Koppers Holdings (KOP) AI Stock Analysis

• Market Cap: $675.11M
• Dividend Yield: 1.19%
• Average Volume (3M): 156.62K
• Price to Earnings (P/E): 42.9
• Beta (1Y): 1.03
• Revenue Growth: -9.62%
• EPS Growth: -76.62%
• Country: US
• Employees: 2,082
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.70
• Shares Outstanding: 19,613,926
• 10 Day Avg. Volume: 171,756
• 30 Day Avg. Volume: 156,624
• PEG Ratio: 0.87
• Price to Book (P/B): 0.94
• Price to Sales (P/S): 0.29
• P/FCF Ratio: 7.97
• Enterprise Value/Market Cap: 2.47
• Enterprise Value/Revenue: 0.89
• Enterprise Value/Gross Profit: 4.95
• Enterprise Value/Ebitda: 7.55
• 1Y Price Target: $55.00
• Price Target Upside: 47.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 4.57
• Revenue Forecast (FY): $1.93B

• Rating: 60 Neutral
• Price Target: $36.00 ▼(-3.33% Downside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is driven by mixed fundamentals: solid operating margins and positive free cash flow are offset by leverage and weak net profitability. Technicals are a clear positive with an uptrend and strong momentum. Valuation is a meaningful headwind due to a high P/E and modest yield. Earnings call outlook is cautiously supportive but balanced by tariff/end-market and execution risks.

Positive Factors

Cash Generation

Consistent operating cash flow above $100M and positive free cash flow provide durable internal funding for debt reduction, dividends, buybacks, and transformation capex. Even with FCF down y/y, multi-year cash generation supports execution of strategic targets and resilience versus cyclical end markets.

Operating Profitability

Stable mid-to-high single-digit operating margins and robust adjusted EBITDA show the core manufacturing and chemicals businesses retain structural profitability. This operating leverage underpins sustainable cash flow and provides buffer against cyclical revenue dips when paired with disciplined cost management.

Catalyst Transformation & Portfolio Simplification

The Catalyst program is a structural initiative reducing cost base, simplifying the portfolio, and improving margins via $46M realized benefits and a larger $75M pipeline. Portfolio actions (including a business sale) and procurement moves enhance long-term competitiveness and operating efficiency.

Negative Factors

High Leverage

Elevated net leverage reduces financial flexibility and increases interest expense sensitivity, constraining capital allocation and M&A optionality. Achieving the stated 2–3x target will rely on sustained cash conversion and execution of cost saves, making balance-sheet repair a multi‑period priority that affects strategic choices.

Declining Revenue & Market Share

Material top-line declines and notable volume losses in key segments indicate structural demand weakness or competitive share loss. Persistent revenue erosion undermines operating leverage, limits scale benefits from fixed costs, and makes margin and ROE recovery harder even with cost programs.

Input Cost & Tariff Exposure

Significant commodity and tariff exposure creates sustained margin volatility because contract passthroughs can lag or be incomplete. Higher feedstock costs and regulatory uncertainty increase execution risk for pricing, compress margins over multiple quarters, and complicate forecasting and long-term contract negotiations.

Koppers Holdings Business Overview & Revenue Model

Company Description

Koppers Holdings Inc. provides treated wood products, wood preservation chemicals, and carbon compounds in the United States, Australasia, Europe, and internationally. The company operates through three segments: Railroad and Utility Products and Services (RUPS), Performance Chemicals (PC), and Carbon Materials and Chemicals (CMC). The RUPS segment procures and treats crossties, switch ties, and various types of lumber used for railroad bridges and crossings. It also provides rail joint bars to join rails together for railroads; transmission and distribution poles for electric and telephone utilities; and pilings. This segment also provides railroad services, such as engineering, design, repair, and inspection services for railroad bridges. The PC segment develops, manufactures, and markets copper-based wood preservatives, including micronized copper azole, micronized pigments, alkaline copper quaternary, amine copper azole, and chromated copper arsenate for decking, fencing, utility poles, construction lumber and timbers, and various agricultural uses; and supplies fire-retardant chemicals for pressure treatment of wood primarily in commercial construction. The CMC segment manufactures creosote for the treatment of wood or as a feedstock in the production of carbon black; carbon pitch, a raw material used in the production of aluminum and steel; naphthalene for use as a feedstock in the production of phthalic anhydride and as a surfactant in the production of concrete; phthalic anhydride for the production of plasticizers, polyester resins, and alkyd paints; and carbon black feedstock for use in the production of carbon black. The company serves the railroad, specialty chemical, utility, residential lumber, agriculture, aluminum, steel, rubber, and construction industries. Koppers Holdings Inc. was founded in 1988 and is headquartered in Pittsburgh, Pennsylvania.

How the Company Makes Money

Koppers Holdings generates revenue primarily through the sale of treated wood products and chemical solutions. Key revenue streams include the sale of railroad ties, utility poles, and various wood preservation chemicals. The Railroad and Utility Products segment constitutes a significant portion of the company's earnings, driven by consistent demand from the transportation and utility sectors. Additionally, Koppers benefits from partnerships with major railroads and utility companies, which provide a stable customer base. The Performance Chemicals segment also contributes to revenue through the sale of specialty chemicals, which are used in various applications across different industries. Overall, Koppers' focus on innovation, sustainability, and strategic partnerships plays a crucial role in enhancing its revenue-generating capabilities.

Koppers Holdings Financial Statement Overview

Summary

Operating profitability and cash generation are supportive (TTM gross margin ~21.9%, operating margin ~9.5%, positive FCF ~$67.5M), but results are held back by revenue decline (TTM revenue -2.3%), very thin TTM net margin (~0.8%), and a leveraged balance sheet (debt-to-equity ~1.88; ROE ~3.1%).

Income Statement

TTM (Trailing-Twelve-Months) revenue declined (-2.3%) after a soft 2024, and profitability remains thin at the bottom line (TTM net margin ~0.8%). Offsetting this, operating profitability is relatively steady with a solid TTM gross margin (~21.9%) and mid-single to high-single operating margin (~9.5%), indicating the core business remains meaningfully profitable even as net income is pressured.

Balance Sheet

Leverage is the key constraint: TTM debt-to-equity is ~1.88 (still elevated, though improved from 2024). Equity has grown versus 2024, but returns have weakened materially (TTM return on equity ~3.1% vs. ~10.7% in 2024), suggesting profitability is not currently strong enough relative to the capital base and debt load.

Cash Flow

Cash generation is a relative strength: TTM operating cash flow is ~$122.5M and free cash flow is positive (~$67.5M). However, free cash flow fell sharply versus the prior period (TTM free cash flow growth ~-29%), and cash conversion is only moderate, with operating cash flow running at ~0.59x of net income and free cash flow at ~0.63x of net income.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.88B	2.09B	2.15B	1.98B	1.68B
Gross Profit	0.00	422.60M	424.50M	344.60M	334.10M
EBITDA	220.90M	243.30M	250.40M	191.30M	185.20M
Net Income	56.00M	52.40M	89.20M	63.40M	85.20M
Balance Sheet
Total Assets	1.89B	1.89B	1.84B	1.71B	1.66B
Cash, Cash Equivalents and Short-Term Investments	38.00M	43.90M	66.50M	33.30M	45.50M
Total Debt	1.02B	1.02B	930.70M	904.50M	875.10M
Total Liabilities	1.31B	1.40B	1.33B	1.31B	1.25B
Stockholders Equity	574.00M	488.70M	498.90M	399.40M	406.60M
Cash Flow
Free Cash Flow	67.50M	42.00M	25.60M	-3.00M	-22.00M
Operating Cash Flow	122.50M	119.40M	146.10M	102.30M	103.00M
Investing Cash Flow	-72.70M	-173.30M	-116.00M	-114.80M	-89.50M
Financing Cash Flow	-58.50M	35.70M	2.60M	4.80M	-4.00M

Koppers Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 37.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KOP, the sentiment is Positive. The current price of 37.24 is above the 20-day moving average (MA) of 33.11, above the 50-day MA of 30.13, and above the 200-day MA of 29.94, indicating a bullish trend. The MACD of 1.62 indicates Negative momentum. The RSI at 77.44 is Negative, neither overbought nor oversold. The STOCH value of 67.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KOP.

Koppers Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HDSN	69 Neutral	$306.18M	14.31	8.75%	―	-4.24%	-23.16%
SSL	67 Neutral	$5.73B	41.96	1.55%	―	-6.73%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
KOP	60 Neutral	$675.11M	42.90	2.99%	1.19%	-9.62%	-76.62%
NTIC	57 Neutral	$83.06M	-259.94	0.02%	1.33%	-0.97%	-99.67%
KRO	47 Neutral	$683.42M	-16.37	-5.00%	4.39%	<0.01%	-143.88%
OEC	46 Neutral	$313.44M	-4.53	-7.24%	1.61%	-4.31%	-206.57%

Koppers Holdings Corporate Events

Koppers Appoints Bradley Pearce as Interim Chief Financial Officer

On January 5, 2026, Koppers Chief Financial Officer Jimmi Sue Smith retired from the CFO role, although she will remain treasurer and serve in an advisory capacity through February 28, 2026 to facilitate an orderly handover. Smith, who became CFO in January 2022 after joining the company shortly before the COVID-19 pandemic, is credited with helping stabilize Koppers during a volatile period, optimizing its capital structure, driving free cash flow improvements and leading major financing transactions that extended debt maturities and strengthened liquidity, moves that have supported increased returns to shareholders. In conjunction with her retirement, long-time executive Bradley Pearce, the company’s Chief Accounting Officer since 2019, was appointed interim Chief Financial Officer and Chief Accounting Officer effective January 5, 2026, with the board adjusting his compensation to reflect the expanded responsibilities while Koppers conducts an external search for a permanent finance chief, signaling a continuity-focused transition for investors and other stakeholders.

The most recent analyst rating on (KOP) stock is a Hold with a $29.00 price target. To see the full list of analyst forecasts on Koppers Holdings stock, see the KOP Stock Forecast page.