Kruger Products reports 7.7% revenue growth and announces new investment in Q3 2025

Kruger Products, Canada’s leading tissue manufacturer, closed the third quarter of 2025 with revenue of US$ 561.1 million, up 7.7% compared to the same period last year. The results were released through KP Tissue Inc. (KPT), which holds a 12.1% interest in the company. 

The increase in revenue was due to higher sales volume, primarily in the Consumer segment and favorable selling prices across both segments. Revenue was also favorably impacted by foreign exchange fluctuations on U.S. dollar sales. The quarter also saw a solid improvement in profitability. Adjusted EBITDA reached US$ 85.7 million, an increase of 30.4% over 2024. 

Despite the stronger operational performance, net income totaled US$ 14.6 million, down from US$ 18.0 million in 2024. The decline reflected foreign exchange losses, higher income tax expenses, increased financial costs, and additional depreciation associated with the Sherbrooke expansion project. 

The company declared a quarterly dividend of US$ 0.18 per share, scheduled for payment on January 15, 2026. 

CANADIAN BRANDS AND U.S. GROWTH SUPPORT PERFORMANCE 

Kruger Products’ Consumer portfolio in Canada includes Cashmere®, Purex®, SpongeTowels®, Scotties®, White Swan®, and Bonterra®. In the United States, the company continues to expand its presence with the White Cloud® brand and premium private-label products. 

“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,” said Dino Bianco, CEO of KP Tissue. 

 

The Away-From-Home (AFH) segment also advanced, with higher sales and profitability both year-over-year and sequentially. The performance benefited from the strong presence of traditional brands such as Scotties and Cashmere in commercial markets. 

Kruger Products also announced plans to build a new tissue plant in the western United States, equipped with through-air-dry (TAD) technology and modern converting lines. The facility, with an estimated annual capacity of 75,000 tons, is expected to begin production in 2028 and will support growing demand for ultra-premium tissue products. 

Site selection is in the final stages, and financing details will be disclosed at a later date. The project is expected to be funded through a structure of 40% equity and incentives and 60% project finance debt. 

The new facility will complement the company’s Memphis plant and its nine Canadian operations, strengthening Kruger Products’ manufacturing network across North America.