KOP Q2 2026 - Preliminary Earnings Alert
Event: Quartr Q2 2026 event Retrieved: 2026-08-06T12:50:00Z Comparison mode: maximal Scorecard contract: v1 Source status: release=available | financials=earnings release only | transcript=not yet available (call 2026-08-06 15:00Z)
Consensus scorecard
| Metric / basis | Quartr actual | API Ninjas consensus | Beat/Miss | Beat/Miss % |
|---|---|---|---|---|
| Revenue / consolidated net sales | $520.100m | $506.100m | Beat +$14.000m | +2.8% |
| EPS / adjusted diluted | $1.37 | $1.12 | Beat +$0.25 | +22.3% |
- Consensus scorecard, bulleted equivalent:
- Revenue / consolidated net sales: Quartr actual $520.100m against API Ninjas consensus $506.100m - Beat +$14.000m, +2.8%.
- EPS / adjusted diluted: Quartr actual $1.37 against API Ninjas consensus $1.12 - Beat +$0.25, +22.3%.
Reported results and guidance
| Metric ($m unless noted) | Q2 2026 | Q2 2025 | Change |
|---|---|---|---|
| Net sales | $520.1 | $504.8 | +3.0% |
| Cost of sales | $411.1 | $390.6 | +5.2% |
| Cost of sales as a percentage of net sales | 79.0% | 77.4% | +166 bps |
| Depreciation and amortization | $17.9 | $18.0 | −0.6% |
| Selling, general and administrative | $40.9 | $39.5 | +3.5% |
| Impairment and restructuring | $215.8 | $17.6 | +1,126% |
| Loss (gain) on sale of assets | $0.4 | $0.0 | new charge |
| Operating (loss) profit | $(166.0) | $39.1 | to a loss |
| Other income, net | $1.0 | $2.1 | −52.4% |
| Interest expense | $15.0 | $17.3 | −13.3% |
| Loss on pension settlement | $0.0 | $0.0 | unchanged |
| (Loss) income before income taxes | $(180.0) | $23.9 | to a loss |
| Income tax (benefit) provision | $(32.5) | $7.5 | to a benefit |
| Net (loss) income | $(147.5) | $16.4 | to a loss |
| EPS, basic | $(7.71) | $0.83 | to a loss |
| EPS, diluted | $(7.71) | $0.81 | to a loss |
| Adjusted net income | $27.1 | $29.9 | −9.4% |
| Adjusted EPS | $1.37 | $1.48 | −7.4% |
| Adjusted EBITDA | $71.0 | $77.1 | −7.9% |
| Adjusted EBITDA margin | 13.7% | 15.3% | −162 bps |
| Weighted average shares, basic (thousands) | 19,128 | 19,883 | −3.8% |
| Weighted average shares, diluted (thousands) | 19,128 | 20,235 | −5.5% |
| Diluted shares used for adjusted EPS (thousands) | 19,729 | 20,235 | −2.5% |
- Q2 income statement, bulleted equivalent (Q2 2026 vs Q2 2025): net sales $520.1m vs $504.8m (+3.0%); cost of sales $411.1m vs $390.6m (+5.2%), or 79.0% versus 77.4% of net sales; depreciation and amortization $17.9m vs $18.0m; selling, general and administrative $40.9m vs $39.5m (+3.5%); impairment and restructuring $215.8m vs $17.6m; loss on sale of assets $0.4m vs nil; operating result $(166.0)m against a $39.1m profit; other income net $1.0m vs $2.1m; interest expense $15.0m vs $17.3m (−13.3%); no pension settlement loss in either quarter; pre-tax result $(180.0)m against $23.9m of income; income tax a $(32.5)m benefit against a $7.5m provision; net result $(147.5)m against $16.4m of income; basic EPS $(7.71) vs $0.83 and diluted EPS $(7.71) vs $0.81; adjusted net income $27.1m vs $29.9m (−9.4%) and adjusted EPS $1.37 vs $1.48 (−7.4%); adjusted EBITDA $71.0m vs $77.1m (−7.9%) at a 13.7% versus 15.3% margin; basic shares 19,128 thousand vs 19,883 thousand and diluted shares 19,128 thousand vs 20,235 thousand, with 19,729 thousand diluted shares used for the adjusted per-share calculation.
| Six-month item ($m unless noted) | 6M 2026 | 6M 2025 | Change |
|---|---|---|---|
| Net sales | $975.4 | $961.3 | +1.5% |
| Cost of sales | $779.8 | $741.3 | +5.2% |
| Depreciation and amortization | $37.3 | $36.0 | +3.6% |
| Selling, general and administrative | $82.6 | $80.6 | +2.5% |
| Impairment and restructuring | $223.6 | $37.6 | +495% |
| Loss (gain) on sale of assets | $(3.9) | $(0.3) | gain grew $3.6 |
| Operating (loss) profit | $(144.0) | $66.1 | to a loss |
| Other income, net | $1.9 | $3.5 | −45.7% |
| Interest expense | $30.0 | $33.9 | −11.5% |
| Loss on pension settlement | $0.0 | $29.0 | charge removed |
| (Loss) income before income taxes | $(172.1) | $6.7 | to a loss |
| Income tax (benefit) provision | $(31.7) | $4.2 | to a benefit |
| Net (loss) income | $(140.4) | $2.5 | to a loss |
| EPS, basic | $(7.26) | $0.13 | to a loss |
| EPS, diluted | $(7.26) | $0.12 | to a loss |
| Adjusted net income | $38.5 | $44.5 | −13.5% |
| Adjusted EPS | $1.93 | $2.18 | −11.5% |
| Adjusted EBITDA | $120.3 | $132.6 | −9.3% |
| Adjusted EBITDA margin | 12.3% | 13.8% | −146 bps |
| Operating cash flow | $96.3 | $27.8 | +246% |
| Capital expenditures | $23.7 | $26.4 | −10.2% |
| Free cash flow | $72.6 | $1.4 | +5,086% |
- Six-month results, bulleted equivalent (6M 2026 vs 6M 2025): net sales $975.4m vs $961.3m (+1.5%); cost of sales $779.8m vs $741.3m (+5.2%); depreciation and amortization $37.3m vs $36.0m; selling, general and administrative $82.6m vs $80.6m; impairment and restructuring $223.6m vs $37.6m; a $(3.9)m gain on asset sales against $(0.3)m; operating result $(144.0)m against $66.1m; other income net $1.9m vs $3.5m; interest expense $30.0m vs $33.9m; no pension settlement loss against $29.0m; pre-tax result $(172.1)m against $6.7m; income tax a $(31.7)m benefit against a $4.2m provision; net result $(140.4)m against $2.5m; basic EPS $(7.26) vs $0.13 and diluted EPS $(7.26) vs $0.12; adjusted net income $38.5m vs $44.5m and adjusted EPS $1.93 vs $2.18; adjusted EBITDA $120.3m vs $132.6m at a 12.3% versus 13.8% margin; operating cash flow a record $96.3m vs $27.8m; capital expenditures $23.7m vs $26.4m; free cash flow a record $72.6m vs $1.4m. Six-month basic shares were 19,338 thousand vs 20,123 thousand and diluted shares 19,338 thousand vs 20,456 thousand, with 19,935 thousand diluted shares used for the adjusted per-share calculation.
| Segment net sales ($m) | Q2 2026 | Q2 2025 | Change | 6M 2026 | 6M 2025 | Change |
|---|---|---|---|---|---|---|
| Railroad and Utility Products and Services | $245.9 | $250.4 | −1.8% | $465.9 | $485.4 | −4.0% |
| Performance Chemicals | $168.2 | $150.8 | +11.5% | $310.3 | $271.7 | +14.2% |
| Carbon Materials and Chemicals | $106.0 | $103.6 | +2.3% | $199.2 | $204.2 | −2.4% |
| Total | $520.1 | $504.8 | +3.0% | $975.4 | $961.3 | +1.5% |
| Segment adjusted EBITDA ($m) | Q2 2026 | Q2 2025 | Change | 6M 2026 | 6M 2025 | Change |
|---|---|---|---|---|---|---|
| Railroad and Utility Products and Services | $25.7 | $31.6 | −18.7% | $48.3 | $57.1 | −15.4% |
| Performance Chemicals | $37.7 | $28.7 | +31.4% | $63.5 | $48.8 | +30.1% |
| Carbon Materials and Chemicals | $7.6 | $16.8 | −54.8% | $8.5 | $26.7 | −68.2% |
| Total | $71.0 | $77.1 | −7.9% | $120.3 | $132.6 | −9.3% |
| Segment adjusted EBITDA margin on GAAP sales | Q2 2026 | Q2 2025 | 6M 2026 | 6M 2025 |
|---|---|---|---|---|
| Railroad and Utility Products and Services | 10.5% | 12.6% | 10.4% | 11.8% |
| Performance Chemicals | 22.4% | 19.0% | 20.5% | 18.0% |
| Carbon Materials and Chemicals | 7.2% | 16.2% | 4.3% | 13.1% |
- Segment detail, bulleted equivalent: Railroad and Utility Products and Services (RUPS) sales $245.9m vs $250.4m in the quarter (−1.8%) and $465.9m vs $485.4m over six months (−4.0%), with adjusted EBITDA $25.7m vs $31.6m (−18.7%) and $48.3m vs $57.1m (−15.4%) at 10.5% versus 12.6% and 10.4% versus 11.8% margins; Performance Chemicals (PC) sales $168.2m vs $150.8m (+11.5%) and $310.3m vs $271.7m (+14.2%), with adjusted EBITDA $37.7m vs $28.7m (+31.4%) and $63.5m vs $48.8m (+30.1%) at 22.4% versus 19.0% and 20.5% versus 18.0% margins; Carbon Materials and Chemicals (CMC) sales $106.0m vs $103.6m (+2.3%) and $199.2m vs $204.2m (−2.4%), with adjusted EBITDA $7.6m vs $16.8m (−54.8%) and $8.5m vs $26.7m (−68.2%) at 7.2% versus 16.2% and 4.3% versus 13.1% margins; group sales $520.1m vs $504.8m and $975.4m vs $961.3m, group adjusted EBITDA $71.0m vs $77.1m and $120.3m vs $132.6m.
| Q2 2026 net sales bridge versus prior-year quarter ($m) | Amount |
|---|---|
| Reported increase | $15.3 |
| 2025 acquisitions, divestitures and product line rationalizations, net | $(16.3) |
| Favorable currency conversion | $6.7 |
| Underlying increase | $24.9 |
| Underlying increase, percent | +5.1% |
- Net sales bridge, bulleted equivalent: reported net sales rose $15.3m, or 3.0%; excluding a net unfavorable $(16.3)m from 2025 acquisitions, divestitures and product line rationalizations and a favorable $6.7m currency conversion effect, net sales rose $24.9m, or 5.1%, driven primarily by Performance Chemicals and utility pole volumes and offset in part by unfavorable RUPS pricing and sales mix. Foreign currency was favorable by $1.0m in RUPS, $2.2m in PC and $3.5m in CMC.
| Adjusted EBITDA reconciliation ($m) | Q2 2026 | Q2 2025 | 6M 2026 | 6M 2025 | FY 2025 |
|---|---|---|---|---|---|
| Net (loss) income | $(147.5) | $16.4 | $(140.4) | $2.5 | $56.0 |
| Interest expense | $15.0 | $17.3 | $30.0 | $33.9 | $66.1 |
| Depreciation and amortization | $17.9 | $18.0 | $37.3 | $36.0 | $73.6 |
| Income tax (benefit) provision | $(32.5) | $7.5 | $(31.7) | $4.2 | $25.2 |
| Sub-total | $(147.1) | $59.2 | $(104.8) | $76.6 | $220.9 |
| Acquisition inventory step-up amortization | $0.5 | $0.0 | $0.8 | $0.0 | $0.0 |
| Amortization of cloud-based software implementation costs | $0.7 | $0.5 | $1.2 | $0.8 | $1.2 |
| Impairment, restructuring and plant closure costs | $215.8 | $17.6 | $223.6 | $37.6 | $51.9 |
| LIFO (benefit) | $(2.3) | $(0.7) | $(3.5) | $(2.5) | $(11.0) |
| Loss (gain) on sale of assets | $0.4 | $0.0 | $(3.9) | $(0.3) | $(0.4) |
| Mark-to-market commodity hedging losses (gains) | $3.0 | $(0.7) | $6.9 | $(9.8) | $(34.2) |
| Pension settlement and expense | $0.0 | $1.2 | $0.0 | $30.2 | $28.3 |
| Total adjustments | $218.1 | $17.9 | $225.1 | $56.0 | $35.8 |
| Adjusted EBITDA | $71.0 | $77.1 | $120.3 | $132.6 | $256.7 |
- Adjusted EBITDA reconciliation, bulleted equivalent: net result $(147.5)m, $16.4m, $(140.4)m, $2.5m and $56.0m for Q2 2026, Q2 2025, 6M 2026, 6M 2025 and FY 2025; plus interest expense $15.0m, $17.3m, $30.0m, $33.9m and $66.1m; plus depreciation and amortization $17.9m, $18.0m, $37.3m, $36.0m and $73.6m; plus income tax $(32.5)m, $7.5m, $(31.7)m, $4.2m and $25.2m; giving sub-totals of $(147.1)m, $59.2m, $(104.8)m, $76.6m and $220.9m. Adjustments are acquisition inventory step-up amortization $0.5m, nil, $0.8m, nil and nil; cloud-based software amortization $0.7m, $0.5m, $1.2m, $0.8m and $1.2m; impairment, restructuring and plant closure costs $215.8m, $17.6m, $223.6m, $37.6m and $51.9m; LIFO benefit $(2.3)m, $(0.7)m, $(3.5)m, $(2.5)m and $(11.0)m; loss (gain) on asset sales $0.4m, nil, $(3.9)m, $(0.3)m and $(0.4)m; mark-to-market commodity hedging $3.0m, $(0.7)m, $6.9m, $(9.8)m and $(34.2)m; and pension settlement and expense nil, $1.2m, nil, $30.2m and $28.3m. Total adjustments of $218.1m, $17.9m, $225.1m, $56.0m and $35.8m give adjusted EBITDA of $71.0m, $77.1m, $120.3m, $132.6m and $256.7m. The LIFO adjustment removes the entire LIFO impact and effectively presents results on a FIFO basis.
| Adjusted net income and adjusted EPS reconciliation ($m unless noted) | Q2 2026 | Q2 2025 | 6M 2026 | 6M 2025 | FY 2025 |
|---|---|---|---|---|---|
| Net (loss) income | $(147.5) | $16.4 | $(140.4) | $2.5 | $56.0 |
| Total pre-tax adjustments | $218.1 | $17.9 | $225.1 | $56.0 | $35.8 |
| Income tax on adjustments to pre-tax income | $(43.5) | $(4.4) | $(46.2) | $(14.0) | $(8.8) |
| Effect on adjusted net income | $174.6 | $13.5 | $178.9 | $42.0 | $27.0 |
| Adjusted net income | $27.1 | $29.9 | $38.5 | $44.5 | $83.0 |
| Diluted weighted average shares (thousands) | 19,729 | 20,235 | 19,935 | 20,456 | 20,405 |
| Diluted (loss) earnings per share | $(7.71) | $0.81 | $(7.26) | $0.12 | $2.74 |
| Adjusted earnings per share | $1.37 | $1.48 | $1.93 | $2.18 | $4.07 |
- Adjusted net income reconciliation, bulleted equivalent: net result $(147.5)m, $16.4m, $(140.4)m, $2.5m and $56.0m; plus total pre-tax adjustments of $218.1m, $17.9m, $225.1m, $56.0m and $35.8m; less income tax on those adjustments of $(43.5)m, $(4.4)m, $(46.2)m, $(14.0)m and $(8.8)m; giving a net effect of $174.6m, $13.5m, $178.9m, $42.0m and $27.0m and adjusted net income of $27.1m, $29.9m, $38.5m, $44.5m and $83.0m. On diluted share counts of 19,729 thousand, 20,235 thousand, 19,935 thousand, 20,456 thousand and 20,405 thousand, diluted EPS was $(7.71), $0.81, $(7.26), $0.12 and $2.74 and adjusted EPS was $1.37, $1.48, $1.93, $2.18 and $4.07.
| Balance sheet item ($m) | 30 Jun 2026 | 31 Dec 2025 | Change |
|---|---|---|---|
| Cash and cash equivalents | $40.7 | $38.0 | +7.1% |
| Accounts receivable, net | $205.7 | $158.7 | +29.6% |
| Inventories, net | $385.7 | $411.2 | −6.2% |
| Derivative contracts | $23.2 | $31.5 | −26.3% |
| Other current assets | $24.3 | $29.3 | −17.1% |
| Total current assets | $679.6 | $668.7 | +1.6% |
| Property, plant and equipment, net | $482.1 | $650.9 | −25.9% |
| Goodwill | $329.1 | $329.4 | −0.1% |
| Intangible assets, net | $96.6 | $106.7 | −9.5% |
| Operating lease right-of-use assets | $103.6 | $102.9 | +0.7% |
| Deferred tax assets | $7.2 | $7.0 | +2.9% |
| Other assets | $24.1 | $21.2 | +13.7% |
| Total assets | $1,722.3 | $1,886.8 | −8.7% |
| Accounts payable | $166.0 | $122.4 | +35.6% |
| Accrued liabilities | $91.8 | $72.6 | +26.4% |
| Current operating lease liabilities | $28.7 | $27.2 | +5.5% |
| Current maturities of long-term debt | $4.9 | $4.9 | unchanged |
| Total current liabilities | $291.4 | $227.1 | +28.3% |
| Long-term debt | $892.7 | $914.3 | −2.4% |
| Operating lease liabilities | $75.3 | $76.1 | −1.1% |
| Accrued postretirement benefits | $12.9 | $13.7 | −5.8% |
| Deferred tax liabilities | $7.4 | $43.7 | −83.1% |
| Other long-term liabilities | $55.6 | $37.6 | +47.9% |
| Total liabilities | $1,335.3 | $1,312.5 | +1.7% |
| Additional paid-in capital | $339.7 | $332.4 | +2.2% |
| Retained earnings | $395.0 | $539.4 | −26.8% |
| Accumulated other comprehensive loss | $(67.0) | $(61.4) | loss grew $5.6 |
| Treasury stock, at cost | $(281.0) | $(236.7) | +18.7% |
| Total Koppers shareholders' equity | $387.0 | $574.0 | −32.6% |
| Noncontrolling interests | $0.0 | $0.3 | eliminated |
| Total equity | $387.0 | $574.3 | −32.6% |
| Total liabilities and equity | $1,722.3 | $1,886.8 | −8.7% |
- Balance sheet, bulleted equivalent (30 Jun 2026 vs 31 Dec 2025): cash $40.7m vs $38.0m; accounts receivable net of a $4.6m versus $7.0m allowance $205.7m vs $158.7m (+29.6%); inventories net $385.7m vs $411.2m (−6.2%); derivative contracts $23.2m vs $31.5m; other current assets $24.3m vs $29.3m; total current assets $679.6m vs $668.7m; property, plant and equipment net of accumulated depreciation of $646.6m versus $465.4m at $482.1m vs $650.9m (−25.9%); goodwill $329.1m vs $329.4m; intangible assets net $96.6m vs $106.7m; operating lease right-of-use assets $103.6m vs $102.9m; deferred tax assets $7.2m vs $7.0m; other assets $24.1m vs $21.2m; total assets $1,722.3m vs $1,886.8m. Accounts payable $166.0m vs $122.4m; accrued liabilities $91.8m vs $72.6m; current operating lease liabilities $28.7m vs $27.2m; current maturities of long-term debt $4.9m in both; total current liabilities $291.4m vs $227.1m; long-term debt $892.7m vs $914.3m; non-current operating lease liabilities $75.3m vs $76.1m; accrued postretirement benefits $12.9m vs $13.7m; deferred tax liabilities $7.4m vs $43.7m; other long-term liabilities $55.6m vs $37.6m; total liabilities $1,335.3m vs $1,312.5m. Common stock $0.3m in both; additional paid-in capital $339.7m vs $332.4m; retained earnings $395.0m vs $539.4m; accumulated other comprehensive loss $(67.0)m vs $(61.4)m; treasury stock $(281.0)m vs $(236.7)m; total Koppers shareholders' equity $387.0m vs $574.0m; noncontrolling interests nil vs $0.3m; total equity $387.0m vs $574.3m; total liabilities and equity $1,722.3m vs $1,886.8m. Shares issued were 26,824,475 versus 26,213,052 and treasury shares 7,920,741 versus 6,757,247, so shares outstanding were 18,903,734 versus 19,455,805, a 2.8% reduction.
| Leverage | 30 Jun 2026 | 31 Dec 2025 |
|---|---|---|
| Long-term debt ($m) | $892.7 | $914.3 |
| Current maturities of long-term debt ($m) | $4.9 | $4.9 |
| Total debt ($m) | $897.6 | $919.2 |
| Cash and cash equivalents ($m) | $40.7 | $38.0 |
| Net debt ($m) | $856.9 | $881.2 |
| Total equity ($m) | $387.0 | $574.3 |
| Net debt / last-twelve-month adjusted EBITDA | 3.5x | 3.4x |
- Leverage, bulleted equivalent: long-term debt of $892.7m versus $914.3m plus current maturities of $4.9m in both periods gives total debt of $897.6m versus $919.2m; against cash of $40.7m versus $38.0m that is net debt of $856.9m versus $881.2m, a $24.3m reduction over six months, while total equity fell to $387.0m from $574.3m. Last-twelve-month adjusted EBITDA calculates to $244.4m at 30 June 2026 (FY 2025 of $256.7m less 6M 2025 of $132.6m plus 6M 2026 of $120.3m) and $256.7m at 31 December 2025, so net debt is 3.5 times and 3.4 times those measures respectively. These aggregates and ratios are calculated from the release's own figures; the company does not present a leverage table or a covenant measure in this release.
| Six-month cash flow ($m) | 6M 2026 | 6M 2025 |
|---|---|---|
| Net (loss) income | $(140.4) | $2.5 |
| Depreciation and amortization | $37.3 | $36.0 |
| Impairment and depreciation in impairment and restructuring | $209.7 | $18.0 |
| Stock-based compensation | $6.8 | $8.3 |
| Change in derivative contracts | $6.9 | $(9.8) |
| Non-cash interest expense | $1.9 | $1.9 |
| (Gain) on sale of assets | $(3.8) | $(1.0) |
| Insurance proceeds | $0.0 | $(2.2) |
| Deferred income taxes | $(36.7) | $1.0 |
| Pension settlement | $0.0 | $29.0 |
| Change in other liabilities | $(1.8) | $3.0 |
| Cloud-based software implementation costs, net of amortization | $0.2 | $(2.4) |
| Other - net | $(0.4) | $(1.4) |
| Accounts receivable | $(48.2) | $(14.1) |
| Inventories | $19.2 | $9.5 |
| Accounts payable | $44.5 | $(13.3) |
| Accrued liabilities | $5.0 | $(34.3) |
| Other working capital | $(3.9) | $(2.9) |
| Net cash provided by operating activities | $96.3 | $27.8 |
| Capital expenditures | $(23.7) | $(26.4) |
| Insurance proceeds | $0.0 | $2.2 |
| Sale of assets | $0.0 | $2.5 |
| Sale of business and divestitures | $0.5 | $(7.6) |
| Other investing activities | $0.8 | $(10.0) |
| Net cash used in investing activities | $(22.4) | $(39.3) |
| Borrowings of credit facility | $358.4 | $271.5 |
| Repayments of credit facility | $(379.4) | $(231.8) |
| Repayments of long-term debt | $(2.5) | $(2.5) |
| Issuances of common stock | $0.5 | $0.6 |
| Repurchases of common stock | $(43.9) | $(29.2) |
| Payment of debt issuance costs | $0.0 | $(2.1) |
| Dividends paid and return of capital to noncontrolling interests | $(3.8) | $(3.2) |
| Net cash (used in) provided by financing activities | $(70.7) | $3.3 |
| Effect of exchange rate changes on cash | $(0.5) | $2.7 |
| Net increase (decrease) in cash | $2.7 | $(5.5) |
| Cash at beginning of period | $38.0 | $43.9 |
| Cash at end of period | $40.7 | $38.4 |
- Cash flow, bulleted equivalent (6M 2026 vs 6M 2025): net result $(140.4)m vs $2.5m; depreciation and amortization $37.3m vs $36.0m; impairment and depreciation within impairment and restructuring $209.7m vs $18.0m; stock-based compensation $6.8m vs $8.3m; change in derivative contracts $6.9m vs $(9.8)m; non-cash interest expense $1.9m in both; gain on sale of assets $(3.8)m vs $(1.0)m; insurance proceeds nil vs $(2.2)m; deferred income taxes $(36.7)m vs $1.0m; pension settlement nil vs $29.0m; change in other liabilities $(1.8)m vs $3.0m; cloud-based software implementation costs net of amortization $0.2m vs $(2.4)m; other net $(0.4)m vs $(1.4)m; accounts receivable $(48.2)m vs $(14.1)m; inventories $19.2m vs $9.5m; accounts payable $44.5m vs $(13.3)m; accrued liabilities $5.0m vs $(34.3)m; other working capital $(3.9)m vs $(2.9)m; operating cash flow $96.3m vs $27.8m. Investing: capital expenditures $(23.7)m vs $(26.4)m; insurance proceeds nil vs $2.2m; sale of assets nil vs $2.5m; sale of business and divestitures $0.5m vs $(7.6)m; other investing $0.8m vs $(10.0)m; investing outflow $(22.4)m vs $(39.3)m. Financing: credit facility borrowings $358.4m vs $271.5m and repayments $(379.4)m vs $(231.8)m; long-term debt repayments $(2.5)m in both; common stock issuances $0.5m vs $0.6m; share repurchases $(43.9)m vs $(29.2)m; debt issuance costs nil vs $(2.1)m; dividends paid and return of capital to noncontrolling interests $(3.8)m vs $(3.2)m; financing outflow $(70.7)m against a $3.3m inflow. Foreign exchange effect $(0.5)m vs $2.7m; net change in cash $2.7m vs $(5.5)m, from $38.0m vs $43.9m to $40.7m vs $38.4m.
| 2026 guidance metric | 2026 current forecast | 2026 prior forecast | 2025 actual |
|---|---|---|---|
| Net sales | $1.9 - $2.0 billion | $1.9 - $2.0 billion | $1.9 billion |
| Adjusted EBITDA | $240 - $250 million | $240 - $260 million | $257 million |
| Effective tax rate on adjusted net income | 28 percent | 28 percent | 29 percent |
| Adjusted EPS | $3.80 - $4.20 | $3.80 - $4.60 | $4.07 |
| Operating cash flow | $165 - $185 million | $165 - $185 million | $123 million |
| Capital expenditures | $55 million | $55 million | $55 million |
| Free cash flow | $110 - $130 million | $110 - $130 million | $68 million |
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2026 guidance, bulleted equivalent: net sales $1.9bn-$2.0bn, unchanged from the prior forecast and against $1.9bn in 2025; adjusted EBITDA $240m-$250m, cut at the top end from $240m-$260m, against $257m in 2025; effective tax rate on adjusted net income 28 percent, unchanged, against 29 percent; adjusted EPS $3.80-$4.20, cut at the top end from $3.80-$4.60, against $4.07; operating cash flow $165m-$185m, unchanged, against $123m; capital expenditures $55m, unchanged, and equal to 2025; free cash flow $110m-$130m, unchanged, against $68m. The company states it believes the more challenging margin environment will persist through the remainder of 2026, with overall profitability likely toward the lower end of previously stated guidance, that input costs and freight expenses are expected to remain headwinds, and that several working capital initiatives are anticipated to generate additional cash flow supporting the cash flow guidance. Koppers does not reconcile adjusted EBITDA, free cash flow or adjusted EPS guidance to GAAP measures, relying on the unreasonable efforts exception.
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Scorecard recap: net sales of $520.1m beat consensus by 2.8% and adjusted EPS of $1.37 beat the $1.12 estimate by 22.3%, while GAAP diluted EPS was $(7.71) after $215.8m of impairment, restructuring and plant closure costs.
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The full-year adjusted EBITDA guide was cut at the top end to $240m-$250m from $240m-$260m and adjusted EPS to $3.80-$4.20 from $3.80-$4.60; net sales, tax rate, operating cash flow, capital expenditure and free cash flow guidance were all left unchanged.
-
The company is accelerating the previously announced closure of its Carbon Materials and Chemicals plant at Stickney, Illinois, and advancing RUPS network optimization.
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Six-month operating cash flow of $96.3m and free cash flow of $72.6m are both company records, against $27.8m and $1.4m a year earlier.
-
The company returned $47.4m to shareholders in the half against $32.4m a year earlier, through $43.9m of share repurchases and quarterly dividends.
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CEO and Chair Leroy Ball said the company "made meaningful progress on the actions within our control while navigating continued pressure in certain markets," and on the forecast said near-term priorities "remain reducing debt and returning capital to shareholders."
-
The 11:00 a.m. Eastern call on 6 August 2026 has not yet been held and no Quartr transcript exists.
Key bullish aspects
- Net sales of $520.1m rose 3.0% year over year and beat consensus by 2.8%, and on an underlying basis - excluding a $(16.3)m net drag from 2025 acquisitions, divestitures and product line rationalizations and $6.7m of favorable currency - rose $24.9m, or 5.1%.
- Adjusted EPS of $1.37 beat the $1.12 consensus by 22.3%, the widest of the two scorecard beats.
- Performance Chemicals is compounding on both lines: sales rose 11.5% to $168.2m in the quarter and 14.2% to $310.3m over six months, with adjusted EBITDA up 31.4% to $37.7m and 30.1% to $63.5m and margin up to 22.4% from 19.0% in the quarter.
- The PC margin expansion is cost-driven as well as volume-driven: raw material costs fell $1.3m, helped by the copper-hedging program net of higher scrap copper costs.
- Six-month operating cash flow of $96.3m was a record and 3.5 times the prior-year $27.8m; free cash flow of $72.6m was also a record against $1.4m.
- The cash improvement is broad: inventories released $19.2m against $9.5m, accounts payable provided $44.5m against a $13.3m use, and accrued liabilities provided $5.0m against a $34.3m use.
- Net debt fell $24.3m over six months to $856.9m while the company simultaneously spent $43.9m on buybacks, so debt reduction and capital return were funded together out of cash flow.
- Interest expense fell 13.3% in the quarter to $15.0m and 11.5% over six months to $30.0m.
- Shares outstanding fell 2.8% over six months to 18,903,734, and the diluted share count used for adjusted EPS fell 2.5% year over year, so the 7.4% adjusted EPS decline is materially smaller than the 9.4% adjusted net income decline.
- Capital returned to shareholders rose 46% to $47.4m from $32.4m.
- Inventories fell 6.2% over six months to $385.7m against sales that rose 1.5%, so working capital is being taken out rather than built.
- Utility poles are growing volume strongly: domestic utility pole volumes rose 16 percent, including an acquired western U.S. pole procurement business, and crosstie volumes also increased.
- CMC sales rose 2.3% to $106.0m on volume and price increases for carbon black feedstock and volume increases for carbon pitch.
- Cash flow guidance was fully maintained - operating cash flow $165m-$185m, capital expenditure $55m and free cash flow $110m-$130m - against 2025 actuals of $123m, $55m and $68m, so the guided free cash flow is still roughly double last year.
- Capital expenditure guidance of $55m is unchanged and runs well below the $73.6m of 2025 depreciation and amortization.
- The impairment is non-cash: $209.7m of the $223.6m six-month impairment and restructuring charge is added back in the cash flow statement as impairment and depreciation.
- Six-month capital expenditure fell 10.2% to $23.7m while operating cash flow more than tripled.
Key bearish aspects
- The quarter produced a $(147.5)m net loss and $(7.71) of diluted EPS against $16.4m and $0.81 a year ago, on $215.8m of impairment, restructuring and plant closure costs.
- Full-year guidance was cut on the two earnings measures: adjusted EBITDA to $240m-$250m from $240m-$260m and adjusted EPS to $3.80-$4.20 from $3.80-$4.60, and the company says profitability is likely to be toward the lower end of previously stated guidance.
- Every profit measure fell despite higher sales: adjusted EBITDA −7.9% to $71.0m in the quarter and −9.3% to $120.3m over six months, adjusted net income −9.4% and −13.5%, adjusted EPS −7.4% and −11.5%.
- Adjusted EBITDA margin fell 162 basis points to 13.7% in the quarter and 146 basis points to 12.3% over six months.
- Cost of sales rose 5.2% on sales that rose 3.0%, taking cost of sales to 79.0% of net sales from 77.4%.
- CMC adjusted EBITDA collapsed 54.8% to $7.6m in the quarter and 68.2% to $8.5m over six months, with the six-month margin down to 4.3% from 13.1%, on $9.2m of higher raw material, operating and SG&A costs.
- RUPS, the largest segment, is shrinking on both lines: sales −1.8% to $245.9m in the quarter and −4.0% to $465.9m over six months, with adjusted EBITDA −18.7% and −15.4% and margin down to 10.5% from 12.6%.
- RUPS is taking price down, not up: the release cites price decreases across multiple markets, particularly for crossties, plus unfavorable sales mix, as drivers of both the sales and the adjusted EBITDA decline.
- Total equity fell 32.6% over six months to $387.0m while net debt is $856.9m, so net debt is now 2.2 times book equity.
- Net debt of $856.9m is 3.5 times last-twelve-month adjusted EBITDA as calculated from the release, up from 3.4 times at year end because the earnings base shrank faster than the debt.
- Accounts receivable rose 29.6% over six months to $205.7m and consumed $48.2m of cash against $14.1m a year earlier, so the record cash flow came despite, not because of, receivables.
- Property, plant and equipment net fell 25.9% to $482.1m and accumulated depreciation rose $181.2m, so a quarter of the net fixed asset base was written down.
- Retained earnings fell 26.8% to $395.0m in six months.
- Mark-to-market commodity hedging swung to a $6.9m six-month loss add-back from a $9.8m gain, a $16.7m adverse swing, and the FY 2025 add-back was a $34.2m gain, so the hedging tailwind of 2025 has reversed.
- Freight and legal costs are named among the drivers of the adjusted EBITDA decline alongside higher raw material costs and unfavorable RUPS pricing.
- The maintenance-of-way businesses declined, including approximately $11.9m of sales and $1.7m of adjusted EBITDA lost to the third-quarter 2025 sale of the railroad services business.
- Carbon pitch prices fell approximately two percent globally, driven by market dynamics particularly in Australasia, and phthalic anhydride and refined tar volumes fell.
- The favorable currency effect of $6.7m contributed 44% of the reported $15.3m sales increase.
- Adjusted EBITDA of $120.3m in the half against a $240m-$250m full-year guide requires $119.7m-$129.7m in the second half, against $124.1m delivered in the second half of 2025, so the guide implies no better than flat second-half earnings.
Key uncertainties
- The $215.8m of impairment, restructuring and plant closure costs is disclosed as a single line; the release does not split it between the Stickney plant closure, the RUPS network optimization and any other asset, nor between non-cash impairment and cash restructuring beyond the $209.7m non-cash portion shown in the six-month cash flow statement.
- The release does not state which segment or segments carry the impairment, so whether the write-down sits against CMC's Stickney assets alone or also against RUPS assets cannot be determined here.
- No cash cost, timing, headcount or expected annual savings figure is given for either the accelerated Stickney closure or the RUPS network optimization, so the earnings benefit that justifies the charge is not quantified.
- The Stickney closure is described as being accelerated, but no revised closure date or completion date is given.
- The adjusted EBITDA guidance cut of $10m at the top end and the adjusted EPS cut of $0.40 at the top end are not bridged to specific drivers, and the low ends are unchanged, so the implied second-half margin path is not disclosed.
- Operating cash flow guidance of $165m-$185m was maintained while earnings guidance was cut; the "several working capital initiatives" said to support it are not identified or sized.
- The effective tax rate on the quarterly loss is an 18.1% benefit and on the six-month loss an 18.4% benefit, both well below the 28 percent guided rate on adjusted net income, and the release does not explain the gap.
- Deferred tax liabilities fell from $43.7m to $7.4m and deferred income taxes contributed a $(36.7)m operating cash flow item; the release does not explain whether the impairment created a deductible temporary difference, a valuation allowance question or a cash tax consequence.
- Other long-term liabilities rose 47.9% over six months to $55.6m with no explanation.
- The copper-hedging program is credited with lowering PC raw material costs by $1.3m net of higher scrap copper, but no hedge position, tenor or coverage ratio is disclosed, so the durability of that benefit into the second half is not assessable.
- Mark-to-market commodity hedging produced a $6.9m six-month loss add-back after a $34.2m full-year 2025 gain add-back; the release does not disclose the underlying exposures or the mark at 30 June.
- The sales bridge attributes $(16.3)m to 2025 acquisitions, divestitures and product line rationalizations without splitting the acquisition contribution from the divestiture and rationalization drag, so the underlying organic figure inside the stated 5.1% cannot be isolated.
- The acquired western U.S. pole procurement business is named without a purchase price, revenue contribution or closing date.
- Accounts receivable rose $47.0m over six months on sales up 1.5%; the release does not say whether this is seasonal, mix-driven, or a collection issue, and the allowance for doubtful accounts fell to $4.6m from $7.0m over the same period.
- The investing section shows a $0.5m sale of business and divestitures line in 2026 against a $(7.6)m outflow in 2025, and a $0.8m other investing line against $(10.0)m; neither the 2025 outflows nor the 2026 inflows are explained in the release.
- No order book, backlog, crosstie procurement volume or utility pole order metric is disclosed, so the durability of the 16 percent utility pole volume gain and the crosstie price decline into the second half cannot be tested here.
- Noncontrolling interests fell to zero from $0.3m with no explanatory disclosure; the $47.4m of stated shareholder returns is $0.3m below the $47.7m sum of the buyback and the combined dividend-and-noncontrolling-interest cash flow line.
- The 11:00 a.m. Eastern call on 6 August 2026 has not been held and no Quartr transcript exists, so management's account of the impairment composition, the guidance cut, the RUPS pricing environment and the CMC cost inflation is not assessed at this stage.
Market context
- API Ninjas snapshot: KOP $51.03 on NYSE, volume 124,001, quote timestamped 2026-08-06T12:43:31Z, retrieved 2026-08-06T12:50:00Z. The release was published pre-market on 2026-08-06 and the call is at 11:00 a.m. Eastern; this is a single pre-market quote of unstated session basis, not a measured reaction to the release.
Source limitations
- Every actual above comes from the Quartr Q2 2026 earnings release document (3687219) attached to Quartr event 664029. Quartr standardized financials for this event are not populated, and no quarterly report or slide deck is attached to this event.
- API Ninjas supplied no actual or difference fields for this event, so each beat/miss is calculated locally as Quartr actual minus API Ninjas estimate. The API row carried no fiscal year or quarter and is dated 2026-08-06, matching the Quartr event date exactly, so the exact ticker-and-date match is the path used.
- Year-over-year percentage changes, margin-point changes, ratios and the leverage table are calculated from the release's own figures unless the release prints the figure itself; where both exist they agree.
- Last-twelve-month adjusted EBITDA of $244.4m used in the leverage table is calculated as FY 2025 adjusted EBITDA less the six months to June 2025 plus the six months to June 2026; the company does not publish a last-twelve-month or covenant leverage measure in this release.
- The condensed consolidated statements in this release are unaudited.
- Balance sheet comparatives are to 31 December 2025, the fiscal year end, not to the prior-year quarter; income statement, cash flow and segment comparatives are to the prior-year quarter or prior-year six months.
- Page 9 of the eleven-page document returned no extractable text, so any content on that page is not represented above.
- The document's text extraction separates several statement values from their labels. Every figure reproduced above was placed by an arithmetic check: the income statement foots from net sales to net loss and to each per-share figure in all four periods; total current assets, total assets, total current liabilities, total liabilities, total equity and total liabilities and equity all foot in both balance sheet periods; the adjusted EBITDA and adjusted net income reconciliations foot in all five periods; the segment tables foot to consolidated net sales and consolidated adjusted EBITDA in all four periods; the sales bridge foots to the $15.3m reported increase; and the cash flow statement's operating, investing and financing sections each foot to their stated subtotals and, with the exchange rate effect, to the net change in cash and the stated opening and closing balances in both periods.
- Two cash flow placements rest on that footing check alone and are stated here for transparency: the $0.5m versus $(7.6)m sale of business and divestitures pair and the $0.8m versus $(10.0)m other investing pair are assigned 2026 first and 2025 second, which is the only assignment that foots to both stated investing subtotals.
- The 2026 guidance table's row labels and value blocks were separated by extraction. The assignment above is confirmed by arithmetic: the 2025 actual operating cash flow of $123m less capital expenditures of $55m equals the stated $68m of free cash flow, and the current and prior forecast operating cash flow of $165m-$185m less $55m of capital expenditures equals the stated $110m-$130m of free cash flow.
- Adjusted EBITDA, adjusted net income, adjusted EPS and free cash flow are non-GAAP measures as defined by the company. The LIFO adjustment removes the entire impact of LIFO and effectively reflects results as if the company were on a FIFO inventory basis.
- The company does not reconcile its adjusted EBITDA, free cash flow or adjusted EPS guidance to comparable GAAP measures, relying on the unreasonable efforts exception.
- The 2025 actual net sales figure in the guidance table is stated by the company as "$1.9 billion" without further precision.
- Segment adjusted EBITDA margins are the company's own stated percentages of GAAP sales.
Source links
- Quartr Q2 2026 earnings release
- Quartr release headline results and CEO commentary page
- Quartr release segment performance and cash flow commentary page
- Quartr release 2026 outlook page
- Quartr release income statement page
- Quartr release balance sheet page
- Quartr release cash flow statement page
- Quartr release segment information and adjusted EBITDA reconciliation page
- Quartr release adjusted net income, adjusted EPS and free cash flow reconciliation page