KP Tissue (KPT) Q4 2025 earnings summary

Executive summary

• Fiscal 2025 delivered strong revenue and profitability growth across Canadian and U.S. markets, supported by operational efficiency, improved safety records, and strategic investments.

• 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, brand-building, and product innovations drove market share gains and margin expansion.

Financial highlights

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

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

• Net income margin for Q4 2025 was 4.2%; full-year net income improved to $75.5 million from $23.8 million.

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

• Q4 2025 CAPEX was $33.4 million; full-year 2025 CAPEX reached $78 million.

Outlook and guidance

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

• 2026 CAPEX guidance raised to $100–$120 million, including investments in the Memphis converting line and initial TAD project spending.

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

• Continued focus on margin management and navigating economic volatility.

• Industry analysts expect pulp prices to trend upwards in 2026.