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 revenue declining 12.4% to $485.3M, missing estimates, while EPS rose 8% to $1.21. The company revised 2025 sales guidance to $1.9B from $2.1B and narrowed adjusted EBITDA guidance to $255–260M.

Revenue

Koppers’ total revenue fell 12.4% year-over-year to $485.30 million, driven by weaker performance across key segments. The Railroad and Utility Products and Services (RUPS) segment contributed $232.70 million, while Performance Chemicals (PC) revenue dropped to $144.30 million amid a 19% volume decline. Carbon Materials and Chemicals (CMC) revenue also decreased to $108.30 million.

Earnings/Net Income

Earnings showed resilience, with EPS rising 8% to $1.21, and net income increasing 25.3% to $23.80 million. The company’s cost discipline and operational efficiency improvements offset declining sales volumes, underscoring strong profitability management.

Post-Earnings Price Action Review

The stock price of Koppers Holdings declined 6.81% during the latest trading day, 5.39% over the week, and edged up 0.41% month-to-date. Analysts maintained a “strong buy” consensus, with a median 12-month price target of $50.00, implying nearly 45% upside from its recent close. The stock trades at a forward P/E of 6.0, reflecting undervaluation relative to peers. Despite near-term volatility, the Catalyst transformation program and debt reduction efforts are seen as catalysts for long-term growth.

CEO Commentary

Leroy M. Ball highlighted a 12% revenue decline driven by market headwinds but emphasized cost discipline, including a 14% drop in SG&A expenses. Strategic initiatives like the Catalyst program and divestitures of the Railroad Structures business and phthalic anhydride plant are simplifying the portfolio. Ball expressed cautious optimism for 2026, citing improved margins and free cash flow potential.

Guidance

Koppers revised 2025 guidance to $1.9B in sales (from $2.1B) and $255–260M in adjusted EBITDA. EPS is projected at $4.00–$4.15, reflecting lower sales and higher costs. Capital expenditures are expected to decrease to $52–55M from $74M in 2024.

Additional News

Koppers declared a quarterly dividend of $0.08 per share, payable Dec 16, 2025. The company completed the sale of its Railroad Structures business in August 2025, reducing global employee count by 17% since April 2024. The Catalyst transformation program, aimed at streamlining operations and reducing debt, remains a strategic priority.