Koppers Holdings Inc reported second-quarter sales of $520 million, a 3% increase year-over-year, driven by volume growth in Performance Chemicals and utility poles. Adjusted EBITDA reached $71 million, reflecting a 13.7% margin, while adjusted EPS came in at $1.37.

The company announced the accelerated closure of its Stickney facility, transitioning operations to Nyborg, Denmark, by September 30, 2026. This move is expected to generate annual adjusted EBITDA benefits of $15 million to $20 million. Despite top-line growth, profitability faced pressure from a 12% year-over-year rise in coal tar costs and higher freight expenses.

Segment performance and cost dynamics

Performance Chemicals led growth with sales rising 10% (excluding currency) to $168 million, supported by an 11% increase in Americas volumes. Adjusted EBITDA for this segment jumped 31% to $38 million. Conversely, Carbon Materials and Chemicals (CMC) saw adjusted EBITDA drop to $8 million from $17 million, as raw material and operating expenses rose by $9 million.

Railroad and Utility Products and Services (RUPS) recorded sales of $246 million, down slightly from $250 million, primarily due to the divestiture of the railroad services business. Volume growth in North American utility poles helped offset price concessions made to secure long-term contracts.

Cash flow and capital allocation

Operating cash flow for the first half of the year hit a record $96 million, compared to $28 million in the prior-year period. Free cash flow also reached a record $73 million, driven by working capital improvements and inventory alignment. The company returned $47 million to shareholders through dividends and share repurchases while reducing debt by $22 million.

Net debt stood at $857 million as of June 30, resulting in a net leverage ratio of 3.5 times. Management reiterated its goal to reduce this ratio to between 2 and 3 times over the long term. A quarterly dividend of $0.09 per share was declared, marking a 12.5% increase from the previous year.

What the numbers show

A divergence is evident between strong cash generation and declining segment profitability. While consolidated free cash flow doubled to a record $73 million due to working capital gains, CMC’s adjusted EBITDA fell by over 50% to $8 million. This indicates that current liquidity strength is partly fueled by balance sheet optimization rather than pure operational earnings expansion in the carbon materials sector.

Leadership changes and outlook

Koppers announced leadership realignments effective September 1, 2026. Stephanie Apostolu will serve as Chief Legal and Strategy Officer, overseeing the Catalyst transformation program. Jim Sullivan will focus specifically on restructuring efforts within the CMC segment.

For full-year FY26, the company expects sales between $1.9 billion and $2.0 billion. Adjusted EBITDA guidance was set at $240 million to $250 million, excluding special charges. Adjusted EPS is projected to range from $3.80 to $4.20 per share.

Koppers Holdings Inc. (NYSE: KOP) announced it will host an Investor Day on September 17, 2026, in Atlanta, Georgia. The event aims to update stakeholders on the company’s strategic direction and operational performance.

Event Schedule and Access

The Investor Day begins at 9 a.m. Eastern Time on Thursday, September 17, 2026. The management presentation will take place at the Kimpton Overland Atlanta Airport. Attendance at the in-person event is restricted to invited guests only.

Investors and other interested parties can view the presentation virtually. A live webcast featuring video, audio, and presentation slides will be available on www.koppers.com during the event. Virtual participants may also join the question-and-answer session following the presentation.

Pre-Event Activities

On Wednesday, September 16, 2026, the company’s management team will host an in-person tour. This pre-event activity focuses on the Performance Chemicals business and its research and development center located in Peachtree City, Georgia.

Materials and Archives

Presentation materials will be posted on the Investor Relations section of www.koppers.com at least 15 minutes before the webcast begins. An archived version of the full presentation will remain available on the company’s website after the event concludes.

About Koppers

Koppers is an integrated global provider of treated wood products, wood preservation technologies, and carbon compounds. The company employs approximately 1,800 people who produce essential infrastructure elements such as railroad crossties, utility poles, and production feedstocks for steel and aluminum industries.