Canada's KP Tissue Q2 revenue up on higher US sales

KP Tissue

13/08/2026 12:22

Overview
Canada tissue products maker's Q2 revenue rose 2.8% yr/yr, slightly missing analyst expectations
Q2 Adjusted EBITDA grew 25% yr/yr, driven by higher U.S. sales and lower pulp prices
Net income for Q2 was unchanged yr/yr

Outlook
Company expects Q3 2026 Adjusted EBITDA to be in the range of Q2 2026
Company anticipates ongoing market softness in Canada due to inflationary pressure
Company has implemented a share recovery plan for H2 2026 to improve market share

Result Drivers
HIGHER U.S. SALES - Co said revenue growth was primarily due to higher sales volume in the Consumer U.S. and Away-From-Home businesses
LOWER PULP COSTS - Co attributed improved profitability to lower pulp prices and improved mill performance at its Memphis site
HIGHER SG&A EXPENSES - Co said selling, general and administrative expenses increased due to additional investment in brands, consulting, and compensation costs

Company press release: ID:nNFC508L1L

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Slight Miss*
C$550.89 mln
C$551.50 mln (3 Analysts)
Q2 EPS
 
C$0.24
 
Q2 Net Income
 
C$22.16 mln
 
Q2 Adjusted EBITDA
 
C$90.60 mln
 
Q2 Operating Income
 
C$59.29 mln
 
Q2 Pretax Profit
 
C$33.71 mln
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the personal products peer group is "buy."
Wall Street's median 12-month price target for KP Tissue Inc is C$12.75, about 0.2% below its August 12 closing price of C$12.77
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 15 three months ago

Reuters Recommended Reads
Aug 12 - Canada's CCL Industries Q2 sales rise on CCL, Innovia segments
Aug 12 - Packaging firm Amcor beats quarterly sales, profit estimates on higher prices
Aug 11 - B&G Foods Q2 sales miss estimates on divestitures, lower base business volumes

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)