Koppers (KOP) Investor presentation summary

Strategic direction and transformation

• Completed major capital projects, positioning for near-term improvement and long-term upside through cost structure optimization and margin enhancement.

• Final phase of the Catalyst transformation process identified over $90M in benefits, with $33M achieved year-over-year by mid-2026.

• Discontinuation of Stickney, IL CMC facility to improve adjusted EBITDA by $15M–$20M annually and reduce capital expenditures by $8M–$15M.

• 2028 objectives include adjusted EBITDA margin above 15%, EPS CAGR over 10%, net leverage below 2.5x, and annual free cash flow averaging $100M.

• Organizational redesign and digital transformation initiatives are underway to enhance decision-making and capital allocation.

Business segments and market position

• Largest supplier of crossties to North American Class I railroads and leading supplier of utility poles in the U.S. and Australia.

• Performance Chemicals segment is a global leader in wood preservation chemicals, with strong market share in the U.S., Canada, and Australia.

• Carbon Materials & Chemicals segment supplies critical components to railroad, construction, and aluminum markets.

• Balanced portfolio generates counter-cyclicality, with stable replacement demand for crossties and utility poles.

• 2025 segment sales: RUPS $927M, PC $544M, CMC $409M; adjusted EBITDA margins: RUPS 11.7%, PC 18.9%, CMC 11.2%.

Financial performance and guidance

• Q2 2026 adjusted EBITDA was $71M (13.7% margin), with adjusted EPS of $1.37 and record YTD free cash flow of $72.6M.

• 2026 sales forecast: $1.9B–$2.0B; adjusted EBITDA forecast: $240M–$250M; adjusted EPS forecast: $3.80–$4.20.

• 2026 free cash flow expected at $120M, with $58M–$70M available for debt reduction or M&A.

• Net leverage at 3.5x as of June 2026, with a long-term target of 2x–3x.

• Capital expenditures for 2026 projected at $55M, with a balanced approach across growth, maintenance, and productivity.