KP Tissue (TSE:KPT) Announces Quarterly Earnings Results

KP Tissue (TSE:KPT) released its quarterly earnings results on Wednesday. The company reported C$0.31 EPS for the quarter, FiscalAI reports.

Here are the key takeaways from KP Tissue’s conference call:

• KP Tissue reported third-quarter revenue of CAD 589.7 million, up 5.1%, and adjusted EBITDA of CAD 93.5 million, up 9.1% year over year. Growth reflected higher sales in Canada and the U.S., while adjusted EBITDA margin improved to 15.9% from 15.3% a year earlier.
• The company strengthened its balance sheet, reducing net debt by CAD 29.6 million sequentially and lowering its leverage ratio to 2.7x from 2.9x.
• Management expects escalating input costs—including pulp, freight, fuel, and packaging—to pressure margins into 2027. It is considering productivity measures and potential Canadian consumer pricing adjustments; fourth-quarter adjusted EBITDA is expected to be slightly below Q3, though above the year-earlier quarter.
• The new TAD facility will not begin operations in 2028 as previously anticipated, with timing deferred until there is greater clarity on trade conditions and project costs. Engineering and other preparatory work continue, but management cited inflation in construction inputs and tariff uncertainty as factors affecting the project’s economics.
• In Canada, bathroom tissue and paper towel market share remained under pressure, although facial tissue performed well and the company said early results from its recovery initiatives were encouraging. In Away From Home, higher revenue was offset by lower year-over-year adjusted EBITDA, partly due to increased logistics costs.

KP Tissue Price Performance

KPT stock opened at C$12.40 on Friday. The firm has a 50 day simple moving average of C$12.16 and a two-hundred day simple moving average of C$11.95. The stock has a market cap of C$124.40 million, a PE ratio of 14.09, a P/E/G ratio of -0.88 and a beta of 0.47. KP Tissue has a one year low of C$9.40 and a one year high of C$13.78.

KP Tissue Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, October 15th. Shareholders of record on Thursday, October 15th were given a dividend of $0.21 per share. The ex-dividend date was Tuesday, September 29th. This represents a $0.84 annualized dividend and a yield of 6.8%. KP Tissue’s payout ratio is presently 85.23%.

Wall Street Analysts Forecast Growth

Separately, TD reduced their target price on KP Tissue from C$14.00 to C$13.00 and set a “hold” rating for the company in a research report on Wednesday, October 14th. Three equities research analysts have rated the stock with a Hold rating. According to data from MarketBeat.com, KP Tissue currently has a consensus rating of “Hold” and a consensus price target of C$11.88.

About KP Tissue

KPT was created to acquire, and its business is limited to holding, a limited equity interest in Kruger Products, which is accounted for as an investment on the equity basis. KPT currently holds a 12% interest in Kruger Products.