[Management View]
Key metrics: Consolidated sales of $485 million, a 12% YoY decrease. Adjusted EBITDA of $70.9 million, down from $77.4 million. Adjusted EPS of $1.21, down from $1.37.
Strategic priorities: Portfolio simplification, cost control, and operational efficiency through the Catalyst initiative.

[Outlook]
Performance guidance: Full-year consolidated sales guidance revised to $1.9 billion. Adjusted EBITDA guidance revised to $255 million-$260 million.
Future plans: Focus on growing Performance Chemicals (PC) and Railroad and Utility Products and Services (RUPS) segments, reducing exposure to Carbon Materials and Chemicals (CMC).

[Financial Performance]
YoY trends: Sales down 12%, adjusted EBITDA down 8.4%, adjusted EPS down 11.7%.
Compared to expectations: Results largely within expectations despite market headwinds.

[Q&A Highlights]
Question 1: Gary Frank Prestopino asked about the lower expense capture in the PC segment and its impact on adjusted EBITDA margins.
Answer: Leroy M. Ball explained that costs have been taken out of PC, but the focus remains on maintaining the segment's growth potential. The opportunities in PC are more on the commercial side rather than cost reduction.

Question 2: Gary Frank Prestopino inquired about the potential further shrinking of the CMC segment.
Answer: Leroy M. Ball confirmed that the CMC segment is expected to continue shrinking, with a focus on growing UIP and PC segments.

Question 3: Liam Dalton Burke asked about the strategy for growing the utility pole business.
Answer: Leroy M. Ball detailed the market opportunities in underserved regions and the importance of expanding species beyond Southern Yellow Pine. The Brown acquisition has facilitated this expansion.

Question 4: Liam Dalton Burke inquired about the baseline revenue for PC and potential growth.
Answer: Leroy M. Ball indicated that the current setback is not seen as systemic, and the expectation is for regular growth in the 3%-4% range. However, customers are setting conservative expectations for 2026.

[Sentiment Analysis]
Tone of analysts: Cautious but optimistic, focusing on cost control and strategic growth.
Tone of management: Confident in the company's strategic direction and cost management, acknowledging market challenges.

[Quarterly Comparison]
| Metric | Q3 2025 | Q3 2024 |
|-----------------------|---------------|---------------|
| Consolidated Sales | $485 million | $554 million |
| Adjusted EBITDA | $70.9 million | $77.4 million |
| Adjusted EPS | $1.21 | $1.37 |
| RUPS Sales | $233 million | $248 million |
| PC Sales | $144 million | $177 million |
| CMC Sales | $108 million | $130 million |

[Risks and Concerns]
- Persistent demand weakness in key segments.
- Market share loss and tariff impacts in the PC segment.
- Potential further reduction in CMC segment exposure.
- Uncertainty in railroad tie demand and customer forecasts.

[Final Takeaway]
Koppers Holdings Inc. navigated a challenging Q3 2025 with a strategic focus on cost control and portfolio simplification. Despite a 12% decline in sales, the company maintained solid EBITDA margins and continued to generate free cash flow for debt reduction and shareholder returns. The Catalyst initiative is expected to drive long-term margin improvement and operational efficiency. While demand softness persists, particularly in the PC and CMC segments, the company is positioning itself for future growth in the RUPS and UIP segments. Management remains cautiously optimistic about 2026, focusing on resilience and strategic growth.