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KP Tissue (KPT) investor relations material
KP Tissue Q2 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Q2 2025 revenue increased 5.2% year-over-year to $536.1M, driven by higher consumer sales, favorable pricing, and U.S. growth, despite AFH segment softness and shipment timing impacts.
Adjusted EBITDA rose 11.0% to $72.5M, with net income more than doubling to $22.1M, aided by FX gains and improved cost absorption.
Announced $35M investment in Memphis for a new converting line, with start-up in 2026, and completed shutdown of older assets to improve efficiency.
Maintained leading market share in Canadian bathroom and facial tissue, with continued brand-building campaigns and product launches in AFH.
Ongoing investments in U.S. operations and Sherbrooke Expansion Project supported strong operational performance and network production rates above targets.
Financial highlights
Q2 consolidated revenue was $536.1M, up $26.3M year-over-year, with Canada up 7.4% and U.S. up 2.4%.
Adjusted EBITDA reached $72.5M (13.5% margin), up from $65.3M (12.8%) last year.
Net income for Q2 was $22.1M, up from $10.6M, with net income margin rising to 4.1% from 2.1%.
Consumer segment revenue grew 6.5% to $449.2M; AFH revenue declined 1.1% to $86.9M, but AFH EBITDA margin improved sequentially.
Sequentially, Q2 revenue decreased 1.8% from Q1, mainly due to lower U.S. sales volume and FX impact.
Outlook and guidance
Q3 2025 Adjusted EBITDA is expected in the range of $75M to $80M, with performance strengthening as inventory rebalancing effects subside.
2025 CapEx is anticipated at $70M–$90M, including Memphis and Sherbrooke investments.
Focus remains on expanding U.S. premium private label, brand share, and margin management amid economic volatility.
Industry analysts expect pulp prices to remain range-bound amid ongoing uncertainty.
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