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Koppers Holdings
(NYSE:KOP)
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Rating:50Neutral
Price Target:
$40.00
▼(-13.64% Downside)
Action:Reiterated
Date:09/07/26
The score is held back primarily by the sharp deterioration in TTM profitability (operating and net losses) alongside elevated leverage and a thinner equity base. Stronger operating and free cash flow provide an important offset, supporting resilience despite weaker earnings. Technicals are neutral and valuation is pressured by negative earnings and a low dividend yield.
Positive Factors
Strong Revenue Rebound
The sharp TTM revenue increase shows that Koppers is generating substantially greater sales across its business base. If supported by demand for treated wood and chemical products, this scale can improve operating leverage and provide a broader foundation for restoring profitability over the next several quarters.
Negative Factors
TTM Losses
The shift from consistently profitable annual periods to a TTM operating loss and net loss indicates a material deterioration in earnings quality. Continued losses could reduce internal funding, weaken confidence in the business model, and make the strong revenue rebound less valuable unless margins recover.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue Rebound
The sharp TTM revenue increase shows that Koppers is generating substantially greater sales across its business base. If supported by demand for treated wood and chemical products, this scale can improve operating leverage and provide a broader foundation for restoring profitability over the next several quarters.
Read all positive factors
Koppers Holdings (KOP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$759.87M
Dividend Yield0.87%
Average Volume (3M)166.04K
Price to Earnings (P/E)―
Beta (1Y)0.94
Revenue Growth-4.98%
EPS Growth-710.42%
CountryUS
Employees1,859
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)-4.62
Shares Outstanding18,911,568
10 Day Avg. Volume152,045
30 Day Avg. Volume166,042
Financial Highlights & Ratios
PEG Ratio0.87
Price to Book (P/B)0.94
Price to Sales (P/S)0.29
P/FCF Ratio7.97
Enterprise Value/Market Cap2.39
Enterprise Value/Revenue0.96
Enterprise Value/Gross Profit4.59
Enterprise Value/Ebitda46.07
Forecast
1Y Price Target
$57.00Price Target Upside23.06% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)4.05
Revenue Forecast (FY)$1.94B
Koppers Holdings Business Overview & Revenue Model
Company Description
Koppers Holdings Inc., established in 1988 and headquartered in Pittsburgh, Pennsylvania, operates as a global supplier of specialized treated wood products, wood preservation chemicals, and various carbon-based compounds. The company's reach exte...
How the Company Makes Money
Koppers makes money primarily by manufacturing and selling (1) treated wood products and services and (2) chemical products used to preserve wood and to serve other industrial uses. A major revenue stream comes from supplying railroad ties and rel...
Koppers Holdings Earnings Call Summary
Earnings Call Date:May 08, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Oct 30, 2026
Earnings Call Sentiment Neutral
The call presents a mixed but cautiously constructive picture. Near-term challenges include meaningful CMC underperformance, commodity-driven cost headwinds (oil and copper), a sizable one-time charge tied to the Stickney wind-down, and elevated net leverage (3.5x). Offsetting these negatives are record operating and free cash flow, strong Performance Chemicals volume and margin recovery, disciplined capital allocation (share buybacks, dividend increase, maintained $55M CapEx), measurable Catalyst transformation benefits, and clear expected long-term accretion from the Stickney consolidation (estimated $15M–$20M annual EBITDA improvement and $1.00–$1.20 EPS uplift). Management lowered FY EBITDA guidance modestly to reflect commodity impacts but reiterated pathway to 2028 targets. Overall, positives (cash generation, PC momentum, transformation savings, shareholder returns, and a credible long-term plan) roughly balance significant short-term headwinds and one-time charges.Positive Updates
Record Cash Generation
Q1 operating cash flow of $46.3M and free cash flow of $34.9M, both Q1 records; trailing twelve-month operating cash flow $192M and free cash flow $139M, also new highs; company expects 2026 to be an inflection point with even higher operating and free cash flow.
Negative Updates
CMC Segment Weakness
CMC Q1 sales $93M (-$8M, -7% YoY) and adjusted EBITDA collapsed to $1M from $10M prior-year; average pricing of major CMC products down 11% YoY while average coal tar costs were slightly higher; carbon pitch prices down ~9% globally.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Cash Generation
Q1 operating cash flow of $46.3M and free cash flow of $34.9M, both Q1 records; trailing twelve-month operating cash flow $192M and free cash flow $139M, also new highs; company expects 2026 to be an inflection point with even higher operating and free cash flow.
Read all positive updates
Company Guidance
Koppers reiterated 2026 guidance of consolidated sales of $1.9–$2.0 billion (vs $1.88B in 2025), adjusted EBITDA of $240–$260 million (vs $257M in 2025), and adjusted EPS of $3.80–$4.60 (vs $4.70 in 2025), with gross capital spending of $55 million; management expects Catalyst to deliver a minimum of $90 million of benefits from 2026–2028 (with $30–$40M in 2026) and is targeting longer‑term goals of adjusted EBITDA >15%, a three‑year EPS CAGR >10%, net leverage below 2.5x (long‑term 2–3x), a three‑year free cash flow average ≥$100M, and PC+RUPS comprising 80–85%+ of sales. The planned Stickney wind‑down will generate pre‑tax charges of $227–$262M through 2029 (including $170–$195M non‑cash in Q2–Q3 2026) and $57–$67M of cash closure costs over three years, but is expected to free up $15–$25M of annual operating/capital cash benefits, yield $15–$20M of annual adjusted EBITDA savings in 2027+ (a 75–100 basis‑point margin uplift), drive $1.00–$1.20 of adjusted EPS accretion and reduce annual capex by $8–$15M. Quarterly and balance‑sheet metrics include Q1 operating cash flow $46.3M and free cash flow $34.9M (TTM $192M and $139M), available liquidity $386M, net debt $877M (net leverage 3.5x), about $45M remaining on a $100M repurchase authorization, and a quarterly dividend of $0.09 ($0.36 annual).Koppers Holdings Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
44
Neutral
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.89B | 1.88B | 2.09B | 2.15B | 1.98B | 1.68B |
| Gross Profit | 396.70M | 447.80M | 422.60M | 424.50M | 344.60M | 334.10M |
| EBITDA | 39.50M | 220.90M | 247.70M | 250.40M | 191.30M | 185.20M |
| Net Income | -86.90M | 56.00M | 52.40M | 89.20M | 63.40M | 85.20M |
Balance Sheet | ||||||
| Total Assets | 1.72B | 1.89B | 1.89B | 1.84B | 1.71B | 1.66B |
| Cash, Cash Equivalents and Short-Term Investments | 40.70M | 38.00M | 43.90M | 66.50M | 33.30M | 45.50M |
| Total Debt | 1.00B | 1.02B | 1.02B | 930.70M | 904.50M | 875.10M |
| Total Liabilities | 1.34B | 1.31B | 1.40B | 1.33B | 1.31B | 1.25B |
| Stockholders Equity | 387.00M | 574.00M | 488.70M | 498.90M | 399.40M | 406.60M |
Cash Flow | ||||||
| Free Cash Flow | 138.70M | 67.50M | 42.00M | 25.60M | -3.00M | -22.00M |
| Operating Cash Flow | 191.00M | 122.50M | 119.40M | 146.10M | 102.30M | 103.00M |
| Investing Cash Flow | -55.80M | -72.70M | -173.30M | -116.00M | -114.80M | -89.50M |
| Financing Cash Flow | -132.50M | -58.50M | 35.70M | 2.60M | 4.80M | -4.00M |
Koppers Holdings Technical Analysis
Negative
46.32
Price Trends
45.28
Negative
45.96
Negative
41.12
Negative
Market Momentum
-1.34
Positive
26.88
Positive
11.85
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KOP, the sentiment is Negative. The current price of 46.32 is above the 20-day moving average (MA) of 43.92, above the 50-day MA of 45.28, and above the 200-day MA of 41.12, indicating a bearish trend. The MACD of -1.34 indicates Positive momentum. The RSI at 26.88 is Positive, neither overbought nor oversold. The STOCH value of 11.85 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KOP.
Koppers Holdings Risk Analysis
Koppers Holdings disclosed 40 risk factors in its most recent earnings report. Koppers Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Koppers Holdings Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $3.81B | 20.44 | 12.07% | 2.50% | -4.74% | -53.83% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
56 Neutral | $1.07B | -18.14 | -10.33% | 37.71% | 20.14% | -359.78% | |
50 Neutral | $759.87M | -8.70 | -16.91% | 0.87% | -4.98% | -710.42% | |
48 Neutral | $453.22M | -3.22 | -52.28% | 4.12% | -3.56% | 68.49% | |
48 Neutral | $308.05M | -3.15 | -24.91% | 1.52% | -1.02% | -734.16% | |
47 Neutral | $2.39B | 45.22 | 85.17% | ― | -12.42% | ― |
* Basic Materials Sector Average
KOP
Koppers Holdings
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.