Q2 2026 KP Tissue Inc Earnings Call Transcript
Key Points
- Adjusted EBITDA grew 25% year-over-year to $90.6 million, driven by higher U.S. sales volume and lower pulp prices.
- U.S. revenue increased 9.5% in Q2 2026, supported by robust consumer and away-from-home sales volume.
- The new Memphis converting line is progressing ahead of plan, expanding capacity and improving mill performance.
- Facial tissue market share in Canada increased to 47%, strengthening the company's leadership position.
- The away-from-home segment delivered sequential growth in revenue, volume, and profitability in Q2 2026.
- Canadian consumer revenue declined 2.6% year-over-year due to market softness and consumers trading down to private label products.
- Market share losses in Canadian bathroom tissue and paper towel categories were experienced, with a recovery plan only expected to improve shares in the second half.
- Away-from-home profitability declined slightly year-over-year due to elevated transportation costs.
- The new TAD facility in the Western U.S. is taking longer than expected due to greenfield site due diligence and economic uncertainty, with no final investment decision timeline.
- Cash position decreased to $165.2 million from $205.9 million in Q1 2026, primarily due to changes in working capital.
Good morning and welcome to KP Tissue Inc's second quarter 2026 results conference call.
(Operator Instructions)
I will now turn the call over to Doris Grbic, Director of Investor Relations. You may begin your conference.
Thank you, operator. Good morning, everyone, and thank you for joining us to review Kruger Products' second quarter 2026 financial results.
With me this morning is Dino Bianco, the CEO of KP Tissue and Kruger Products. And Michael Pease, the CFO of KP Tissue in Kruger Province.
Today's discussion will include certain forward-looking statements. Actual results could differ materially from these forward-looking statements due to known and unknown risks and uncertainties. A list of risk factors can be found in our public filings.
In addition, today's discussion will include certain non-GAAP financial measures. The reconciliation of these non-GAAP financial measures to the most comparable GAAP measure can be found in our MD&A.
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