Aug 6, 2026, 8:14 AM ETBasic Materials

Koppers Holdings Inc. — Second Quarter 2026 Earnings Summary

KOPKOPPERS HOLDINGS INC

Financial Performance

Net sales for the quarter ended June 30, 2026, were $520.1 million, a 3.0% increase from $504.8 million in the prior year quarter.
Net loss was $(147.5) million compared to net income of $16.4 million in the prior year quarter; the loss included $215.8 million in impairment, restructuring, and plant closure costs.
Diluted EPS was $(7.71) versus $0.81 in the prior year quarter.
Adjusted net income was $27.1 million, down 9.4% from $29.9 million in the prior year quarter.
Adjusted EPS was $1.37, a 7.4% decrease from $1.48 in the prior year quarter.
Adjusted EBITDA was $71.0 million, a 7.9% decrease from $77.1 million in the prior year quarter.
Year-to-date operating cash flow for the six months ended June 30, 2026, was a record $96.3 million compared to $27.8 million in the prior year period.
Year-to-date free cash flow was a record $72.6 million compared to $1.4 million in the prior year period, net of capital expenditures of $23.7 million.
Total capital expenditures for the six months ended June 30, 2026, were $23.7 million.
Long-term debt decreased from $914.3 million at December 31, 2025, to $892.7 million at June 30, 2026.
Cash and cash equivalents increased from $38.0 million at December 31, 2025, to $40.7 million at June 30, 2026.

Koppers updated its 2026 Adjusted EBITDA guidance to $240–$250 million, narrowing the previous range of $240–$260 million.
2026 Adjusted EPS guidance was updated to $3.80–$4.20, down from the previous range of $3.80–$4.60.
The company expects the challenging margin environment to persist through the remainder of 2026, with profitability likely toward the lower end of the updated guidance.
Input costs and freight expenses are expected to remain headwinds.
Working capital initiatives are anticipated to generate additional cash flow to support the company's cash flow guidance.
Net sales guidance remains unchanged at $1.9–$2.0 billion.
Operating cash flow guidance remains unchanged at $165–$185 million.
Free cash flow guidance remains unchanged at $110–$130 million.
Capital expenditures guidance remains unchanged at $55 million.
The effective tax rate on adjusted net income is forecasted at 28%.

Railroad and Utility Products and Services (RUPS): Net sales decreased 1.8% to $245.9 million; Adjusted EBITDA decreased 18.7% to $25.7 million. Sales were impacted by lower maintenance-of-way activity, price decreases for crossties, and unfavorable sales mix, partially offset by a 16% volume increase in domestic utility poles.
Performance Chemicals (PC): Net sales increased 11.5% to $168.2 million; Adjusted EBITDA increased 31.4% to $37.7 million. Growth was driven by an 11% volume increase, primarily in the Americas, and lower raw material costs, partially offset by lower prices in Europe and increased logistics expenses.
Carbon Materials and Chemicals (CMC): Net sales increased 2.3% to $106.0 million; Adjusted EBITDA decreased 54.8% to $7.6 million. Sales growth was driven by volume and price increases for carbon black feedstock and carbon pitch, offset by lower volumes of phthalic anhydride and refined tar. EBITDA declined due to higher raw material and operating expenses, partially offset by cost savings from discontinuing phthalic anhydride production in Stickney, Illinois.
The company is accelerating the closure of the Carbon Materials and Chemicals plant in Stickney, Illinois.
The company is advancing network optimization efforts in the RUPS segment to improve utilization and reduce operating costs.
An acquisition of a western U.S. pole procurement business contributed to volume growth in the utility pole business.

The company navigated continued pressure in certain markets during the second quarter.
Volume gains were delivered in competitive markets served by the company.
Carbon pitch prices were down approximately 2% globally, driven by market dynamics particularly in Australasia.
Foreign currency changes had a favorable impact on sales of $6.7 million for the quarter.
The company noted unfavorable pricing and sales mix in the RUPS segment compared to the prior year.

The company faces headwinds from higher raw material costs, unfavorable pricing, higher freight, and higher legal costs.
Input costs and freight expenses are expected to remain challenges for the remainder of 2026.
The company cites the potential for impairment of goodwill and/or long-lived assets as a risk.
Fluctuations in the prices of key raw materials, including coal tar, lumber, and scrap copper, are identified as risks.
The company notes that forward-looking statements are subject to factors that could cause actual results to differ materially, including geopolitical events, tariffs, and economic conditions.

CEO Leroy Ball stated the company made meaningful progress on actions within its control while navigating market pressure.
Management noted that benefits from the Catalyst transformation initiative partly offset weaker market conditions.
The company remains confident that its strategy and transformation initiatives position it to unlock significant and sustainable improvements in earnings and cash flow.
Near-term priorities remain reducing debt and returning capital to shareholders while executing a disciplined approach to long-term value creation.

The company returned $47.4 million to shareholders year-to-date through share repurchases and quarterly dividends, compared to $32.4 million in the prior year period.
Share repurchases for the six months ended June 30, 2026, totaled $43.9 million.
Dividends paid and return of capital to noncontrolling interests totaled $3.8 million for the six months ended June 30, 2026.
The company sold its railroad services business during the third quarter of 2025, impacting current year sales and EBITDA.
A pension settlement loss of $29.0 million occurred in the prior year period, negatively impacting working capital.
The company utilizes a copper-hedging program which provided a benefit from lower raw material costs in the Performance Chemicals segment.
The company does not provide reconciliations of guidance for adjusted EBITDA, free cash flow, and adjusted EPS to comparable GAAP measures due to the unreasonable efforts exception.