Kruger Products Reports Strong Q3 2025 Financial Growth and Announces New TAD Tissue Plant Project

Mississauga (ON), November 13, 2025 - KP Tissue Inc. (KPT) (TSX: KPT) reports the Q3 2025 financial and operational results of KPT and Kruger Products Inc. (Kruger Products or the Company). Kruger Products is Canada's leading manufacturer of quality tissue products for the Consumer market (Cashmere®, Purex®, SpongeTowels®, Scotties®, White Swan® and Bonterra®) and the Away-From-Home (AFH) market and continues to grow in the U.S. Consumer tissue business with the White Cloud® brand and premium private label products. KPT currently holds a 12.1% interest in Kruger Products. Kruger Products Q3 2025 Business and Financial Highlights • Revenue was $561.1 million in Q3 2025 compared to $521.1 million in Q3 2024, an increase of $40.0 million or 7.7%. • Adjusted EBITDA1 was $85.7 million in Q3 2025 compared to $65.7 million in Q3 2024, an increase of 30.4%. • Net income was $14.6 million in Q3 2025 compared to $18.0 million in Q3 2024, a decrease of $3.4 million. • Declared a quarterly dividend of $0.18 per share to be paid on January 15, 2026. “We accelerated profitable sales growth in the third quarter of 2025, resulting in Adjusted EBITDA improving 30.4% year-overyear to $85.7 million,” stated KP Tissue’s Chief Executive Officer, Dino Bianco. “We are particularly pleased with share gains in the paper towel and facial tissue categories, which grew over a 52-week period on the strength of heightened brand support and innovations in the premium product segment.” “In terms of our Away-From-Home segment, sales and profitability increased both year-over-year and sequentially, bolstered by consumer brands like Scotties and Cashmere selling well in the commercial market. Our expanded in-sourcing of paper also contributed to generating double-digit Adjusted EBITDA growth for this business.” “Looking ahead, we are on our way to delivering a third consecutive year of strong financial results. In addition, we have significantly deleveraged our balance sheet to prepare for the next phase of investment in support of our growth focus. Accordingly, we are proud to announce the construction of a new, modern TAD tissue facility—with production estimated to start in 2028—to meet rising demand for our ultra-premium products,” Mr. Bianco added. Outlook for Q4 2025 For the last quarter of 2025, we expect Adjusted EBITDA1 to be in the range of Q3 2025. Kruger Products Q3 2025 Financial Results Revenue was $561.1 million in Q3 2025 compared to $521.1 million in Q3 2024, an increase of $40.0 million or 7.7%. The increase in revenue was due to higher sales volume, primarily in the Consumer segment and favourable selling prices across both segments. Revenue was also favourably impacted by foreign exchange fluctuations on U.S. dollar sales Cost of sales was $460.0 million in Q3 2025 compared to $437.3 million in Q3 2024, an increase of $22.7 million or 5.2%. The increase in cost of sales was primarily due to higher sales volume and additional manufacturing overhead spend to invest in our sites, partially offset by lower pulp prices compared to the year ago quarter. Freight rates were lower compared to Q3 2024 while warehousing costs increased, related primarily to higher sales volumes. As a percentage of revenue, cost of sales was 82.0% in Q3 2025 compared to 83.9% in Q3 2024. 1 Adjusted EBITDA is a non-GAAP financial measure. Refer to the Non-GAAP Financial Measures section of this news release for more information on these measures Selling, general and administrative (SG&A) expenses were $47.9 million in Q3 2025 compared to $46.5 million in Q3 2024, an increase of $1.4 million or 3.0%. The increase was primarily due to additional investment in IT and additional headcount and related compensation costs, resulting in lower contracting costs, to support growth, partially offset by foreign exchange gains on working capital compared to losses in Q3 2024 and lower advertising and promotion spend. As a percentage of revenue, SG&A expenses were 8.5% in Q3 2025 compared to 8.9% in Q3 2024. Adjusted EBITDA1 was $85.7 million in Q3 2025 compared to $65.7 million in Q3 2024, an increase of $20.0 million or 30.4%. The increase was primarily due to higher sales volumes and selling prices along with lower pulp costs and freight rates, partially offset by higher manufacturing overhead spend, warehousing costs and SG&A expenses. Net income was $14.6 million in Q3 2025 compared to $18.0 million in Q3 2024, a decrease of $3.4 million. The decrease was primarily due to a foreign exchange loss, higher income tax expense, higher depreciation expense resulting from the Sherbrooke Expansion Project, higher interest expense and other finance costs, partially offset by higher Adjusted EBITDA1 and lower income from non-controlling interest. Kruger Products Q3 2025 Liquidity Total liquidity, representing cash and availability under the revolving credit agreements, was $388.6 million as of September 30, 2025. KPT Q3 2025 Financial Results KPT had net income of $1.5 million in Q3 2025. Included in net income was $1.7 million representing KPT’s share of Kruger Products’ net income, a dilution gain of $0.1 million and depreciation expense of $0.3 million related to adjustments to carrying amounts on acquisition. New Tissue Plant Investment After investing more than $1 billion in Canada since 2018 to increase tissue capacity and accelerate the growth of our business, the Company also announced today plans to build a new state-of-the-art tissue plant featuring the most modern through-air-dry (TAD) machine and related converting lines in the western United States. This facility will allow the Company to better service its fast-growing U.S. business with ultra-premium tissue products. Location selection is in the final stages and will be announced along with project scope and financing details at a later date. This new TAD machine will have annual production capacity of approximately 75,000 metric tonnes and is estimated to start production in 2028. This new tissue investment will be made within an unrestricted subsidiary of Kruger Products and is subject to obtaining financing on satisfactory terms. The project is currently expected to be financed 40% by equity and incentives as well as 60% by project finance debt. This new facility, along with our Memphis plant and 9 existing Canadian plants, gives us a strong network to service our growing North American business. Dividends on Common Shares The Board of Directors of KPT declared a quarterly dividend of $0.18 per share to be paid on January 15, 2026 to shareholders of record at the close of business on December 31, 2025. Additional Information For additional information please refer to Management’s Discussion and Analysis (MD&A) of KPT and Kruger Products for the third quarter ended September 30, 2025 available on SEDAR+ at www.sedarplus.ca or our website at www.kptissueinc.com. Third Quarter Results Conference Call Information KPT will hold its third quarter conference call on Thursday, November 13, 2025 at 8:30 a.m. Eastern Time. Via telephone: 1-888-699-1199 or 416-945-7677 Via the internet at: www.kptissueinc.com