Koppers Holdings Inc. (KOP Quick QuoteKOP - Free Report) logged earnings (as reported) of 35 cents per share for the first quarter of 2026. This compares favorably with a loss of 68 cents a year ago. 
 
Barring one-time items, adjusted earnings were 57 cents per share for the quarter, which fell from 71 cents a year ago and beat the Zacks Consensus Estimate of 44 cents. 

Koppers recorded revenues of $455.3 million for the quarter, down around 0.3% year over year. The top line beat the Zacks Consensus Estimate of $410.5 million by roughly 10.9%. 

Adjusted EBITDA was $49.3 million, down 11.2% year over year, with margin contracting to 10.8% from 12.2%. 

Sales were mixed across segments in the quarter, with strength in Performance Chemicals (PC) offset by declines in Railroad and Utility Products and Services (RUPS) and Carbon Materials and Chemicals (CMC).

Koppers Holdings Inc. Price, Consensus and EPS Surprise

Segment Performance

RUPS: Sales from the segment fell around 6.4% year over year to $220 million in the reported quarter. Adjusted EBITDA declined 11.4% to $22.6 million, and margin contracted to 10.3% from 10.9%. The decline was due to customer mix in Class I crossties, lower maintenance-of-way activity, including roughly $9.6 million tied to the sale of the railroad services business in the third quarter of 2025, and price decreases across multiple markets, particularly crossties. These headwinds were partly offset by higher domestic utility pole volumes, including the acquisition of a western U.S. pole procurement business, higher commercial crosstie volumes and a $1.4 million favorable foreign currency impact, mainly from the Australian utility pole business. 
 
PC: The segment recorded sales of $142.1 million in the quarter, up around 17.5% year over year. Adjusted EBITDA increased 28.4% to $25.8 million, with margin expanding to 18.2% from 16.6%. The gains were driven by a 15% increase in volumes and higher sales prices, mainly in the Americas. International foreign currency changes provided a $2.7 million favorable impact, while $2.4 million of higher raw material and operating costs partly offset the improvement, including higher scrap copper costs net of benefits from the company's copper-hedging program. 
 
CMC: Sales from the division fell around 7.4% year over year to $93.2 million. Adjusted EBITDA plunged 90.9% to $0.9 million, with margin down to 1% from 9.8%. The decline reflected lower phthalic anhydride volumes of $13.9 million following the discontinuation of production in the second quarter of 2025 and lower sales prices across most products, particularly carbon pitch, where prices were down approximately 9% globally. These headwinds were partly offset by volume increases for carbon pitch, naphthalene and carbon black feedstock, a $7.6 million favorable foreign currency impact and cost savings from ceasing phthalic anhydride production. 

Balance Sheet, Cash Flow and Capital Deployment

Cash and cash equivalents were $42.8 million as of March 31, 2026, up from $38 million as of Dec. 31, 2025. Long-term debt was $915.3 million compared with $914.3 million at year-end 2025. 

Operating cash flow was $46.3 million in the first quarter of 2026 against cash used in operations of $22.7 million in the prior-year quarter. Free cash flow was $34.9 million against a negative $37 million a year ago. Capital expenditures were $11.4 million compared with $14.3 million in the prior-year quarter. 

Outlook

For 2026, Koppers now expects net sales of $1.9-$2 billion, adjusted EBITDA of $240-$260 million, adjusted EPS of $3.80-$4.60, operating cash flow of $165-$185 million and capital expenditures of about $55 million. 

The company lowered its adjusted EBITDA and adjusted EPS guidance, citing the expected profitability impact of higher oil prices and ongoing competitive pressure in CMC. However, it raised its operating cash flow outlook as inventory reduction efforts are expected to support stronger cash generation. Management noted that underlying demand in PC and RUPS is tracking in line with, or slightly better than, expectations entering the year. The company is also ceasing production at its Stickney, IL, plant by year-end 2026, which is expected to support a more sustainable profitability path beginning in 2027. 

KOP’s Price Performance

Shares of Koppers have gained 29.6% in the past year compared with the 13.5% growth in the industry. 

Image Source: Zacks Investment Research

KOP's Zacks Rank & Other Chemicals Releases

KOP currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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