KP Tissue Q1 Earnings Call Highlights

Key Points

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• KP Tissue’s Q1 profitability improved adjacent though gross was fundamentally level astatine CAD 544.6 million. Adjusted EBITDA roseate 14.6% twelvemonth implicit twelvemonth to CAD 86.9 million, helped by little pulp prices and reduced warehousing costs.

• Segment show was mixed but mostly stronger: Consumer gross dipped slightly, portion Away-From-Home gross roseate 2.5% and adjusted EBITDA much than doubled to CAD 6.3 million. Management said U.S. show was the main operator of Away-From-Home growth.

• The institution is focused connected costs, capableness expansion, and equilibrium expanse strength. KP Tissue ended the 4th with much cash, little indebtedness and a leverage ratio of 2.9x, and it expects Q2 adjusted EBITDA to beryllium astir successful enactment with Q1 portion continuing enactment connected Memphis ramp-up and a planned occidental U.S. insubstantial plant.

KP Tissue (TSE:KPT) reported higher first-quarter profitability contempt fundamentally level revenue, arsenic little pulp prices and reduced warehousing costs helped offset overseas speech unit and different outgo headwinds, executives said connected the company’s archetypal 4th 2026 net call.

Dino Bianco, CEO of KP Tissue and Kruger Products, said the institution generated adjusted EBITDA of CAD 86.9 cardinal successful the quarter, with an adjusted EBITDA borderline of 16%. That represented a 14.6% summation from the prior-year play connected gross of CAD 544.6 million, which was down 0.3% year-over-year.

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“Overall, we are pleased with our fiscal show successful the opening quarter,” Bianco said, citing little year-over-year pulp prices and warehousing costs arsenic the main drivers of the nett improvement.

Profitability Improves arsenic Revenue Holds Steady

Michael Keays, CFO of KP Tissue and Kruger Products, said nett income totaled CAD 19.8 cardinal successful the archetypal quarter, compared with CAD 15.4 cardinal successful the archetypal 4th of 2025. The summation was driven by higher adjusted EBITDA, little depreciation disbursal and reduced involvement and different concern costs, partially offset by an unfavorable overseas speech quality and higher income taxation expense.

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Revenue successful Canada accrued 0.8% year-over-year, portion U.S. gross declined 1.5%. Bianco noted that the U.S. concern was lapping a beardown examination from the archetypal 4th of 2025, erstwhile income grew much than 21%.

On a sequential basis, gross decreased CAD 15.5 million, oregon 2.8%, from the 4th fourth of 2025, chiefly due to the fact that of little Canadian income measurement and unfavorable overseas speech impact, partially offset by higher selling prices. Adjusted EBITDA accrued sequentially by CAD 2.7 million, oregon 3.2%, to CAD 86.9 million.