Koppers : Q1 FY26 Results

Published: 2026-05-08 10:01:09 ET KOP

Published on 05/08/2026 at 10:01 am EDT

CMC Facility at Stickney, Illinois: Discontinue Distillation and Chemical Manufacturing Operations*

Stickney, Illinois

Final Production by December 31, 2026*

Evaluating potentially appropriate uses for the Stickney facility following the end of production activities

# Employees: 85

Rationale:

Challenging market conditions

Operating costs outpacing ability to capture higher pricing

Reduced raw material supply from North

American steel manufacturers

Increased capital requirements

Estimated Benefits:

$15M-$20M annual adjusted EBITDA improvement

$1.00-$1.20 annual adjusted EPS benefit

$8M-$15M in reduced annual capital expenditures

Nyborg, Denmark

Targeting Q4 2026 for shifting production to coal tar

distillation facility located in Nyborg, Denmark

Working to ensure effective transition for existing pitch and creosote customers

Strengthened supply chain from Nyborg to U.S. through expanded shipping and terminal capabilities

Estimated Costs:

$170M-$195M in asset write-offs

$57M-$67M in cash closure costs over ~36 months

$10M-$15M in investments to further strengthen supply chain

* Conditional decision, subject to the satisfaction of any bargaining obligations that might exist with the union that represents certain employees at that facility.

HIGHLIGHTS

Key Takeaways: Q1 2026

$49.3M Adjusted EBITDA

10.8% Adjusted EBITDA Margin

$22.0M Operating Profit

$0.57 Adjusted Earnings Per Share

$46.3M Operating Cash Flow - Record Q1

$34.9M Free Cash Flow - Record Q1

Capital Deployed $11.4M $29.0M $1.9M

Capital Expenditures Share Repurchases Dividends

CATALYST TRANSFORMATION

Currently in Organizational Design Phase of Catalyst Transformation Process

Announced decision to discontinue distillation and chemical manufacturing operations at facility in Stickney, Illinois (projected closing December 2026)

2026-2028 Targets

Three-Year Adjusted

EPS CAGR >10%

Three-Year Cumulative

FCF >$300M

Mid-Teens Margin Run

Rate by 2028

Zero Harm Update: Q1 2026

2026 vs. 2025 2026 Key Goals

30 OUT OF 40

Accident-Free

Leading Activities Rate

35%

Our Path to Zero:

Reinforce Foundational Elements

Facilities Recordable

Injury Rate

12%

Deploy Additional

Tools & Training

Drive Environmental

Business Units with

Zero Recordables:

Europe CMC

Europe PC

Australasia PC

Australasia CMC

Serious Safety Incidents (1)

200%

Improvements

(1) Serious Safety Incidents in Q1 2026 consist of 3 cases involving property damage.

2025 Annual Report & 2026 Proxy Statement

Scan here to View our 2025 Annual Report

Scan here to View our Proxy Statement

Koppers Makes Newsweek's List of

America's Most Charitable Companies

Koppers ranked among the top 300 companies on Newsweek's

inaugural Most Charitable Companies list

Companies were selected through a survey of more than 18,000

U.S. respondents, social listening across news and online sources, and analysis of key performance indicators (including CSR/ESG reporting).

We believe consistent promotion of employees' commitment to volunteerism across social channels, combined with a robust community section in the CSR, contributed to Koppers' inclusion.

This latest accolade adds to Koppers growing list of external recognitions, including America's Most Responsible Companies List, USA Today's America's Climate Leaders List and TIME's America's Best Mid-Size Companies.

Koppers Celebrates 20 Years on the NYSE

Koppers celebrated 20 years as a publicly traded company on the New York Stock Exchange

On March 30, members of the leadership team had the chance to ring the Closing Bell

CEO Leroy Ball also participated in an interview on the financial news program Taking Stock

Click here to watch the Closing Bell

Click here to watch Taking Stock

https://www.koppers.com

Wednesday, September 16

Tour of Performance Chemicals Research & Development Lab 12 p.m. Eastern Time Transportation will be provided

Executive Meet & Greet Reception

6 p.m. Eastern Time

Porsche Experience Center Atlanta

Thursday, September 17

Management Presentation Thursday, September 17, 2026 9 a.m. - 11:30 a.m. Eastern Time Kimpton Overland Atlanta Airport https://www.kimptonoverlandhotel.com

Q1 2026: Sales by Segment (Unaudited)

Sales vs. Prior Year

$ in Millions

Q1 2026

Q1 2025

Q1 2026

Q1 2025

TOTAL

CMC

Q1 2025

Q1 2026

Q1 2025

Q1 2026

$93

-7.4%

$142

17.5%

$220

-6.4%

$455

-0.3%

RUPS

$101

$121

$235

$457

$600

$500

$400

$300

$200

$100

Q1 2026: Adjusted EBITDA by Segment (Unaudited)

Adjusted EBITDA $ and % vs. Prior Year

1.0%

Q1 2026

Q1 2025

Q1 2026

Q1 2025

TOTAL

CMC

Q1 2025

Q1 2026

Q1 2025

Q1 2026

$10

9.8%

$20

$23

16.6%

$26

10.3%

18.2%

10.9%

$49

10.8%

$56

12.2%

RUPS

$ in Millions

$60

$50

$40

$30

$20

$10

Q1 2026 RUPS Segment

RAILROAD AND UTILITY PRODUCTS AND SERVICES

Sales (Unaudited)

$ in Millions

Adjusted EBITDA (Unaudited)

$ in Millions

$250

$225

$200

$220

$235

Highlights

Decrease in sales driven by:

Customer mix in Class I crosstie business

$30

$25

$26

Highlights

Profitability was lower due

primarily to:

$175

Lower activity in maintenance-

of-way businesses, including

$20

$23

Lower net sales prices

$150

$125

$9.6M from sale of railroad services (Q3 2025)

Price decreases in multiple

$15

Lower sales volumes

$100

$75

markets, particularly crossties

Partly offset by higher volumes in domestic utility poles, including western procurement

$10

$50

$25

acquisition; higher volumes in

commercial crosstie business;

$1.4M in favorable foreign

Q1 2026

Q1 2025

currency changes, mainly from

utility pole business in Australia

Q1 2026

Q1 2025

Q1 2026 PC Segment

PERFORMANCE CHEMICALS

Sales (Unaudited)

Highlights

Increase in sales was primarily due to:

15% volume increase along with higher sales prices primarily in the Americas

$2.7M in favorable foreign

currency changes

$ in Millions

Adjusted EBITDA (Unaudited)

$ in Millions

$150

$125

$100

$75

$25

Highlights

Profitability was higher due to:

Higher sales volumes

Higher sales prices

Partly offset by $2.4M of higher raw material and operating costs

o Higher raw material costs unfavorably impacted by scrap copper costs, net of benefit realized from copper-hedging program

$26

$20

$15

$50

$25

$10

$142

$121

Q1 2026 Q1 2025

Q1 2026 CMC Segment

CARBON MATERIALS AND CHEMICALS

Sales (Unaudited)

$ in Millions

Adjusted EBITDA (Unaudited)

$ in Millions

$100

Highlights

$10

Highlights

$90

$93

$101

Lower sales were primarily

driven by:

$10

Profitability decreased due to:

Lower sales prices

$80

$13.9M in lower phthalic

Higher operating and raw

$70

anhydride volumes due to

discontinuation of product

material costs

Partly offset by cost savings

$60

Lower sales prices across most

from ceasing production of

$50

$40

$30

products, especially carbon

pitch where prices were down

~9% globally driven by market dynamics

Partly offset by volume

phthalic anhydride

Compared with Q4 2025, average pricing of major products declined by 3% and average coal tar costs decreased by 3%

$20

$10

Q1 2026

Q1 2025

increases for carbon pitch,

naphthalene and carbon black feedstock; $7.6M in favorable foreign currency changes

Q1 2026

Q1 2025

Compared with Q1 2025, average pricing of major products was lower by 11% and average coal tar costs were higher by 1%

$110

Uses of Cash: Balanced Approach

Investing in Our Future

Quarterly Dividend

$11.4M capital expenditures in Q1 2026 (net)

Expect $55M total capital expenditures

(gross) in 2026

On May 7, Board of Directors declared quarterly dividend of $0.09 per share

Share Repurchase

Reducing Leverage(1)

$29M of share repurchases in Q1 2026, including tax withholdings

$100M share repurchase program with

$45M remaining

$877M net debt and $386M liquidity at 3/31/26

3.5x net leverage at 3/31/26

Long-term target of 2x-3x net leverage ratio

Disciplined Capital Allocation Strategy

Net Leverage Ratio is calculated as net debt divided by adjusted EBITDA for the latest twelve-month period. Net debt represents total debt less cash at the end of a quarter. Net debt, liquidity, and operating cash flow will fluctuate before, after and throughout the related period based upon the timing of receipts and payables.

Q1 2026 Capital Expenditures

($ in Millions)

CapEx by Business Unit

Maintenance

Zero Harm

Growth & Productivity

Year-to-Date

Total

RUPS

$4.9

$0.3

$0.2

$5.4

0.4

2.1

0.3

2.8

CMC

1.8

1.0

0.2

3.0

Corporate

0.2

---

0.2

Total

$7.3

$3.4

$0.7

$11.4

Less: Cash proceeds from asset sales and insurance proceeds

---

Capital Expenditures, Net

$11.4

Declaring Quarterly Cash Dividend

May May June

5.7.26

Dividend Declaration

5.29.26

Record Date

6.15.26

Payment Date

The Board of Directors approved a quarterly dividend of $0.09 per share of Koppers common stock. At this quarterly dividend rate, the annual dividend is

$0.36 per share for 2026, a 12.5 percent increase over 2025.

State of the Business

PC: PERFORMANCE CHEMICALS

2026 Market Outlook (Prior):

Market share capture in both residential and industrial markets support an 11% expected increase in sales revenue

External indicators and customer sentiment range from

neutral to slightly positive for base sales activity

Existing home sales activity remains flat to slightly down, with January existing home sales down 8%

Average mortgage rates at 6.2%-6.3% in Q4, down from earlier in 2025; currently ~6% and expected to moderate slightly in near term

Leading Indicator of Remodeling Activity (LIRA) projects YoY growth in home renovation and repair spending will be 2.9% in early 2026 and eventually easing to 1.6% growth in Q4 2026

Raw materials cost movements expected to be mixed but mostly balance out

Copper prices continue to rise with most of our 2026 requirements protected through hedges

Catalyst benefits targeted in 2026 mostly relate to commercial initiatives already under agreement

Current Market Outlook:

Volume increase of 15% compared to Q1 '25 split between market share growth (9%) and customer inventory build (6%); organic volumes mostly flat as expected

Several events and external indicators weigh negative on 2026 demand growth including Middle East conflict, higher interest rates, lower housing turnover and inflationary pressures

Mortgage rates for 30-year loan averaging in ~6.4-6.5% range

Existing-home sales decreased by 3.6% month-over-month in March, according to the National Association of REALTORS®; represents year-over-year decrease of 1%

Due to upward trajectory of mortgage rates, NAR revised its 2026 housing forecast and now expects existing-home sales to increase 4% in 2026, down from prior forecast of 14%

Year-over-year growth in home renovation and repair spending projected to be higher by 2.1% in mid-2026, then easing to 1.6% growth by year-end 2026 according to the latest Leading Indicator of Remodeling Activity (LIRA); higher interest rates pose significant headwinds to homeowner improvement spending

Elevated copper prices are likely the "new normal" which will

result in the need for significant price adjustments in 2027

State of the Business

RUPS: UTILITY AND INDUSTRIAL PRODUCTS

2026 Market Outlook (Prior):

Market sentiment remains bullish mainly due to increasing electrical demand related to buildout of AI infrastructure

Crypto mining, EV development, and new manufacturing should also contribute to increased electrical demand in next 5 years

Utilities pressured to limit price increases resulting from higher demand; data centers owned/operated by large tech companies expected to be required to share cost burden with consumers

North American utility pole sales expected to grow at a higher rate than 2025, which was 6%

Will continue targeting sales growth in underserved regions to

build upon 17% growth seen in 2025 in that category

Investments in distribution assets, fiber supply, technology platform and sales team position us to realize aggressive 2026 sales goal

Acquisition of Douglas Fir supply assets in December 2025 open up opportunities in both traditional and new markets

More than 75% of Catalyst benefits targeted in 2026 focus on

cost-related initiatives, which include production consolidation

Consolidation of Vance, AL production into Kennedy, AL occurred in February with benefits beginning to accrue in March

Current Market Outlook:

Q1 demand for utility pole products 12% higher by volume (9% organic) vs. prior year quarter; volume expected to remain above 6% growth experienced in 2025

Sales grew 9% year-over-year in targeted growth regions

Normalizing for reallocation of greater amount of corporate overhead expenses towards UIP would have resulted in slightly higher profitability compared to Q1 2025

Market demand remains concentrated on a limited range of pole sizes, putting pressure on fiber sourcing and driving up raw material costs

Pushing higher pricing to cover higher fiber costs and higher

operating costs as margins run less than mid-teens target

Expecting Leesville peeler to come back online in April which will reduce third party white wood exposure and improve margins

Seeing early benefits of December '25 Douglas Fir supply

assets including access to fiber and broader bid participation

Southern Yellow Pine availability under pressure due to pulp and paper mill and lumber mill closures

Vance, AL idling expected to add $2 million to adjusted EBITDA in 2026

State of the Business

RUPS: RAILROAD PRODUCTS AND SERVICES

2026 Market Outlook (Prior):

Industry consolidation continuing to impact market trends and resulting in reduced capital spend by railroads

We have been balancing reduced expectations with sharp cost reduction actions pushing profitability to levels not seen in a decade

Recent customer discussions indicate further pullback in demand from certain customers resulting in agreed upon changes that will increase volume significantly for one customer in exchange for better pricing while reconfiguring capacity for another customer that will enable us to maintain volume in exchange for price relief

We believe we are positioned best to capitalize on an industry dealing with significant pressure on financial performance

Commercial backlog as of January 2026 is at its highest level in 5 years

Employee count at the end of 2025 for crossties business was down 16%, compared with peak employment in April 2024

Pullback in demand is having negative impact on sawmills resulting in sharply reduced production and widespread mill closures; long-term impact on hardwood availability and pricing uncertain at this point

Catalyst benefits targeted in 2026 primarily relate to plant consolidation, material waste reduction, and commercial and operations improvements

Current Market Outlook:

Q1 crosstie sales comparison to prior year impacted by unfavorable mix and average lower pricing

Reduced customer car flow and severe winter weather impacted results through deferred sales and lost production days

Pressure on railroads to continue reducing operating ratio is impacting railroad demand trends due to reduced capital spend by railroads

Commercial sales backlog continues to remain strong with commercial sales being up 3% in Q1

Price concessions to maintain or grow 2026 volume will be recovered as the year goes on as benefits from plant consolidation begin to get fully realized

Spending continued its trend downward for 8th consecutive year-over-year quarterly comparison

Lower demand from railroads having negative impact on sawmills, resulting in reduced production and widespread mill closures

Much of consolidated Q1 working capital benefit can be

traced to better inventory management in RPS

2026 target for Catalyst benefits primarily relate to plant consolidation, material waste reduction and operational improvements

State of the Business

CMC: CARBON MATERIALS AND CHEMICALS

2026 Market Outlook (Prior):

Overall carbon markets remain in turmoil as evidenced by Q4

'25 financial results

Structural improvements made in 2025 that included closing our phthalic anhydride plant and Catalyst initiatives are being offset in near-term by higher net global tar costs, reduced throughput, and softer net pricing

Key long-term raw material supply agreements are in place across all regions providing a baseload of throughput

Expectation of stronger crosstie volumes over the next several years will also provide a strong baseload of creosote demand

Our strong U.S./European logistics network provides an advantage against most European competitors leaving them more vulnerable to capacity rationalization

Loss of U.S. raw material supply to coke plant closure is a negative impact to U.S. operations but provides long-term opportunity to increase our European share of U.S. market

Catalyst benefits targeted in 2026 comprise all aspects of the business, from production to logistics, procurement and sales

Greatest near-term opportunity for improvement lies in CMC

Current Market Outlook:

Overall carbon markets remain in turmoil

Middle East conflict pushing oil and tar prices higher, while aluminum prices (LME) have steadily increased to ~$3,600/MT

- more than 20% increase in Q1

Carbon pitch and coal tar distillate prices are expected to eventually follow this trend

Financial impact on CMC from spike in oil prices in Q1 was approximately $0.6 million; another $5 million impact expected over remaining three quarters of 2026

Several Middle East aluminum producers operating at reduced throughput, creating an opportunity for Australian, European, and North American producers to increase production and supply

Discontinuation of production* at Stickney facility expected to

result in following:

Estimated benefits

$15 to $20 million annual adjusted EBITDA benefit

$1.00 to $1.20 annual adjusted EPS benefit

Eventual reduction in annual capex spending of $8 to

$15 million

Estimated costs

$170 to $195 million in asset write-offs

$57 to $67 million in cash closure costs over an estimated

36-month timeframe

Additional investments of $10 to $15 million to further strengthen supply chain

2026 target for Catalyst benefits span all aspects, including production, logistics, procurement, and sales

Strategic Transformation | Catalyst

Progress Update

Koppers is in the final multi-year phase of our transformation process, Catalyst. Our Transformation Office has involved hundreds of individuals throughout the organization to identify, evaluate, scope, quantify, plan, and execute hundreds of commercial and cost saving opportunities through a rigorous process aimed at maximizing performance across every dimension of the organization. This has resulted in establishing a new way of working at Koppers that is elevating company performance to the next level.

Positioning Koppers for Future Success: Process • Technology • Talent

2026 INITIATIVES

Achieved $14M in year-over-year benefits in Q1

$3M PC | $2M RUPS | $3M CMC | $6M Corporate

Examples include purchase card cost savings, volume growth, procurement contract savings, plant process changes

Reduced working capital by $16M in Q1

2026 - 2028

$90M+ in benefits identified vs. $75M+ in benefits previously identified in February 2026

Includes $15M-$20M annual adjusted EBITDA benefits from action being taken at Stickney facility

Examples include procurement savings, market share growth, new products, plant process changes, plant consolidation

2028 OBJECTIVES

Adjusted EBITDA margin >15%

3-year EPS CAGR > 10%

Net leverage < 2.5 times

Free cash flow average $100M each year

PC and RUPS > 85% of sales

Generate Meaningful Earnings Growth • Improve Cash Flow Yield • Increase Capital Efficiency

2026 Guidance

2026 Sales Forecast: $1.9B - $2.0B

Sales

($ in Millions)

$2,100

$2,000

($35M)-$25M

$1.9B-$2.0B

$50M-$65M

$20M-$35M

$1.88B

$1,900

$1,800

$1,700

2025 RUPS PC CMC 2026

2026 Adjusted EBITDA Forecast:

$240M - $260M

Adjusted EBITDA*

($ in Millions)

$0M-$5M

$240M-$260M

$257M

($26M)-($18M)

$280

$9M-$16M

$270

$260

$250

$240

$230

$220

2025 RUPS PC CMC 2026

2026 Adjusted EPS Forecast:

$3.80 - $4.60

Adjusted EPS*

$5.00

$4.75

$0.17-($0.16)

$0.34-$0.40

$0.10

$3.80-$4.60

($0.04)- $0.02

($0.84)-$0.17

$4.07

$4.50

$4.25

$4.00

$3.75

$3.50

$3.25

$3.00

2025 Operations Interest Taxes D&A Other 2026

2026 Free Cash Flow Forecast

$190

$170

$41M

($7M)

$175M

$150

$130

$110

$123M

($7M)

$7M

$6M

$12M

($55M)

$120M

($7M)

$90

$58M-$78M

$70

$50

($55M)-($35M)

$30

2025 OCF Operations

(midpoint)

Interest Restructuring Pension

Settlement

Working Capital

Taxes 2026 OCF (midpoint)

CAPEX 2026 FCF Dividend Share

Repurchase

FCF for Debt Reduction or M&A

2026 Capital Expenditures

($ in Millions)

CapEx by Business Unit

Maintenance

Zero Harm

Growth & Productivity

Total

RUPS

$17.0

$1.6

$0.2

$18.8

4.5

7.7

5.7

17.9

CMC

12.8

3.4

0.2

16.4

Corporate

1.9

---

1.9

Total

$36.2

$12.7

$6.1

$55.0

Non-GAAP Measures & Guidance

This presentation includes unaudited "non-GAAP financial measures" as defined in Regulation G under the Securities Exchange Act of 1934,

including adjusted EBITDA, adjusted EBITDA margin, free cash flow, adjusted EPS, net debt and net leverage ratio.

Koppers believes that the presentation of non-GAAP financial measures provides information useful to investors in understanding the underlying operational performance of the company, its business and performance trends, and facilitate comparisons between periods. The exclusion of certain items permits evaluation and a comparison between periods of results for ongoing business operations, and it is on this basis that Koppers management internally assesses the company's performance. In addition, the Board of Directors and executive management team use adjusted EBITDA as a performance measure under the company's annual incentive plans and for certain performance share units granted to management prior to 2026. The Board of Directors and executive management also use free cash flow, adjusted earnings per share and adjusted EBITDA margin as performance measures for certain performance share units granted to management in 2026.

Although Koppers believes that these non-GAAP financial measures enhance investors' understanding of its business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP basis financial measures and should be read in conjunction with the relevant GAAP financial measure. Other companies in a similar industry may define or calculate these measures differently than the company, limiting their usefulness as comparative measures. Because of these limitations, these non-GAAP financial measures should not be considered in isolation from, or as substitutes for performance measures calculated in accordance with GAAP.

Koppers does not provide reconciliations of guidance for adjusted EBITDA, adjusted EBITDA margin, adjusted EPS and free cash flow to comparable GAAP measures, in reliance on the unreasonable efforts exception. Koppers is unable, without unreasonable efforts, to forecast certain items required to develop meaningful comparable GAAP financial measures. These items include, but are not limited to, restructuring and impairment charges, acquisition-related costs, mark-to-market commodity hedging, and LIFO adjustments that are difficult to predict in advance in order to include in a GAAP estimate and may be significant. Forward-looking statements, including the guidance above, are based upon current expectations and are subject to factors that could cause actual results to differ materially from those set forth above. Please see the "Safe Harbor Statement" above for more information.

References to historical EBITDA herein means adjusted EBITDA, for which the company has provided calculations and reconciliations in the Appendix.

Unaudited Segment Information

Three Months Ended March 31,

2026 2025

Net sales:

Total $ 455.3 $ 456.5

Adjusted EBITDA margin as a percentage of GAAP sales:

10.9%

10.3%

Railroad and Utility Products and Services

55.5

49.3

Total(1)

20.1

25.8

Adjusted EBITDA:

Performance Chemicals

100.6

Carbon Materials and Chemicals

16.6%

18.2%

Performance Chemicals

142.1

120.9

Railroad and Utility Products and Services

22.6

93.2

25.5

Carbon Materials and Chemicals

0.9

9.9

(Dollars in millions)

Railroad and Utility Products and Services

220.0

235.0

Carbon Materials and Chemicals 1.0% 9.8%

(1) The table on the next page describes the adjustments to arrive at adjusted EBITDA.

Unaudited Reconciliation of Net Income to Adjusted EBITDA and Adjusted EBITDA Margin

Three Months Ended March 31, Year Ended December 31,

2026

2025

(Dollars in millions)

Net income (loss)

7.1

$ (13.9)

$ 56.0

Interest expense

15.0

16.6

66.1

Depreciation and amortization

19.4

18.0

73.6

Income tax provision (benefit)

0.8

(3.3)

25.2

Sub-total

42.3

17.4

220.9

Adjustments to arrive at adjusted EBITDA:

Acquisition inventory step-up amortization

0.3

0.0

Amortization of cloud-based software implementation costs

0.5

0.3

1.2

(Gain) on sale of assets

(4.3)

(0.3)

(0.4)

Impairment, restructuring and plant closure costs

7.8

20.0

51.9

LIFO (benefit)(1)

(1.2)

(1.8)

(11.0)

Mark-to-market commodity hedging losses (gains)

3.9

(9.1)

(34.2)

Pension settlement and expense

0.0

29.0

28.3

Total adjustments

7.0

38.1

35.8

Adjusted EBITDA

49.3

$ 55.5

$ 256.7

Net sales

455.3

$ 456.5

$ 1,879.3

Adjusted EBITDA margin as a percentage of GAAP sales

10.8%

12.2%

13.7%

(1) The LIFO expense adjustment removes the entire impact of LIFO and effectively reflects the results as if we were on a FIFO inventory basis.

Unaudited Reconciliations of Net Income Attributable to Koppers to Adjusted Net Income Attributable to Koppers and Diluted Earnings Per Share and Adjusted Earnings Per Share

Three Months Ended March 31, Year Ended December 31,

2026

2025

(Dollars in millions, except share and per share amounts)

Net income (loss)

$ 7.1

$ (13.9)

$ 56.0

Adjustments to arrive at adjusted net income:

Acquisition inventory step-up amortization

0.3

0.0

Amortization of cloud-based software implementation costs

0.5

0.3

1.2

(Gain) on sale of assets

(4.3)

(0.3)

(0.4)

Impairment, restructuring and plant closure costs

7.8

20.0

51.9

LIFO (benefit)(1)

(1.2)

(1.8)

(11.0)

Mark-to-market commodity hedging losses (gains)

3.9

(9.1)

(34.2)

Pension settlement and expense

0.0

29.0

28.3

Total adjustments

7.0

38.1

35.8

Adjustments to income tax:

Income tax on adjustments to pre-tax income

(2.7)

(9.6)

(8.8)

Effect on adjusted net income

4.3

28.5

27.0

Adjusted net income

$ 11.4

$ 14.6

$ 83.0

Diluted weighted average common shares outstanding (in thousands)

20,122

20,660

20,405

Diluted earnings per share

$ 0.35

$ (0.68)

$ 2.74

Adjusted earnings per share

$ 0.57

$ 0.71

$ 4.07

(1) The LIFO expense adjustment removes the entire impact of LIFO and effectively reflects the results as if we were on a FIFO inventory basis.

Unaudited Reconciliation of Total Debt to Net Debt and Net Leverage Ratio

Twelve Months Ended

March 31, 2026

(Dollars in millions)

Less: Cash

42.8

Adjusted EBITDA

250.5

Net Leverage Ratio 3.5

Net Debt $ 877.4

Total Debt $ 920.2

Unaudited Reconciliation of Net Income to Adjusted EBITDA (LTM)

Twelve Months Ended

Sub-total 245.8

March 31, 2026

(Dollars in millions)

Interest expense

64.5

Income tax provision

29.3

Adjustments to arrive at adjusted EBITDA:

Amortization of cloud-based software implementation costs

1.4

Impairment, restructuring and plant closure costs

39.7

Mark-to-market commodity hedging gains

(21.2)

Total adjustments

4.7

Adjusted EBITDA $ 250.5

Pension settlement and expense (0.7)

LIFO (benefit)(1) (10.4)

(Gain) on sale of assets (4.4)

Acquisition inventory step-up amortization 0.3

Depreciation and amortization 75.0

Net income $ 77.0

(1) The LIFO expense adjustment removes the entire impact of LIFO and effectively reflects the results as if we were on a FIFO inventory basis.

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Koppers Holdings Inc. published this content on May 08, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 08, 2026 at 14:00 UTC.