Koppers Q4 Earnings Call Highlights

3 weeks ago 12

MarketBeat

Sat, February 28, 2026 astatine 10:41 AM CST 8 min read

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  • Koppers delivered adjusted EBITDA of $256.7 million (a 13.7% margin) and adjusted EPS of $4.07 successful 2025 contempt a 10% income diminution to $1.9 billion, with operating currency travel of $122.5 million.

  • The company’s “Catalyst” programme generated $46 million of benefits successful 2025, drove a 15% simplification successful adjusted SG&A and an 11% headcount cut, and absorption present expects up to $75 million of cumulative benefits implicit 2026–2028 with a $20–40 million people for 2026.

  • For 2026 Koppers guides income of $1.9–2.0 billion, adjusted EBITDA of $250–270 million and adjusted EPS of $4.20–5.00, expects a “sizable jump” successful operating and escaped currency travel arsenic an inflection point, and plans to trim nett leverage from 3.4x toward its 2–3x extremity portion raising the quarterly dividend to $0.09 per share.

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Koppers (NYSE:KOP) executives highlighted resilient profitability successful 2025 contempt a meaningful income decline, pointing to outgo and operational benefits from its “Catalyst” translation programme and outlining expectations for stronger net and currency procreation successful 2026.

CEO Leroy Ball said the institution delivered adjusted EBITDA of $256.7 million successful 2025, adjacent to a 13.7% adjusted EBITDA margin. Ball described the borderline arsenic a caller precocious watermark for Koppers connected an as-reported basis. Operating nett was $167.8 million, portion adjusted EPS was $4.07, marking the sixth consecutive twelvemonth supra $4, according to management. Operating currency travel totaled $122.5 million, the seventh consecutive twelvemonth supra $100 million.

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Interim CFO Brad Pearce said full-year income were $1.9 billion, down 10% from $2.1 cardinal successful the anterior year. Segment income were $927 million for Railroad and Utility Products and Services (RUPS), $544 million for Performance Chemicals (PC), and $409 million for Carbon Materials and Chemicals (CMMC). Full-year adjusted EBITDA by conception was $108 million for RUPS (12% margin), $103 million for PC (19% margin), and $46 million for CMMC (11% margin).

For the 4th quarter, Pearce reported income of $433 million, down 9% twelvemonth implicit year, and adjusted EBITDA of $53 million (12.3% margin). By conception successful Q4, adjusted EBITDA was $28 million for PC, $22 million for RUPS, and $4 million for CMMC.

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Ball said Koppers launched Catalyst successful aboriginal 2025 and generated $46 million of benefits during the year. He credited those actions with helping support EBITDA wrong astir 2% of the anterior twelvemonth adjacent arsenic income fell 10%.

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