Koppers Holdings Inc.

Reported first-quarter 2026 consolidated sales were $455 million, essentially flat versus the prior-year quarter. Adjusted EBITDA was $49.3 million, down from $56 million a year ago, and the adjusted EBITDA margin was 10.8% versus 12.2% last year. Operating profit was $22 million and adjusted EPS was $0.57. Operating cash flow was $46.3 million and free cash flow was $34.9 million, both first-quarter records; on a trailing twelve-month basis, operating cash flow was $192 million and free cash flow was $139 million, also new highs. For 2026, Koppers kept sales guidance at $1.9 billion to $2.0 billion but lowered adjusted EBITDA guidance to $240 million to $260 million from $257 million in 2025. Adjusted EPS guidance is $3.80 to $4.60 for 2026 versus $4.70 in 2025. Capital spending remains guided to $55 million for the year, and management said the quarterly dividend of $0.09 per share implies $0.36 per share for 2026 if maintained.

Leroy Ball framed the quarter as proof that Koppers is still progressing on its transformation, while acknowledging a painful decision to shut Stickney because the plant no longer had a credible path to viability. He said the move should improve reliability, free up capital, and ultimately be accretive to free cash flow, with annual adjusted EBITDA savings of $15 million to $20 million and EPS benefit of $1.00 to $1.20 per share at run rate. His tone was candid and matter-of-fact: he called the closure difficult for employees, but said it was the right step for customers, workers, and shareholders.

Brad Pearce highlighted the quarter’s operating performance and capital deployment, noting $49 million of adjusted EBITDA, a 10.8% margin, $11.4 million of capital expenditures, $29 million of buybacks, and $1.9 million of dividends. He said the company had $386 million in available liquidity and $877 million of net debt at March 31, with net leverage of 3.5 times and a stated long-term goal of reducing that ratio to 2 to 3 times. He also reiterated full-year gross capital spending of $55 million and said the board raised the quarterly dividend to $0.09 per share, up 12.5% from the prior year.

Analysts focused on the ability to pass through higher input costs, especially oil and copper, and management said price increases are generally workable but vary by business, with CMC pass-throughs often lagging by a quarter to six months while fuel surcharges can be handled more quickly. Questions also centered on the Stickney shutdown; management said Nyborg has excess capacity and the move is primarily a consolidation play that should improve reliability and cut fixed costs, not create a competitive disadvantage. On PC, management said the strong sales growth came from regained market share, plant conversions, and some customer inventory build, while also warning that cost recovery will depend on future pricing discussions.