Koppers (KOP) Q3 2026 earnings summary

Executive summary

• Q3 sales rose 2.8% YoY to $499.1M, while adjusted EBITDA fell 18.2% to $58.0M amid higher raw-material and logistics costs.

• Record 9M operating cash flow of $126.9M and free cash flow of $92.0M; reduced 2026 earnings guidance reflects cost pressure and pricing actions still to come.

Financial highlights

• Q3 adjusted EPS was $0.77 vs. $1.21; GAAP diluted EPS was $0.75 vs. $1.17, and net income was $14.7M vs. $23.8M.

• 9M sales rose to $1,474.5M from $1,446.6M, while adjusted EBITDA fell to $178.3M from $203.5M.

• 9M net loss was $125.7M vs. net income of $26.3M, including $233.4M of impairment, restructuring and plant-closure costs.

• Adjusted EBITDA included $9.8M of Q3 impairment, restructuring and plant-closure costs.

Outlook and guidance

• FY2026 forecast: sales $1.9B; adjusted EBITDA $220M-$225M vs. prior $240M-$250M; adjusted EPS $3.10-$3.25 vs. prior $3.80-$4.20.

• FY2026 operating cash flow guidance is $165M-$185M; free cash flow guidance increased to $115M-$135M from $110M-$130M, with capex forecast at $50M vs. prior $55M.

• The adjusted tax-rate forecast rose to 31% from 28%; higher input costs and weaker end-market demand are expected to pressure margins through year-end.

• 2027 commercial actions, production-network optimization and self-help initiatives are expected to support earnings improvement; significant pricing actions take effect in January 2027.

• Stickney closure is expected to add $15M-$20M of annual adjusted EBITDA and $1.00-$1.20 of adjusted EPS, while reducing annual capex by $8M-$15M.