KP Tissue Releases Third Quarter 2025 Financial Results

Executive Summary

• KP Tissue Inc. (KPT) reported Q3 2025 financial results for itself and its investment in Kruger Products Inc., highlighting a 30.4% year-over-year increase in Adjusted EBITDA for Kruger Products.
• Kruger Products announced a significant capital investment: plans to construct a new, state-of-the-art TAD tissue facility in the western United States with an estimated production start in 2028.
• The company declared a quarterly dividend of $0.18 per share for KPT shareholders, payable in January 2026.

Key Details

• Kruger Products Q3 2025 Financials:
  • Revenue: $561.1 million (up 7.7% from $521.1 million in Q3 2024).
  • Adjusted EBITDA: $85.7 million (up 30.4% from $65.7 million in Q3 2024).
  • Net Income: $14.6 million (down from $18.0 million in Q3 2024).
  • Cost of Sales: $460.0 million (82.0% of revenue).
  • SG&A Expenses: $47.9 million (8.5% of revenue).
• Kruger Products Segment Performance (Q3 2025):
  • Consumer Segment Revenue: $468.3 million; Adjusted EBITDA: $78.2 million.
  • Away-From-Home (AFH) Segment Revenue: $92.8 million; Adjusted EBITDA: $10.4 million.
• New Capital Investment:
  • Announcement of a new TAD tissue plant in the western U.S. to service the growing U.S. business.
  • Estimated annual production capacity: ~75,000 metric tonnes.
  • Estimated production start: 2028.
  • Financing structure: 40% equity/incentives and 60% project finance debt.
  • Location selection is in final stages; scope and financing details to be announced later.
• KP Tissue Q3 2025 Financials:
  • Net Income: $1.5 million.
  • Share of Kruger Products’ Net Income: $1.7 million.
  • Dilution Gain: $0.1 million.
  • Depreciation Expense (fair value adjustments): $0.3 million.
• Dividends:
  • Kruger Products declared a quarterly dividend of $0.18 per share.
  • KP Tissue declared a quarterly dividend of $0.18 per share, payable January 15, 2026, to shareholders of record on December 31, 2025.
• Outlook:
  • Kruger Products expects Q4 2025 Adjusted EBITDA to be in the range of Q3 2025 ($85.7 million).
• Liquidity:
  • Kruger Products total liquidity (cash + revolving credit availability) was $388.6 million as of September 30, 2025.

Notable Quotes

• Dino Bianco, CEO: “We accelerated profitable sales growth in the third quarter of 2025, resulting in Adjusted EBITDA improving 30.4% year-over-year to $85.7 million... 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.”
• Dino Bianco, CEO: “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.”