KP Tissue (TSE:KPT) Issues Earnings Results

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

TSE KPT opened at C$12.35 on Thursday. The stock’s 50 day moving average is C$12.17 and its two-hundred day moving average is C$11.94. The company has a market capitalization of C$123.90 million, a price-to-earnings ratio of 14.03, a PEG 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 Announces Dividend

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

Wall Street Analysts Forecast Growth

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

Recent KP Tissue Headlines

These are some of the KPT headlines that stood out recently:

• Positive Sentiment: Third-quarter net income rose, and KP Tissue reported earnings of C$0.31 per share. The release did not specify whether EPS beat analyst expectations. KP Tissue Q3 Net Income Rises
• Positive Sentiment: The company declared a quarterly dividend of C$0.21 per common share, which may appeal to income-focused investors. KP Tissue Declares a Quarterly Dividend
• Negative Sentiment: Rising costs were flagged on the earnings call, posing a potential risk to profitability if they outpace pricing or efficiency gains. KP Tissue Earnings Call Highlights

KP Tissue Company Profile

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.