Koppers Takes a Leap Forward Despite Market Pressures
On May 8th, Koppers hosted its first quarter 2026 earnings conference call and webcast. The company's leadership team provided an update on their performance in the past three months, highlighting key challenges and strategies for growth.
Leroy Ball, Chief Executive Officer of Koppers, kicked off the discussion with a somber announcement. The company has conditionally decided to wind down production at its Stickney, Illinois facility by the end of 2026. This decision affects approximately 85 employees and was driven by the persistent challenging market conditions that have persisted for over a decade.
Ball explained that the decision was made due to the continued decline in coal tar production capacity in North America. The availability of coal tar has dropped from 565,000 metric tons in 2016 to 350,000 metric tons today. This reduction puts pressure on raw material pricing and increases unit costs, which have not been fully recovered through higher pricing.
The company has invested over $100 million in capital at the Stickney facility over the past five years, but still faces reliability issues with aging equipment. According to Ball, this is not a people issue, as the team at Stickney has worked heroically to try and make the operation viable. However, Koppers feels that it has done everything possible to keep the site operational and does not see a credible path forward.
The company plans to shift production from Stickney to its coal tar distillation facility in Nyborg, Denmark by the fourth quarter of 2026. This strategic move aims to improve supply chain efficiency and strengthen the company's position in the market.
In other news, Koppers' leadership highlighted their progress towards transformation targets for 2028. The company is focused on delivering improved results through strategic investments and operational improvements.
Quynh McGuire, Vice President of Investor Relations at Koppers, also mentioned that the company has referenced forward-looking statements and non-GAAP financial measures in its discussion today. She reminded participants to review the press release and related filings with the Securities and Exchange Commission for additional information.
