Koppers' Strategic Positioning in Infrastructure and Carbon Markets Ahead of Sidoti Conference

Koppers Holdings Inc. (NYSE: KOP) has emerged as a pivotal player in the global infrastructure and carbon markets, leveraging its dual expertise in treated wood products and carbon compounds to navigate a challenging economic landscape. As the company prepares for its investor engagement at the Sidoti Year End Virtual Investor Conference on December 10, 2025, its strategic initiatives-centered on infrastructure resilience and carbon innovation-offer a compelling case for long-term value creation.

Strategic Overhaul: Project Catalyst and Operational Efficiency

Koppers' transformation under the Project Catalyst initiative underscores its commitment to operational efficiency and sustainable profitability. Launched in May 2025, Catalyst is an enterprise-wide effort to optimize costs, reduce capital expenditures, and reallocate resources to higher-margin segments according to management. The initiative, led by newly appointed President and Chief Transformation Officer James A. Sullivan, has already yielded measurable results. For instance, the company reduced its global employee count by 17% since April 2024 through a voluntary retirement program, slashing SG&A expenses by 13% year-to-date. These measures align with a broader shift from capital-intensive growth to operational optimization, a strategy that has tightened 2025 adjusted EBITDA guidance to $255–260 million.

However, the path to efficiency has not been without challenges. Q3 2025 results revealed a 12.4% decline in net sales to $485.3 million, partly attributed to the divestiture of the Railroad Structures business in August 2025. Despite this, the company's adjusted EBITDA of $70.9 million for the quarter-down 8.4% year-over-year-reflects resilience in cost management and margin preservation.

Carbon Innovation: A Pathway to Higher Margins

Koppers' Carbon Materials and Chemicals (CMC) segment has become a cornerstone of its growth strategy. By exiting low-margin operations-such as phthalic anhydride production-the company has redirected focus to higher-value carbon compounds like carbon pitch and creosote. This pivot has already shown promise: CMC's adjusted EBITDA surged 55.6% year-over-year to $16.8 million in Q2 2025, driven by lower raw material costs and operational efficiencies.

The company's long-term vision for CMC is ambitious. Koppers projects EBITDA margins above 15% by 2028 through continued execution of Catalyst, emphasizing its confidence in the segment's scalability. This aligns with broader industry trends, as carbon compounds gain traction in energy storage and industrial applications. Koppers' global footprint-spanning North America, South America, Australasia, and Europe-positions it to capitalize on these opportunities.

Leadership in Treated Wood and Infrastructure Resilience

Koppers' dominance in the treated wood market further strengthens its value proposition. As a critical supplier of wood preservation technologies for railroads, utilities, and construction, the company benefits from infrastructure modernization efforts worldwide. Its expertise in utility poles and industrial products ensures relevance in a climate-conscious era, where resilient infrastructure is paramount.

The sale of the Railroad Structures business, while reducing short-term revenue, has streamlined operations and enhanced focus on core competencies. This strategic pruning, combined with organic growth in higher-margin segments, signals a disciplined approach to capital allocation.

Sidoti Conference: A Catalyst for Investor Momentum

Koppers' participation in the Sidoti Conference on December 10, 2025, represents a critical juncture for investor engagement. The company will present its strategic roadmap to a broad audience of institutional investors. Management representatives, including Chief Accounting Officer Bradley Pearce and Vice President of Investor Relations Quynh McGuire, will emphasize transparency and alignment with shareholder interests.

The conference timing is strategic. With Catalyst entering its final phase and 2026 on the horizon, Koppers aims to showcase its ability to deliver on margin expansion and free cash flow generation. A successful presentation could reinvigorate investor sentiment, particularly as the company's carbon innovation initiatives gain traction in a decarbonizing economy.

Conclusion: A Long-Term Value Proposition

Koppers' strategic positioning in infrastructure resilience and carbon innovation offers a compelling narrative for investors. While near-term headwinds persist-such as end-market softness and legacy business exits-the company's focus on operational efficiency, margin enhancement, and high-growth segments like CMC provides a robust foundation for long-term value creation. The Sidoti Conference will serve as a pivotal platform to communicate this vision, potentially catalyzing renewed interest in Koppers as it enters 2026.