RestructuringMay 8, 2026, 09:12 AM
Koppers to Close Stickney Plant, Expects $227M-$262M Charges
AI Summary
Koppers Holdings Inc. announced a conditional decision to discontinue distillation and chemical manufacturing operations at its Stickney, Illinois facility by December 31, 2026, expecting pre-tax charges of $227 million to $262 million through 2029. This strategic move is projected to improve annual free cash flow by $15 million to $25 million and Adjusted EBITDA by $15 million to $20 million from 2027. Concurrently, the company reported Q1 2026 net income of $7.1 million and diluted EPS of $0.35, despite a slight dip in sales to $455.3 million. Shareholders also approved an amendment to the Employee Stock Purchase Plan, director elections, and executive compensation at the Annual Meeting.
Key Highlights
- Koppers conditionally decided to discontinue Stickney, Illinois operations by December 31, 2026, affecting 85 employees.
- Anticipates pre-tax charges of $227M-$262M through 2029, including $170M-$195M non-cash.
- Projects annual free cash flow improvement of $15M-$25M and Adjusted EBITDA improvement of $15M-$20M from 2027.
- Reported Q1 2026 net income of $7.1M (+151.1% YoY) and diluted EPS of $0.35 (+151.5% YoY).
- Q1 2026 sales were $455.3M (-0.3% YoY) and Adjusted EBITDA was $49.3M (-11.2% YoY).
- Performance Chemicals segment sales rose 17.5% to $142.1M, with Adjusted EBITDA up 28.4% to $25.8M.
- Updated 2026 Adjusted EBITDA forecast to $240M-$260M and Adjusted EPS to $3.80-$4.60.
- Shareholders approved ESPP amendment, election of eight directors, and executive officer compensation.