Koppers Q3 profit misses estimates on higher costs, cuts 2026 outlook
KOP•Koppers' Q3 sales rose 2.8% to $499.1 million, while adjusted EPS fell 36% to $0.77; both missed estimates. The company cut its 2026 adjusted EBITDA outlook to $220 million-$225 million and adjusted EPS forecast to $3.10-$3.25, while raising its free cash flow outlook.
1. Quarterly results
Koppers reported Q3 sales of $499.1 million, up 2.8% but below the $518.6 million consensus estimate. Adjusted EPS fell 36% to $0.77, missing the $1.37 estimate; net income was $14.7 million and EPS was $0.75.
2. Outlook lowered
The company lowered its 2026 adjusted EBITDA forecast to $220 million-$225 million from $240 million-$250 million and its adjusted EPS outlook to $3.10-$3.25 from $3.80-$4.20. It raised its free cash flow outlook to $115 million-$135 million from $110 million-$130 million.
3. Costs pressure earnings
Koppers said higher raw material and logistics expenses offset benefits from volume growth and cost improvements. Performance Chemicals delivered higher sales and adjusted EBITDA, while profitability declined in Railroad and Utility Products and Services and Carbon Materials and Chemicals. Sales growth came from increased volumes in residential and industrial wood preservatives, Class I crossties, and U.S. utility poles.
