KP Tissue Releases Second Quarter 2025 Financial Results

Executive Summary

• KP Tissue Inc. (KPT) reported Q2 2025 financial and operational results for itself and its significant investment, Kruger Products Inc.
• Kruger Products reported a 5.2% increase in Q2 revenue to $536.1 million and an 11.0% increase in Adjusted EBITDA to $72.5 million, driven by higher sales volumes and favorable pricing.
• KPT declared a quarterly dividend of $0.18 per share, payable on October 15, 2025, and announced a US$35 million investment in a new converting line at its Memphis facility.

Key Details

• Kruger Products Q2 2025 Financials:
  • Revenue: $536.1 million (up 5.2% from $509.8 million in Q2 2024).
  • Adjusted EBITDA: $72.5 million (up 11.0% from $65.3 million in Q2 2024).
  • Net Income: $22.1 million (up from $10.6 million in Q2 2024).
  • Cost of Sales: $462.2 million (86.2% of revenue).
  • SG&A Expenses: $47.2 million (8.8% of revenue).
• Kruger Products Segment Performance (Q2 2025):
  • Consumer Segment Revenue: $449.2 million; Adjusted EBITDA: $69.2 million.
  • AFH (Away-From-Home) Segment Revenue: $86.9 million; Adjusted EBITDA: $9.0 million.
  • Geographic Revenue: Canada $299.7 million; US $236.4 million.
• KPT Q2 2025 Financials:
  • Net Income: $2.6 million.
  • Share of Kruger Products’ Net Income: $2.8 million.
  • Dilution Gain: $0.1 million.
  • Basic Earnings Per Share: $0.26.
• Capital Projects & Operations:
  • Kruger Products announced a US$35 million investment in a new multi-purpose converting line for bathroom tissue and paper towels at its Memphis, TN facility.
  • Shutdown of remaining LDC assets at the Memphis site was completed during Q2 2025.
• Dividends:
  • Kruger Products declared a quarterly dividend of $0.18 per share.
  • KPT declared a quarterly dividend of $0.18 per share, payable October 15, 2025, to shareholders of record on September 30, 2025.
• Outlook:
  • Kruger Products expects Q3 2025 Adjusted EBITDA to be in the range of $75 million to $80 million.
• Liquidity:
  • Kruger Products total liquidity (cash and revolving credit availability) was $293.1 million as of June 30, 2025.

Notable Quotes

• “We are pleased with our overall performance in the second quarter of 2025 with Adjusted EBITDA improving 11% year-over-year to $72.5 million,” stated KP Tissue’s Chief Executive Officer, Dino Bianco. “U.S. revenue growth slowed down in Q2 2025 due to front-loaded shipments made during the previous quarter to mitigate potential tariffs, along with softness in the AFH market. Nevertheless, U.S. sales have grown 12% after six months into 2025 and represent a key growth driver for Kruger Products.”
• “In early July, we announced an additional investment of approximately US$35 million at our Memphis manufacturing facility to deploy a state-of-the-art, multi-purpose converting line for bathroom tissue and paper towels. This initiative is part of a broader strategy to drive efficiency and support our growing U.S. business,” Mr. Bianco added.