Following the 1Q:26 earnings release and announced plant closure. we raise our price target to $48 from $44 and maintain our Moderate risk rating. We raise our 2026 EPS estimate to $4.38 from $4.31, and our 2027 EPS estimate to $4.95 from $4.84. On May 8, Koppers Holdings Inc. (KOP) announced that it expects to close its carbon products plant in Stickney, Illinois by the end of 2026; this will reduce excess capacity in the company's Carbon Materials and Chemicals (CMC) segment, which we forecast will significantly improve margins, and eliminate the need for continued investment in the plant. Closing the plant will require KOP to take pre-tax charges to earnings of $227 to $262 million through the end of 2029, of which $170 to $195 million are non-cash charges. KOP announced 1Q:26 EPS of $0.57, that significantly exceeded our $0.33 estimate. Revenue that exceeded our forecast by 20% drove the company's outperformance. Within its segments, KOP's CMC segment exceeded our revenue forecast by 28%, despite a 9% decline in pricing for carbon pitch. The Performance Chemicals (PC) segment exceeded our revenue forecast by 23%, driven by a 15% year-over-year increase in volume, as well as higher pricing. The Rail and Utility Products and Services (RUPS) segment exceeded our revenue forecast by 15%, primarily due to increased volume for utility poles, offset by lower sales of crossties to Class I railroads. We raise our price target to $48 from $44, and maintain our Moderate risk rating. We derive our price target by applying an 11x multiple (increased from 10x) to our newly increased 2026 full-year EPS estimate of $4.38. We increase our multiple to 11x from 10x due to the acceleration in free cash flow growth expected from the plant closure. Although KOP's total debt to capital ratio currently stands at 63%, a significant share of 2026 free cash flow is earmarked for debt reduction, leaving us comfortable assigning KOP shares a Moderate risk rating.