Q2 results improved materially: Revenue rose 2.8% year over year to CAD 550.9 million, while adjusted EBITDA increased 25% to CAD 90.6 million and the margin expanded to 16.4%. Management expects third-quarter adjusted EBITDA to remain around the Q2 level. U.S. growth offset Canadian weakness: U.S. revenue increased 9.5%, driven by stronger volumes, while Canadian revenue fell 2.6% as consumers shifted toward private-label products.
KP Tissue has launched a market-share recovery plan in Canada, including pricing changes, promotions and more value-focused offerings. Expansion plans are progressing but remain uncertain: The Memphis converting line and facility turnaround are ahead of plan, while the proposed western U.S. TAD facility remains under evaluation amid permitting, financing, tariff and geopolitical uncertainties.
The company maintained its 2026 capital-spending forecast of CAD 90 million to CAD 110 million. KP Tissue (TSE:KPT) reported higher second-quarter revenue and adjusted EBITDA, supported by stronger U.S. sales volumes, improved performance at its Memphis facility and lower pulp prices. Management said it expects third-quarter adjusted EBITDA to remain in line with the CAD 90.6 million generated in the second quarter.
Revenue rose 2.8% year over year to CAD 550.9 million in the quarter, while adjusted EBITDA increased 25% to CAD 90.6 million. The company's adjusted EBITDA margin improved to 16.4% from 13.5% a year earlier. Net income was CAD 22.1 million, comparable with the second quarter of 2025, as higher adjusted EBITDA was offset by an unfavorable foreign-exchange difference. → Lumentum Just Delivered the AI Growth Investors Wanted "We maintained strong momentum in the second quarter of 2026," CEO Dino Bianco said, citing double-digit adjusted EBITDA growth despite what he described as an uncertain economic environment.
Revenue in the United States increased CAD 22.5 million, or 9.5%, from a year earlier, while Canadian revenue declined CAD 7.7 million, or 2.6%. Bianco said the Canadian consumer market remained soft as inflationary pressures prompted some shoppers to move toward private-label tissue products. → Ryman Checks Into a $1.38B Hospitality Upgrade The consumer segment generated revenue of CAD 457.6 million, up 1.9% year over year, driven by higher U.S. sales volumes. Consumer adjusted EBITDA rose to CAD 85.3 million from CAD 69.2 million a year earlier, with the segment's margin improving to 18.6% from 15.6%.
The Away-From-Home business, operating under the Kruger PRO brand, reported revenue growth of 7.4% to CAD 93.3 million, primarily because of higher U.S. sales volume. Segment adjusted EBITDA declined slightly to CAD 8.5 million from CAD 9 million, as higher transportation costs reduced profitability. On a sequential basis, however, the segment delivered higher revenue, volume and profitability. → Joby's Defense Pivot Accelerates With $500M Resonant Sciences Deal Kruger PRO announced a 3% to 5% price increase effective Sept. 1, according to Bianco.
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