KOP Q2 Earnings and Revenues Top Estimates on PC Unit Strength

Revenues rose 3% to $520.1 million and beat the consensus mark of $506.1 million by 2.8%.

The quarter benefited from strong Performance Chemicals (PC) segment volumes and higher domestic utility pole volumes. PC volumes increased 11%, while domestic utility pole volumes rose 16%, helping offset pricing pressure and higher costs elsewhere in the portfolio.

Adjusted EBITDA totaled $71 million, down 7.9% from $77.1 million. Higher raw material costs, unfavorable pricing in the Railroad and Utility Products and Services (RUPS) unit, higher freight and legal costs, and the impact of 2025 divestitures were partly offset by lower operating costs and improved throughput from network optimization efforts.

Koppers’ Segment Performance

PC sales increased 11.5% year over year to $168.2 million. Adjusted EBITDA advanced 31.4% to $37.7 million, while the segment margin expanded to 22.4% from 19%.

Higher sales volumes and $1.3 million of lower raw material costs drove the improvement. The raw material benefit reflected gains from Koppers' copper-hedging program, net of higher scrap copper costs, while increased logistics expenses partly offset the upside.

RUPS sales fell 1.8% year over year to $245.9 million. Adjusted EBITDA declined 18.7% to $25.7 million, with margin contracting to 10.5% from 12.6%. Lower prices, unfavorable mix, higher raw material costs and weaker maintenance-of-way activity weighed on profitability.

Carbon Materials and Chemicals sales rose 2.3% to $106 million, supported by higher carbon black feedstock volume and pricing and higher carbon pitch volume. Still, adjusted EBITDA dropped 54.8% to $7.6 million as higher raw material, operating and selling, general and administrative expenses offset sales gains and cost savings from the Stickney facility actions.

KOP Posts Record Cash Flow and Cuts Debt

For the first six months of 2026, operating cash flow reached a record $96.3 million, up from $27.8 million a year earlier. Free cash flow was also a record at $72.6 million versus $1.4 million, after capital expenditures of $23.7 million.

Long-term debt declined to $892.7 million as of June 30, 2026, from $914.3 million at year-end 2025. Cash and cash equivalents were $40.7 million compared with $38 million. Koppers returned $47.4 million to shareholders through share repurchases and quarterly dividends in the first half, up from $32.4 million a year earlier.

Koppers’ Outlook

Koppers maintained its 2026 sales forecast at $1.9-$2 billion but narrowed adjusted EBITDA guidance to $240-$250 million from the prior view of $240-$260 million. Adjusted earnings guidance was revised to $3.80-$4.20 per share from $3.80-$4.60.

The company expects the challenging margin environment to persist through the rest of 2026, with input costs and freight remaining headwinds. Operating cash flow guidance remains $165-$185 million, free cash flow is projected at $110-$130 million and capital expenditures are expected to be $55 million.

KOP’s Price Performance

Shares of Koppers have rallied 70.4% in the past year compared with the Zacks Chemicals Diversified industry’s 6.8% growth.

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KOP's Zacks Rank & Other Chemicals Releases

KOP currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Ashland Inc.’s ASH adjusted earnings were $1.02 per share for the fiscal third quarter, down around 2% from the year-ago quarter figure of $1.04. The bottom line missed the Zacks Consensus Estimate of $1.03. For fiscal 2026, Ashland reaffirmed sales guidance of $1.835-$1.870 billion and adjusted EBITDA outlook of $385-$400 million. 

Huntsman Corporation HUN posted break-even earnings per share on an adjusted basis for the second quarter compared with a loss of 20 cents in the year-ago quarter. The Zacks Consensus Estimate of earnings was pegged at 6 cents per share. HUN expects to remain focused on additional price increases and cost-reduction initiatives to offset rising and volatile energy and crude oil-related costs, particularly in Europe. 

Olin Corporation’s OLN second-quarter adjusted earnings were 7 cents per share, in line with the Zacks Consensus Estimate. For the third quarter, Olin expects adjusted EBITDA in the range of $160 million to $200 million. OLN expects its Chemical businesses’ results to be comparable with second-quarter levels as lower operating rates at the Freeport vinyl chloride monomer facility and weaker ethylene dichloride pricing offset anticipated stronger caustic soda volumes.

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