KP Tissue Releases Third Quarter 2025 Financial Results

Core Insights - KP Tissue Inc. reported a strong Q3 2025 with a 30.4% year-over-year increase in Adjusted EBITDA to $85.7 million, driven by sales growth in both Consumer and Away-From-Home segments [3][9] - The company plans to construct a new TAD tissue facility in the U.S. with production expected to start in 2028, aiming to meet rising demand for ultra-premium products [3][13] Financial Performance - Revenue for Q3 2025 was $561.1 million, up $40.0 million or 7.7% from $521.1 million in Q3 2024, attributed to higher sales volume and favorable pricing [5][8] - Cost of sales increased to $460.0 million in Q3 2025, a rise of 5.2% from $437.3 million in Q3 2024, primarily due to higher sales volume and manufacturing overhead [6] - Selling, general and administrative (SG&A) expenses were $47.9 million, an increase of 3.0% from $46.5 million in Q3 2024, reflecting investments in IT and headcount [7] Segment Performance - The Consumer segment generated revenue of $468.3 million in Q3 2025, compared to $429.2 million in Q3 2024, indicating strong growth [35] - The Away-From-Home segment saw revenue of $92.8 million, slightly up from $91.9 million in Q3 2024, demonstrating resilience in commercial markets [35] Future Outlook - The company anticipates that Adjusted EBITDA for Q4 2025 will be in line with Q3 2025 results, indicating continued strong performance [4] - The new TAD tissue facility is expected to have an annual production capacity of approximately 75,000 metric tonnes, enhancing the company's ability to serve the growing U.S. market [13] Dividend Information - A quarterly dividend of $0.18 per share has been declared, to be paid on January 15, 2026, to shareholders of record as of December 31, 2025 [14]