Koppers Q2 Earnings Call Highlights

Koppers lowered its 2026 adjusted EBITDA outlook to $240 million–$250 million from ongoing cost pressures, particularly higher coal tar, freight and logistics costs in Carbon Materials and Chemicals. The company maintained its sales forecast of $1.9 billion–$2 billion. Second-quarter sales increased 3% to $520 million, but adjusted EBITDA fell 7.9% to $71 million. Performance Chemicals delivered strong growth, while RUPS and Carbon Materials and Chemicals experienced profitability declines. Koppers generated record first-half operating cash flow of $96 million and free cash flow of $73 million, enabling $22 million of debt reduction and $47 million in shareholder returns. The company is accelerating the Stickney, Illinois, distillation shutdown to September 2026 and expects the transition to provide $15 million–$20 million in annual adjusted EBITDA benefits.

Koppers NYSE: KOP reported second-quarter sales growth and record first-half cash generation, while higher coal tar, freight and logistics costs pressured profitability in its Carbon Materials and Chemicals segment and prompted the company to lower its full-year adjusted EBITDA outlook. Second-quarter sales rose 3% year over year to $520 million, while adjusted EBITDA declined 7.9% to $71 million. Adjusted EBITDA margin was 13.7%, and adjusted earnings per share totaled $1.37. The company reported a net loss and negative GAAP earnings per share during the quarter, reflecting significant non-cash charges associated with its planned Stickney, Illinois, facility changes. Get Koppers alerts: Sign Up

CEO and Chair Leroy Ball said the company accelerated the planned discontinuation of distillation activity at Stickney by one quarter, now targeting Sept. 30, 2026. Koppers plans to transition those activities to its Nyborg, Denmark, facility. “This action represents exactly the type of difficult but disciplined decision required to optimize our asset network and improve the long-term earnings power of the company,” Ball said. The company continues to expect the Stickney initiative to provide approximately $15 million to $20 million of annual adjusted EBITDA benefits, improve adjusted earnings per share by roughly $1 to $1.20 annually, and reduce future annual capital-spending needs.

Cash Flow and Capital Allocation Operating cash flow for the first six months of 2026 reached a record $96 million, compared with $28 million in the prior-year period. Free cash flow was $73 million, up from $1 million a year earlier. CFO and Treasurer Eric Brenner said the improvement was driven primarily by working-capital gains, including inventory alignment with anticipated demand and production-network optimization. During the first half, Koppers used approximately $24 million for capital expenditures, returned $47 million to shareholders through dividends and share repurchases, and reduced debt by $22 million. Share repurchases totaled about $44 million, including shares withheld for tax obligations. The company had approximately $30 million remaining under its $100 million repurchase authorization. At June 30, Koppers had $390 million of available liquidity and $857 million of net debt, representing a net leverage ratio of 3.5 times. The company said it remains focused on reducing leverage to between 2 times and 3 times. The board declared a quarterly dividend of $0.09 per share on Aug. 5, a 12.5% increase from the prior year. Maintaining that rate would result in an annualized 2026 dividend of $0.36 per share, subject to future board approvals.

Segment Results Reflect Uneven Markets Railroad and Utility Products and Services, or RUPS, posted quarterly sales of $246 million, down from $250 million a year earlier. Excluding acquisition, divestiture and c...