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- KP Tissue Releases Fourth Quarter and Full Year 2025 Financial Results
KP Tissue Releases Fourth Quarter and Full Year 2025 Financial Results
By 360
March 10, 2026
KP Tissue Inc. has reported Q4 2025 and full year 2025 financial and operational results of KPT and Kruger Products Inc. (Kruger Products). Kruger Products is Canada’s leading manufacturer of quality tissue products for the Consumer market (Cashmere®;, Purex®;, SpongeTowels®;, Scotties®;, White Swan®; and Bonterra®😉 and the Away-From-Home (AFH) market and continues to grow in the U.S. Consumer tissue business with the White Cloud®; brand and premium private label products. KPT currently holds a 12.1 percent interest in Kruger Products.
Kruger Products Q4 2025 Business and Financial Highlights: Fiscal 2025 proved to be a strong year across many areas of our business, marked by share gains and revenue growth, higher margins and greater profitability, along with enhanced operational efficiency and an improved safety record,” stated Kruger Products and KP Tissue’s Chief Executive Officer, Dino Bianco. “We are particularly pleased revenue growth was well-diversified both in Canada, leveraging our leadership position in this mature market, and in the U.S., serving as our growth engine for years to come. “In fact, we are firming up the location, project scope and financial details of a new through-air-dried (TAD) facility slated to open in the western United States in 2028 with an official announcement expected in the first half of 2026. “In the fourth quarter of 2025, our momentum culminated with Adjusted EBITDA growing 26.0 percent year-over-year to $84.2 million, mainly driven by higher sales volume. In addition, expanded in-sourcing of paper from our Sherbrooke Expansion Project improved the margins of our Away-From-Home segment and overall business. “Going forward, we intend to build on our solid foundation, entrenched by three consecutive years of increases in revenue and profitability, to deliver growth in 2026 and beyond,” Bianco added. Outlook for Q1 2026 For the first quarter of 2026, we expect Adjusted EBITDA1 to be in the range of Q4 2025. Kruger Products Q4 2025 Financial Results: Revenue was $560.1 million in Q4 2025 compared to $539.6 million in Q4 2024, an increase of $20.5 million or 3.8 percent. The increase in revenue was primarily due to higher sales volume across both segments. Cost of sales was $451.9 million in Q4 2025 compared to $459.3 million in Q4 2024, a decrease of $7.4 million or 1.6 percent. The decrease in cost of sales was primarily due to lower pulp prices compared to the year ago quarter and favourable productivity across our manufacturing sites, partially offset by higher sales volume and additional manufacturing overhead spend to invest in our sites. Freight rates were lower compared to Q4 2024 while warehousing expenses remained essentially flat. As a percentage of revenue, cost of sales was 80.7 percent in Q4 2025, compared to 85.1 percent in Q4 2024. Selling, general and administrative (SG&A) expenses were $55.3 million in Q4 2025 compared to $45.1 million in Q4 2024, an increase of $10.2 million or 22.6 percent. The increase was primarily due to additional headcount and related compensation costs that resulted in lower contracting costs, higher selling expenses related to higher sales volume, foreign exchange losses in Q4 2025 compared to gains in Q4 2024 and a favourable business tax adjustment in a U.S. entity in Q4 2024 that did not recur in Q4 2025. As a percentage of revenue, SG&A expenses were 9.9 percent in Q4 2025 compared to 8.4 percent in Q4 2024. Adjusted EBITDA1 was $84.2 million in Q4 2025 compared to $66.8 million in Q4 2024, an increase of $17.4 million or 26.0 percent. The increase was primarily due to higher sales volumes and favourable productivity in our manufacturing sites, along with lower pulp costs and freight rates, partially offset by higher manufacturing overhead spend and SG&A expenses. Net income was $23.4 million in Q4 2025 compared to a net loss of $13.7 million in Q4 2024, an increase of $37.1 million. The increase was primarily due to a foreign exchange difference and higher Adjusted EBITDA1, partially offset by higher income tax expense, higher income from non-controlling interest and higher interest expense and other finance costs. Kruger Products 2025 Financial Results Revenue was $2,203.4 million in Fiscal 2025 compared to $2,049.9 million in Fiscal 2024, an increase of $153.5 million or 7.5 percent. The increase in revenue was primarily due to higher sales volume in the Consumer segment and favourable selling prices across both segments, partially offset by somewhat lower sales volume in the AFH segment from the first half of 2025. Revenue was also favorably impacted by foreign exchange fluctuations on U.S. dollar sales. Adjusted EBITDA1 was $318.2 million in Fiscal 2025 compared to $264.8 million in Fiscal 2024, an increase of $53.4 million or 20.2 percent. The increase was primarily due to higher sales volumes and selling prices along with lower pulp prices and favourable manufacturing overhead cost absorption, partially offset by additional manufacturing overhead spend to invest in our sites and unfavourable mill performance at our Memphis site, along with higher warehousing and SG&A expenses. Net income was $75.5 million in Fiscal 2025 compared to $23.8 million in Fiscal 2024, an improvement of $51.7 million. The improvement was primarily due to higher Adjusted EBITDA1 and a foreign exchange gain, partially offset by higher depreciation expense resulting from the Sherbrooke Expansion Project and a one-time expense related to the restructuring activity in our Memphis site, higher interest expense and other finance costs, higher income from non-controlling interest, higher restructuring costs and higher income tax expense. Kruger Products Q4 2025 Financing Activity and Liquidity On December 10, 2025, Kruger Products issued $165 million in an aggregate principal amount of 6.250 percent Senior Unsecured Notes (the Notes) due December 10, 2032 by way of private placement (the Offering). Interest on the Notes is payable semiannually in arrears on June 10 and December 10 of each year, commencing on June 10, 2026. A portion of the proceeds were used to fund the repayment in full of the borrowings outstanding under the senior credit facilities of Kruger Products SB Inc. (KPSB) with the balance being used for general corporate purposes. In connection with the Offering, Kruger Products’ syndicated credit agreement was amended and restated to, among other things, increase the facility amount from $230 million to $250 million, increase the accordion feature from $75 million to $100 million and add KPSB as a restricted credit party. Total liquidity, representing cash and availability under the revolving credit agreements, was $451.3 million as of December 31, 2025. KPT Q4 2025 Financial Results KPT had net income of $2.6 million in Q4 2025. Included in net income was $2.8 million representing KPT’s share of Kruger Products’ net income, a dilution gain of $0.1 million and depreciation expense of $0.3 million related to adjustments to carrying amounts on acquisition. KPT 2025 Financial Results KPT had net income of $8.5 million in Fiscal 2025. Included in net income was $9.2 million representing KPT’s share of Kruger Products’ net income, a dilution gain of $0.4 million and depreciation expense of $1.1 million related to adjustments to carrying amounts on acquisition. Dividends on Common Shares The Board of Directors of KPT declared a quarterly dividend of $0.18 per share to be paid on April 15, 2026 to shareholders of record at the close of business on March 31, 2026. 1 Adjusted EBITDA is a non-GAAP financial measure. Refer to the Non-GAAP Financial Measures section of this press release for more information on these measures. Additional Information For additional information please refer to Management’s Discussion and Analysis (MD&A) of KPT and Kruger Products for the fourth quarter and fiscal year ended December 31, 2025 available on SEDAR+ at www.sedarplus.ca or our website at www.kptissueinc.com.