Kruger Products reports higher Q2 profit and revenue
Canadian tissue maker sees stronger results, announces $35M U.S. investment to boost efficiency

KP Tissue Inc. released the second-quarter 2025 financial and operational results of Kruger Products Inc., Canada’s leading tissue manufacturer for both consumer and Away-From-Home markets. KPT currently holds a 12.2% interest in Kruger Products.
Kruger Products reported revenue of $536.1 million in Q2 2025, up 5.2% from $509.8 million a year earlier. Net income more than doubled to $22.1 million, compared to $10.6 million in the same quarter of 2024. Adjusted EBITDA rose 11% year over year to $72.5 million.
“We are pleased with our overall performance in the second quarter of 2025 with Adjusted EBITDA improving 11% year-over-year to $72.5 million,” said KP Tissue’s Chief Executive Officer, Dino Bianco. U.S. revenue growth slowed down in Q2 2025 due to front-loaded shipments made during the previous quarter to mitigate potential tariffs, along with softness in the AFH market. Nevertheless, U.S. sales have grown 12% after six months into 2025 and represent a key growth driver for Kruger Products.
“In early July, we announced an additional investment of approximately US$35 million at our Memphis manufacturing facility to deploy a state-of-the-art, multi-purpose converting line for bathroom tissue and paper towels. This initiative is part of a broader strategy to drive efficiency and support our growing U.S. business,” Mr. Bianco added.
The company said it expects a stronger performance in Q3 2025, forecasting Adjusted EBITDA in the range of $75 million to $80 million.
Operating costs rose in the second quarter, mainly due to higher pulp prices, freight rates, and foreign exchange impacts, partially offset by lower overhead costs and the absence of a labor disruption that had affected Q2 2024.
Kruger Products reported total liquidity of $293.1 million as of June 30, 2025. The company’s board declared a quarterly dividend of $0.18 per share, payable October 15, 2025.
KPT, meanwhile, posted net income of $2.6 million for Q2 2025, including its share of Kruger Products’ earnings.