Net income (loss) of $7.1 million vs. $(13.9) million in Prior Year Quarter
Diluted EPS of $0.35 vs. $(0.68) in Prior Year Quarter
Adjusted EPS of $0.57 vs. $0.71 in Prior Year Quarter
Adjusted EBITDA of $49.3 million vs. $55.5 million in Prior Year Quarter
Capital expenditures, net of insurance proceeds and sale of assets, of $11.4 million vs. $10.0 million in Prior Year Quarter
Operating cash flow of $46.3 million vs. $(22.7) million in Prior Year Quarter
Free cash flow of $34.9 million vs. $(37.0) million in Prior Year Quarter
PITTSBURGH, May 8, 2026 /PRNewswire/ -- Koppers Holdings Inc. (NYSE:KOP), an integrated global provider of treated wood products, wood treatment chemicals, and carbon compounds, today reported its first quarter of 2026 results.
Three Months Ended March 31,
(Dollars in millions, except per share amounts)
2026
2025
Change
% Change
Net sales
$ 455.3
$ 456.5
$ (1.2)
(0.3) %
Net income (loss)
$ 7.1
$ (13.9)
$ 21.0
151.1 %
Adjusted net income(1)
$ 11.4
$ 14.6
$ (3.2)
(21.9) %
Diluted earnings per share (EPS)
$ 0.35
$ (0.68)
$ 1.03
151.5 %
Adjusted EPS(1)
$ 0.57
$ 0.71
$ (0.14)
(19.7) %
Adjusted EBITDA(1)
$ 49.3
$ 55.5
$ (6.2)
(11.2) %
(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 and Chair Leroy Ball said, "I'm happy to report that our consolidated first quarter results matched our expectations, while our cash generation picked up tremendous momentum. Performance Chemicals market share gains, combined with added benefits from our Catalyst transformation initiatives, partially offset a significant decline in Carbon Materials and Chemicals profitability, driven by persistent competitive pressures and higher raw material costs, including oil price spikes from the Middle East conflict. My thanks go out to our global team who is continuing to do the tough work of positioning Koppers for a major boost in performance when our end markets rebound."
First Quarter Financial Performance
Three Months Ended March 31,
2026
2025
Change
% Change
(Dollars in millions)
Net sales:
Railroad and Utility Products and Services
$ 220.0
$ 235.0
$ (15.0)
(6.4) %
Performance Chemicals
142.1
120.9
21.2
17.5 %
Carbon Materials and Chemicals
93.2
100.6
(7.4)
(7.4) %
Total
$ 455.3
$ 456.5
$ (1.2)
(0.3) %
Adjusted EBITDA:
Railroad and Utility Products and Services
$ 22.6
$ 25.5
$ (2.9)
(11.4) %
Performance Chemicals
25.8
20.1
5.7
28.4 %
Carbon Materials and Chemicals
0.9
9.9
(9.0)
(90.9) %
Total(1)
$ 49.3
$ 55.5
$ (6.2)
(11.2) %
Adjusted EBITDA margin as a percentage of GAAP sales:
Railroad and Utility Products and Services
10.3 %
10.9 %
(0.6) %
(5.5) %
Performance Chemicals
18.2 %
16.6 %
1.6 %
9.6 %
Carbon Materials and Chemicals
1.0 %
9.8 %
(8.8) %
(89.8) %
(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 customer mix in Class I crossties, lower activity in maintenance-of-way businesses, including approximately $9.6 million related to the sale of its railroad services business during the third quarter of 2025, and price decreases across multiple markets, particularly for crossties. These decreases were partly offset by increased volumes in domestic utility poles, including the acquisition of a western U.S. pole procurement business, and higher volumes in commercial crossties. Foreign currency changes had a favorable impact on sales in the current year period of $1.4 million compared to the prior year period, primarily from the Australian utility pole business. Adjusted EBITDA decreased due primarily to lower net sales prices and lower sales volumes.
PC net sales increased primarily driven by a 15 percent increase in volumes along with higher sales prices primarily in the Americas. Foreign currency changes from international markets had a favorable impact on sales in the current year period of $2.7 million compared to the prior year period. Adjusted EBITDA increased due to higher sales volumes and prices, partly offset by $2.4 million of higher raw material and operating costs. Higher raw material costs were unfavorably impacted by scrap copper costs, net of the benefit realized from the company's copper-hedging program.
CMC net sales decreased mainly due to lower phthalic anhydride volumes of $13.9 million as the company discontinued its production in the second quarter of 2025 and lower sales prices across most products, especially carbon pitch where prices were down approximately nine percent globally, driven by market dynamics. These decreases were partly offset by volume increases for carbon pitch, naphthalene and carbon black feedstock. Foreign currency changes from international markets had a favorable impact on sales in the current year period of $7.6 million compared to the prior year period. Adjusted EBITDA decreased due to lower sales prices as well as higher operating and raw material costs. These decreases were partly offset by the operating cost savings from ceasing phthalic anhydride production.
2026 Outlook
After considering the current competitive environment and global economic conditions, as well as the ongoing uncertainty associated with geopolitical and supply chain challenges, Koppers is updating its 2026 forecast as follows:
2026 Forecast
2025 Actual
Net sales
$1.9 - $2.0 billion
$1.9 billion
Adjusted EBITDA
$240 - $260 million
$257 million
Effective tax rate on adjusted net income
28 percent
29 percent
Adjusted EPS
$3.80 - $4.60
$4.07
Operating cash flow
$165 - $185 million
$123 million
Capital expenditures
$55 million
$55 million
Commenting on the 2026 forecast, Mr. Ball said, "Today's announcement of ceasing production at our Stickney, Illinois, plant by this year-end again demonstrates our willingness to make the difficult choices necessary to chart a more sustainable path forward for all our stakeholders. That decision alone will bring tremendous benefit beginning in 2027; however, the economic fallout of higher oil prices is expected to have up to a $10 million impact on our profitability this year. As a result, we have revised our adjusted EBITDA and adjusted EPS ranges for the current year's guidance. The best news is that underlying demand in our PC and RUPS markets is projecting to be in line if not slightly better than what we thought coming into the year.
"We also expect higher operating cash flow and free cash flow than our previous guidance, as we deliver at the higher end of our inventory reduction targets. While we welcome end market improvement, the actions we have planned and already taken put us in position for a step change in profitability in 2027 while maintaining our already healthy cash generation."
Koppers does not provide reconciliations of guidance for adjusted EBITDA, free cash flow and adjusted EPS to comparable GAAP measures, in reliance on the unreasonable efforts exception. Koppers is unable, without unreasonable efforts, to forecast certain items required to develop meaningful comparable GAAP financial measures. These items include, but are not limited to, restructuring and impairment charges, acquisition-related costs, mark-to-market commodity hedging, and LIFO adjustments that are difficult to forecast for a GAAP estimate and may be significant. Forward-looking statements, including the guidance above, are based upon current expectations and are subject to factors that could cause actual results to differ materially from those set forth above. Please see the "Safe Harbor Statement" below for more information.
Investor Conference Call and Webcast
Koppers management will conduct a conference call this morning, beginning at 11:00 a.m. Eastern Time to discuss the company's results for the first quarter of 2026. Presentation materials will be available at least 15 minutes before the call on www.koppers.com in the Investor Relations section of the company's website.
Interested parties may access the live audio broadcast toll free by dialing 833-366-1128 in the United States and Canada, or 412-902-6774 for international, Conference ID number 10205147. Participants are requested to access the call at least five minutes before the scheduled start time to complete a brief registration. The conference call will be broadcast live on www.koppers.com and can also be accessed here.
An audio replay will be available approximately two hours after the completion of the call toll free at 855-669-9658 for the U.S. and Canada, or 412-317-0088 for international, using replay access code 1468506. The recording will be available for replay through June 8, 2026.
About Koppers
Koppers (NYSE:KOP) is an integrated global provider of essential treated wood products, wood preservation technologies and carbon compounds. Our team of approximately 1,850 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 [email protected] or 412-227-2025. Inquiries from the investment community should be directed to Ms. Quynh McGuire at [email protected] or 412-227-2049.
Non-GAAP Financial Measures
This press release contains certain non-GAAP financial measures. Koppers believes ...
