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Koppers Lowers 2026 EBITDA View as Coal Tar Costs Bite
Koppers cut its adjusted EBITDA forecast to $240M-$250M after second-quarter profit fell 7.9%. The company accelerated a plant shutdown and raised its dividend.
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Koppers Holdings lowered its 2026 adjusted EBITDA forecast to $240 million–$250 million, citing higher coal tar and freight costs, management said during the earnings call. The company maintained its sales outlook of $1.9 billion to $2 billion.
Second-quarter sales rose 3% to $520 million. Adjusted EBITDA fell 7.9% to $71 million. The company reported a net loss because of non-cash charges tied to the planned Stickney, Illinois, facility changes.
The Railroad and Utility Products and Services segment posted sales of $246 million, down from $250 million. Adjusted EBITDA dropped to $26 million from $32 million. Higher raw-material costs and pricing concessions outweighed a 16% rise in utility pole volumes. Chairman and CEO Leroy Ball said the Florence crosstie facility consolidation should improve the segment's cost position for 2027.
Performance Chemicals painted a brighter picture. Sales rose 11% to $168 million. Adjusted EBITDA jumped 31% to $38 million. Ball said residential treated-wood demand was flat. Market-share gains and industrial demand lifted the segment. Elevated copper prices could require meaningful pricing actions in 2027 as copper hedges roll off, he added.
Carbon Materials and Chemicals sales edged up to $106 million. Adjusted EBITDA halved to $8 million. Coal tar costs rose 12% year over year and 15% sequentially. Oil prices added about $2.3 million in costs in the quarter, with another $4.6 million expected in the second half, Ball said.