KP Tissue Releases Fourth Quarter and Full Year 2025 Financial Results

Executive Summary

• KP Tissue Inc. (KPT) reported Q4 2025 and full-year 2025 financial results for itself and its investment, Kruger Products Inc. (Kruger Products), highlighting significant growth in revenue, profitability, and adjusted EBITDA for the subsidiary.
• Kruger Products declared a quarterly dividend of $0.18 per share, payable on April 15, 2026, while KPT also declared a matching quarterly dividend of $0.18 per share to its shareholders, payable on the same date.
• Kruger Products completed a $165 million private placement of Senior Unsecured Notes due 2032 in December 2025, using proceeds to repay existing credit facility borrowings and for general corporate purposes, while announcing plans for a new TAD facility in the western U.S. opening in 2028.

Key Details

• Kruger Products Q4 2025 Financials:
  • Revenue: $560.1 million (up 3.8% from $539.6 million in Q4 2024).
  • Adjusted EBITDA: $84.2 million (up 26.0% from $66.8 million in Q4 2024).
  • Net Income: $23.4 million (compared to a net loss of $13.7 million in Q4 2024).
  • Cost of Sales: $451.9 million (80.7% of revenue vs. 85.1% in Q4 2024).
  • SG&A Expenses: $55.3 million (9.9% of revenue vs. 8.4% in Q4 2024).
• Kruger Products Full Year 2025 Financials:
  • Revenue: $2,203.4 million (up 7.5% from $2,049.9 million in Fiscal 2024).
  • Adjusted EBITDA: $318.2 million (up 20.2% from $264.8 million in Fiscal 2024).
  • Net Income: $75.5 million (up from $23.8 million in Fiscal 2024).
• KPT Q4 2025 Financials:
  • Net Income: $2.6 million.
  • Included $2.8 million representing KPT’s share of Kruger Products’ net income.
  • Included a $0.1 million dilution gain and $0.3 million depreciation expense related to acquisition carrying amount adjustments.
• KPT Full Year 2025 Financials:
  • Net Income: $8.5 million.
  • Included $9.2 million representing KPT’s share of Kruger Products’ net income.
  • Included a $0.4 million dilution gain and $1.1 million depreciation expense related to acquisition carrying amount adjustments.
• Kruger Products Financing Activity:
  • On December 10, 2025, issued $165 million in 6.250% Senior Unsecured Notes due December 10, 2032 via private placement.
  • Interest payable semi-annually on June 10 and December 10, commencing June 10, 2026.
  • Proceeds used to repay outstanding borrowings under senior credit facilities of Kruger Products SB Inc. (KPSB); balance used for general corporate purposes.
  • Syndicated credit agreement amended: facility amount increased from $230 million to $250 million; accordion feature increased from $75 million to $100 million.
  • Total liquidity (cash + revolving credit availability) was $451.3 million as of December 31, 2025.
• Dividends Declared:
  • Kruger Products: $0.18 per share, payable April 15, 2026.
  • KP Tissue: $0.18 per share, payable April 15, 2026 to shareholders of record at close of business on March 31, 2026.
• Operational Updates & Outlook:
  • Kruger Products is firming up location, scope, and financial details for a new through-air-dried (TAD) facility in the western U.S., expected to open in 2028 with an official announcement expected in H1 2026.
  • Sherbrooke Expansion Project in-sourcing of paper improved margins in the Away-From-Home (AFH) segment.
  • Q1 2026 Outlook: Adjusted EBITDA expected to be in the range of Q4 2025 ($84.2 million).
• Segment Performance (Kruger Products Q4 2025):
  • Consumer Segment Revenue: $472.3 million.
  • AFH Segment Revenue: $87.8 million.
  • Consumer Adjusted EBITDA: $78.1 million.
  • AFH Adjusted EBITDA: $9.7 million.
• Geographic Revenue (Kruger Products Q4 2025):
  • Canada: $306.4 million.
  • US: $253.7 million.

Notable Quotes

• “Fiscal 2025 proved to be a strong year across many areas of our business, marked by share gains and revenue growth, higher margins and greater profitability, along with enhanced operational efficiency and an improved safety record,” stated Kruger Products and KP Tissue’s Chief Executive Officer, Dino Bianco.
• “In fact, we are firming up the location, project scope and financial details of a new through-air-dried (TAD) facility slated to open in the western United States in 2028 with an official announcement expected in the first half of 2026.”
• “In the fourth quarter of 2025, our momentum culminated with Adjusted EBITDA growing 26.0% year-over-year to $84.2 million, mainly driven by higher sales volume. In addition, expanded in-sourcing of paper from our Sherbrooke Expansion Project improved the margins of our Away-From-Home segment and overall business.”