Koppers Q3 profit misses estimates on higher costs, cuts 2026 outlook
Overview
U.S. treated wood products maker's Q3 sales rose 2.8% but missed analyst expectations
Adjusted EPS for Q3 declined 36% and missed analyst expectations
Company cut 2026 adjusted EPS and EBITDA outlook due to higher input costs
Outlook
Koppers lowers 2026 adjusted EBITDA forecast to $220-$225 mln from $240-$250 mln
Company now expects 2026 adjusted EPS of $3.10-$3.25, down from $3.80-$4.20
Koppers raises 2026 free cash flow outlook to $115-$135 mln from $110-$130 mln
Result Drivers
HIGHER RAW MATERIAL AND LOGISTICS COSTS - Co said increased raw material and logistics expenses offset benefits from volume growth and cost improvements, pressuring margins and earnings
SEGMENT PROFITABILITY MIX - Performance Chemicals segment delivered higher sales and adjusted EBITDA, while profitability declined in Railroad and Utility Products and Services and Carbon Materials and Chemicals
VOLUME GAINS IN PRESERVATIVES AND UTILITY POLES - Sales growth was driven by increased volumes in residential and industrial wood preservatives, Class I crossties, and U.S. utility poles
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Miss | $499.10 mln | $518.60 mln (4 Analysts) |
Q3 Adjusted EPS | Miss | $0.77 | $1.37 (4 Analysts) |
Q3 EPS | $0.75 | ||
Q3 Net Income | $14.70 mln |
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(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.)