KP Tissue (TSE:KPT) Posts Quarterly Earnings Results

KP Tissue (TSE:KPT) released its quarterly earnings results on Wednesday. The company reported C$0.31 earnings per share 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 Stock Up 3.3%

KPT traded up C$0.40 during trading on Wednesday, reaching C$12.35. The stock had a trading volume of 26,968 shares, compared to its average volume of 15,667. The stock has a 50 day moving average of C$12.18 and a two-hundred day moving average of C$11.93. The firm has a market capitalization of C$123.90 million, a price-to-earnings ratio of 14.03, a price-to-earnings-growth ratio of -0.88 and a beta of 0.47. KP Tissue has a 1-year low of C$9.37 and a 1-year high of C$13.78.

KP Tissue Dividend Announcement

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

Wall Street Analyst Weigh In

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