Koppers Holdings Inc. (KOP) AI Stock Analysis

NYSE: KOPAI research summary: business, growth, valuation, analysts, bull and bear case.

KOP AI stock analysis summary

AI Research

Koppers Holdings Inc. is a provider of treated wood products, wood preservation chemicals, and carbon compounds. The company generated $1.88B in FY2025 revenue and expanded free cash flow to $67.5M, though trailing twelve-month EPS sits at -$4.64. Shares are up 61.0% year-to-date and trade at a forward P/E of 9.5x while carrying total debt of $1.00B.

Market cap
$819.2M
Revenue (TTM)
$1.89B
P/E
—
fwd 9.5x
1Y return
63.5%
S&P 500 16.8%
Avg. target
$57.00
31.6% vs last close

Bull case

  • Free cash flow expanded to $67.5M in FY2025, up from $42.0M in FY2024 and -$22.0M in FY2021.
  • Koppers trades at a forward P/E of 9.5x, representing a discount to the US-listed Basic Materials peer median of 13.4x.
  • Analysts project EPS growth of 20.7% next fiscal year to $4.90 alongside revenue expansion of 3.9% to $2.01B.

Bear case

  • Total debt of $1.00B exceeds cash of $40.7M, resulting in a high debt-to-equity ratio of 2.59.
  • Trailing twelve-month results show an EPS of -$4.64 and a profit margin of -4.6%.
  • Annual revenue fell 10.2% in FY2025 to $1.88B after contracting 2.9% in FY2024.

What Koppers does

Koppers Holdings Inc. specializes in treated wood products, wood preservation chemicals, and carbon compounds across global markets. The Railroad and Utility Products and Services (RUPS) segment procures and treats crossties, switch ties, lumber, rail joint bars, and utility transmission poles, while providing engineering, design, repair, and inspection of railroad bridges. The Performance Chemicals (PC) segment develops and manufactures copper-based wood preservatives, such as micronized copper azole and alkaline copper quaternary, as well as fire-retardant chemicals for pressure-treated wood. The Carbon Materials and Chemicals (CMC) segment produces creosote, carbon pitch, and naphthalene for industries such as aluminum, steel, concrete, and plastics.

Growth and profitability

In FY2021, revenue was $1.68B with net income of $85.2M. Revenue rose 18.0% to $1.98B in FY2022 and reached $2.15B in FY2023 before declining 2.9% to $2.09B in FY2024. Revenue fell 10.2% to $1.88B in FY2025, but gross margin reached 23.8% and operating margin rose to 11.7%, yielding net income of $56.0M and EPS of $4.10. Over the five years from FY2020 to FY2025, revenue grew at a CAGR of 2.4%. For the trailing twelve months ending June 30, 2026, revenue was $1.89B with an operating margin of 9.7% and EPS of -$4.64. In the quarter ended June 30, 2026, quarterly revenue grew 3.0% year-over-year while quarterly earnings rose 7.3%.

KOP income statement →

Balance sheet and cash flow

As of June 30, 2026, Koppers held $40.7M in cash and short-term investments against total debt of $1.00B, resulting in net debt of $960.9M. Total assets stood at $1.72B and shareholders' equity was $387.0M, reflecting a debt-to-equity ratio of 2.59 and a current ratio of 2.33. In FY2025, operating cash flow was $122.5M and free cash flow reached $67.5M. Cash allocations included capital expenditures of $55.0M, share buybacks of $38.2M, and dividends paid of $6.4M. Over the past five years, the share count declined 12.7%.

KOP balance sheet →

Valuation and performance

At $43.32, Koppers has a market capitalization of $819.2M and an enterprise value of $1.83B. The stock trades at a forward P/E of 9.5x, below the 13.4x median of its US-listed Basic Materials peers. Its price-to-sales ratio of 0.4x is also below the peer median of 1.8x, though its EV to EBITDA ratio of 46.4x exceeds the peer median of 10.5x. Over the past year, Koppers gained 63.5%, outperforming the S&P 500 return of 16.8%. Over a five-year horizon, its 34.5% return trailed the S&P 500 return of 83.0%.

KOP key metrics →

KOP dividend

Koppers pays a quarterly dividend with an annual forward dividend of $0.36 per share, representing a dividend yield of 0.83%. The company holds a payout ratio of 9.1% and has paid dividends for 5 consecutive years. Its last ex-dividend date occurred on August 28, 2026, following total dividend payments of $6.4M in FY2025.

KOP dividend history →

What analysts expect

Wall Street analyst coverage includes 1 Strong Buy and 1 Buy rating, with 0 Hold, 0 Sell, and 0 Strong Sell ratings. The mean price target is $57.00, which is 31.6% above the last close of $43.32. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $1.94B and EPS of $4.06. For the next fiscal year, 3 analysts project revenue of $2.01B and EPS of $4.90. Koppers beat EPS estimates in each of the last 4 quarters, and its next earnings release is scheduled for November 6, 2026.

KOP forecast and price target →

Key risks and what to watch

  • A net debt position of $960.9M subjects the company to elevated balance sheet leverage.
  • Trailing twelve-month return on equity is -19.0%, reflecting recent net losses.
  • A stock beta of 1.23 indicates higher price volatility relative to the broader market.

AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer

About this KOP AI stock analysis

This page is an AI-written research summary of Koppers Holdings Inc. (KOP). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: KOP income statement, KOP balance sheet, KOP key metrics, KOP analyst forecast, KOP chart. See the KOP stock overview for the latest quote and news.

KOP AI stock analysis FAQ

What products does Koppers Holdings Inc. provide?

Koppers supplies treated wood crossties, utility poles, rail joints, copper-based wood preservative chemicals, fire-retardant wood treatments, and carbon chemicals such as creosote, carbon pitch, and naphthalene.

What is KOP's dividend yield and payout schedule?

KOP pays a quarterly dividend with an annual payout of $0.36 per share, yielding 0.83% with a payout ratio of 9.1%.

How does Koppers' valuation compare to its peer group?

The stock trades at a forward P/E of 9.5x and a price-to-sales ratio of 0.4x, both lower than the US-listed Basic Materials medians of 13.4x and 1.8x, respectively. However, its EV to EBITDA multiple of 46.4x trades above the peer median of 10.5x.

When is Koppers' next earnings report?

Koppers is scheduled to report its next financial results on November 6, 2026.

More Basic Materials AI stock analysis