Koppers Q3 profit misses estimates on higher costs, cuts 2026 outlook

By Reuters News


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


Reuters Recommended Reads

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  • Nov 5 - Cabinet maker MasterBrand's Q3 sales miss on lower volume, inflation

  • Nov 4 - Owens Corning misses Q3 profit estimates on weak residential markets, low storm activity


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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