Koppers Q4 adjusted EPS beats as cost focus helps margins

Reuters
Feb 26
Koppers Q4 adjusted EPS beats as cost focus helps margins

Overview

  • Treated wood provider's Q4 sales fell, missing analyst expectations

  • Adjusted EPS for Q4 beat analyst expectations

  • Company completed sale of railroad structures business

Outlook

  • Company forecasts 2026 net sales between $1.9 bln and $2.0 bln

  • Koppers expects 2026 adjusted EBITDA between $250 mln and $270 mln

  • Company projects 2026 adjusted EPS between $4.20 and $5.00

Result Drivers

  • COST ALIGNMENT - CEO Leroy Ball stated that aligning the cost structure with the evolving portfolio helped expand margins in two segments despite lower sales

  • CATALYST BENEFITS - The Catalyst transformation process generated $46 mln in benefits, offsetting lower profits from reduced market share and demand, per CEO Leroy Ball

  • FOREIGN CURRENCY IMPACT - Foreign currency changes had a $3.5 mln favorable impact on sales in the current year period

Company press release: ID:nPn110cMka

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Sales

Miss

$432.70 mln

$444.50 mln (3 Analysts)

Q4 Adjusted EPS

Beat

$0.70

$0.59 (3 Analysts)

Q4 EPS

$1.47

Q4 Net Income

$29.70 mln

Analyst Coverage

  • The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the commodity chemicals peer group is "buy."

  • Wall Street's median 12-month price target for Koppers Holdings Inc is $50.00, about 44.8% above its February 25 closing price of $34.52

  • The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 6 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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