Slide 1: Q1 2026 Financial Results
Q1 2026 FINANCIAL RESULTS May 14, 2026
Slide 2: Forward-Looking Statements
F O R W A R D - LO O K I N G S TAT E M E N T S Certain statements in this presentation about KPT's and Kruger Products’ current and future plans, expectations and intentions, results, levels of activity, performance, goals or achievements or any other future events or developments constitute forward
Slide 3: Corporate Structure
C O R P O R AT E S T RU C T U R E 100% 1 88.0% 12.0% 1As of May 14, 2026 3
Slide 4: Our Vision and Mission
p UR VISION OUR MISSION O°":
Slide 5: Underlying Strategies
5 U N D E R LY I N G S T R AT E G I E S Drive Strong Revenue, Profit and Shareholder Value in a Sustainable Manner 1 2 3 4 5 Consumer As Our Expand Our End-to-End Supply Deliver Winning Team Compass Business Footprint Chain Excellence Sustainability & Culture 5
Slide 6: Q1 2026 Highlights
Q1 2026 HIGHLIGHTS Revenue Adjusted EBITDA1 Net Income $544.6M $86.9M $19.8M (0.3)% 14.6% $4.4M over Q1 2025 over Q1 2025 over Q1 2025 $2.4M ($3.9)M over Q1 2025 over Q1 2025 +0.8% (1.5)% Revenue Canada Revenue U.S. 1 Non-GAAP measure – see MD&A for the definition and reconciliation of the most comp
Slide 7: Pulp Input Prices
PULP INPUT PRICES Q1 2026 NBSK average prices1 in CAD decreased 2.0% while BEK average prices1 increased 9.3% sequentially. Q1 2026 NBSK average prices1 in CAD declined 14.8% whereas BEK average prices1 were up 2.2% year-over-year. Industry analysts expect both NBSK and BEK prices to trend upwards i
Slide 8: Operations
O P E R AT I O N S • Production rates for paper machines and converting operations exceeded expectations across all sites in Q1 2026 • Strong safety performance continued in the new year • Launched state-of-the-art converting line at Memphis site in April • Memphis improving and delivering against p
Slide 9: Focused Brand Support
FOCUSED BRAND SUPPORT • Strong equity building campaigns for Cashmere, SpongeTowels, Scotties and Kruger Big Assist program, including our role as official partner of the CBC Olympic broadcast • Activated 45th Scotties Tournament of Hearts campaign • Launched Find-the-Cup-to-Win promotion in stores
Slide 10: Brand Leadership Position
BRAND LEADERSHIP POSITION BATHROOM TISSUE FACI AL TISSUE PAPER TOWEL NO. 1 NO. 1 NO. 2 32.0% 46.9% 24.3% * Data represents Nielsen Canadian dollar market share for 52-week period ended March 21, 2026. 10
Slide 11: AFH Segment – Kruger Products
A F H S E G M E N T – K RU G E R P RO • Revenue, volume and profitability grew year-over-year, but decreased sequentially due to seasonality • AFH revenue growth mainly driven by U.S. market • Profitability improvement driven by cost savings from paper in- sourcing • Cashmere, Scotties and TITAN wip
Slide 12: Quarterly Financial Summary
Q UA R T E R LY F I N A N C I A L S U M M A RY % Change (Million CAD$, unless otherwise noted) Q1 2026 Q4 2025 Q1 2025 Y/Y Q/Q Revenue 544.6 560.1 546.1 (0.3)% (2.8)% Cost of Sales 436.9 451.9 451.0 (3.1)% (3.3)% Gross Profit 107.7 108.2 95.1 13.2% (0.5)% Gross Margin 19.8% 19.3% 17.4% Adjusted EBIT
Slide 13: Quarterly Segmented Results
Q UA R T E R LY S E G M E N T E D R E S U LT S % Change (Million CAD$, unless otherwise noted) Q1 2026 Q4 2025 Q1 2025 Y/Y Q/Q Segment Revenue Consumer 461.7 472.3 465.2 (0.8)% (2.2)% AFH 82.9 87.8 80.9 2.5% (5.6)% Total Segment Revenue 544.6 560.1 546.1 (0.3)% (2.8)% Segment Adjusted EBITDA1 Consum
Slide 14: Q1 2026 Revenue Compared to Q1 2025
Q 1 2 0 2 6 R E V E N U E C O M PA R E D TO Q 1 2 0 2 5 $544.6M in Q1 2026 compared to $546.1M in Q1 2025 ($1.5)M Decrease primarily due to: • Unfavourable FX impact on U.S. dollar sales Q1 2026 Revenue decrease • Lower selling prices in U.S. Consumer business • Modestly lower Consumer volume in Can
Slide 15: Q1 2026 Adjusted EBITDA Compared to Q1 2025
Q 1 2 0 2 6 A D J U S T E D E B I T DA 1 C O M PA R E D TO Q 1 2 0 2 5 $11.1M $86.9M in Q1 2026 compared to $75.8M in Q1 2025 Q1 2026 Adjusted EBITDA1 increase Increase primarily due to: 14.6% • Lower pulp prices over Q1 2025 • Reduced warehousing costs Adjusted EBITDA Margin1 Partially offset by: •
Slide 16: Q1 2026 Revenue Compared to Q4 2025
Q 1 2 0 2 6 R E V E N U E C O M PA R E D TO Q 4 2 0 2 5 $544.6M in Q1 2026 compared to $560.1M in Q4 2025 ($15.5)M Sequential decrease primarily due to: • Lower Canadian sales volume Q1 2026 Revenue decrease • Unfavourable FX impact on U.S. dollar sales (2.8)% Partially offset by: over Q4 2025 • Hig
Slide 17: Q1 2026 Adjusted EBITDA Compared to Q4 2025
Q 1 2 0 2 6 A D J U S T E D E B I T DA 1 C O M PA R E D TO Q 4 2 0 2 5 $2.7M $86.9M in Q1 2026 compared to $84.2M in Q4 2025 Q1 2026 Adjusted EBITDA1 increase Sequential increase primarily due to: 3.2% • Lower manufacturing overhead costs over Q4 2025 • Reduced SG&A expenses • Increased selling pric
Slide 18: Balance Sheet
BA L A N C E S H E E T (Million CAD$, unless otherwise noted) Q1 2026 Q4 2025 Q1 2025 Cash 205.9 196.1 141.8 Current Portion of Long-term Debt 110.1 98.6 61.0 Long-term Debt 1,058.0 1,074.1 1,186.7 Net Debt 962.2 976.6 1,105.9 LTM Adjusted EBITDA1 329.3 318.2 273.6 Net Debt/LTM Adjusted EBITDA1 2.9x
Slide 19: Capital Expenditures
C A P I TA L E X P E N D I T U R E S $200 • Q1 2026 CAPEX totaled $16.0M, $180 including $0.6M related to the Sherbrooke $160 Expansion Project $140 $120 • Anticipating $100M-$120M in CAPEX for Millions $100 2026, driven by strategic projects $80 $60 $40 $20 $0 2022 2023 2024 2025 2026E Base CAPEX S
Slide 20: Sustainability Focus
KEY TARGETS TO ACHIEVE BY 2030 S U S TA I N A B I L I T Y F O C U S 20
Slide 21: Accelerating Growth
ACCELERATING GROWTH • Managing margins given escalating input costs • Ramping up new converting line in Memphis • Driving long-term brand share • AFH segment continuing to deliver profitable growth • Preparing for new TAD tissue plant in late 2028 • Developing organizational capability to strengthen
Slide 22: KP Tissue Inc
KP Tissue Inc WWW.KPTISSUEINC.COM