KP Tissue (KPT) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue reached $561.1 million, up 7.7% year-over-year, driven by higher consumer and away-from-home sales volume, favorable pricing, and FX impact.

• Adjusted EBITDA rose 30.4% year-over-year to $85.7 million, with margin improving to 15.3% from 12.6%.

• Net income was $14.6 million, down from $18 million in Q3 2024, due to FX loss, higher taxes, depreciation, and finance costs.

• Announced construction of a new state-of-the-art TAD tissue plant in the western U.S., with 75,000 metric tons annual capacity, startup in 2028.

• Significant deleveraging of the balance sheet, preparing for future investments.

Financial highlights

• Gross profit increased 20.6% year-over-year to $101.1 million, with gross margin at 18.0%.

• Adjusted EBITDA margin reached 15.3% in Q3 2025, up from 12.6% last year and 13.5% in Q2 2025.

• Net income was $14.6 million, down from $18 million in Q3 2024.

• Cash position improved to $149.1 million, and long-term debt reduced to $1,083.5 million.

• Cost of sales as a percentage of revenue improved to 82.0% from 83.9% year-over-year.

Outlook and guidance

• Adjusted EBITDA for Q4 2025 expected to be in the range of Q3 2025.

• CapEx for 2025 narrowed to $70–80 million; 2026 CapEx expected at $70–90 million, including strategic growth investments.

• New TAD tissue plant planned for 2028; multi-purpose converting line to start up in Q2 2026.

• Continued focus on margin management amid volatile economic conditions and long-term share growth.

• Industry analysts expect pulp prices to trend upwards in the coming year.