KP Tissue Inc. Reports Q4 and Full Year 2025 Results

February 18, 2026 – KP Tissue Inc. reported solid financial results for the fourth quarter and full year ended December 31, 2025, highlighted by strong EBITDA growth, margin expansion, and continued operational momentum.

Fourth Quarter 2025 Highlights

Revenue increased 3.8% year-over-year to $560.1 million, driven primarily by higher sales volumes across both Consumer and Away-from-Home (AFH) segments. Revenue in Canada grew 5.1%, while U.S. revenue increased 2.2%.

Adjusted EBITDA rose 26.0% to $84.2 million, with Adjusted EBITDA margin expanding to 15.0%, compared to 12.4% in the prior year period. The improvement was supported by:

• Higher sales volume

• Favourable manufacturing productivity

• Lower pulp prices

• Reduced freight costs

These gains were partially offset by higher manufacturing overhead and increased SG&A expenses.

Net income totaled $23.4 million, compared to a net loss in the prior year quarter.

Full Year 2025 Performance

For the full year, revenue increased 7.5% to $2.203 billion, reflecting strong growth across both Canada and the U.S.

Adjusted EBITDA increased 20.2% to $318.2 million, demonstrating continued operational execution and margin improvement.

Net income rose to $75.5 million, up significantly from the prior year.

Segment Performance

Consumer Segment

Consumer revenue increased 4.3% in the fourth quarter, while Adjusted EBITDA grew 22.0%, reflecting strong brand performance and volume growth.

Away-from-Home (AFH) Segment

AFH revenue increased modestly year-over-year, while profitability more than doubled, driven by improved in-sourcing of paper and operational efficiencies.

Operational & Strategic Updates

KP Tissue continues to advance several strategic growth initiatives:

• A multi-purpose, state-of-the-art converting line in Memphis is on track for start-up in early Q2 2026.

• The company is finalizing location, project scope, and financing details for a new TAD tissue facility in the western United States, with production targeted for 2028.

• Production rates across paper machines and converting operations exceeded internal targets.

• Multiple sites achieved record safety milestones.

Capital Investment & Balance Sheet

Capital expenditures totaled $33.4 million in Q4 and $78.0 million for full year 2025.

For 2026, the company anticipates $100 million to $120 million in capital expenditures, primarily related to strategic growth projects.

KP Tissue ended the quarter with:

• $196.1 million in cash

• Net debt of $976.6 million

• Net debt to LTM Adjusted EBITDA of 3.1x, an improvement from the prior year

The company continues to strengthen its balance sheet while investing in long-term growth.

Outlook

Management remains focused on:

• Preparing for the new TAD tissue plant

• Managing margins amid a volatile economic environment

• Increasing operational efficiency and capacity

• Driving long-term brand share growth

• Strengthening the sustainability and resilience of the AFH business

With improved leverage, expanding margins, and continued strategic investment, KP Tissue is positioned to accelerate growth across its business.