Koppers (KOP) Q4 2025 earnings summary

Executive summary

• Achieved adjusted EBITDA of $256.7 million with a 13.7% margin for 2025, the second highest on record, and operating profit of $167.8 million; adjusted EPS was $4.07, marking six consecutive years above $4.

• Operating cash flow reached $122.5 million, exceeding $100 million for the seventh straight year.

• Launched the Catalyst transformation, delivering $46 million in benefits, offsetting a 10% sales decline, and reducing adjusted SG&A by 15% and headcount by up to 17% from year-end 2024.

• Completed the sale of the railroad structures business and exited the phthalic anhydride product line, contributing to sales decline but improving cost structure.

• Recognized for safety and sustainability, with 21 of 41 sites accident-free and inclusion in Newsweek's Most Responsible Companies 2026 and TIME's Best Mid-Sized Companies 2025.

Financial highlights

• Full-year 2025 sales declined 10.2% to $1.88 billion from $2.09 billion in 2024; Q4 sales were $433 million, down 9% year-over-year.

• Adjusted EBITDA for 2025 was $256.7 million (13.7% margin); Q4 adjusted EBITDA was $53 million (12.3% margin).

• Net income for 2025 was $56.0 million, up from $48.6 million in 2024; adjusted EPS was $4.07, slightly down from $4.11.

• Net debt at year-end was $881 million, with a net leverage ratio of 3.4x and available liquidity of $383 million.

• Operating cash flow for 2025 was $122.5 million; capital expenditures were $55 million.

Outlook and guidance

• 2026 sales guidance: $1.9–$2.0 billion, with PC and RUPS expected to comprise 80% of total sales.

• Adjusted EBITDA forecast for 2026: $250–$270 million; adjusted EPS guidance: $4.20–$5.00.

• Projecting $300 million in cumulative free cash flow over the next three years and a mid-teens margin run rate by 2028.

• Operating cash flow for 2026 projected at $150–$170 million; capital expenditures expected to remain at $55 million.

• Q1 2026 expected to be the weakest quarter due to severe winter weather and early-stage Catalyst initiatives.