KP Tissue (KPT) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 5.1% YoY to CAD 589.7 million; Adjusted EBITDA increased 9.1% to CAD 93.5 million, and net income reached CAD 27.7 million versus CAD 14.6 million.

• Profitable growth continued for more than three years; operating rates exceeded expectations across the network, with the Memphis converting-line ramp ahead of plan.

Financial highlights

• Adjusted EBITDA rose CAD 7.8 million YoY on higher volume and selling prices and favourable pulp costs, partly offset by freight, manufacturing overhead and warehousing costs.

• Net income increased to CAD 27.7 million from CAD 14.6 million, primarily on higher Adjusted EBITDA, an FX gain and lower interest expense; higher taxes, D&A and non-controlling interest partly offset gains.

• Gross profit increased 7.3% to CAD 108.6 million; gross margin was 18.4% versus 18.0%, and Adjusted EBITDA margin was 15.9% versus 15.3%.

• Sequentially, revenue increased 7.0% and Adjusted EBITDA rose 3.2%; Adjusted EBITDA margin eased to 15.9% from 16.4%.

Outlook and guidance

• Assuming a similar tariff environment, Q4 2026 Adjusted EBITDA is expected slightly below Q3 2026 but above Q4 2025; pricing, tariffs and execution may affect results.

• Escalating freight, transportation, packaging and petroleum-based input costs are expected to persist; pricing actions and productivity measures are under consideration.

• NBSK prices are expected relatively stable through Q4 2026, with upward pressure in 2027; BEK prices are expected stable through Q4 2026 and 2027.

• TAD facility operations are not expected to start in 2028; location and timing remain under development pending greater economic and trade certainty. Planning and engineering continue.