Koppers Delivers Record Q2 Margin
Koppers (NYSE:KOP) reported second quarter 2025 results on August 8, 2025, delivering adjusted EBITDA of $77 million (15.3% margin) on sales of $505 million, a 10.4% year-over-year drop in consolidated sales. Despite revenue declines across all core segments, the company achieved a record adjusted EBITDA margin performance of 15.3%, announced a $0.32 per share annual dividend for 2025, up 14% year-over-year, and reduced full-year sales and adjusted EBITDA guidance amid ongoing industry-wide demand weakness. Key takeaways include cost discipline, balance sheet strengthening, and strategic actions likely to reshape Koppers’ margin trajectory and business mix over the coming years.
SG&A (selling, general, and administrative) expenses declined 13% year to date, and the workforce was reduced by 11% since April 2024, supporting the company’s first adjusted EBITDA margin above 15% in eight years. Cash flow exceeded $50 million in the quarter, and the capital expenditure run rate dropped below $60 million for fiscal 2025, enhancing free cash flow capacity amid demand headwinds.
This accelerated cost discipline and capital allocation shift provide durable bottom-line relief, shifting Koppers’ margin structure and creating operating leverage for future volume recovery.
Source Fool.com
