Koppers Holdings Inc. reported Adjusted EBITDA of $70.9 million for the quarter ended September 30, 2025, an 8% decrease from $77.4 million in the same period last year, due to persistent softness in most end markets, according to Koppers.
Net sales decreased by 12% to $485.3 million. Net income was $23.8 million, compared to $22.8 million a year ago, and adjusted earnings per share were $1.21, down from $1.37.
The Railroad and Utility Products and Services (RUPS) segment saw a 6% decrease in net sales to $232.7 million, driven by lower volumes from Class I crosstie customers. This was partially offset by a 7% volume increase in the domestic utility pole business. Adjusted EBITDA for the segment increased by 18% to $29.2 million, due to lower operating expenses and price increases.
The Performance Chemicals segment reported an 18% decrease in net sales to $144.3 million, resulting from a 19% volume decrease primarily driven by a shift in U.S. market share. Adjusted EBITDA for the segment decreased by 35% to $26.1 million, due to the lower sales volumes and higher raw material costs.
The Carbon Materials and Chemicals segment reported a 16% decrease in net sales to $108.3 million, mainly due to volume decreases from discontinued phthalic anhydride production and lower sales prices for carbon pitch, which fell approximately 3% globally due to market dynamics in Australasia. Adjusted EBITDA for the segment increased by 23% to $15.6 million, due to operating cost savings and lower raw material costs.
Net cash provided by operating activities was $77.4 million for the first nine months of 2025, compared to $44.7 million in the prior year period.
The company revised its full-year 2025 sales forecast to approximately $1.9 billion. It tightened its Adjusted EBITDA guidance to a range of $255 to $260 million and its adjusted EPS guidance to a range of $4.00 to $4.15. It expects operating cash flow of $135 million and capital expenditures of $52 to $55 million. The CEO stated he expects to finish the year within the middle part of the previous Adjusted EBITDA range, but adjusted EPS will likely be in the lower half of the previous range due to a higher effective tax rate. He noted that challenging end markets, other than the utility pole sector, are expected to continue in the near-term. The company also believes its transformation initiatives will enable it to grow earnings per share by an average of 10% annually and consistently generate EBITDA margins above 15% by 2028.
