Koppers (KOP) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 2026 were $455.3M, nearly flat year-over-year, with strong PC growth offsetting declines in RUPS and CMC.

• Net income improved to $7.1M from a $13.9M loss in Q1 2025, driven by better operating results and absence of prior year pension settlement loss.

• Adjusted EBITDA was $49.3M (10.8% margin), down from $56M (12.2%) in the prior year, reflecting margin pressure in RUPS and CMC, partially offset by PC growth.

• Record Q1 operating cash flow of $46.3M and free cash flow of $34.9M, both significant improvements from prior year.

• Announced conditional decision to wind down production at Stickney, Illinois by year-end 2026, impacting 85 employees, with production shifting to Nyborg, Denmark and $10M–$15M investment in supply chain enhancements.

Financial highlights

• Q1 2026 consolidated sales were $455.3M, nearly flat year-over-year.

• Adjusted EBITDA was $49.3M (10.8% margin), down 11.2% year-over-year.

• Operating profit was $22M; adjusted EPS was $0.57, and diluted EPS was $0.35, both down from prior year.

• Net income for Q1 2026 was $7.1M, up from a loss of $13.9M in Q1 2025.

• Capital expenditures were $11.4M; $29M deployed in share repurchases.

Outlook and guidance

• 2026 sales guidance maintained at $1.9B–$2.0B, up from $1.88B in 2025.

• Adjusted EBITDA guidance lowered to $240M–$260M due to higher oil prices.

• Adjusted EPS projected at $3.80–$4.60, with improvement driven by lower interest expense and share count.

• Free cash flow for 2026 projected at $58M–$78M; operating cash flow expected at $165M–$185M.

• Capital spending forecast at $55M for 2026.