KP Tissue
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KP Tissue (KPT) investor relations material

KP Tissue Q4 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q4 2025 earnings summary18 Feb, 2026

Executive summary

  • Fiscal 2025 delivered strong revenue and profitability growth across Canadian and U.S. markets, supported by operational efficiency, safety improvements, and market share gains.

  • Adjusted EBITDA for Q4 2025 grew 26% year-over-year to $84.2 million, maintaining a run rate above CAD 80 million for a second consecutive quarter.

  • Net income for Q4 2025 was $23.4 million, reversing a net loss in Q4 2024.

  • Full-year 2025 revenue totaled $2,203.4 million, up 7.5%, with adjusted EBITDA of $318.2 million, up 20.2%.

  • Strategic investments, operational improvements, and product innovation supported growth and margin expansion.

Financial highlights

  • Q4 2025 revenue increased 3.8% year-over-year to $560.1 million, with gross margin improving to 19.3% from 14.9%.

  • Adjusted EBITDA margin rose to 15% from 12.4% year-over-year.

  • Net income margin for Q4 2025 was 4.2%.

  • Net debt decreased by $55.7 million sequentially, with leverage ratio improving to 3.1x.

  • Full-year net income improved to $75.5 million from $23.8 million in 2024.

Outlook and guidance

  • Q1 2026 Adjusted EBITDA is expected to be in line with Q4 2025.

  • 2026 CapEx guidance raised to $100–$120 million, including spending for the new Memphis converting line and strategic projects.

  • Plans to announce a new TAD facility in the western U.S. in H1 2026, with operations targeted for 2028.

  • Continued focus on margin management and navigating economic volatility.

TAD project acceptable leverage ratio
What drives U.S. growth beyond new assets?
AFH segment long-term margin outlook
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Frequently asked questions

KP Tissue Inc. is a holding company that owns a minority interest in Kruger Products L.P., one of Canada’s leading manufacturers of tissue products. Kruger Products produces a wide range of tissue and paper-based goods, including bathroom tissue, facial tissue, paper towels, and napkins, under well-known brands such as Cashmere, Scotties, and SpongeTowels. The company serves both consumer and commercial markets across Canada and the United States, focusing on sustainability and innovation in its product offerings. The company is headquartered in Mississauga, Canada, and its shares are listed on the TSX.

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