Koppers Shares Plunge 24% After Earnings Miss and Guidance Cut
Koppers Holdings shares fell 24.39% on Friday, November 6, 2026, closing at $29.97 after the company reported third quarter results that missed analyst forecasts on both sales and profit, and cut its full year earnings outlook. The fall shows how fast one stock can drop when a company disappoints investors twice in one day, first on the quarter just ended, then on the year ahead.
What happened
Koppers released its third quarter 2026 results early on Friday, November 6, covering the three months to September 30. Net sales were $499.1 million, up 2.8% from $485.3 million a year earlier, but below the roughly $518.6 million analysts expected. Adjusted earnings per share were $0.77, down from $1.21 a year earlier and well short of the $1.37 analysts expected. Net income fell to $14.7 million from $23.8 million a year earlier.
Adjusted EBITDA, a measure of operating profit before interest, tax, depreciation and amortisation, fell 18% to $58.0 million. Koppers said higher raw material, additive and logistics costs weighed on profit, and coal tar costs rose 30% from a year earlier. Sales grew in wood preservatives, railroad crossties and utility poles, but the higher costs ate into the gain.
The company also lowered its outlook for the full year 2026. It now expects adjusted earnings per share of $3.10 to $3.25, down from $3.80 to $4.20 before, and adjusted EBITDA of $220 million to $225 million, down from $240 million to $250 million. Net sales are now expected at roughly $1.9 billion, at the low end of the earlier $1.9 billion to $2 billion range. On a brighter note, Koppers raised its free cash flow guidance to $115 million to $135 million, from $110 million to $130 million.
Koppers plans price increases from January 1, 2027 to recover the higher costs. It also ended coal tar distillation at its Stickney facility on September 30, which management expects to add $1.00 to $1.20 to earnings per share each year. The company declared a quarterly dividend of $0.09 per share, payable on December 14 to shareholders of record on November 27.
Why it matters for beginners
An earnings miss means a company did worse than Wall Street expected. Koppers earned $0.77 per share when analysts expected $1.37, so the surprise was large, and the shares fell by almost a quarter in a single day. That is the mirror image of a beat, when shares can jump just as fast.
The results also show that sales growth alone is not enough. Koppers sold more than a year ago, up 2.8%, but profit fell because costs rose faster than sales. For a beginner, that is a useful lesson: a company can grow its sales and still earn less money if its costs climb.
Guidance matters as much as the quarter itself. Investors were not only reacting to the third quarter miss. They were also reacting to the lower outlook for the full year, which told them the cost pressure is expected to continue. When a company cuts its forecast sharply, the market often reprices the stock at once.
Finally, one stock can fall hard in a single day, even when the wider market is rising. Koppers fell more than 24% on the same day the Nasdaq rose. That is why beginners are often told to learn how diversification works before putting much money into one stock. Read more: What Is Diversification, and Why Does It Matter?
What to watch next
Watch whether the price increases planned for January 1, 2027 start to rebuild margins, and whether coal tar and logistics costs keep rising. Watch fourth quarter results to see if sales stay near the $1.9 billion full year target. Watch free cash flow to see whether Koppers reaches its raised $115 million to $135 million range. Also watch the benefit from ending coal tar distillation at Stickney, which management expects to add $1.00 to $1.20 to earnings per share a year.
FAQ
What does Koppers do?
Koppers is a specialty chemicals and treated wood company. It makes wood preservatives, railroad crossties and utility poles, and carbon compounds used in industry. It operates through three parts: Railroad and Utility Products and Services, Performance Chemicals, and Carbon Materials and Chemicals.
Why did Koppers shares fall 24%?
The company missed forecasts on both sales and profit, and then cut its full year outlook. Third quarter adjusted earnings were $0.77 per share against $1.37 expected, and full year adjusted earnings guidance fell to $3.10 to $3.25 from $3.80 to $4.20. Shares closed down 24.39% at $29.97 on Friday, November 6, 2026.
What is adjusted earnings per share?
Adjusted earnings per share, or adjusted EPS, is profit per share after removing one off items that the company says do not reflect its normal business. It is the figure analysts usually compare with their forecasts. Koppers reported adjusted EPS of $0.77, while its GAAP diluted EPS was $0.75.
What is guidance?
Guidance is a company’s own forecast for its future results. Koppers lowered its guidance for 2026, which means it now expects less profit for the full year than it expected before. Investors pay close attention to guidance because it shapes what they think the company will earn next.
Does this mean Koppers is a good investment?
This article does not recommend buying or selling any stock. One bad quarter and a lower outlook are useful information, but they do not decide whether a company is a good investment for you. Beginners should understand the risks and consider learning the basics first.
Sources
Motley Fool, “Why Koppers Holdings Stock Flopped on Friday”, November 6, 2026: https://www.fool.com/investing/2026/11/06/why-koppers-holdings-stock-flopped-on-friday/?source=iedfolrf0000001
MarketBeat, “Koppers (NYSE:KOP) Releases Earnings Results, Misses Estimates By $0.60 EPS”, November 6, 2026: https://www.marketbeat.com/instant-alerts/earnings-koppers-nyse-kop-releases-earnings-results-misses-estimates-by-060-eps-2026-11-06/
This article is for general information and education only. It is not legal or financial advice.
