Koppers (KOP) Q2 2026 earnings summary

Executive summary

• Net sales for Q2 2026 increased 3.0% year-over-year to $520.1 million, driven by higher volumes in Performance Chemicals and utility poles, but offset by declines in other segments.

• Reported net loss of $147.5 million, primarily due to $215.8 million in impairment, restructuring, and plant closure costs, including the accelerated closure of the Stickney facility and transition to Nyborg, Denmark.

• Adjusted EBITDA for Q2 2026 was $71.0 million (13.7% margin), down 7.9% year-over-year, with margin compression in RUPS and CMC segments.

• Record year-to-date operating cash flow of $96.3 million and free cash flow of $72.6 million, enabling debt reduction and $47.4 million returned to shareholders.

• Transformation initiatives (Catalyst) delivered $33 million in year-over-year benefits and $17 million in working capital reduction, with ongoing focus on safety, sustainability, and long-term value creation.

Financial highlights

• Q2 2026 net sales: $520.1 million (+3.0% YoY); six months ended June 30, 2026: $975.4 million (+1.5% YoY).

• Adjusted EBITDA was $71.0 million (13.7% margin), down from $77.1 million in Q2 2025; adjusted EPS was $1.37.

• Net loss for Q2 2026 was $147.5 million, compared to net income of $16.4 million in Q2 2025, due to $215.8 million in impairment and restructuring charges.

• Operating cash flow for the first half reached $96.3 million, up from $27.8 million a year ago; free cash flow for the first half was $72.6 million.

• Returned $47.4 million to shareholders and reduced debt by $22 million in the first half.

Outlook and guidance

• 2026 net sales forecast maintained at $1.9–$2.0 billion; adjusted EBITDA guidance narrowed to $240–$250 million.

• Adjusted EPS for 2026 projected at $3.80–$4.20, reflecting margin pressures and excluding special charges.

• Free cash flow for 2026 expected at $120 million after $55 million in capital expenditures; operating cash flow projected at $165–$185 million.

• Long-term targets include >10% adjusted EPS CAGR, >$300 million cumulative free cash flow through 2028, and mid-teens EBITDA margin.

• Profitability expected at the lower end of guidance due to persistent input cost and freight headwinds.