Koppers Holdings, Inc. (KOP)
NYSEMaterialsChemicals - SpecialtySnapshot 2026-09-09
$46.06-2.25%
Close 2026-09-09 · 1-day change
NYSEMaterialsChemicals - SpecialtySnapshot 2026-09-09
Intact: The reason to own it still holds.
Koppers keeps improving cash from operations, rising from $45.1M to $46.3M. Revenue is expected near $1.9B to $2.0B in 2026. The company maintains and slightly raised its dividend to $0.09 per share. Earnings beat recently with EPS of $0.57 in Q1 2026, showing operational strength.
Discontinuing the Stickney facility may hurt revenue and cash flow. Soft guidance signals risks ahead. The sector faces headwinds that could pressure margins and growth.
The price is about 22% below our fair value near $60. Analysts expect modest 3.4% revenue growth. Our view aligns with this cautious but stable outlook.
Breaks if: Quarterly cash from operations falls below $46.3M
Focus on generating strong operating cash flow and free cash flow to support debt reduction and capital returns.
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a turnaround situation with a focus on improving cash flow and maintaining dividends. The current thesis state is weakened due to recent financial performance dropping within its industry.
The market appears to have priced in a cheap valuation compared to peers, with a notable expectations gap. The current valuation suggests that the market is not overly optimistic about KOP's near-term prospects.
Management has shown mixed execution, particularly with the closure of the Stickney facility impacting recent financial results. However, improvements in cash flow and consistent dividend payments indicate a potential for stabilization in the fundamentals.
The long-term thesis hinges on KOP's ability to manage guidance effectively in upcoming calls and the performance of sector bellwethers. Additionally, inflation trends could significantly influence the company's prospects.
The most important moves since the prior daily snapshot.
Yes, our read has weakened. KOP's recent financial performance has fallen significantly within its sector. The company is also facing input price pressure in a weak demand market. This combination challenges the reasons to own the stock.
as of 2026-09-09
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Stated as a priority in 4 of last 4 quarters. Operating cash flow improved significantly from negative $22.7 million in 2025-Q1 to $46.3 million in 2026-Q1, and year-to-date operating cash flow reached a record $96.3 million in 2026-Q2 versus $27.8 million prior year. The trajectory shows strong delivery on cash flow improvement supporting debt reduction and capital returns.
“Record year-to-date operating cash flow of $96.3 million vs. $27.8 million prior year period.”
“Operating cash flow of $46.3 million vs. $(22.7) million prior year quarter.”
“Operating cash flow for the year ended December 31, 2025 was $122.5 million.”
“Operating cash flow was $49.6 million in 2025-Q3.”
Breaks if: Dividend per share falls below $0.09
Continue paying quarterly dividends to shareholders as part of capital return strategy.
Maintained as a priority in 4 of last 4 quarters. Dividend per share was steady at $0.08 through 2025-Q3 and Q4, then increased to $0.09 in 2026-Q1. Management emphasizes returning capital to shareholders via dividends and share repurchases, supported by record operating and free cash flow in 2026-Q2. The trajectory shows consistent dividend payments with a slight increase.
“Record year-to-date operating and free cash flow performance enabled us to reduce debt and return capital to shareholders through share repurchases and quarterly dividends.”
“Dividend per share was $0.09 in 2026-Q1, up from $0.08 in prior quarters.”
“Dividend per share was $0.08 in 2025-Q4.”
“Dividend per share was $0.08 in 2025-Q3.”
Breaks if: Annual revenue falls below $1.9B in FY26
Breaks if: Exit delayed beyond 2026 or causes major financial harm
Accelerate closure of Carbon Materials and Chemicals plant at Stickney, Illinois, to improve cost structure and network optimization.
Stated as a priority in 3 of last 3 quarters. Management accelerated closure of the Stickney plant, reflected in a sharp decline in Carbon Materials and Chemicals adjusted EBITDA, down 90.9% in 2026-Q1 and 54.8% in 2026-Q2 year-over-year. The trajectory shows active execution of the closure plan with associated cost savings.
“Accelerating the previously announced closure of our Carbon Materials and Chemicals plant located at Stickney, Illinois.”
“Announcing ceasing production at our Stickney, Illinois, plant by this year-end.”
“Operating cost savings associated with ceasing phthalic anhydride production at Stickney.”
Over the next 1 to 3 years, KOP's performance will depend on management's execution and external economic factors. Not investment advice.