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]

Group 1 - KP Tissue Inc. (KPT) will release its financial results for the fourth quarter of 2025 on February 18, 2026, before the market opens [1] - A conference call will be held on the same day at 8:30 a.m. Eastern Time to discuss the results [1] - KPT holds a 12.1% interest in Kruger Products Inc., which is accounted for as an investment on the equity basis [4] Group 2 - Kruger Products Inc. is Canada's leading manufacturer of quality tissue products for household, industrial, and commercial use [5] - The company serves the Canadian consumer market with well-known brands such as Cashmere®, Purex®, and SpongeTowels® [5] - Kruger Products operates ten FSC® COC-certified production facilities in North America and employs approximately 3,000 people [5]

Group 1 - KP Tissue Inc. (KPT) will release its financial results for the fourth quarter of 2025 on February 18, 2026, before the market opens [1] - A conference call will be held on the same day at 8:30 a.m. Eastern Time to discuss the results [1] - KPT holds a 12.1% interest in Kruger Products Inc., which is accounted for as an investment on the equity basis [4] Group 2 - Kruger Products Inc. is Canada's leading manufacturer of quality tissue products for household, industrial, and commercial use [5] - The company serves the Canadian consumer market with well-known brands such as Cashmere®, Purex®, and SpongeTowels® [5] - Kruger Products operates ten FSC® COC-certified production facilities in North America and employs approximately 3,000 people [5]

Company Overview - KP Tissue Inc. (KPT) holds a 12.1% interest in Kruger Products Inc. (KPI), which is a leading manufacturer of quality tissue products in Canada [5] - KPI operates approximately 3,000 employees and ten FSC® COC-certified production facilities in North America [6] Financial Offering - KPI has closed an offering of CDN $165 million principal amount of 6.250% Senior Unsecured Notes due December 10, 2032 [2] - The interest on the Notes is payable semi-annually, starting June 10, 2026 [2] - A portion of the net proceeds from the offering was used to fully repay borrowings under the senior credit facilities of Kruger Products SB Inc. (KPSB) [3] - The remaining proceeds will be used for general corporate purposes [3] Credit Facility Amendments - KPI's syndicated credit agreement was amended to increase the facility amount from CDN $230 million to CDN $250 million and the accordion feature from CDN $75 million to CDN $100 million [3]

Core Viewpoint - Kruger Products Inc. (KPI) is issuing CDN $165 million principal amount of 6.250% Senior Unsecured Notes due December 10, 2032, through a private placement to fund debt repayment and general corporate purposes [1][3]. Group 1: Offering Details - The Notes will be issued at a principal amount of CDN $165 million with an interest rate of 6.250%, payable semi-annually starting June 10, 2026 [1]. - The Offering is expected to close on December 10, 2025, subject to customary closing conditions [2]. - National Bank Capital Markets, CIBC Capital Markets, Scotiabank, and Desjardins Capital Markets are acting as joint book-running managers for the Offering [2]. Group 2: Use of Proceeds - The net proceeds from the Offering will be used to repay borrowings under KPSB's senior credit facilities and for general corporate purposes [3]. Group 3: Notes Structure - The Notes will be unsecured obligations of KPI and guaranteed by certain subsidiaries, including KPSB, which will be designated as a restricted subsidiary [4]. - The Notes will rank senior in payment rights to all existing and future subordinated indebtedness of KPI [4]. Group 4: Company Overview - KP Tissue Inc. (KPT) holds a 12.1% interest in KPI, which is a leading manufacturer of quality tissue products in Canada [7][8]. - KPI serves both the consumer market in Canada and the U.S. with well-known brands and operates ten FSC® COC-certified production facilities in North America [8].

Group 1 - KP Tissue Inc. announced that Kruger Products Inc. intends to offer CDN $165 million principal amount of Senior Unsecured Notes through a private placement, subject to market conditions [1] - The interest on the Notes will accrue from the issue date and will be payable semi-annually, with guarantees from KPI's existing and future restricted subsidiaries [1][2] - The net proceeds from the Offering will be used to repay borrowings under KPSB's senior credit facilities and for general corporate purposes [2] Group 2 - Kruger Products SB Inc. will become a restricted subsidiary under KPI's senior credit facility, which is expected to improve the credit profile of the restricted group [2] - KPI is a leading manufacturer of quality tissue products in Canada, serving both consumer and commercial markets with well-known brands [6] - KPI operates approximately 10 production facilities in North America and employs around 3,000 people [6]

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]

Core Viewpoint - KP Tissue Inc. (KPT) will release its financial results for the third quarter of 2025 on November 13, 2025, before the market opens, and will hold a conference call at 8:30 a.m. Eastern Time on the same day [1]. Company Information - KP Tissue Inc. holds a 12.2% interest in Kruger Products Inc., which is accounted for as an investment on the equity basis [4]. - Kruger Products Inc. is Canada's leading manufacturer of quality tissue products for household, industrial, and commercial use, with well-known brands such as Cashmere®, Purex®, and SpongeTowels® [5]. - Kruger Products operates ten FSC® COC-certified production facilities in North America and employs approximately 3,000 people [5].

Financial Results Announcement - KP Tissue Inc. (KPT) will release its financial results for the third quarter of 2025 on November 13, 2025, before the market opens [1] - The conference call to discuss these results will take place on the same day at 8:30 a.m. Eastern Time [1] Conference Call Information - The conference call can be accessed via telephone at 1-888-699-1199 or 416-945-7677, and also via the internet at www.kptissueinc.com [2] - Presentation materials referenced during the call will be available on the company's website [2] Conference Call Rebroadcast - A rebroadcast of the conference call will be available until midnight on November 20, 2025, by dialing 1-888-660-6345 or 289-819-1450 with passcode 86584 [3] - The replay of the webcast will also remain available on the website until midnight on November 20, 2025 [3] Company Overview - KP Tissue Inc. was created to acquire and hold a limited equity interest in Kruger Products, currently holding a 12.2% interest [4] - Kruger Products Inc. is a leading manufacturer of quality tissue products in Canada, serving both household and commercial markets with well-known brands [5] - The company operates ten FSC® COC-certified production facilities in North America and employs approximately 3,000 people [5]

Group 1 - KP Tissue Inc. (KPT) will release its financial results for the second quarter of 2025 on August 13, 2025, before the market opens [1] - A conference call will be held on the same day at 8:30 a.m. Eastern Time to discuss the results [1] - KPT holds a 12.3% interest in Kruger Products Inc., which is accounted for as an investment on the equity basis [4] Group 2 - Kruger Products Inc. is Canada's leading manufacturer of quality tissue products for household, industrial, and commercial use [5] - The company serves the Canadian consumer market with well-known brands such as Cashmere®, Purex®, and SpongeTowels® [5] - Kruger Products operates ten FSC® COC-certified production facilities in North America and employs approximately 3,000 people [5]