KP Tissue Releases Fourth Quarter and Full Year 2025 Financial Results

Core Insights - KP Tissue Inc. and Kruger Products Inc. reported strong financial and operational performance for Q4 2025 and the full year 2025, highlighting revenue growth, improved margins, and profitability [1][4][11] Financial Performance - Q4 2025 revenue reached $560.1 million, a 3.8% increase from $539.6 million in Q4 2024, driven by higher sales volume across both Consumer and Away-From-Home (AFH) segments [9][11] - Full year 2025 revenue was $2,203.4 million, up 7.5% from $2,049.9 million in 2024, primarily due to increased sales volume in the Consumer segment and favorable selling prices [15][11] - Adjusted EBITDA for Q4 2025 was $84.2 million, a 26.0% increase from $66.8 million in Q4 2024, attributed to higher sales volumes and improved productivity [6][13] - Full year 2025 Adjusted EBITDA was $318.2 million, a 20.2% increase from $264.8 million in 2024, reflecting higher sales volumes and lower pulp prices [16][11] Profitability - Net income for Q4 2025 was $23.4 million, compared to a net loss of $13.7 million in Q4 2024, marking a significant improvement of $37.1 million [11][14] - Full year 2025 net income was $75.5 million, up from $23.8 million in 2024, an increase of $51.7 million [17][11] Operational Efficiency - Cost of sales in Q4 2025 decreased to $451.9 million from $459.3 million in Q4 2024, resulting in a cost of sales as a percentage of revenue of 80.7%, down from 85.1% [10][11] - Selling, general and administrative (SG&A) expenses increased to $55.3 million in Q4 2025 from $45.1 million in Q4 2024, primarily due to higher headcount and related compensation costs [12][11] Future Outlook - The company plans to build a new through-air-dried (TAD) facility in the western United States, with an official announcement expected in the first half of 2026 [5][4] - For Q1 2026, the company expects Adjusted EBITDA to be in line with Q4 2025 levels [8]