KP Tissue (KPT) Q4 2025 earnings summary

Executive summary

• Fiscal 2025 delivered strong revenue and profitability growth across Canadian and U.S. markets, supported by operational efficiency, safety improvements, and market share gains.

• Adjusted EBITDA for Q4 2025 grew 26% year-over-year to $84.2 million, maintaining a run rate above CAD 80 million for a second consecutive quarter.

• Net income for Q4 2025 was $23.4 million, reversing a net loss in Q4 2024.

• Full-year 2025 revenue totaled $2,203.4 million, up 7.5%, with adjusted EBITDA of $318.2 million, up 20.2%.

• Strategic investments, operational improvements, and product innovation supported growth and margin expansion.

Financial highlights

• Q4 2025 revenue increased 3.8% year-over-year to $560.1 million, with gross margin improving to 19.3% from 14.9%.

• Adjusted EBITDA margin rose to 15% from 12.4% year-over-year.

• Net income margin for Q4 2025 was 4.2%.

• Net debt decreased by $55.7 million sequentially, with leverage ratio improving to 3.1x.

• Full-year net income improved to $75.5 million from $23.8 million in 2024.

Outlook and guidance

• Q1 2026 Adjusted EBITDA is expected to be in line with Q4 2025.

• 2026 CapEx guidance raised to $100–$120 million, including spending for the new Memphis converting line and strategic projects.

• Plans to announce a new TAD facility in the western U.S. in H1 2026, with operations targeted for 2028.

• Continued focus on margin management and navigating economic volatility.