Koppers Holdings Inc.KOP
Koppers Holdings Inc. Segments Disclosure
Segment Information
Revenues by geographic area in the above table are attributed by the destination country of the sale.
See Note 1 - Description of Business for a discussion of our three reportable segments. Our reportable segments contain multiple aggregated business units since management believes the long-term financial performance of these business units is affected by similar economic conditions. The reportable segments are each managed separately because they manufacture and distribute distinct products with different production processes.
Our measure of segment profitability is adjusted income before interest expense, income taxes, depreciation, amortization and certain non-cash and/or non-recurring items that do not contribute directly to management’s evaluation of our operating results (as defined by us, adjusted EBITDA). These non-cash and/or non-recurring items typically include LIFO inventory effects, impairment, restructuring and plant closure costs, significant gains or losses on sale of assets, mark-to-
market commodity hedging, acquisition-related charges, amortization of cloud-based software implementation costs and other unusual items.
The Chief Operating Decision Maker (CODM) is Koppers' Chief Executive Officer, Leroy M. Ball. This presentation is consistent with how our CODM evaluates the results of operations and makes strategic decisions about the business. The segments regularly provide the reported measures below to the CODM for historical, current and forecasted periods. Together, this allows the CODM to assess segment performance and decide how to allocate resources between segments.
In addition, adjusted EBITDA is the primary measure used to determine the level of achievement of management’s short-term incentive goals and related payout, as well as one of the measures used to determine performance and related payouts for certain performance share units granted to management. For these reasons, we believe that adjusted EBITDA represents the most relevant measure of segment profit and loss.
Adjusted EBITDA is reconciled to net income on a consolidated basis, the most directly comparable financial measure determined and reported in accordance with U.S. generally accepted accounting principles (U.S. GAAP). The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies. Intersegment transactions are eliminated in consolidation.
Segment Revenues for Significant Product Lines
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (Dollars in millions) | |||||||||||||||||
| Railroad and Utility Products and Services: | |||||||||||||||||
| Railroad treated products | $ | 551.5 | $ | 564.3 | $ | 540.9 | |||||||||||
| Utility poles | 304.6 | 289.4 | 266.1 | ||||||||||||||
| Railroad infrastructure products and services | 70.7 | 89.0 | 90.9 | ||||||||||||||
| Total Railroad and Utility Products and Services | $ | 926.8 | $ | 942.7 | $ | 897.9 | |||||||||||
| Performance Chemicals: | |||||||||||||||||
| Wood preservative and other products | $ | 543.8 | $ | 651.6 | $ | 671.6 | |||||||||||
| Carbon Materials and Chemicals: | |||||||||||||||||
| Pitch and related products | $ | 299.6 | $ | 294.8 | $ | 394.4 | |||||||||||
| Phthalic anhydride, naphthalene and other chemicals | 51.6 | 122.8 | 112.0 | ||||||||||||||
| Carbon black feedstock and distillates | 57.5 | 80.2 | 78.3 | ||||||||||||||
| Total Carbon Materials and Chemicals | $ | 408.7 | $ | 497.8 | $ | 584.7 | |||||||||||
| Total | $ | 1,879.3 | $ | 2,092.1 | $ | 2,154.2 | |||||||||||
Segment Expenses
| Year Ended December 31, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
| (Dollars in millions) | ||||||||||||||||||||
| Cost of sales: | ||||||||||||||||||||
| Railroad and Utility Products and Services | $ | 749.6 | $ | 800.1 | $ | 753.9 | ||||||||||||||
| Performance Chemicals | 356.2 | 454.8 | 485.0 | |||||||||||||||||
| Carbon Materials and Chemicals | 325.7 | 414.6 | 490.8 | |||||||||||||||||
| Total | $ | 1,431.5 | $ | 1,669.5 | $ | 1,729.7 | ||||||||||||||
| Selling, general and administrative expenses: | ||||||||||||||||||||
| Railroad and Utility Products and Services | $ | 65.2 | $ | 75.4 | $ | 62.9 | ||||||||||||||
| Performance Chemicals | 60.2 | 65.2 | 65.7 | |||||||||||||||||
| Carbon Materials and Chemicals | 29.5 | 38.7 | 45.5 | |||||||||||||||||
| Total | $ | 154.9 | $ | 179.3 | $ | 174.1 | ||||||||||||||
Other expense (income) to reconcile to Adjusted EBITDA(1): | ||||||||||||||||||||
| Railroad and Utility Products and Services | $ | 3.9 | $ | (15.1) | $ | (2.9) | ||||||||||||||
| Performance Chemicals | 24.7 | (11.1) | (2.2) | |||||||||||||||||
| Carbon Materials and Chemicals | 7.6 | 7.9 | (0.9) | |||||||||||||||||
| Total | $ | 36.2 | $ | (18.3) | $ | (6.0) | ||||||||||||||
| Adjusted EBITDA: | ||||||||||||||||||||
| Railroad and Utility Products and Services | $ | 108.1 | $ | 82.3 | $ | 84.0 | ||||||||||||||
| Performance Chemicals | 102.7 | 142.7 | 123.1 | |||||||||||||||||
| Carbon Materials and Chemicals | 45.9 | 36.6 | 49.3 | |||||||||||||||||
| Total | $ | 256.7 | $ | 261.6 | $ | 256.4 | ||||||||||||||
(1)Other expense (income) amounts primarily relate to miscellaneous (income) expense and the adjustments to reconcile to adjusted EBITDA such as acquisition-related charges, mark-to-market commodity hedging and LIFO inventory effects.
Segment Adjusted EBITDA
| Year Ended December 31, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
| (Dollars in millions) | ||||||||||||||||||||
| Adjusted EBITDA: | ||||||||||||||||||||
| Railroad and Utility Products and Services | $ | 108.1 | $ | 82.3 | $ | 84.0 | ||||||||||||||
| Performance Chemicals | 102.7 | 142.7 | 123.1 | |||||||||||||||||
| Carbon Materials and Chemicals | 45.9 | 36.6 | 49.3 | |||||||||||||||||
Items excluded from the determination of segment profit: | ||||||||||||||||||||
LIFO benefit (expense)(1) | 11.0 | (6.1) | (6.0) | |||||||||||||||||
Impairment, restructuring and plant closure costs(2) | (51.9) | (17.3) | (0.1) | |||||||||||||||||
| Gain (loss) on sale of assets | 0.4 | (10.7) | 1.8 | |||||||||||||||||
| Mark-to-market commodity hedging gains (losses) | 34.2 | (7.9) | 0.5 | |||||||||||||||||
| Acquisition inventory step-up amortization | 0.0 | (2.3) | 0.0 | |||||||||||||||||
| Amortization of cloud-based software implementation costs | (1.2) | (0.3) | 0.0 | |||||||||||||||||
| Pension settlement and expense | (28.3) | (4.0) | 0.0 | |||||||||||||||||
| Interest expense | (66.1) | (76.2) | (71.0) | |||||||||||||||||
| Depreciation and amortization | (73.6) | (67.5) | (57.0) | |||||||||||||||||
| Income tax expense | (25.2) | (20.7) | (34.8) | |||||||||||||||||
| Net income | $ | 56.0 | $ | 48.6 | $ | 89.8 | ||||||||||||||
(1)The LIFO expense adjustment removes the entire impact of LIFO and effectively reflects the results as if we were on a FIFO inventory basis.
(2)See Note 3 - Acquisitions and Restructuring.
Other Segment Disclosures
| Year Ended December 31, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
| (Dollars in millions) | ||||||||||||||||||||
| Intersegment revenues: | ||||||||||||||||||||
| Performance Chemicals | $ | 31.3 | $ | 31.7 | $ | 28.9 | ||||||||||||||
| Carbon Materials and Chemicals | 90.7 | 93.7 | 87.4 | |||||||||||||||||
| Total | $ | 122.0 | $ | 125.4 | $ | 116.3 | ||||||||||||||
| Depreciation and amortization expense: | ||||||||||||||||||||
| Railroad and Utility Products and Services | $ | 33.5 | $ | 32.1 | $ | 24.6 | ||||||||||||||
| Performance Chemicals | 16.1 | 15.1 | 13.9 | |||||||||||||||||
| Carbon Materials and Chemicals | 24.0 | 20.3 | 18.5 | |||||||||||||||||
| Total | $ | 73.6 | $ | 67.5 | $ | 57.0 | ||||||||||||||
| Capital expenditures: | ||||||||||||||||||||
| Railroad and Utility Products and Services | $ | 19.2 | $ | 32.1 | $ | 49.8 | ||||||||||||||
| Performance Chemicals | 15.2 | 15.2 | 15.1 | |||||||||||||||||
| Carbon Materials and Chemicals | 18.9 | 27.5 | 50.7 | |||||||||||||||||
| Corporate | 1.7 | 2.6 | 4.9 | |||||||||||||||||
| Total | $ | 55.0 | $ | 77.4 | $ | 120.5 | ||||||||||||||
Segment Assets
| December 31, | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| (Dollars in millions) | ||||||||||||||
| Segment assets: | ||||||||||||||
| Railroad and Utility Products and Services | $ | 827.5 | $ | 839.2 | ||||||||||
| Performance Chemicals | 536.6 | 499.7 | ||||||||||||
| Carbon Materials and Chemicals | 486.7 | 506.3 | ||||||||||||
| Corporate | 36.0 | 45.0 | ||||||||||||
| Total | $ | 1,886.8 | $ | 1,890.2 | ||||||||||
| Goodwill: | ||||||||||||||
| Railroad and Utility Products and Services | $ | 156.4 | $ | 145.6 | ||||||||||
| Performance Chemicals | 173.0 | 171.5 | ||||||||||||
| Total | $ | 329.4 | $ | 317.1 | ||||||||||
Revenues and Long-lived Assets by Geographic Area
| 2025 | 2024 | 2023 | ||||||||||||||||||
| (Dollars in millions) | ||||||||||||||||||||
| United States | ||||||||||||||||||||
| Revenue | $ | 1,280.9 | $ | 1,475.6 | $ | 1,468.1 | ||||||||||||||
| Long-lived assets | 1,016.7 | 1,021.2 | 942.3 | |||||||||||||||||
| Australasia | ||||||||||||||||||||
| Revenue | 249.0 | 247.0 | 265.0 | |||||||||||||||||
| Long-lived assets | 77.8 | 76.3 | 75.6 | |||||||||||||||||
| Europe | ||||||||||||||||||||
| Revenue | 171.5 | 181.6 | 213.3 | |||||||||||||||||
| Long-lived assets | 100.8 | 88.8 | 91.0 | |||||||||||||||||
| Other countries | ||||||||||||||||||||
| Revenue | 177.9 | 187.9 | 207.8 | |||||||||||||||||
| Long-lived assets | 15.8 | 14.9 | 17.2 | |||||||||||||||||
| Total | ||||||||||||||||||||
| Revenue | $ | 1,879.3 | $ | 2,092.1 | $ | 2,154.2 | ||||||||||||||
| Long-lived assets | $ | 1,211.1 | $ | 1,201.2 | $ | 1,126.1 | ||||||||||||||
| Revenue from non-US countries | $ | 598.4 | $ | 616.5 | $ | 686.1 | ||||||||||||||
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Feb 27, 2023 | |
| 2021 | Feb 23, 2022 | |
| 2020 | Feb 24, 2021 | |
| 2019 | Feb 27, 2020 | |
| 2018 | Mar 1, 2019 | |
| 2017 | Feb 27, 2018 | |
| 2016 | Feb 24, 2017 | |
| 2015 | Feb 29, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.