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

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

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