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Analogy 1: Koppers is like Vulcan Materials for the railroad and utility industries, specializing in treated wood products and services for infrastructure like railroad ties and utility poles.

Analogy 2: Koppers is like a specialized Eastman Chemical, focusing on wood preservation chemicals and essential carbon-based industrial materials for heavy industries like aluminum and steel.

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• Treated Wood Products: Provides treated timber products such as railroad crossties, utility poles, pilings, and lumber for various infrastructure applications.
• Railroad Services: Offers engineering, design, repair, and inspection services specifically for railroad bridges and infrastructure.
• Wood Preservation Chemicals: Develops and manufactures a range of copper-based and other chemicals used to preserve wood for decking, fencing, utility poles, and construction.
• Fire-retardant Chemicals: Supplies chemicals designed to impart fire resistance to pressure-treated wood, primarily for commercial construction.
• Creosote: Produces creosote, used for wood treatment and as a feedstock in carbon black manufacturing.
• Carbon Pitch: Manufactures carbon pitch, an essential raw material for the production of aluminum and steel.
• Naphthalene: Provides naphthalene, which serves as a feedstock for phthalic anhydride and a surfactant in concrete production.
• Phthalic Anhydride: Produces phthalic anhydride for use in plasticizers, polyester resins, and alkyd paints.
• Carbon Black Feedstock: Supplies specialized feedstock used in the production of carbon black.

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Koppers (KOP) primarily sells its products and services to other companies (B2B). Based on the provided background information, specific customer company names are not listed; however, its major customers can be categorized by the industries they serve:

• Railroad and Utility Companies: This category includes railroad operators, electric utilities, and telephone utilities, which purchase treated crossties, switch ties, rail joint bars, transmission and distribution poles, pilings, and utilize Koppers' railroad services.
• Wood Product Manufacturers and Treatment Companies: These customers utilize Koppers' performance chemicals, such as copper-based wood preservatives and fire-retardant chemicals, for products like decking, fencing, construction lumber, timbers, and utility poles, as well as for various agricultural uses. They also consume creosote for wood treatment.
• Heavy Industry and Chemical Manufacturers: This broad category encompasses aluminum and steel producers (who use carbon pitch), carbon black manufacturers (who use carbon black feedstock and creosote), concrete producers (who use naphthalene as a surfactant), and other chemical manufacturers that use naphthalene and phthalic anhydride for plasticizers, polyester resins, and alkyd paints.

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Leroy M. Ball
Chief Executive Officer

Leroy M. Ball joined Koppers in September 2010 as Vice President and Chief Financial Officer. He was elected Chief Operating Officer from May to December 2014 and then became President and Chief Executive Officer in January 2015. Prior to his tenure at Koppers, Mr. Ball spent 10 years with Calgon Carbon Corporation, an international chemical company, where he served as Controller and later as Senior Vice President and Chief Financial Officer. He also held various finance positions with Carmeuse Lime Co./Dravo Corporation. Mr. Ball currently serves on the Boards of Directors for ATI Inc. and Highmark Inc.

Bradley Pearce
Interim Chief Financial Officer

Bradley Pearce was elected by Koppers' Board of Directors to serve as interim Chief Financial Officer and Chief Accounting Officer, effective January 5, 2026, following the retirement of Jimmi Sue Smith. Mr. Pearce joined Koppers in 2006 and has served as Chief Accounting Officer since May 2019, overseeing the company’s accounting, tax, and external reporting functions. Before joining Koppers, he held finance positions in both the private sector and public accounting.

Jimmi Sue Smith
Treasurer and Advisor (formerly Chief Financial Officer)

Jimmi Sue Smith retired from her position as Chief Financial Officer effective January 5, 2026. She will continue to serve as Treasurer and in an advisory role through February 28, 2026, to ensure a smooth transition. Ms. Smith served as CFO since January 2022, leading the company's global finance and accounting operations, budgeting, forecasting, tax, and investor relations, and advising on key strategic growth initiatives. She joined Koppers in 2019 as Vice President of Finance and Treasurer.

James A. Sullivan
President and Chief Transformation Officer

James A. Sullivan was appointed President and Chief Transformation Officer, effective June 1, 2025. In this newly created role, he leads the Koppers enterprise-wide transformation process known as "Catalyst," focusing on evaluating, scoping, quantifying, planning, and executing opportunities to maximize performance across the company. Prior to this, he served as President and Chief Operating Officer, effective January 1, 2024. Mr. Sullivan joined Koppers in June 2013 as Vice President of Business Development. He subsequently held roles as Senior Vice President, Global Carbon Materials and Chemicals (CMC), and later Senior Vice President, Railroad Products and Services and Global Carbon Materials and Chemicals. Before joining Koppers, he was Senior Vice President, Americas at Calgon Carbon Corporation, where he held various management positions in operations, marketing, sales, and research and development.

Leslie S. Hyde
Senior Vice President and Chief Sustainability Officer

Leslie S. Hyde serves as Senior Vice President and Chief Sustainability Officer at Koppers, a role she has held since January 2020. She is set to retire effective March 31, 2025. Over her 25-year career with Koppers, Ms. Hyde has held numerous key roles encompassing legal, environmental, risk management, safety and health, product stewardship, and strategic planning. She developed Koppers' environmental programs, implemented a global enterprise risk management system, and played a crucial role in achieving certifications for the ISO 14001 standard and the Responsible Care Management System. Ms. Hyde became the company's first Chief Sustainability Officer, developing a comprehensive sustainability program. Prior to Koppers, she held various manufacturing and consulting roles and served 10 years on active duty with the United States Army.

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The key risks to Koppers (KOP) include:

1. Regulatory and Environmental Risks Related to Wood Preservation Chemicals and Carbon Materials: Koppers' business heavily relies on chemicals for wood preservation (e.g., copper-based preservatives) and carbon materials like creosote. Many of these products, particularly creosote, are subject to stringent environmental and health regulations due to their chemical properties. The risk of new or stricter regulations, restrictions, or outright bans on the use of these chemicals, or increased costs associated with their production and disposal, could significantly impact Koppers' ability to manufacture and sell its key products across the Performance Chemicals (PC) and Carbon Materials and Chemicals (CMC) segments. This is comparable to a "patent cliff" for pharmaceutical companies, where regulatory changes rather than patent expiration could threaten the viability of core products.
2. Sensitivity to Macroeconomic Conditions and Industrial Capital Spending: Koppers serves cyclical industries such as railroads, utilities, aluminum, steel, rubber, and construction. Demand for its products, including treated crossties, utility poles, carbon pitch, and naphthalene, is directly tied to the capital expenditure and maintenance budgets of these industries. Economic downturns, reduced infrastructure spending, or declines in industrial production can lead to decreased demand for Koppers' products and services, impacting revenue and profitability across its Railroad and Utility Products and Services (RUPS) and Carbon Materials and Chemicals (CMC) segments.
3. Competition from Alternative Materials and Technologies: Koppers' traditional markets, particularly in the Railroad and Utility Products and Services (RUPS) segment, could face long-term challenges from alternative materials. For instance, the use of treated wood for railroad ties and utility poles could be impacted by the increasing adoption of concrete, steel, or composite materials. Similarly, evolving technologies and materials in industries served by the Performance Chemicals (PC) and Carbon Materials and Chemicals (CMC) segments could reduce the demand for Koppers' chemical solutions or carbon products over time.

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The increasing adoption of alternative materials such as concrete, steel, and advanced composites for railroad ties, utility poles, and other construction applications threatens Koppers' core treated wood products and associated wood preservation chemicals.

The development and increasing implementation of "green" production technologies in the aluminum and steel industries, such as inert anode technology and hydrogen-based direct reduced iron (DRI), threaten the demand for Koppers' carbon pitch, a critical raw material in traditional primary metals production.

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Koppers (KOP) operates in several addressable markets for its diverse range of products and services. The market sizes for its main offerings are as follows:

Railroad and Utility Products and Services (RUPS)

• Treated Wood Products: The global treated wood market size was estimated at USD 5.86 billion in 2023 and is projected to grow to USD 11.17 billion by 2033. Another estimate puts the global market at USD 6.21 billion in 2023, projected to reach USD 9.78 billion by 2032.
• Railroad Ties (Crossties, Switch Ties): The global railroad tie market size was valued at USD 6.11 billion in 2025 and is projected to grow to USD 9.81 billion by 2034. In 2025, the global railroad tie market size was approximately USD 6.85 billion, with North America holding over 37% of the global revenue. The wood tie segment specifically accounted for about USD 3.03 billion in 2023 and is expected to reach approximately USD 4.37 billion by 2032.
• Utility Poles: The global utility poles market size was valued at USD 37.17 billion in 2025 and is projected to grow to USD 56.72 billion by 2034. Another report estimated the market at USD 57.66 billion in 2023, projected to reach USD 75.88 billion by 2030. Asia Pacific dominated this market with a revenue share of 44.54% in 2023.
• Railroad Services (including engineering, design, repair, and inspection services for railroad bridges): The global railcar services market size is projected to grow from USD 11.04 billion in 2024 to USD 14.34 billion by 2030. More broadly, the global railway system market size is valued at USD 38.34 billion in 2025 and is projected to reach USD 49.75 billion by 2030. The global railroad market size, which includes services, was estimated at USD 314.84 billion in 2024 and is projected to reach USD 436.35 billion by 2030.

Performance Chemicals (PC)

• Wood Preservatives (Copper-based and general wood preservation chemicals): The global wood preservative market size was valued at USD 1.50 billion in 2023 and is projected to reach USD 2.1 billion by 2033. Another source valued the global market at USD 1.68 billion in 2024, poised to grow to USD 2.65 billion by 2033. Asia-Pacific held the largest revenue share in the global wood preservative market in 2023.
• Fire-Retardant Chemicals for pressure treatment of wood (Fire-Retardant Treated Wood): The global fire-retardant treated wood market size is estimated at USD 1.67 billion in 2025 and is expected to reach USD 2.06 billion by 2030. Another estimate places the market at approximately USD 1.36 billion in 2025, projected to reach USD 1.88 billion by 2032. North America is the largest market, holding approximately 45% of the global market share.

Carbon Materials and Chemicals (CMC)

• Creosote: The global creosote oil market size was valued at USD 1.9 billion in 2024 and is projected to grow to USD 3.08 billion by 2033. North America held the largest creosote oil market share, accounting for 40% of the global market in 2024. The global coal tar creosote market size was USD 19.74 billion in 2025 and is expected to grow to USD 30.04 billion by 2032.
• Carbon Pitch (raw material used in the production of aluminum and steel): Null. A specific global addressable market size for "carbon pitch" as a standalone product was not readily available in the search results.
• Naphthalene: The global naphthalene market size was estimated at USD 5.31 billion in 2025 and is projected to reach USD 7.56 billion by 2033. Another report valued the global market at USD 2.4 billion in 2025, expected to grow to USD 3.7 billion by 2035. North America dominated the naphthalene market, accounting for approximately 45.6% of the global market value in 2025.
• Phthalic Anhydride: The global phthalic anhydride market size was valued at USD 4.52 billion in 2023 and is projected to reach USD 5.82 billion by 2030. Another source states the market was valued at USD 5.38 billion in 2025, projected to grow to USD 7.31 billion by 2034. Asia Pacific dominated the global market with a share of 61.4% in 2023.
• Carbon Black Feedstock: The global carbon black feedstock market size was estimated at USD 7.4 billion in 2023 and is projected to reach USD 9.97 billion by 2030. Another estimate puts the market size at USD 7.72 billion in 2024, projected to reach USD 9.97 billion by 2030. Asia Pacific dominated this market with a revenue share of 43% in 2023.

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Koppers (KOP) is expected to experience future revenue growth over the next 2-3 years driven by several key factors:

1. Growth in Performance Chemicals (PC) from market share gains and new commercial wins: Koppers anticipates its Performance Chemicals segment to achieve approximately 11% top-line growth in 2026. This expansion is projected to come from gaining market share and securing new commercial opportunities, particularly in industrial markets, even without an expected improvement in U.S. housing activity.
2. Increased demand in Railroad and Utility Products and Services (RUPS) due to utility infrastructure investments: The RUPS segment is expected to benefit from robust demand within the utility sector, especially from "grid hardening" initiatives. This demand is projected to contribute an additional $30-45 million in sales for RUPS in 2026. Furthermore, a recent acquisition of a Douglas fir procurement business is anticipated to secure a critical supply for this segment.
3. Benefits from the "Catalyst" transformation program: While primarily focused on operational efficiencies and cost reductions, Koppers' Catalyst program is designed to deliver transformational change that will counteract various market and cost headwinds. This program is expected to contribute $20-40 million in benefits in 2026 and up to $75 million cumulatively through 2028, indirectly supporting revenue growth by enhancing competitiveness and profitability, and contributing to meaningful EPS growth.
4. Strategic acquisitions expanding market presence: The acquisition of Brown Wood Preserving Company in April 2024 for approximately $100 million significantly enhances Koppers' utility pole treatment business and broadens its market reach. This acquisition is expected to contribute an additional $15-25 million in EBITDA in 2025, with its full revenue impact continuing into the next few years.
5. Strategic price increases: Koppers has demonstrated the ability to implement strategic price increases in certain segments, which have partially offset volume declines. In its Performance Chemicals segment, net sales price increases helped to mitigate a decrease in sales. Additionally, the RUPS segment is expected to benefit from price increases in 2026, indicating that strategic pricing will be a factor in revenue growth where market conditions permit.

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Share Repurchases

• Koppers repurchased $38.2 million in shares during 2025.
• A new $100 million share repurchase program was approved in February 2025, succeeding a previous program from August 2021 that had approximately $11 million remaining.
• As of February 26, 2026, $66.5 million remained authorized under the current share repurchase program.

Outbound Investments

• Koppers allocated $20.7 million to acquisitions in 2025.
• The company completed the sale of its railroad structures business in August 2025 as part of its Catalyst transformation process.
• Koppers exited the phthalic anhydride business in 2025, which included closing its CMC phthalic anhydride plant in April 2025.

Capital Expenditures

• Capital expenditures, net of insurance proceeds and sale of assets, were $47.6 million in 2025, down from $74.0 million in 2024.
• Total capital expenditures for 2025 amounted to $55.0 million.
• For 2026, Koppers forecasts capital expenditures of $55 million, with most allocated to maintenance.