Koppers (NYSE:KOP) Releases Earnings Results, Misses Estimates By $0.60 EPS

Key Points

• Koppers missed third-quarter estimates: EPS was $0.77 versus the $1.37 consensus, while revenue of $499.1 million fell short of $518.6 million; sales were nevertheless up 2.8% year over year.
• Higher input and logistics costs pressured profitability: Adjusted EPS fell from $1.21 a year earlier, and Koppers lowered its 2026 adjusted EPS outlook to $3.10–$3.25 and EBITDA outlook to $220–$225 million.
• Cash flow improved despite weaker earnings: Year-to-date operating cash flow reached $127 million and free cash flow $92 million, both above year-earlier levels; the company expects full-year free cash flow of $115–$135 million.

Koppers (NYSE:KOP - Get Free Report) announced its earnings results on Friday. The specialty chemicals company reported $0.77 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.37 by ($0.60), FiscalAI reports. Koppers had a positive return on equity of 14.98% and a negative net margin of 4.59%. The company had revenue of $499.10 million for the quarter, compared to analyst estimates of $518.60 million. During the same period last year, the firm earned $1.21 earnings per share. The firm's revenue for the quarter was up 2.8% on a year-over-year basis. Koppers updated its FY 2026 guidance to 3.100-3.250 EPS.

Here are the key takeaways from Koppers' conference call:

• Higher input and logistics costs pressured results: Third-quarter adjusted EBITDA fell 18% year over year to $58 million, and adjusted EPS declined to $0.77 from $1.21. Koppers lowered its 2026 outlook to adjusted EBITDA of $220 million–$225 million and adjusted EPS of $3.10–$3.25.
• Cash generation reached year-to-date records: Operating cash flow was $127 million and free cash flow was $92 million through September, compared with $77 million and $56 million, respectively, a year earlier. The company cited working-capital improvements and expects full-year free cash flow of $115 million–$135 million.
• Performance Chemicals and utility products showed resilience: Performance Chemicals volume grew 10% year over year, while domestic utility pole sales rose 5% in the quarter and 11% year to date. Management expects pricing actions—already agreed for more than 80% of Performance Chemicals’ 2027 business—to help offset cost inflation beginning in January, though residential demand remains subdued.
• Restructuring and cost initiatives are intended to support future earnings: Koppers reported $42 million in year-over-year Catalyst benefits through September and completed major production milestones at its Stickney facility. It expects the Stickney initiative to generate $15 million–$20 million in annual adjusted EBITDA benefits, while acknowledging near-term transition costs.

Koppers Stock Down 24.7%

Shares of Koppers stock traded down $9.78 during midday trading on Friday, hitting $29.86. The company's stock had a trading volume of 354,349 shares, compared to its average volume of 143,465. Koppers has a 1-year low of $25.00 and a 1-year high of $53.00. The company has a quick ratio of 1.01, a current ratio of 2.33 and a debt-to-equity ratio of 2.31. The firm has a market capitalization of $564.69 million, a P/E ratio of -6.33 and a beta of 1.23. The stock has a 50-day simple moving average of $44.13 and a 200-day simple moving average of $41.68.

Koppers Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, December 14th. Stockholders of record on Friday, November 27th will be given a $0.09 dividend. This represents a $0.36 annualized dividend and a dividend yield of 1.2%. The ex-dividend date of this dividend is Friday, November 27th. Koppers's dividend payout ratio (DPR) is -7.63%.

Key Stories Impacting Koppers

Here are the key news stories impacting Koppers this week:

• Positive Sentiment: Koppers declared a quarterly cash dividend of $0.09 per share, payable December 14 to shareholders of record November 27. Dividend announcement
• Neutral Sentiment: Third-quarter sales rose 2.8% year over year to $499.1 million, though the company’s revenue guidance of $1.9 billion was broadly in line with consensus. Third-quarter results
• Negative Sentiment: Adjusted EPS was $0.77, well below the $1.37 analyst consensus and down from $1.21 a year earlier; revenue of $499.1 million also fell short of the $518.6 million estimate. Higher raw-material and logistics costs weighed on results. Koppers lowered its 2026 EPS guidance to $3.10–$3.25, below the roughly $4.05 consensus, reinforcing concerns about profitability. MarketWatch report on results and costs

Analyst Ratings Changes

Several analysts have issued reports on the company. Weiss Ratings downgraded Koppers from a "hold (c+)" rating to a "sell (d+)" rating in a report on Tuesday, August 11th. Wall Street Zen cut shares of Koppers from a "strong-buy" rating to a "buy" rating in a report on Saturday, August 15th. One analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, Koppers currently has a consensus rating of "Moderate Buy" and a consensus target price of $55.00.

Insiders Place Their Bets

In other Koppers news, insider James A. Sullivan sold 7,500 shares of the firm's stock in a transaction dated Tuesday, August 11th. The stock was sold at an average price of $50.00, for a total transaction of $375,000.00. Following the completion of the sale, the insider directly owned 82,898 shares in the company, valued at approximately $4,144,900. This trade represents a 8.30% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, SVP Stephen G. Lucas sold 1,308 shares of Koppers stock in a transaction dated Wednesday, August 12th. The shares were sold at an average price of $44.55, for a total value of $58,271.40. Following the transaction, the senior vice president directly owned 34,345 shares in the company, valued at approximately $1,530,069.75. This trade represents a 3.67% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 17,808 shares of company stock valued at $856,651 over the last ninety days. Corporate insiders own 7.28% of the company's stock.

Koppers Company Profile

Koppers Holdings Inc NYSE: KOP is a global provider of treated wood products, carbon compounds and performance chemicals. The company serves infrastructure, industrial and utility markets with products designed to preserve, protect and extend the service life of wood and other materials.

Koppers operates through two primary business areas: Railroad and Utility Products and Services, and Performance Chemicals. Its offerings include treated railroad crossties, utility poles, pilings and other wood products, as well as wood preservatives and related treatment services.

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