Koppers Holdings Inc. filed its third-quarter 2026 earnings release on November 6, 2026, reporting net sales of $499.1 million and net income of $14.7 million for the three months ended September 30, 2026, alongside updated full-year guidance reflecting lower adjusted EBITDA and EPS forecasts.

Key Highlights

  • Net sales of $499.1 million for Q3 2026, up $13.8 million, or 2.8 percent, from $485.3 million in the prior year quarter, according to the filing.
  • Net income declined to $14.7 million from $23.8 million in the prior year quarter, a decrease of 38.2 percent.
  • Diluted EPS of $0.75 and Adjusted EPS of $0.77, compared to $1.17 and $1.21, respectively, in the prior year quarter.
  • Adjusted EBITDA of $58.0 million, down $12.9 million, or 18.2 percent, from $70.9 million in the prior year quarter, driven primarily by higher raw material and logistics costs.
  • Record year-to-date operating cash flow of $126.9 million for the nine months ended September 30, 2026, versus $77.4 million in the prior year period.
  • Record year-to-date free cash flow of $92.0 million, compared to $39.0 million in the prior year period, net of capital expenditures of $34.9 million.
  • Full-year 2026 Adjusted EBITDA guidance lowered to $220-$225 million from a prior forecast of $240-$250 million, with Adjusted EPS guidance revised to $3.10-$3.25 from $3.80-$4.20.

Koppers Q3 2026 Segment Results and Cash Flow Performance

According to the filing, Koppers Holdings Inc. (NYSE:KOP) reported that net sales growth in the third quarter of 2026 was driven primarily by volume increases in residential and industrial wood preservatives, Class I crossties, and U.S. utility poles. Currency conversion had a favorable effect of $6.1 million compared to the prior year quarter. At the segment level, Railroad and Utility Products and Services (RUPS) net sales were essentially flat at $232.8 million versus $232.7 million, Performance Chemicals (PC) net sales rose 11.9 percent to $161.5 million, and Carbon Materials and Chemicals (CMC) net sales declined 3.2 percent to $104.8 million.

The filing disclosed that Adjusted EBITDA fell across two of the three segments. RUPS Adjusted EBITDA declined $6.9 million to $22.3 million, attributed to lower sales prices for Class I crossties and higher raw material and selling, general and administrative costs. CMC Adjusted EBITDA fell $9.5 million to $6.1 million, due to higher raw material costs of $9.0 million and lower utilization, including impacts from feedstock quality issues and the accelerated closure of the company's Stickney facility. PC was the exception, with Adjusted EBITDA rising $3.5 million to $29.6 million on ten percent volume growth, primarily in the Americas, though partly offset by higher raw material costs of $4.7 million.

On cash generation, the filing stated that the nine-month operating cash flow improvement primarily reflected improved working capital performance and approximately $14 million of pension funding in the prior-year period, partially offset by lower underlying earnings. The company also reported that it returned $56.2 million to shareholders and reduced total debt by $31.0 million in the year-to-date period. For the full year 2026, Koppers updated its operating cash flow guidance to $165-$185 million and raised its free cash flow outlook to $115-$135 million from a prior range of $110-$130 million.

What Was Disclosed

Koppers Holdings reported Q3 2026 financial results showing higher net sales but lower net income, Adjusted EBITDA, and earnings per share versus the prior year quarter. The company also revised its full-year 2026 Adjusted EBITDA and Adjusted EPS guidance downward, citing persistent raw material and logistics cost pressures.