Sue Smith expressed optimism regarding the new authorization, highlighting it as a testament to Koppers' commitment to a judicious capital allocation strategy. The firm aims to pivot capital deployment based on strategic priorities while also aiming to reduce debt levels, thereby fostering a robust balance sheet moving forward.

In Smith’s own words, “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.” This indication of streamlined capital expenditure showcases Koppers' forward-thinking approach towards sustaining operational efficiency while focusing on shareholder value.

The repurchase program doesn't have a set expiration date, providing Koppers the flexibility to execute buybacks based on various influences, including market conditions and legal considerations. This strategic move underscores Koppers' plan to manage their equity effectively, indicating readiness for a proactive approach toward share repurchases, provided it aligns with the company's credit agreement and overarching financial goals.

Moreover, Koppers' leadership anticipates benefiting from a lagging enterprise value multiple compared to its historical averages. As such, if the company meets its performance benchmarks, aggressive repurchases could unfold within the limitations imposed by the existing credit structure while simultaneously managing leverage targets. Koppers is aiming for a net debt to adjusted EBITDA ratio of 2 to 3 times by the end of 2025—a goal aligned with their long-term financial strategy.

The company has a strong foundation built on its innovative practices and deep industry expertise, involving over 2,100 employees dedicated to producing vital infrastructure elements. These include railroad crossties, utility poles, and various materials essential to industries like construction and steel production. Koppers has continually stressed the importance of providing safe and sustainable solutions, integrating their advancements with environmental considerations to foster long-term customer relationships and brand loyalty.

About Koppers Holdings Inc.
Koppers Holdings is renowned for being an integrated global supplier of essential treated wood products, as well as cutting-edge wood preservation technologies and carbon compounds. Through innovation and a focus on sustainable practices, they remain at the forefront of their industry, ensuring a lasting impact on infrastructure worldwide. Interested parties can explore further at Koppers.com.

For media inquiries, Ms. Jessica Franklin Black can be reached at [email protected] or at 412-227-2025. Investors are directed to Ms. Quynh McGuire via [email protected] or at 412-227-2049.

Safe Harbor Statement

Several forward-looking statements are articulated herein, intending to convey expectations regarding sales and operational aspects, subject to numerous risks and uncertainties inherent to the market. Factors such as commodity price fluctuations, economic conditions, and competitive landscapes may influence actual performance outcomes, which all stakeholders should monitor closely.

Conclusion
The new share repurchase program by Koppers Holdings Inc. signifies a progressive stride towards optimized capital management aimed directly at enhancing shareholder value while maintaining flexibility within a robust operational strategy. As the firm continues to evolve financially and strategically, this initiative reflects a promising horizon for current and prospective investors alike.