{"success":true,"data":{"pressRelease":{"id":"117883","rtpr_id":"nNFC508L1L","ticker":"KPT","exchange":"TSX","all_tickers":["KPT"],"title":"KP Tissue Releases Second Quarter 2026 Financial Results","author":"Newsfile Corp","published_at":"2026-08-13T11:00:19.037Z","article_body":"Maintaining strong momentum despite economic uncertainty\n\nMississauga, Ontario--(Newsfile Corp. - August 13, 2026) - KP Tissue Inc.\n(TSX: KPT) (KPT) reports the Q2 2026 financial and operational results of KPT\nand Kruger Products Inc. (Kruger Products). Kruger Products is Canada's\nleading manufacturer of quality tissue products for the Consumer market\n(Cashmere®, Purex®, SpongeTowels®, Scotties®, White Swan® and Bonterra®)\nand the Away-From-Home (AFH) market and continues to grow in the U.S. Consumer\ntissue business with the White Cloud® brand and premium private label\nproducts. KPT currently holds a 12.0% interest in Kruger Products.\n\nKruger Products Q2 2026 Business and Financial Highlights\n* Revenue was $550.9 million in Q2 2026 compared to $536.1 million in Q2 2025,\nan increase of $14.8 million or 2.8%.\n* Adjusted EBITDA(1) was $90.6 million in Q2 2026 compared to $72.5 million in\nQ2 2025, an increase of 25.0%.\n* Net income was unchanged at $22.1 million in Q2 2026 compared to $22.1\nmillion in Q2 2025.\n* Declared a quarterly dividend of $0.21 per share to be paid on October 15,\n2026.\n\"We maintained strong momentum in the second quarter of 2026, highlighted by\n25% year-over-year growth in Adjusted EBITDA(1) to $90.6 million,\" stated\nKruger Products' and KP Tissue's Chief Executive Officer, Dino Bianco. \"This\ndouble-digit growth, achieved against an uncertain economic environment, was\nmainly driven by higher sales volume in the U.S. and lower pulp prices.\nRevenue grew nearly 3% in the second quarter, reflecting heightened\noperational efficiency from Kruger PRO, our Away-From-Home business.\"\n\n“Looking ahead to the second half of 2026, we anticipate ongoing market\nsoftness in Canada with some consumers trading down to private label products\nto contend with inflationary pressure. We have put in place a share recovery\nplan for the second half of 2026 which should deliver improving shares as we\nmove through the year. For the longer term, we are making progress towards\nsecuring a location for a new TAD facility in the western United States,”\nMr. Bianco added.\n\nOutlook for Q3 2026\nFor the third quarter of 2026, we expect Adjusted EBITDA(1) to be in the range\nof Q2 2026.\n\nKruger Products Q2 2026 Financial Results\nRevenue was $550.9 million in Q2 2026 compared to $536.1 million in Q2 2025,\nan increase of $14.8 million or 2.8%. The increase in revenue was primarily\ndue to higher sales volume in the Consumer U.S. and AFH businesses, partially\noffset by lower sales volumes in the Consumer Canada business.\n\nCost of sales was $440.1 million in Q2 2026 compared to $462.2 million in Q2\n2025, a decrease of $22.1 million or 4.8%. The decrease in cost of sales was\nprimarily due to lower pulp costs, improved mill performance at our Memphis\nsite compared to the year ago quarter and higher manufacturing overhead cost\nabsorption resulting from higher inventory levels at the end of the quarter,\npartially offset by higher sales volume and increased manufacturing overhead\nspend. As a percentage of revenue, cost of sales was 79.9% in Q2 2026 compared\nto 86.2% in Q2 2025.\n\nSelling, general and administrative (SG&A) expenses were $51.1 million in Q2\n2026 compared to $47.2 million in Q2 2025, an increase of $3.9 million or\n8.3%. The increase was primarily due to additional investment in our brands\nand increased consulting costs to support operational and corporate\ninitiatives, along with increased compensation costs. This was offset by lower\nforeign exchange losses compared to the year ago quarter. As a percentage of\nrevenue, SG&A expenses were 9.3% in Q2 2026 compared to 8.8% in Q2 2025.\n\nAdjusted EBITDA(1) was $90.6 million in Q2 2026 compared to $72.5 million in\nQ2 2025, an increase of $18.1 million or 25.0%. The increase was primarily due\nto improved mill performance at our Memphis site, higher sales volumes and\nfavourable pulp costs, partially offset by increased freight rates and SG&A\nexpenses.\n\nNet income was unchanged at $22.1 million in Q2 2026 compared to $22.1 million\nin Q2 2025. This was primarily due to higher Adjusted EBITDA(1), lower\ndepreciation and amortization, lower restructuring costs, lower income from\nnon-controlling interest, and lower interest expense, offset by a foreign\nexchange difference and higher income tax expense.\n\nKruger Products Q2 2026 Liquidity\nTotal liquidity, representing cash and availability under the revolving credit\nagreements, was $422.6 million as of June 30, 2026.\n\nKPT Q2 2026 Financial Results\nKPT had net income of $2.5 million in Q2 2026. Included in net income was $2.7\nmillion representing KPT's share of Kruger Products' net income, a dilution\ngain of $0.1 million and depreciation expense of $0.3 million related to\nadjustments to carrying amounts on acquisition.\n\nDividends on Common Shares\nThe Board of Directors of KPT declared a quarterly dividend of $0.21 per share\nto be paid on October 15, 2026 to shareholders of record at the close of\nbusiness on September 30, 2026.\n\nAdditional Information\nFor additional information please refer to Management's Discussion and\nAnalysis (MD&A) of KPT and Kruger Products for the second quarter ended June\n30, 2026 available on SEDAR+ at www.sedarplus.ca or our website at\nwww.kptissueinc.com.\n\nSecond Quarter Results Conference Call Information\nKPT will hold its second quarter conference call on Thursday, August 13, 2026\nat 8:30 a.m. Eastern Time.\nVia telephone: 1-888-699-1199 or 416-945-7677\nVia the internet at: www.kptissueinc.com\n\nPresentation material referenced during the conference call will be available\nat www.kptissueinc.com.\n\nA rebroadcast of the conference call will be available until midnight, August\n20, 2026, by dialing 1-888-660-6345 or \n289-819-1450 and entering passcode 47527.\n\nThe replay of the webcast will remain available on the website until midnight,\nAugust 20, 2026.\n\nAbout KP Tissue Inc.\nKPT was created to acquire, and its business is limited to holding, a limited\nequity interest in Kruger Products, which is accounted for as an investment on\nthe equity basis. KPT currently holds a 12.0% interest in Kruger Products. For\nmore information visit www.kptissueinc.com.\n\nAbout Kruger Products Inc.\nKruger Products is Canada's leading manufacturer of quality tissue products\nfor household, industrial and commercial use. Kruger Products serves the\nCanadian consumer market with such well-known brands as Cashmere®, Purex®,\nSpongeTowels®, Scotties®, White Swan® and Bonterra®. In the U.S., Kruger\nProducts manufactures the White Cloud® brand, as well as many private label\nproducts. The Away-From-Home division manufactures and distributes\nhigh-quality, cost-effective product solutions to a wide range of commercial\nand public entities. Kruger Products has approximately 3,000 employees and\noperates ten FSC® COC-certified (FSC® C-104904) production facilities in\nNorth America. For more information visit www.krugerproducts.ca.\n\nNon-GAAP Financial Measures\nThis press release uses certain non-GAAP financial measures which Kruger\nProducts believes provide useful information to management of Kruger Products\nand the readers of the financial information in measuring the financial\nperformance and financial condition of Kruger Products. These measures do not\nhave a standardized meaning prescribed by GAAP and therefore may not be\ncomparable to similarly titled measures presented by other companies. An\nexample of such a measure is Adjusted EBITDA. Adjusted EBITDA is not a\nmeasurement of operating performance computed in accordance with GAAP and\nshould not be considered as a substitute for operating income, net income or\ncash flows from operating activities computed in accordance with GAAP.\n\"Adjusted EBITDA\" is calculated by Kruger Products as net income (loss) before\n(i) interest expense and other finance costs, (ii) income taxes, (iii)\ndepreciation, (iv) amortization, (v) loss on sale of non-financial assets,\n(vi) loss (gain) on disposal of property, plant and equipment, (vii) foreign\nexchange loss (gain) and (viii) costs related to restructuring activities. A\nreconciliation of Adjusted EBITDA to the relevant reported results can be\nfound in the Segment and Geographic Results table of this press release.\n\nForward-Looking Statements\nCertain statements in this press release about KPT's and Kruger Products'\ncurrent and future plans, expectations and intentions, results, levels of\nactivity, performance, goals or achievements or any other future events or\ndevelopments constitute forward-looking statements. Forward-looking statements\nin this press release include, but are not limited to, items such as plans to\nbuild a new TAD tissue plant and its expected annual production capacity,\nexpected date for starting production, the expected financing structure of the\nproject and certain anticipated benefits of the project. The words \"may\",\n\"will\", \"would\", \"should\", \"could\", \"expects\", \"plans\", \"intends\", \"trends\",\n\"indications\", \"anticipates\", \"believes\", \"estimates\", \"predicts\", \"likely\" or\n\"potential\" or the negative or other variations of these words or other\ncomparable words or phrases, are intended to identify forward-looking\nstatements. The forward-looking statements are based on certain key\nexpectations and assumptions made by KPT or Kruger Products, in respect of the\nplans to build a new TAD tissue plant, and obtaining financing on acceptable\nterms for the project. Although KPT and Kruger Products believe that the\nexpectations and assumptions on which such forward-looking information is\nbased are reasonable, undue reliance should not be placed on the\nforward-looking statements since no assurance can be given that such\nexpectations and assumptions will prove to be correct.\n\nThe outlook provided in respect of Adjusted EBITDA(1) for Q3 2026 is\nforward-looking information and is based on the assumptions and subject to the\nrisk and uncertainties referred to below. The purpose of the outlook is to\nprovide the reader with an indication of management's expectations, at the\ndate of this press release, regarding Kruger Products' future financial\nperformance. Readers are cautioned that this information may not be\nappropriate for other purposes.\n\nMany factors could cause Kruger Products' actual results, level of activity,\nperformance or achievements or future events or developments (which could in\nturn affect the economic benefits derived from KPT's economic interest in\nKruger Products) to differ materially from those expressed or implied by the\nforward-looking statements, including, without limitation, the following\nfactors, which are discussed in greater detail in the \"Risk Factors - Risks\nRelated to Kruger Products' Business\" section of the KPT Annual Information\nForm dated February 18, 2026 available on SEDAR+ at www.sedarplus.ca (the\nAnnual Information Form): Kruger Inc.'s influence over Kruger Products; Kruger\nProducts' reliance on Kruger Inc.; consequences of an event of insolvency\nrelating to Kruger Inc.; risks associated with the ownership of the TAD\nSherbrooke Project; risks associated with the operation of the TAD Sherbrooke\nProject; operational risks; significant increases in input costs; reduction in\nsupply of fibre; increased pricing pressure and intense competition; Kruger\nProducts' inability to innovate effectively; adverse economic conditions;\ndependence on key retail trade customers; damage to the reputation of Kruger\nProducts or Kruger Products' brands; Kruger Products' sales being less than\nanticipated; Kruger Products' failure to implement its business and operating\nstrategies; Kruger Products' obligation to make regular capital expenditures;\nKruger Products entering into unsuccessful acquisitions; Kruger Products'\ndependence on key personnel; Kruger Products' inability to retain its existing\ncustomers or obtain new customers; Kruger Products' loss of key suppliers;\nKruger Products' failure to adequately protect its intellectual property\nrights; Kruger Products' reliance on third party intellectual property\nlicenses; adverse litigation and other claims affecting Kruger Products;\nmaterial expenditures due to comprehensive environmental regulation affecting\nKruger Products' cash flow; Kruger Products' pension obligations are\nsignificant and can be materially higher than predicted if Kruger Products\nManagement's underlying assumptions are incorrect; labour disputes adversely\naffecting Kruger Products' cost structure and Kruger Products' ability to run\nits plants; exchange rate and U.S. competitors; Kruger Products' inability to\nservice all of its indebtedness; exposure to potential consumer product\nliability; covenant compliance; interest rate and refinancing risk;\ninformation technology; cyber-security; insurance; internal controls; trade\nrelated and tax.\n\nReaders should not place undue reliance on forward-looking statements made\nherein. The forward-looking information contained herein is expressly\nqualified in its entirety by this cautionary statement. The forward-looking\ninformation contained herein is made as of the date of press release and KPT\nundertakes no obligation to publicly update such forward-looking information\nto reflect new information, subsequent or otherwise, unless required by\napplicable securities laws.\n\nINFORMATION:\nFrancois Paroyan\nGeneral Counsel and Corporate Secretary\nKP Tissue Inc.\n905-812-6936\nfrancois.paroyan@krugerproducts.ca\n\nINVESTORS:\nDoris Grbic\nSenior Director, Investor Relations\nKP Tissue Inc.\n437-882-2596\nIR@krugerproducts.ca\n\n(1) Adjusted EBITDA is a non-GAAP financial measure. Refer to the Non-GAAP\nFinancial Measures section of this press release for more information on these\nmeasures.\n\nKruger Products Inc.\nUnaudited Condensed Consolidated Statements of Financial Position\n(thousands of Canadian dollars)\n\n June 30, 2026 December 31, 2025 \n $ $ \n Assets \n Current assets \n Cash and cash equivalents 165,223 196,094 \n Restricted cash 28,434 46,070 \n Trade and other receivables 139,144 143,313 \n Receivables from related parties 83 79 \n Inventories 325,732 284,183 \n Income tax recoverable 3,966 2,963 \n Prepaid expenses 18,564 5,381 \n 681,146 678,083 \n Non-current assets \n Property, plant and equipment 1,425,990 1,430,206 \n Right-of-use assets 141,208 152,243 \n Other long-term assets 28,596 - \n Pensions 102,235 91,118 \n Goodwill 152,021 152,021 \n Intangible assets 37,740 40,362 \n Deferred income tax asset 51,593 64,671 \n Total assets 2,620,529 2,608,704 \n \n Liabilities \n Current liabilities \n Trade and other payables 346,106 350,831 \n Payables to related parties 10,891 13,441 \n Dividends payable 15,289 14,853 \n Current portion of long-term debt 86,832 98,649 \n Current portion of lease liabilities 49,126 43,576 \n Current portion of long-term payable to related party 5,800 5,800 \n Current portion of provisions 5,618 7,283 \n 519,662 534,433 \n Non-current liabilities \n Long-term debt 1,076,696 1,074,148 \n Long-term lease liabilities 126,335 139,694 \n Long-term payable to related party 23,179 28,064 \n Long-term provisions 10,873 12,602 \n Pensions 17,535 17,745 \n Post-retirement benefits 49,342 48,333 \n Deferred income tax liability 51,596 47,140 \n Total liabilities 1,875,218 1,902,159 \n \n Equity \n Share capital 342,525 334,479 \n Contributed surplus 395,382 395,382 \n Deficit (130,415 ) (151,965 ) \n Accumulated other comprehensive income 95,997 89,343 \n Equity attributable to Kruger Products 703,489 667,239 \n Non-controlling interest 41,822 39,306 \n Total equity 745,311 706,545 \n Total liabilities and equity 2,620,529 2,608,704 \n\n \n\nKruger Products Inc.\nUnaudited Condensed Consolidated Statements of Income\n(thousands of Canadian dollars)\n\n \n 3-month 3-month 6-month 6-month \n period ended period ended period ended period ended \n June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 \n $ $ $ $ \n \n Revenue 550,892 536,080 1,095,538 1,082,190 \n Expenses \n Cost of sales 440,172 462,204 877,045 913,187 \n Selling, general and administrative expenses 51,055 47,157 102,290 98,371 \n Restructuring costs 373 3,702 373 3,702 \n Operating income 59,292 23,017 115,830 66,930 \n Interest expense and other finance costs 20,046 21,306 39,657 42,257 \n Other expense (income) 5,536 (19,941 ) 10,804 (20,284 ) \n Income before income taxes 33,710 21,652 65,369 44,957 \n Current tax expense 1,006 1,078 1,397 1,808 \n Deferred tax expense (recovery) 9,266 (5,612 ) 19,527 83 \n Income tax expense (recovery) 10,272 (4,534 ) 20,924 1,891 \n Net income including non-controlling interest 23,438 26,186 44,445 43,066 \n Net income attributable to non-controlling interest 1,281 4,039 2,516 5,524 \n Net income attributable to Kruger Products 22,157 22,147 41,929 37,542 \n\n \n\nKruger Products Inc.\nUnaudited Condensed Consolidated Statements of Cash Flows\n(thousands of Canadian dollars)\n\n 3-month 3-month 6-month 6-month \n period ended period ended period ended period ended \n June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 \n $ $ $ $ \n Cash flows from (used in) operating activities \n Net income including non-controlling interest 23,438 26,186 44,445 43,066 \n Items not affecting cash \n Depreciation 29,399 43,727 58,189 73,616 \n Amortization 1,532 2,008 3,133 3,980 \n Loss (gain) on sale of property, plant and equipment (1 ) - - (5 ) \n Loss on disposal of leased assets (1 ) 23 - 23 \n Foreign exchange loss (gain) 5,536 (19,941 ) 10,804 (20,284 ) \n Interest expense and other finance costs 20,046 21,306 39,657 42,257 \n Pension and post-retirement benefits 2,735 2,828 5,400 5,573 \n Provisions 1,953 1,065 3,186 3,929 \n Income tax expense (recovery) 10,272 (4,534 ) 20,924 1,891 \n Total items not affecting cash 71,471 46,482 141,293 110,980 \n Net change in non-cash working capital (42,803 ) (29,513 ) (59,059 ) (54,567 ) \n Contributions to pension and post-retirement benefit plans (1,049 ) (1,006 ) (2,020 ) (2,015 ) \n Provisions paid (7,137 ) (4,024 ) (7,137 ) (4,024 ) \n Income tax payments, net (986 ) (2,465 ) (1,246 ) (1,811 ) \n Net cash from operating activities 42,934 35,660 116,276 91,629 \n \n Cash flows from (used in) investing activities \n Purchases of property, plant and equipment (13,588 ) (7,717 ) (28,797 ) (9,862 ) \n Purchases of property, plant and equipment related to the Sherbrooke Expansion Project (1,036 ) (1,991 ) (1,680 ) (17,377 ) \n Government assistance received 3,497 - 3,497 3,150 \n Investment in derivative asset (27,848 ) - (27,848 ) - \n Purchase of software (361 ) (1,134 ) (517 ) (1,094 ) \n Net cash used in investing activities (39,336 ) (10,842 ) (55,345 ) (25,183 ) \n \n Cash flows from (used in) financing activities \n Proceeds from long-term debt - 9,000 - 31,188 \n Repayment of long-term debt (17,477 ) (22,507 ) (33,753 ) (32,505 ) \n Payment (write-off) of deferred financing fees (172 ) 39 (827 ) 7 \n Payment of lease liabilities (9,139 ) (7,714 ) (19,585 ) (16,737 ) \n Change in restricted cash 19,752 (25,961 ) 17,636 (27,950 ) \n Interest paid on long-term debt (20,991 ) (18,995 ) (28,844 ) (31,421 ) \n Payment to related party (5,800 ) (5,800 ) (5,800 ) (5,800 ) \n Dividends paid (14,923 ) (28,756 ) (29,776 ) (28,756 ) \n Proceeds from issuing partnership units 3,995 12,686 7,981 12,686 \n Net cash used in financing activities (44,755 ) (100,834 ) (92,968 ) (99,288 ) \n Effect of exchange rate changes on cash and cash 467 (1,284 ) 1,166 (1,311 ) \n equivalents held in foreign currency \n Decrease in cash and cash equivalents during the period (40,690 ) (77,300 ) (30,871 ) (34,153 ) \n Cash and cash equivalents - Beginning of period 205,913 141,778 196,094 119,460 \n Cash and cash equivalents - End of period 165,223 64,478 165,223 85,307 \n\n \n\nKruger Products Inc.\nUnaudited Segment and Geographic Results\n(thousands of Canadian dollars)\n\n 3-month 3-month 6-month 6-month \n period ended period ended period ended period ended \n June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 \n $ $ $ $ \n Segment Information \n \n Segment Revenue \n Consumer 457,561 449,222 919,289 914,412 \n AFH 93,331 86,858 176,249 167,778 \n Revenue from external customers 550,892 536,080 1,095,538 1,082,190 \n \n Other segment items \n Consumer 372,252 380,038 750,046 769,176 \n AFH 84,836 77,895 161,438 156,026 \n Corporate and other costs 3,207 5,669 6,527 8,743 \n Total other segment items 460,295 463,602 918,011 933,945 \n \n Adjusted EBITDA \n Consumer 85,309 69,184 169,243 145,236 \n AFH 8,495 8,963 14,811 11,752 \n Corporate and other costs (3,207 ) (5,669 ) (6,527 ) (8,743 ) \n Total Adjusted EBITDA 90,597 72,478 177,527 148,245 \n \n Reconciliation to net income (loss) \n Depreciation and amortization 30,933 45,736 61,324 77,596 \n Interest expense and other finance costs 20,046 21,306 39,657 42,257 \n Loss on disposal of property, plant and equipment (1 ) 23 - 18 \n Restructuring costs, net 373 3,702 373 3,702 \n Foreign exchange loss (gain) 5,536 (19,941 ) 10,804 (20,284 ) \n Income before income taxes 33,710 21,652 65,369 44,956 \n Income tax expense (recovery) 10,272 (4,534 ) 20,924 1,891 \n Net income including non-controlling interest 23,438 26,186 44,445 43,065 \n \n Geographic Revenue \n \n Canada 291,910 299,654 580,864 586,177 \n US 258,982 236,426 514,674 496,013 \n Total revenue 550,892 536,080 1,095,538 1,082,190 \n\n \n\nKP Tissue Inc.\n Unaudited Condensed Statements of Financial Position \n(thousands of Canadian dollars)\n\n June 30, 2026 December 31, 2025 \n $ $ \n Assets \n Current assets \n Dividends receivable 2,106 1,803 \n 2,106 1,803 \n Non-current assets \n Investment in associate 72,717 69,799 \n Total assets 74,823 71,602 \n \n Liabilities \n Current liabilities \n Dividends payable 2,106 1,803 \n Total liabilities 2,106 1,803 \n \n Equity \n Common shares 23,133 23,001 \n Contributed surplus 144,819 144,819 \n Deficit (113,082 ) (114,985 ) \n Accumulated other comprehensive income 17,847 16,964 \n Total equity 72,717 69,799 \n Total liabilities and equity 74,823 71,602 \n\n \n\nKP Tissue Inc.\nUnaudited Condensed Statements of Income\n(thousands of Canadian dollars, except share and per share amounts)\n\n 3-month 3-month 6-month 6-month \n period ended period ended period ended period ended \n June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 \n $ $ $ $ \n Share of income 2,659 2,755 5,049 4,672 \n Depreciation of fair value increments (269 ) (279 ) (539 ) (563 ) \n Equity income 2,390 2,476 4,510 4,109 \n Dilution gain 53 95 112 209 \n Net income 2,443 2,571 4,622 4,318 \n \n Basic and diluted earning per share 0.24 0.26 0.46 0.43 \n \n Weighted average number of shares outstanding 10,026,884 9,999,883 10,024,084 9,996,544 \n\n \n\nKP Tissue Inc.\nUnaudited Statements of Cash Flows\n(thousands of Canadian dollars)\n\n 3-month 3-month 6-month 6-month \n period ended period ended period ended period ended \n June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 \n $ $ $ $ \n Cash flows from (used in) operating activities \n Net income 2,443 2,571 4,622 4,318 \n Items not affecting cash \n Equity income (2,390 ) (2,476 ) (4,510 ) (4,109 ) \n Dilution gain (53 ) (95 ) (112 ) (209 ) \n Total items not affecting cash (2,443 ) (2,571 ) (4,622 ) (4,318 ) \n Net cash from operating activities - - - - \n \n Cash flows from (used in) investing activities \n Dividends received, net 1,744 1,746 3,476 3,490 \n Net cash from investing activities 1,744 1,746 3,476 3,490 \n \n Cash flows from (used in) financing activities \n Dividends paid, net (1,744 ) (1,746 ) (3,476 ) (3,490 ) \n Net cash used in financing activities (1,744 ) (1,746 ) (3,476 ) (3,490 ) \n Increase in cash and cash equivalents during the period - - - - \n Cash and cash equivalents - Beginning of period - - - - \n Cash and cash equivalents - End of period - - - - \n\n \n\n\nTo view the source version of this press release, please visit\nhttps://www.newsfilecorp.com/release/308456","article_body_html":"","raw_payload":{"data":{"id":"nNFC508L1L","title":"KP Tissue Releases Second Quarter 2026 Financial Results","author":"Newsfile Corp","ticker":"KPT","created":"2026-08-13T11:00:19.037Z","tickers":["KPT"],"exchange":"TSX","article_body":"Maintaining strong momentum despite economic uncertainty\n\nMississauga, Ontario--(Newsfile Corp. - August 13, 2026) - KP Tissue Inc.\n(TSX: KPT) (KPT) reports the Q2 2026 financial and operational results of KPT\nand Kruger Products Inc. (Kruger Products). Kruger Products is Canada's\nleading manufacturer of quality tissue products for the Consumer market\n(Cashmere®, Purex®, SpongeTowels®, Scotties®, White Swan® and Bonterra®)\nand the Away-From-Home (AFH) market and continues to grow in the U.S. Consumer\ntissue business with the White Cloud® brand and premium private label\nproducts. KPT currently holds a 12.0% interest in Kruger Products.\n\nKruger Products Q2 2026 Business and Financial Highlights\n* Revenue was $550.9 million in Q2 2026 compared to $536.1 million in Q2 2025,\nan increase of $14.8 million or 2.8%.\n* Adjusted EBITDA(1) was $90.6 million in Q2 2026 compared to $72.5 million in\nQ2 2025, an increase of 25.0%.\n* Net income was unchanged at $22.1 million in Q2 2026 compared to $22.1\nmillion in Q2 2025.\n* Declared a quarterly dividend of $0.21 per share to be paid on October 15,\n2026.\n\"We maintained strong momentum in the second quarter of 2026, highlighted by\n25% year-over-year growth in Adjusted EBITDA(1) to $90.6 million,\" stated\nKruger Products' and KP Tissue's Chief Executive Officer, Dino Bianco. \"This\ndouble-digit growth, achieved against an uncertain economic environment, was\nmainly driven by higher sales volume in the U.S. and lower pulp prices.\nRevenue grew nearly 3% in the second quarter, reflecting heightened\noperational efficiency from Kruger PRO, our Away-From-Home business.\"\n\n“Looking ahead to the second half of 2026, we anticipate ongoing market\nsoftness in Canada with some consumers trading down to private label products\nto contend with inflationary pressure. We have put in place a share recovery\nplan for the second half of 2026 which should deliver improving shares as we\nmove through the year. For the longer term, we are making progress towards\nsecuring a location for a new TAD facility in the western United States,”\nMr. Bianco added.\n\nOutlook for Q3 2026\nFor the third quarter of 2026, we expect Adjusted EBITDA(1) to be in the range\nof Q2 2026.\n\nKruger Products Q2 2026 Financial Results\nRevenue was $550.9 million in Q2 2026 compared to $536.1 million in Q2 2025,\nan increase of $14.8 million or 2.8%. The increase in revenue was primarily\ndue to higher sales volume in the Consumer U.S. and AFH businesses, partially\noffset by lower sales volumes in the Consumer Canada business.\n\nCost of sales was $440.1 million in Q2 2026 compared to $462.2 million in Q2\n2025, a decrease of $22.1 million or 4.8%. The decrease in cost of sales was\nprimarily due to lower pulp costs, improved mill performance at our Memphis\nsite compared to the year ago quarter and higher manufacturing overhead cost\nabsorption resulting from higher inventory levels at the end of the quarter,\npartially offset by higher sales volume and increased manufacturing overhead\nspend. As a percentage of revenue, cost of sales was 79.9% in Q2 2026 compared\nto 86.2% in Q2 2025.\n\nSelling, general and administrative (SG&A) expenses were $51.1 million in Q2\n2026 compared to $47.2 million in Q2 2025, an increase of $3.9 million or\n8.3%. The increase was primarily due to additional investment in our brands\nand increased consulting costs to support operational and corporate\ninitiatives, along with increased compensation costs. This was offset by lower\nforeign exchange losses compared to the year ago quarter. As a percentage of\nrevenue, SG&A expenses were 9.3% in Q2 2026 compared to 8.8% in Q2 2025.\n\nAdjusted EBITDA(1) was $90.6 million in Q2 2026 compared to $72.5 million in\nQ2 2025, an increase of $18.1 million or 25.0%. The increase was primarily due\nto improved mill performance at our Memphis site, higher sales volumes and\nfavourable pulp costs, partially offset by increased freight rates and SG&A\nexpenses.\n\nNet income was unchanged at $22.1 million in Q2 2026 compared to $22.1 million\nin Q2 2025. This was primarily due to higher Adjusted EBITDA(1), lower\ndepreciation and amortization, lower restructuring costs, lower income from\nnon-controlling interest, and lower interest expense, offset by a foreign\nexchange difference and higher income tax expense.\n\nKruger Products Q2 2026 Liquidity\nTotal liquidity, representing cash and availability under the revolving credit\nagreements, was $422.6 million as of June 30, 2026.\n\nKPT Q2 2026 Financial Results\nKPT had net income of $2.5 million in Q2 2026. Included in net income was $2.7\nmillion representing KPT's share of Kruger Products' net income, a dilution\ngain of $0.1 million and depreciation expense of $0.3 million related to\nadjustments to carrying amounts on acquisition.\n\nDividends on Common Shares\nThe Board of Directors of KPT declared a quarterly dividend of $0.21 per share\nto be paid on October 15, 2026 to shareholders of record at the close of\nbusiness on September 30, 2026.\n\nAdditional Information\nFor additional information please refer to Management's Discussion and\nAnalysis (MD&A) of KPT and Kruger Products for the second quarter ended June\n30, 2026 available on SEDAR+ at www.sedarplus.ca or our website at\nwww.kptissueinc.com.\n\nSecond Quarter Results Conference Call Information\nKPT will hold its second quarter conference call on Thursday, August 13, 2026\nat 8:30 a.m. Eastern Time.\nVia telephone: 1-888-699-1199 or 416-945-7677\nVia the internet at: www.kptissueinc.com\n\nPresentation material referenced during the conference call will be available\nat www.kptissueinc.com.\n\nA rebroadcast of the conference call will be available until midnight, August\n20, 2026, by dialing 1-888-660-6345 or \n289-819-1450 and entering passcode 47527.\n\nThe replay of the webcast will remain available on the website until midnight,\nAugust 20, 2026.\n\nAbout KP Tissue Inc.\nKPT was created to acquire, and its business is limited to holding, a limited\nequity interest in Kruger Products, which is accounted for as an investment on\nthe equity basis. KPT currently holds a 12.0% interest in Kruger Products. For\nmore information visit www.kptissueinc.com.\n\nAbout Kruger Products Inc.\nKruger Products is Canada's leading manufacturer of quality tissue products\nfor household, industrial and commercial use. Kruger Products serves the\nCanadian consumer market with such well-known brands as Cashmere®, Purex®,\nSpongeTowels®, Scotties®, White Swan® and Bonterra®. In the U.S., Kruger\nProducts manufactures the White Cloud® brand, as well as many private label\nproducts. The Away-From-Home division manufactures and distributes\nhigh-quality, cost-effective product solutions to a wide range of commercial\nand public entities. Kruger Products has approximately 3,000 employees and\noperates ten FSC® COC-certified (FSC® C-104904) production facilities in\nNorth America. For more information visit www.krugerproducts.ca.\n\nNon-GAAP Financial Measures\nThis press release uses certain non-GAAP financial measures which Kruger\nProducts believes provide useful information to management of Kruger Products\nand the readers of the financial information in measuring the financial\nperformance and financial condition of Kruger Products. These measures do not\nhave a standardized meaning prescribed by GAAP and therefore may not be\ncomparable to similarly titled measures presented by other companies. An\nexample of such a measure is Adjusted EBITDA. Adjusted EBITDA is not a\nmeasurement of operating performance computed in accordance with GAAP and\nshould not be considered as a substitute for operating income, net income or\ncash flows from operating activities computed in accordance with GAAP.\n\"Adjusted EBITDA\" is calculated by Kruger Products as net income (loss) before\n(i) interest expense and other finance costs, (ii) income taxes, (iii)\ndepreciation, (iv) amortization, (v) loss on sale of non-financial assets,\n(vi) loss (gain) on disposal of property, plant and equipment, (vii) foreign\nexchange loss (gain) and (viii) costs related to restructuring activities. A\nreconciliation of Adjusted EBITDA to the relevant reported results can be\nfound in the Segment and Geographic Results table of this press release.\n\nForward-Looking Statements\nCertain statements in this press release about KPT's and Kruger Products'\ncurrent and future plans, expectations and intentions, results, levels of\nactivity, performance, goals or achievements or any other future events or\ndevelopments constitute forward-looking statements. Forward-looking statements\nin this press release include, but are not limited to, items such as plans to\nbuild a new TAD tissue plant and its expected annual production capacity,\nexpected date for starting production, the expected financing structure of the\nproject and certain anticipated benefits of the project. The words \"may\",\n\"will\", \"would\", \"should\", \"could\", \"expects\", \"plans\", \"intends\", \"trends\",\n\"indications\", \"anticipates\", \"believes\", \"estimates\", \"predicts\", \"likely\" or\n\"potential\" or the negative or other variations of these words or other\ncomparable words or phrases, are intended to identify forward-looking\nstatements. The forward-looking statements are based on certain key\nexpectations and assumptions made by KPT or Kruger Products, in respect of the\nplans to build a new TAD tissue plant, and obtaining financing on acceptable\nterms for the project. Although KPT and Kruger Products believe that the\nexpectations and assumptions on which such forward-looking information is\nbased are reasonable, undue reliance should not be placed on the\nforward-looking statements since no assurance can be given that such\nexpectations and assumptions will prove to be correct.\n\nThe outlook provided in respect of Adjusted EBITDA(1) for Q3 2026 is\nforward-looking information and is based on the assumptions and subject to the\nrisk and uncertainties referred to below. The purpose of the outlook is to\nprovide the reader with an indication of management's expectations, at the\ndate of this press release, regarding Kruger Products' future financial\nperformance. Readers are cautioned that this information may not be\nappropriate for other purposes.\n\nMany factors could cause Kruger Products' actual results, level of activity,\nperformance or achievements or future events or developments (which could in\nturn affect the economic benefits derived from KPT's economic interest in\nKruger Products) to differ materially from those expressed or implied by the\nforward-looking statements, including, without limitation, the following\nfactors, which are discussed in greater detail in the \"Risk Factors - Risks\nRelated to Kruger Products' Business\" section of the KPT Annual Information\nForm dated February 18, 2026 available on SEDAR+ at www.sedarplus.ca (the\nAnnual Information Form): Kruger Inc.'s influence over Kruger Products; Kruger\nProducts' reliance on Kruger Inc.; consequences of an event of insolvency\nrelating to Kruger Inc.; risks associated with the ownership of the TAD\nSherbrooke Project; risks associated with the operation of the TAD Sherbrooke\nProject; operational risks; significant increases in input costs; reduction in\nsupply of fibre; increased pricing pressure and intense competition; Kruger\nProducts' inability to innovate effectively; adverse economic conditions;\ndependence on key retail trade customers; damage to the reputation of Kruger\nProducts or Kruger Products' brands; Kruger Products' sales being less than\nanticipated; Kruger Products' failure to implement its business and operating\nstrategies; Kruger Products' obligation to make regular capital expenditures;\nKruger Products entering into unsuccessful acquisitions; Kruger Products'\ndependence on key personnel; Kruger Products' inability to retain its existing\ncustomers or obtain new customers; Kruger Products' loss of key suppliers;\nKruger Products' failure to adequately protect its intellectual property\nrights; Kruger Products' reliance on third party intellectual property\nlicenses; adverse litigation and other claims affecting Kruger Products;\nmaterial expenditures due to comprehensive environmental regulation affecting\nKruger Products' cash flow; Kruger Products' pension obligations are\nsignificant and can be materially higher than predicted if Kruger Products\nManagement's underlying assumptions are incorrect; labour disputes adversely\naffecting Kruger Products' cost structure and Kruger Products' ability to run\nits plants; exchange rate and U.S. competitors; Kruger Products' inability to\nservice all of its indebtedness; exposure to potential consumer product\nliability; covenant compliance; interest rate and refinancing risk;\ninformation technology; cyber-security; insurance; internal controls; trade\nrelated and tax.\n\nReaders should not place undue reliance on forward-looking statements made\nherein. The forward-looking information contained herein is expressly\nqualified in its entirety by this cautionary statement. The forward-looking\ninformation contained herein is made as of the date of press release and KPT\nundertakes no obligation to publicly update such forward-looking information\nto reflect new information, subsequent or otherwise, unless required by\napplicable securities laws.\n\nINFORMATION:\nFrancois Paroyan\nGeneral Counsel and Corporate Secretary\nKP Tissue Inc.\n905-812-6936\nfrancois.paroyan@krugerproducts.ca\n\nINVESTORS:\nDoris Grbic\nSenior Director, Investor Relations\nKP Tissue Inc.\n437-882-2596\nIR@krugerproducts.ca\n\n(1) Adjusted EBITDA is a non-GAAP financial measure. Refer to the Non-GAAP\nFinancial Measures section of this press release for more information on these\nmeasures.\n\nKruger Products Inc.\nUnaudited Condensed Consolidated Statements of Financial Position\n(thousands of Canadian dollars)\n\n June 30, 2026 December 31, 2025 \n $ $ \n Assets \n Current assets \n Cash and cash equivalents 165,223 196,094 \n Restricted cash 28,434 46,070 \n Trade and other receivables 139,144 143,313 \n Receivables from related parties 83 79 \n Inventories 325,732 284,183 \n Income tax recoverable 3,966 2,963 \n Prepaid expenses 18,564 5,381 \n 681,146 678,083 \n Non-current assets \n Property, plant and equipment 1,425,990 1,430,206 \n Right-of-use assets 141,208 152,243 \n Other long-term assets 28,596 - \n Pensions 102,235 91,118 \n Goodwill 152,021 152,021 \n Intangible assets 37,740 40,362 \n Deferred income tax asset 51,593 64,671 \n Total assets 2,620,529 2,608,704 \n \n Liabilities \n Current liabilities \n Trade and other payables 346,106 350,831 \n Payables to related parties 10,891 13,441 \n Dividends payable 15,289 14,853 \n Current portion of long-term debt 86,832 98,649 \n Current portion of lease liabilities 49,126 43,576 \n Current portion of long-term payable to related party 5,800 5,800 \n Current portion of provisions 5,618 7,283 \n 519,662 534,433 \n Non-current liabilities \n Long-term debt 1,076,696 1,074,148 \n Long-term lease liabilities 126,335 139,694 \n Long-term payable to related party 23,179 28,064 \n Long-term provisions 10,873 12,602 \n Pensions 17,535 17,745 \n Post-retirement benefits 49,342 48,333 \n Deferred income tax liability 51,596 47,140 \n Total liabilities 1,875,218 1,902,159 \n \n Equity \n Share capital 342,525 334,479 \n Contributed surplus 395,382 395,382 \n Deficit (130,415 ) (151,965 ) \n Accumulated other comprehensive income 95,997 89,343 \n Equity attributable to Kruger Products 703,489 667,239 \n Non-controlling interest 41,822 39,306 \n Total equity 745,311 706,545 \n Total liabilities and equity 2,620,529 2,608,704 \n\n \n\nKruger Products Inc.\nUnaudited Condensed Consolidated Statements of Income\n(thousands of Canadian dollars)\n\n \n 3-month 3-month 6-month 6-month \n period ended period ended period ended period ended \n June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 \n $ $ $ $ \n \n Revenue 550,892 536,080 1,095,538 1,082,190 \n Expenses \n Cost of sales 440,172 462,204 877,045 913,187 \n Selling, general and administrative expenses 51,055 47,157 102,290 98,371 \n Restructuring costs 373 3,702 373 3,702 \n Operating income 59,292 23,017 115,830 66,930 \n Interest expense and other finance costs 20,046 21,306 39,657 42,257 \n Other expense (income) 5,536 (19,941 ) 10,804 (20,284 ) \n Income before income taxes 33,710 21,652 65,369 44,957 \n Current tax expense 1,006 1,078 1,397 1,808 \n Deferred tax expense (recovery) 9,266 (5,612 ) 19,527 83 \n Income tax expense (recovery) 10,272 (4,534 ) 20,924 1,891 \n Net income including non-controlling interest 23,438 26,186 44,445 43,066 \n Net income attributable to non-controlling interest 1,281 4,039 2,516 5,524 \n Net income attributable to Kruger Products 22,157 22,147 41,929 37,542 \n\n \n\nKruger Products Inc.\nUnaudited Condensed Consolidated Statements of Cash Flows\n(thousands of Canadian dollars)\n\n 3-month 3-month 6-month 6-month \n period ended period ended period ended period ended \n June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 \n $ $ $ $ \n Cash flows from (used in) operating activities \n Net income including non-controlling interest 23,438 26,186 44,445 43,066 \n Items not affecting cash \n Depreciation 29,399 43,727 58,189 73,616 \n Amortization 1,532 2,008 3,133 3,980 \n Loss (gain) on sale of property, plant and equipment (1 ) - - (5 ) \n Loss on disposal of leased assets (1 ) 23 - 23 \n Foreign exchange loss (gain) 5,536 (19,941 ) 10,804 (20,284 ) \n Interest expense and other finance costs 20,046 21,306 39,657 42,257 \n Pension and post-retirement benefits 2,735 2,828 5,400 5,573 \n Provisions 1,953 1,065 3,186 3,929 \n Income tax expense (recovery) 10,272 (4,534 ) 20,924 1,891 \n Total items not affecting cash 71,471 46,482 141,293 110,980 \n Net change in non-cash working capital (42,803 ) (29,513 ) (59,059 ) (54,567 ) \n Contributions to pension and post-retirement benefit plans (1,049 ) (1,006 ) (2,020 ) (2,015 ) \n Provisions paid (7,137 ) (4,024 ) (7,137 ) (4,024 ) \n Income tax payments, net (986 ) (2,465 ) (1,246 ) (1,811 ) \n Net cash from operating activities 42,934 35,660 116,276 91,629 \n \n Cash flows from (used in) investing activities \n Purchases of property, plant and equipment (13,588 ) (7,717 ) (28,797 ) (9,862 ) \n Purchases of property, plant and equipment related to the Sherbrooke Expansion Project (1,036 ) (1,991 ) (1,680 ) (17,377 ) \n Government assistance received 3,497 - 3,497 3,150 \n Investment in derivative asset (27,848 ) - (27,848 ) - \n Purchase of software (361 ) (1,134 ) (517 ) (1,094 ) \n Net cash used in investing activities (39,336 ) (10,842 ) (55,345 ) (25,183 ) \n \n Cash flows from (used in) financing activities \n Proceeds from long-term debt - 9,000 - 31,188 \n Repayment of long-term debt (17,477 ) (22,507 ) (33,753 ) (32,505 ) \n Payment (write-off) of deferred financing fees (172 ) 39 (827 ) 7 \n Payment of lease liabilities (9,139 ) (7,714 ) (19,585 ) (16,737 ) \n Change in restricted cash 19,752 (25,961 ) 17,636 (27,950 ) \n Interest paid on long-term debt (20,991 ) (18,995 ) (28,844 ) (31,421 ) \n Payment to related party (5,800 ) (5,800 ) (5,800 ) (5,800 ) \n Dividends paid (14,923 ) (28,756 ) (29,776 ) (28,756 ) \n Proceeds from issuing partnership units 3,995 12,686 7,981 12,686 \n Net cash used in financing activities (44,755 ) (100,834 ) (92,968 ) (99,288 ) \n Effect of exchange rate changes on cash and cash 467 (1,284 ) 1,166 (1,311 ) \n equivalents held in foreign currency \n Decrease in cash and cash equivalents during the period (40,690 ) (77,300 ) (30,871 ) (34,153 ) \n Cash and cash equivalents - Beginning of period 205,913 141,778 196,094 119,460 \n Cash and cash equivalents - End of period 165,223 64,478 165,223 85,307 \n\n \n\nKruger Products Inc.\nUnaudited Segment and Geographic Results\n(thousands of Canadian dollars)\n\n 3-month 3-month 6-month 6-month \n period ended period ended period ended period ended \n June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 \n $ $ $ $ \n Segment Information \n \n Segment Revenue \n Consumer 457,561 449,222 919,289 914,412 \n AFH 93,331 86,858 176,249 167,778 \n Revenue from external customers 550,892 536,080 1,095,538 1,082,190 \n \n Other segment items \n Consumer 372,252 380,038 750,046 769,176 \n AFH 84,836 77,895 161,438 156,026 \n Corporate and other costs 3,207 5,669 6,527 8,743 \n Total other segment items 460,295 463,602 918,011 933,945 \n \n Adjusted EBITDA \n Consumer 85,309 69,184 169,243 145,236 \n AFH 8,495 8,963 14,811 11,752 \n Corporate and other costs (3,207 ) (5,669 ) (6,527 ) (8,743 ) \n Total Adjusted EBITDA 90,597 72,478 177,527 148,245 \n \n Reconciliation to net income (loss) \n Depreciation and amortization 30,933 45,736 61,324 77,596 \n Interest expense and other finance costs 20,046 21,306 39,657 42,257 \n Loss on disposal of property, plant and equipment (1 ) 23 - 18 \n Restructuring costs, net 373 3,702 373 3,702 \n Foreign exchange loss (gain) 5,536 (19,941 ) 10,804 (20,284 ) \n Income before income taxes 33,710 21,652 65,369 44,956 \n Income tax expense (recovery) 10,272 (4,534 ) 20,924 1,891 \n Net income including non-controlling interest 23,438 26,186 44,445 43,065 \n \n Geographic Revenue \n \n Canada 291,910 299,654 580,864 586,177 \n US 258,982 236,426 514,674 496,013 \n Total revenue 550,892 536,080 1,095,538 1,082,190 \n\n \n\nKP Tissue Inc.\n Unaudited Condensed Statements of Financial Position \n(thousands of Canadian dollars)\n\n June 30, 2026 December 31, 2025 \n $ $ \n Assets \n Current assets \n Dividends receivable 2,106 1,803 \n 2,106 1,803 \n Non-current assets \n Investment in associate 72,717 69,799 \n Total assets 74,823 71,602 \n \n Liabilities \n Current liabilities \n Dividends payable 2,106 1,803 \n Total liabilities 2,106 1,803 \n \n Equity \n Common shares 23,133 23,001 \n Contributed surplus 144,819 144,819 \n Deficit (113,082 ) (114,985 ) \n Accumulated other comprehensive income 17,847 16,964 \n Total equity 72,717 69,799 \n Total liabilities and equity 74,823 71,602 \n\n \n\nKP Tissue Inc.\nUnaudited Condensed Statements of Income\n(thousands of Canadian dollars, except share and per share amounts)\n\n 3-month 3-month 6-month 6-month \n period ended period ended period ended period ended \n June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 \n $ $ $ $ \n Share of income 2,659 2,755 5,049 4,672 \n Depreciation of fair value increments (269 ) (279 ) (539 ) (563 ) \n Equity income 2,390 2,476 4,510 4,109 \n Dilution gain 53 95 112 209 \n Net income 2,443 2,571 4,622 4,318 \n \n Basic and diluted earning per share 0.24 0.26 0.46 0.43 \n \n Weighted average number of shares outstanding 10,026,884 9,999,883 10,024,084 9,996,544 \n\n \n\nKP Tissue Inc.\nUnaudited Statements of Cash Flows\n(thousands of Canadian dollars)\n\n 3-month 3-month 6-month 6-month \n period ended period ended period ended period ended \n June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 \n $ $ $ $ \n Cash flows from (used in) operating activities \n Net income 2,443 2,571 4,622 4,318 \n Items not affecting cash \n Equity income (2,390 ) (2,476 ) (4,510 ) (4,109 ) \n Dilution gain (53 ) (95 ) (112 ) (209 ) \n Total items not affecting cash (2,443 ) (2,571 ) (4,622 ) (4,318 ) \n Net cash from operating activities - - - - \n \n Cash flows from (used in) investing activities \n Dividends received, net 1,744 1,746 3,476 3,490 \n Net cash from investing activities 1,744 1,746 3,476 3,490 \n \n Cash flows from (used in) financing activities \n Dividends paid, net (1,744 ) (1,746 ) (3,476 ) (3,490 ) \n Net cash used in financing activities (1,744 ) (1,746 ) (3,476 ) (3,490 ) \n Increase in cash and cash equivalents during the period - - - - \n Cash and cash equivalents - Beginning of period - - - - \n Cash and cash equivalents - End of period - - - - \n\n \n\n\nTo view the source version of this press release, please visit\nhttps://www.newsfilecorp.com/release/308456"},"type":"article","timestamp":"2026-08-13T11:00:19.14131653Z","server_sent_at_ms":1786618819141},"received_at":"2026-08-13T11:00:19.390Z","source_url":"https://www.newsfilecorp.com/release/308456"},"analysis":{"id":"106875","press_release_id":"117883","analysis_json":{"industry":null,"redFlags":[],"eventType":"earnings","narrative":"KP Tissue reported Q2 2026 results, highlighted by a 25% year-over-year increase in Adjusted EBITDA at its investment, Kruger Products, to $90.6 million.\n\nKruger Products' revenue grew 2.8% to $550.9 million, driven by higher U.S. sales volumes and lower pulp costs, while KPT recorded net income of $2.5 million.\n\nThe company declared a quarterly dividend of $0.21 per share and issued guidance expecting Q3 Adjusted EBITDA to remain in line with Q2 levels.","sentiment":"bullish","agentHooks":{"shouldPost":true,"suggestedAngle":"Strong margin expansion drives 25% EBITDA growth for Kruger Products, boosting KPT's net income."},"keyFigures":{"eps":0.24,"revenue":550900000,"guidance":"Q3 2026 Adjusted EBITDA expected to be in the range of Q2 2026","revenueYoy":"2.8%","customDimensions":{"kpt_net_income":2500000,"adjusted_ebitda":90600000,"kruger_net_income":22100000,"dividend_per_share":0.21,"adjusted_ebitda_yoy":"25.0%"}},"quotedText":"We maintained strong momentum in the second quarter of 2026, highlighted by 25% year-over-year growth in Adjusted EBITDA(1) to $90.6 million,","namedEntities":{"people":[{"name":"Dino Bianco","role":"CEO"},{"name":"Francois Paroyan","role":"General Counsel and Corporate Secretary"},{"name":"Doris Grbic","role":"Senior Director, Investor Relations"}],"products":["Cashmere","Purex","SpongeTowels","Scotties","White Swan","Bonterra","White Cloud"],"companies":[{"name":"Kruger Products Inc.","relationship":"investment (12% interest)"}],"dollarAmounts":[{"amount":"$550.9 million","context":"Q2 2026 Revenue"},{"amount":"$90.6 million","context":"Q2 2026 Adjusted EBITDA"},{"amount":"$22.1 million","context":"Q2 2026 Kruger Products Net Income"},{"amount":"$2.5 million","context":"Q2 2026 KPT Net Income"},{"amount":"$0.21 per share","context":"Quarterly dividend declared"},{"amount":"$422.6 million","context":"Total liquidity as of June 30, 2026"}]},"materialImpact":{"score":3,"reasoning":"Kruger Products, the underlying asset, delivered strong operational results with 25% year-over-year Adjusted EBITDA growth driven by margin expansion. 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