Net income (loss) attributable to Koppers of $29.7 million vs. $(10.2) million in Prior Year Quarter; Net income attributable to Koppers of $56.0 million vs. $52.4 million in Prior Year
Diluted EPS of $1.47 vs. $(0.50) in Prior Year Quarter; Diluted EPS of $2.74 vs. $2.46 in Prior Year
Adjusted EPS of $0.70 vs. $0.77 in Prior Year Quarter; Adjusted EPS of $4.07 vs $4.11 in Prior Year
Adjusted EBITDA of $53.2 million vs. $55.2 million in Prior Year Quarter; Adjusted EBITDA of $256.7 million vs. $261.6 million in Prior Year
Capital expenditures, net of insurance proceeds and sale of assets, of $47.6 million vs. $74.0 million in Prior Year
Operating cash flow for the year ended December 31, 2025 was $122.5 million, compared with $119.4 million in the Prior Year. During 2025, the company paid $12.0 million related to the termination of its largest U.S. qualified pension plan.
PITTSBURGH, Feb. 26, 2026 /PRNewswire/ -- Koppers Holdings Inc. (NYSE:KOP), an integrated global provider of treated wood products, wood treatment chemicals, and carbon compounds, today reported its fourth quarter and full-year 2025 results.
Three Months Ended December 31,
(Dollars in millions, except per share amounts)
2025
2024
Change
% Change
Net sales
$ 432.7
$ 477.0
$ (44.3)
(9.3) %
Net income (loss) attributable to Koppers
$ 29.7
$ (10.2)
$ 39.9
391.2 %
Adjusted net income attributable to Koppers(1)
$ 14.1
$ 16.0
$ (1.9)
(11.9) %
Diluted earnings per share (EPS)
$ 1.47
$ (0.50)
$ 1.97
394.0 %
Adjusted EPS(1)
$ 0.70
$ 0.77
$ (0.07)
(9.1) %
Adjusted EBITDA(1)
$ 53.2
$ 55.2
$ (2.0)
(3.6) %
(1)
Non-GAAP financial measure. See Non-GAAP Financial Measures for additional information and reconciliations to the most directly comparable financial measure determined and reported in accordance with U.S. GAAP.
Chief Executive Officer Leroy Ball said, "We maintained our focus on aligning our cost structure with our evolving portfolio and made further progress in the fourth quarter, with two of our segments expanding margins despite lower sales. Our financial results reflect disciplined execution and tangible progress simplifying our portfolio, including the completion of our railroad structures business sale, as part of Catalyst, our company-wide transformation process. For the full year, Catalyst generated approximately $46 million in benefits, largely offsetting lower profits driven by reduced market share and softer demand in some key business lines. I want to thank our global Koppers team for delivering solid financial performance despite a challenging market environment. I am particularly proud that the Koppers team achieved our best safety rates on record, while continuing to improve our sustainability metrics."
Fourth Quarter 2025 Financial Performance
Three Months Ended December 31,
2025
2024
Change
% Change
(Dollars in millions)
Net sales:
Railroad and Utility Products and Services
$ 208.7
$ 215.6
$ (6.9)
(3.2) %
Performance Chemicals
127.8
147.9
(20.1)
(13.6) %
Carbon Materials and Chemicals
96.2
113.5
(17.3)
(15.2) %
Total
$ 432.7
$ 477.0
$ (44.3)
(9.3) %
Adjusted EBITDA:
Railroad and Utility Products and Services
$ 21.8
$ 17.5
$ 4.3
24.6 %
Performance Chemicals
27.8
28.6
(0.8)
(2.8) %
Carbon Materials and Chemicals
3.6
9.1
(5.5)
(60.4) %
Total(1)
$ 53.2
$ 55.2
$ (2.0)
(3.6) %
Adjusted EBITDA margin as a percentage of GAAP sales:
Railroad and Utility Products and Services
10.4 %
8.1 %
2.3 %
28.4 %
Performance Chemicals
21.8 %
19.3 %
2.5 %
13.0 %
Carbon Materials and Chemicals
3.7 %
8.0 %
(4.3) %
(53.8) %
(1)
Non-GAAP financial measure. See Non-GAAP Financial Measures for additional information and reconciliations to the most directly comparable financial measure determined and reported in accordance with U.S. GAAP.
RUPS net sales decreased due to $4.7 million of lower volumes from commercial crosstie customers, and lower activity in its maintenance-of-way businesses, including the sale of its railroad bridge services business. These decreases were partly offset by a 9.7 percent volume increase in the domestic utility pole business and $4.2 million of price increases related primarily to crossties. Adjusted EBITDA increased due to $7.3 million of lower operating expenses, lower selling, general and administrative costs, and net sales price increases, partly offset by net lower sales volumes.
PC net sales were lower as a result of a 15.7 percent volume decrease primarily driven by a shift in U.S. market share, partly offset by net sales price increases. Adjusted EBITDA was slightly lower due to lower sales volumes, partly offset by lower raw material and logistics costs and higher royalty income.
CMC net sales decreased mainly due to $16.6 million in volume decreases of phthalic anhydride as the company discontinued production, lower volumes and lower sales prices for carbon black feedstock, and lower sales prices for carbon pitch, which decreased approximately 6.6 percent globally. These decreases were partly offset by volume increases for carbon pitch, primarily in Australasia. Foreign currency changes compared to the prior year period from international markets had a $3.5 million favorable impact on sales in the current year period. Adjusted EBITDA decreased due to net sales price decreases and lower plant utilization, partly offset by operating cost savings associated with ceasing phthalic anhydride production.
Full-Year 2025 Financial Performance
Year Ended December 31,
2025
2024
Change
% Change
(Dollars in millions)
Net sales:
Railroad and Utility Products and Services
$ 926.8
$ 942.7
$ (15.9)
(1.7) %
Performance Chemicals
543.8
651.6
(107.8)
(16.5) %
Carbon Materials and Chemicals
408.7
497.8
(89.1)
(17.9) %
Total
$ 1,879.3
$ 2,092.1
$ (212.8)
(10.2) %
Adjusted EBITDA:
Railroad and Utility Products and Services
$ 108.1
$ 82.3
$ 25.8
31.3 %
Performance Chemicals
102.7
142.7
(40.0)
(28.0) %
Carbon Materials and Chemicals
45.9
36.6
9.3
25.4 %
Total(1)
$ 256.7
$ 261.6
$ (4.9)
(1.9) %
Adjusted EBITDA margin as a percentage of GAAP sales:
Railroad and Utility Products and Services
11.7 %
8.7 %
3.0 %
34.5 %
Performance Chemicals
18.9 %
21.9 %
(3.0) %
(13.7) %
Carbon Materials and Chemicals
11.2 %
7.4 %
3.8 %
51.4 %
(1)
Non-GAAP financial measure. See Non-GAAP Financial Measures for additional information and reconciliations to the most directly comparable financial measure determined and reported in accordance with U.S. GAAP.
Network Optimization
In February 2026, the company made the decision to idle production activities at its Utility and Industrial Products facility in Vance, Alabama, and its Railroad Products and Services facility in Florence, South Carolina. These measures are expected to further enhance network optimization, better align capacity with demand, reduce operating costs and strengthen the company's long-term competitiveness.
2026 Outlook
2026 Forecast
2025 Actual
Net sales
$1.9 - $2.0 billion
$1.9 billion
Adjusted EBITDA
$250 - $270 million
$257 million
Effective tax rate on adjusted net income
28 percent
29 percent
Adjusted EPS
$4.20 - $5.00
$4.07
Operating cash flow
$150 - $170 million
$123 million
Capital expenditures
$55 million
$55 million
Commenting on the 2026 forecast, Mr. Ball said, "We expect to drive significant improvement in adjusted EPS and free cash flow in 2026. Benefits from Catalyst, moderate sales recovery, a tighter operating footprint, lower interest costs, a lower effective tax rate, and a lower share count are all expected to contribute to meaningful EPS growth. In addition, normalized capital expenditures and the lack of major pension contributions are expected to lead to record free cash flow generation. Debt reduction and returning capital to shareholders will remain our near-term focus, and we will remain disciplined and focused on value-creation as we continue to evaluate inorganic growth opportunities for our PC and UIP businesses.
"Our Catalyst program is driving transformational change that we expect will offset various market and cost headwinds. On the commercial side, we remain intensely focused on delivering superior service to our customers and expect to gain market share in 2026 in all businesses other than CMC, partially offset by net price erosion due to hyper competitive market conditions. In operations, we decided to idle two treating plants in our network and consolidate capacity into other facilities, which will improve utilization and lower our unit cost of production. These actions, and various others, will help meaningfully offset raw material cost increases and the normalization of incentive compensation from a lower base in 2025. Finally, we believe that several initiatives aimed at right-sizing inventories across the company will generate additional cash flow beyond our current projection. We are confident that our strategy positions Koppers to unlock significant and sustainable earnings and cash flow improvement in 2026 and for many years to come."
Koppers does not provide reconciliations ...
