Koppers Holdings Stock Earnings Reports

Koppers announced a conditional decision to wind down production at its Stickney, Illinois coal‑tar distillation facility, driven by prolonged weak CMC market conditions, reduced North American coal tar supply and ongoing reliability/capital needs. The closure is expected to trigger pre‑tax charges of $227M–$262M (including $170M–$195M non‑cash in Q2–Q3 2026) and $57M–$67M of cash closure costs through 2029, funded by operating/capital benefits. Management expects annualized adjusted EBITDA improvement of $15M–$20M (75–100 bps margin uplift), annual capex reduction of $8M–$15M, and an adjusted EPS benefit of $1.00–$1.20 beginning in 2027. Q1 2026 results: consolidated sales $455M (flat YoY), adjusted EBITDA $49.3M (10.8% margin), operating profit $22M, adjusted EPS $0.57, record Q1 operating cash flow $46.3M and free cash flow $34.9M; trailing‑12 month cash flow metrics also at record highs. Segment performance: Performance Chemicals (PC) strong — sales +18% and adj. EBITDA $26M; Railroad Products & Services (RUPS) weaker sales due to mix and divestiture with adj. EBITDA $23M; Carbon Materials & Chemicals (CMC) under pressure — sales down and adj. EBITDA only $1M. Company reiterated 2026 sales guidance of $1.9B–$2.0B but lowered adjusted EBITDA guidance to $240M–$260M (down ~$10M from prior outlook), citing higher oil prices (Middle East conflict) and other commodity cost pressure; 2026 adj. EPS guidance $3.80–$4.60. Liquidity and capital allocation: ~$386M available liquidity, net debt $877M (3.5x net leverage), $55M gross capex guidance for 2026, $29M of share repurchases in Q1 with ~$45M remaining authorization, and quarterly dividend $0.09 ($0.36 annualized). The Catalyst transformation program delivered $14M of benefits in Q1 and management has identified at least $90M of benefits for 2026–2028, keeping 2028 targets (adj. EBITDA >15%, 3‑yr EPS CAGR >10%, net leverage <2.5x, 3‑yr avg FCF ≥$100M). Investor Day planned for Sept. 17, 2026.