KP Tissue Reports Higher Q1 2026 Profit as Lower Pulp Costs Support Margins

KP Tissue Inc. reported higher first-quarter profit and improved operating margins for 2026, supported by lower pulp prices and reduced warehousing costs despite a challenging economic environment.

Revenue for the quarter ended March 31, 2026, was CAD 544.6 million, compared with CAD 546.1 million a year earlier, a decline of 0.3%. Adjusted EBITDA rose 14.6% to CAD 86.9 million from CAD 75.8 million in the prior-year period, while net income increased to CAD 19.8 million from CAD 15.4 million.

Dino Bianco, Chief Executive Officer of Kruger Products and KP Tissue, said the company delivered “strong profitability” despite market volatility. He attributed the performance mainly to lower pulp costs and warehousing expenses, while noting that foreign exchange impacts and tougher year-over-year comparisons weighed on revenue.

The company said production rates across its paper machines and converting lines exceeded targets during the quarter. In April, Kruger Products began ramping up a new converting line at its Memphis facility to expand capacity within its U.S. network.

Cost of sales fell 3.1% year over year to CAD 436.9 million, driven by lower pulp costs, favourable foreign exchange effects on U.S. dollar-denominated expenses, and improved mill performance at the Memphis site.

Kruger Products reported total liquidity of CAD 461.9 million as of March 31, 2026.

KP Tissue also announced an increase in its quarterly dividend to CAD 0.21 per share, reflecting a change in tax designation from an eligible dividend to a non-eligible dividend under Canadian tax legislation. The dividend is payable on July 15, 2026, to shareholders of record on June 30, 2026.

The company expects second-quarter 2026 Adjusted EBITDA to remain in line with first-quarter levels.