Koppers Holdings 2025 Q3 Earnings EPS Rises 8% Despite 12.4% Revenue Drop

Koppers Holdings (KOP) reported fiscal 2025 Q3 earnings on Nov 8, 2025, with mixed results. The company missed revenue estimates by 5.69% and non-GAAP EPS by 3.2%, but net income rose 25.3% year-over-year. Guidance for 2025 sales was cut to $1.9 billion, and adjusted EBITDA narrowed to $255–$260 million, reflecting ongoing cost discipline and strategic divestitures.

Revenue

Koppers Holdings’ total revenue declined 12.4% to $485.30 million in Q3 2025, driven by weaker demand across most segments. Railroad and Utility Products and Services led with $232.70 million, while Performance Chemicals contributed $144.30 million despite a 19% volume decline. Carbon Materials and Chemicals posted $108.30 million, impacted by lower phthalic anhydride volumes and carbon black prices.

Earnings/Net Income

The company’s EPS rose 8.0% to $1.21, and net income surged 25.3% to $23.80 million, underscoring strong cost controls despite revenue headwinds.

Post-Earnings Price Action Review

The strategy of buying Koppers Holdings shares post-earnings and holding for 30 days showed mixed performance over three years. While it delivered a 28.5% total return, it underperformed the S&P 500’s 45% gain. Higher volatility, with peak-to-trough declines of ~20% during downturns, highlighted the risks. Inconsistent returns relative to earnings releases further tempered the strategy’s appeal.

CEO Commentary

CEO Leroy Ball emphasized progress in cost reduction and operational efficiency, noting $19 million in SG&A cuts via the Catalyst initiative. He outlined plans to divest non-core assets, improve safety metrics, and target 15%+ margins and $300 million in free cash flow by 2026.

Guidance

2025 sales guidance was revised to $1.9 billion, with adjusted EBITDA narrowed to $255–$260 million. CapEx is projected at $52–$55 million, and the company maintains a $0.08 quarterly dividend.

Additional News

1. Divestiture & Restructuring: Koppers sold its Railroad Structures business and reduced global employee count by 17% to streamline operations.

2. Catalyst Initiative: CEO Ball reiterated a focus on cost containment, portfolio optimization, and margin expansion through the Catalyst program.

3. Dividend Policy: A $0.08 quarterly dividend was declared, maintaining the $71.5 million remaining under its share repurchase authorization.