Q2 2026 Koppers Holdings Inc Earnings Call Transcript

Aug 6, 2026 / 03:00 PM GMT

Release Date Price: $52.33 (+2.55%)

Transcript 10-Q8-K

Key Points

Positve

Koppers Holdings Inc (KOP) delivered record operating cash flow of $96 million and record free cash flow of $73 million in the first half of 2026, a significant improvement from the prior year period.
The Performance Chemicals segment showed strong momentum, with sales up 10% year-over-year and adjusted EBITDA increasing 31%, driven by volume gains and market share gains in a flat demand environment.
The company is accelerating the closure of its Stickney facility to September 30, 2026, which is expected to generate annual adjusted EBITDA benefits of $15-20 million and improve adjusted EPS by $1.00-$1.20 per share.
The Utility and Industrial Products business continues to be a strong performer, with organic demand up 12% in the second quarter, driven by robust utility infrastructure spending and AI-related electricity demand.
The company is making significant progress on its Catalyst transformation program, achieving $33 million in year-over-year benefits through June 30, 2026, and identifying over $90 million in future benefits through 2028.
Koppers Holdings Inc (KOP) returned $47 million to shareholders through dividends and share repurchases in the first half of 2026 while also reducing debt by $22 million.

Negative

Koppers Holdings Inc (KOP) experienced a challenging cost environment, with coal tar costs increasing 12% year-over-year and 15% sequentially, which negatively impacted profitability, particularly in the Carbon Materials and Chemicals segment.
The Carbon Materials and Chemicals segment saw adjusted EBITDA decline significantly to $8 million from $17 million in the prior year quarter, due to higher raw material, operating, and SG&A expenses.
The Railroad Products and Services segment faced headwinds from Class 1 railroads tightening capital budgets, leading to reduced treated tie procurement volumes and a more challenging demand environment.
The company's adjusted EBITDA guidance for 2026 was lowered to $240-250 million, reflecting expected declines in RPS (down $8-11 million) and CMC (down $19-23 million) segments.
The Middle East conflict and volatile tariff environment are creating uncertainty and driving up input costs, including freight and logistics expenses, with an additional $4.6 million impact expected in the second half of 2026.
The company faces ongoing pricing pressure in the cross tie market, having made price concessions in 2026 to secure contractual commitments, which negatively impacted profitability in the RPS segment.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

KOP.N - Koppers Holdings Inc
Q2 2026 Koppers Holdings Inc Earnings Call
Aug 06, 2026 / 03:00PM GMT

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Presentation
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Unidentified_1 [1]
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Good morning, ladies and gentlemen, thank you for standing by.

Welcome to Copper second quarter 2026 earnings conference call and webcast.

This time all participants are in a listen-only mode.

If you need assistance, please alert a conference specialist by pressing star followed by 0.

Following the presentation, instructions will be given for the question-and-answer session.

Please note today's event is being recorded.

And at this time I'd like to turn the floor over to Quinn McGuire.

Please go ahead.

Thanks and good morning, I'm Quinn McGuire, Vice President of Investor Relations.

Welcome to our second quarter 2026 earnings conference call.

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