09:15 AM EST, 11/13/2025 (MT Newswires) -- KP Tissue ( KPTSF ) on Thursday reported the Q3 2025 financial and operational results of KPT and Kruger Products, the latter a Canadian manufacturer of quality tissue products for the consumer market in which KPT currently holds a 12.1% interest, while saying it is on its way to delivering a third consecutive year of strong financial results and announcing the construction of a new, modern TAD tissue facility,

For Kruger Products, net income was $14.6 million in Q3 compared to $18.0 million in Q3 2024, a decrease of $3.4 million. It said the decrease was primarily due to a foreign exchange loss, higher income tax expense, higher depreciation expense resulting from the Sherbrooke Expansion Project, higher interest expense and other finance costs, partially offset by higher Adjusted EBITDA and lower income from non-controlling interest.

Q3 revenue was $561.1 million compared to $521.1 million in the year-ago quarter. and beating a consensus FactsSet forecast of $553.7 million. It said the increase in revenue was attributed to higher sales volume, primarily in the Consumer segment and favourable selling prices across both segments. It added revenue was also favourably impacted by foreign exchange fluctuations on U.S. dollar sales.

Adjusted EBITDA was $85.7 million in Q3 2025 compared to $65.7 million in Q3 2024, an increase of 30.4%, while the company said for the last quarter of 2025, it expects adjusted EBITDA to be in the range of Q3 2025.

For its part, KPT had net income of $1.5 million in Q3 2025. Included in net income was $1.7 million representing KPT's share of Kruger Products' net income, a dilution gain of $0.1 million and depreciation expense of $0.3 million related to adjustments to carrying amounts on acquisition.

T company also announced plans to build a new state-of-the-art tissue plant featuring the most modern through-air-dry (TAD) machine and related converting lines in the western United States. The new TAD machine will have annual production capacity of approximately 75,000 metric tonnes and is estimated to start production in 2028. The project is currently expected to be financed 40% by equity and incentives as well as 60% by project finance debt, said the company.

KP Tissue ( KPTSF ) also announced that the board of directors declared a quarterly dividend of $0.18 per common share, unchanged from the last quarter. It is payable on Jan. 15, 2026, to shareholders of record at the close of business on Dec. 31, 2025, subject to applicable law.

KP Tissue's ( KPTSF ) Chief Executive Officer, Dino Bianco, said: "We are particularly pleased with share gains in the paper towel and facial tissue categories, which grew over a 52-week period on the strength of heightened brand support and innovations in the premium product segment.

"In terms of our Away-From-Home segment, sales and profitability increased both year-over-year and sequentially, bolstered by consumer brands like Scotties and Cashmere selling well in the commercial market. Our expanded in sourcing of paper also contributed to generating double digit Adjusted EBITDA growth for this business.

"Looking ahead, we are on our way to delivering a third consecutive year of strong financial results. In addition, we have significantly deleveraged our balance sheet to prepare for the next phase of investment in support of our growth focus. Accordingly, we are proud to announce the construction of a new, modern TAD tissue facility, with production estimated to start in 2028, to meet rising demand for our ultra-premium products."

KPT was up $0.03 at $9.42 in Canada yesterday.