Koppers Holdings Inc. (KOP)
NYSE:KOP
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Koppers Holdings
(NYSE:KOP)
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Rating:60Neutral
Price Target:
$44.00
▲(16.74% Upside)
Action:ReiteratedDate: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
Consistent Cash Generation
Sustained operating cash flow above $100M demonstrates durable internal funding for capex, dividends and debt reduction. Reliable cash generation supports the company’s multi-year deleveraging targets and buyback/dividend programs, underwriting financial flexibility through cycles.
Negative Factors
Elevated Leverage
Leverage at ~3.4x constrains balance-sheet flexibility, increases interest and refinancing sensitivity, and limits the pace of strategic investment. Reducing net leverage to target levels is required to materially lower financial risk and improve capital allocation optionality over the next 2–3 years.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent Cash Generation
Sustained operating cash flow above $100M demonstrates durable internal funding for capex, dividends and debt reduction. Reliable cash generation supports the company’s multi-year deleveraging targets and buyback/dividend programs, underwriting financial flexibility through cycles.
Read all positive factors
Koppers Holdings (KOP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$810.42M
Dividend Yield1.19%
Average Volume (3M)156.62K
Price to Earnings (P/E)9.6
Beta (1Y)0.91
Revenue Growth-10.17%
EPS Growth14.35%
CountryUS
Employees2,082
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)2.87
Shares Outstanding19,337,229
10 Day Avg. Volume171,756
30 Day Avg. Volume156,624
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 Cap2.17
Enterprise Value/Revenue0.93
Enterprise Value/Gross Profit4.46
Enterprise Value/Ebitda6.21
Forecast
1Y Price Target
$55.00Price Target Upside45.93% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)4.2
Revenue Forecast (FY)$1.92B
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 ...
How the Company Makes Money
Koppers makes money primarily by manufacturing and selling (1) treated wood products and (2) chemicals and carbon materials, with revenue recognized from product sales to industrial customers and infrastructure-related end markets.
1) Treated Woo...
Koppers Holdings Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 08, 2026
Earnings Call Sentiment Neutral
Balanced/Neutral: The company demonstrated strong profitability resilience, safety improvements, disciplined capital allocation, and meaningful operational gains from the Catalyst program (delivering $46M in 2025 and raising the multi-year opportunity). However, revenue declines across businesses (notably PC and CMMC), tariff and raw-material (copper/coal tar) risks, supplier exits, and customer pullbacks in the railroad market present material near-term risks. Management provided constructive 2026 guidance and targets meaningful free cash flow and margin expansion, but execution and external macro/tariff factors create significant downside risks in the near term.Positive Updates
Strong Adjusted EBITDA and Margins
Full-year adjusted EBITDA of $256.7M (reported $257M) with a 13.7% adjusted EBITDA margin — management noted this is the second-highest year on record (and a new as-reported high watermark).
Negative Updates
Declining Revenue
Full-year consolidated sales fell to $1.9B, a 10% decrease from $2.1B in 2024. Q4 sales were $433M, down 9% year-over-year ($44M decline). Segment sales declines: PC down 17% (full year), CMMC down 18%, and RUPS down 2%.
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Q4-2025 Updates
Positive
Negative
Strong Adjusted EBITDA and Margins
Full-year adjusted EBITDA of $256.7M (reported $257M) with a 13.7% adjusted EBITDA margin — management noted this is the second-highest year on record (and a new as-reported high watermark).
Read all positive updates
Company Guidance
The company guided 2026 consolidated sales of $1.9–$2.0 billion (vs. $1.88B in 2025), adjusted EBITDA of $250–$270 million (2025: $257M; 2025 adj. EBITDA margin 13.7%), and adjusted EPS of $4.20–$5.00 (2025: $4.07), with CapEx ~ $55 million (flat vs. 2025) and a quarterly dividend of $0.09 ($0.36 annual, +13% vs. 2025). Management expects PC and RUPS to comprise ~80% of 2026 sales (moving toward an 85% target), Catalyst to deliver $20–$40M of benefits in 2026 and up to $75M over 2026–2028 (after $46M realized in 2025), and cumulative free cash flow of ~$300M+ over the next three years; net debt was $881M with $383M liquidity (net leverage 3.4x) and a target leverage of 2–3x (below 2.5x longer‑term). First quarter should be the weakest; key risks include tariffs, end‑market softness, and Capture rates of Catalyst.Koppers Holdings Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
47
Neutral
Cash Flow
58
Neutral
| 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 | 374.20M | 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
Positive
37.69
Price Trends
36.45
Positive
32.46
Positive
30.95
Positive
Market Momentum
0.35
Positive
53.09
Neutral
54.54
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 37.69 is above the 20-day moving average (MA) of 37.41, above the 50-day MA of 36.45, and above the 200-day MA of 30.95, indicating a bullish trend. The MACD of 0.35 indicates Positive momentum. The RSI at 53.09 is Neutral, neither overbought nor oversold. The STOCH value of 54.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
62 Neutral | $8.82B | 76.21 | 1.59% | ― | -1.88% | ― | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | $810.42M | 9.60 | 10.45% | 1.19% | -10.17% | 14.35% | |
55 Neutral | $265.43M | -8.53 | 6.59% | ― | 4.00% | -29.31% | |
54 Neutral | $438.93M | -4.24 | -16.31% | 1.61% | -3.77% | -265.53% | |
52 Neutral | $75.46M | -597.73 | -1.07% | 1.33% | 5.55% | -120.30% | |
49 Neutral | $906.62M | -4.58 | -13.65% | 4.39% | -1.47% | -228.66% |
* Basic Materials Sector Average
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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.