KP Tissue Inc. reported solid fourth-quarter and full-year 2025 results, supported by strong operating performance at Kruger Products Inc., its underlying operating company.
Kruger Products posted fourth-quarter revenue of $560.1 million, up 3.8% year over year, driven primarily by higher sales volumes across both its Consumer and Away-From-Home (AFH) segments. Adjusted EBITDA rose sharply to $84.2 million, a 26% increase, while net income reached $23.4 million, compared with a loss in the prior-year quarter.
For the full year, revenue climbed to $2.20 billion, an increase of 7.5%, while Adjusted EBITDA advanced 20.2% to $318.2 million. Net income more than tripled to $75.5 million, reflecting improved margins, lower pulp costs, and favourable operating leverage.
Operational drivers
Management attributed the year’s performance to sustained share gains, productivity improvements, and stronger margins, particularly in Canada, where Kruger Products maintains a leading market position. The U.S. Consumer tissue business continued to serve as a key growth engine, supported by the White Cloud brand and premium private-label offerings.
Expanded in-sourcing of paper from the Sherbrooke Expansion Project also contributed to improved margins in the AFH segment during the fourth quarter.
“Fiscal 2025 proved to be a strong year across many areas of our business,” said CEO Dino Bianco, citing revenue growth, higher profitability, and improved operational efficiency.
Investment outlook
Kruger Products confirmed it is finalizing the location, scope, and financial structure of a new through-air-dried (TAD) tissue facility planned for the western United States, with an official announcement expected in the first half of 2026. The project is slated to enter service in 2028.
Looking ahead, management expects Adjusted EBITDA in the first quarter of 2026 to remain broadly in line with fourth-quarter levels, despite ongoing cost and market volatility.
Balance sheet and liquidity
During the fourth quarter, Kruger Products strengthened its financial position through the issuance of $165 million in senior unsecured notes, extending maturities and increasing flexibility under its credit facilities. Total liquidity stood at $451.3 million at year-end 2025.
At the holding level, KP Tissue reported net income of $2.6 million in Q4 and $8.5 million for the full year, reflecting its 12.1% equity interest in Kruger Products.
The KP Tissue board also declared a quarterly dividend of $0.18 per share, payable April 15, 2026.
KP Tissue Inc. is a holding company established to own an equity interest in Kruger Products Inc. Its activities are limited to this strategic investment, which currently represents a 12.1% ownership stake in Kruger Products.
Kruger Products is Canada’s leading manufacturer of tissue products for the Consumer and Away-from-Home markets. The company operates ten FSC-certified manufacturing facilities across North America and employs approximately 3,000 people.
Source: KP Tissue
