Good morning and welcome to KP Tissue's Third Quarter 2025 Results Conference Call. Today's call is being recorded for replay. All participants are currently in listen-only mode. Following the presentation, we will conduct a Q&A session. Instructions will be provided at that time for you to queue up for questions. If at any time you have difficulties hearing the conference, please press * followed by zero for operator assistance. I will now turn the call over to Doris Gerbic, 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' Third Quarter 2025 financial results. With me this morning is Dino Bianco, the CEO of KP Tissue and Kruger Products, and Michael Keays, the CFO of KP Tissue and Kruger Products. 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 filing. 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. The press release reporting our Q3 2025 results was published this morning and will be available on our website at kptissueinc.com. The financial statements and MD&A will also be posted on our website and on SEDAR+. The investor presentation to accompany today's discussion can be found in the investor relations section of our website. I will now turn the call over to our CEO, Dino Bianco. Dino? Thank you, Doris. Good morning, everyone, and thank you for joining us for our Third Quarter Earnings Call for Fiscal 2025. We accelerated profitable growth in the Third Quarter of 2025, highlighted by strong adjusted EBITDA of $85.7 million on revenue of $561.1 million. We are particularly pleased with consumer share gains in the paper towel and facial tissue categories, which grew over a 52-week period despite a highly competitive market. In terms of our away-from-home division, or Kruger Pro, as we call it now, sales and profitability increased both year-over-year and sequentially, bolstered by consumer brands like Scotties and Cashmere selling well in the commercial market. Looking ahead, we are on our way to delivering a third consecutive year of strong financial results. In addition, we have significantly deleveraged our balance sheet to prepare for the next phase of investment. Now, let's take a look at our quarterly numbers on slide six. Revenue growth of nearly 8% in the Third Quarter of 2025 was driven by higher sales volume in our consumer business, favorable selling prices across both consumer and AFH segments, and a positive foreign exchange impact. Revenue in Canada rose 6.8% in the Third Quarter, while U.S. sales grew 8.8% year-over-year. In terms of profitability, adjusted EBITDA increased 30.4% year-over-year to reach $85.7 million. A significant improvement in adjusted EBITDA can be attributed to higher sales volume, favorable selling prices, lower pulp prices, and reduced freight costs. These factors were partially offset by a number of items, including higher manufacturing overhead costs, which Michael will provide more details on in his review. On slide seven, average pulp prices in Canadian dollars decreased single digits in the Third Quarter of 2025 from the previous quarter, while year-over-year average prices for both NBSK and BEK declined 2.6% and 18.4%, respectively. Heading into the upcoming year, industry analysts do expect pulp prices to trend upwards. Let's move on to our operations on slide eight. To increase tissue capacity and accelerate the growth of our business, we are proud to announce the construction of a new state-of-the-art tissue plant in the western United States to better serve our fast-growing U.S. business with ultra-premium tissue products. The new facility, equipped with the most modern TAD paper machine and related converting lines, will have annual production capacity of approximately 75,000 metric tons, and the startup is scheduled for 2028. Location, project scope, and financing details will be announced at a later date. The new facility, along with our Memphis plant and nine existing Canadian plants, gives us a strong network to service our growing North American business. Looking at our current operations, overall, our network production rates exceeded our targets for the Third Quarter. In Memphis, we are seeing positive benefits from our renewed asset strategy focused on producing premium products. Converting manufacturing results in Memphis improved sequentially, while our new multi-purpose converting line is on track for startup in the second quarter of 2026. We expect to deliver an improved cost structure in 2026 following the closure of our old legacy equipment last quarter. Finally, our Sherbrooke expansion assets continue to perform above expectations. Turning to brand support on slide nine, we sustained our Made in Canada positioning in Q3 2025, supported by widespread in-store promotions across our portfolio. During the Third Quarter, we also continued equity-building campaigns behind Cashmere, Purex, Sponge Towels, Scotty's, and Bontera to strengthen our brand presence in their respective categories. In addition, we pursued targeted expansion and support behind our premium product portfolio, including Scotty's Ultra Soft, Cashmere, and Purex Ultra and Ultra Luxe, as well as Sponge Towels Pro and Premium. We also launched our 22nd annual Cashmere Collection in support of breast cancer awareness, prevention, and treatment programs. Inspired by this year's theme of Tapestry of the North, 16 of the top Canadian designers showcased garments made entirely of Cashmere, Canada's leading bathroom tissue, at a gallery evening and fundraiser in Toronto on September 16th. The annual campaign has raised over $5 million for the breast cancer caused since 2004 through the Canadian Cancer Society and the Quebec Breast Cancer Foundation. Turning to slide ten, the data presented is taken from Nielsen and shows Kruger Products' branded market share in Canada over a 52-week period ending September 6th, 2025. The figures reflect strong growth for Kruger Products in the paper towel category compared to the same period last year, as Sponge Towels increased share on the strength of heightened brand support. In terms of facial tissue, our market-leading Scotty's brand also enjoyed solid share gains driven by innovations in the premium product segment. For bathroom tissue, our share declined slightly over the same period due to higher pricing taken in our Canadian consumer segment in the fourth quarter of last year. Looking at our away-from-home segment, on slide 11, sales volume increased both year-over-year and sequentially in the Third Quarter of 2025. Similarly, revenue and profitability improved in the Third Quarter, highlighted by a robust 11.2% adjusted EBITDA margin. As mentioned earlier, these strong financial results were supported by consumer brands like Scotty's and Cashmere selling well in the commercial market, along with growing Made in Canada segment among distribution partners and end users. The expanded insourcing of our own paper also contributed to enhanced profitability and converting efficiency. And finally, we introduced Titan wipers and cloths to our AFH portfolio in the Third Quarter to meet the evolving needs of customers seeking high performance and reliability for the most demanding cleaning jobs. With a bold new name and look, Titan reflects Kruger Pro's vision of being a trusted partner to our customers. Equally important, this new product line enables Kruger Pro to increase its share in the rapidly growing commercial wiper and cloth market. With that, I will now turn the call over to Michael. Thank you, Dino, and good morning, everyone. Please turn to slide 12 for a summary of our financial performance for the Third Quarter of 2025. As Dino mentioned, we generated an adjusted EBITDA of $85.7 million on sales of $561.1 million in the quarter, representing a strong year-over-year EBITDA growth of over 30%. Net income totaled $14.6 million in the Third Quarter of 2025, compared to $18 million in the Third Quarter of 2024. The year-over-year decrease is due to an FX loss variation of $12.2 million, greater income tax expense of $4.4 million, higher depreciation of $4.1 million, as well as an increased interest and other finance costs of $3.5 million. These items were all partially offset by the higher adjusted EBITDA of $20 million. In our quarterly segmented view on slide 13, revenue from our consumer business grew 9.1% year-over-year to $468.3 million. This increase comes from higher sales volume, both in Canada and the U.S., favorable selling prices, and a positive FX impact on U.S. dollar sales. In our away-from-home segment, revenue improved 1% year-over-year to $92.8 million in the Third Quarter. This increase was mainly due to slightly higher sales volume in Canada and a favorable FX impact. The consumer-adjusted EBITDA in the Third Quarter totaled $78.2 million, compared to $62.4 million in Q3 2024, with a margin of 16.7%, representing an improvement of two points over the same period last year. On a sequential basis, consumer-adjusted EBITDA increased by $9 million from Q2 2025. For our away-from-home business, adjusted EBITDA amounted to $10.4 million in the Third Quarter, compared to $6.6 million in Q3 2024, with a margin increasing by four points year-over-year to 11.2%. On a sequential basis, AFH-adjusted EBITDA grew $1.4 million from Q2 2025. The year-over-year and sequential increase are partially driven by the expected benefit of insourcing our paper supply post-Sherbrooke paper machine startup. Moving on to slide 14, we show our consolidated revenue for Q3 2025, which improved 7.7% year-over-year to $561.1 million. The increase was mainly driven by higher consumer sales volume, favorable selling prices, and a positive FX impact. On a geographic basis, revenue in Canada rose $19.1 million, or 6.8% year-over-year, while U.S. revenue continued to grow at a strong rate, increasing $20.9 million, or 8.8%. On slide 15, we provide details of our year-over-year profitability. The adjusted EBITDA increased by $20 million to $85.7 million, resulting in a margin of 15.3%, compared to 12.6% for the same period last year. The year-over-year increase was driven by higher sales volume and selling prices, lower pulp prices, and reduced freight costs. These items were partially offset by higher manufacturing overhead costs, elevated warehousing costs, and increased SG&A expenses. Let's turn to slide 16, where we compare Q3 revenue to Q2. Revenue grew $25 million sequentially, or 4.7%, primarily due to higher U.S. sales volume and increased selling prices. Geographically, revenue in Canada improved by $1.7 million, or 0.6%, while the U.S. increased by $23.3 million, or 9.9%. On slide 17, the adjusted EBITDA in the third quarter increased sequentially by $13.2 million, or 18.2%, driven by higher sales volume, lower pulp prices, increased selling prices, and reduced manufacturing, freight, and warehousing expenses. These factors were partially offset by higher manufacturing overhead costs and increased marketing expenses. The adjusted EBITDA margin reached 15.3% in the third quarter, compared to 13.5% in Q2 2025. Now turning to our balance sheet and financial position on slide 18, our cash position improved to CAD 149.1 million at the end of the third quarter, from CAD 85.3 million at the end of Q2 2025. The increase was primarily due to higher adjusted EBITDA and a decrease in working capital. Long-term debt stood at CAD 1,083.5 million, a decrease of CAD 42 million sequentially, reducing net debt by CAD 87.9 million. That brought our leverage ratio to 3.4 times, compared to 4.0 times in Q2 2025, demonstrating our continued commitment to strengthening our balance sheet. To conclude my section, we will review the capital expenditures on slide 19. Our CapEx expenses for Q3 2025 totaled CAD 16.2 million, and we have narrowed our CapEx range to be between CAD 70 million-CAD 80 million for 2025, including some spending related to the new Memphis converting line announced in July. For 2026, our CapEx is expected to be in the range of $70 to $90 million, which includes some of the strategic growth CapEx. Thank you for joining us this morning, and I'll now turn the call back to Dino. Thank you, Michael. Please refer to slide 20 for a quick update on our sustainability efforts. I am pleased to report that our Bonterra brand was recently named the most sustainable brand in Canada in 2025 by Kantar Brands, a leading marketing data and analytics company. Bonterra, our environmentally focused product family, was praised for embedding sustainability across every aspect of its operations, from product development and manufacturing to materials packaging and partnerships. We are very proud of this recognition. Now, please turn to slide 21 for my closing comments. We are preparing for the launch of a new state-of-the-art tissue plant in 2028 to better serve our fast-growing U.S. business. We will continue managing our margins amid volatile economic conditions. We are investing in our operations to increase efficiency and support growing capacity. We intend to continue to build our share across our portfolio on a long-term basis. Our away-from-home business will increasingly benefit from internally sourced paper and deliver sustainable profit, and we are actively developing our organizational capabilities to strengthen our adaptability and resilience. Finally, let's turn to our outlook for the Fourth Quarter of 2025. We expect adjusted EBITDA to be in the range of Q3 2025. We will now be happy to take your questions. Thank you. Ladies and gentlemen, we will now begin the Q&A session. Should you have a question, please press *, followed by the one on your touch-tone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press *, followed by the two. If you are using a speakerphone, please lift the handset up before pressing any keys. One moment, please, for your first question. Your first question comes from Hamir Patel with CIBC. Your line is now open. Hi, good morning, and congrats on the strong quarter. Thank you. You know, some of the recent project announcements in the industry have had capital costs in the sort of half a billion U.S. dollar range. Is that a reasonable estimate to think for your project before any incentives? Yeah, what I would say, Hamir, is we're working through the final elements. There's always some differences between project scope, but I think you've had—there's been a couple of announcements. I think using them as a guide is probably a good place to start. We'll finalize the full cost when we announce more details early in the new year. Great. And, Dino, I mean, if we took 40% of maybe that half a billion proxy, that would suggest maybe a $200 million equity component. Would you consider issuing additional shares to finance the project and improve the public float? Yeah, I'm not going to comment on your math. That was your math, so I'm not going to comment on that. But I would say that our position would be that we feel we can support the equity infusion through our current resources. That's a good round-up. Yes, I realize you probably wouldn't need to tap it. I just thought to improve the float could be an opportunity. Dino, on the market share, it looks like some pretty impressive gains in towels. Do you see additional runway there to grow market share in Canada? Yeah, I think we've always said it's an area where we have the most opportunity. We're number one share in bath and number one in facial. I think ultimately the consumer is going to choose who the number one share is. I think we're doing the right things with our business in terms of our quality, our segmentation, our in-store presence distribution, our communication that we're doing. I think our Made in Canada positioning is a strong one, and we continue to support that, given I think consumers are very anxious to buy Canadian-made products. So I think that whole bundle, and it's a long-term play, as I say. We're not here to just rent share for a short period of time. We want to build it long-term, foundationally, and make sure we're offering the right product at the right value for our consumers. So yes, I do see good runway in the towel category. Great. Thanks. That's all I had. I'll turn it over. Thanks, Amir. Your next question comes from Kasia Kopytek with TD Cowen. Your line is now open. Hi, good morning, everyone. It's Kasia. Can you all hear me okay? Yep. Yep. Perfect. Let's start with Sherbrooke. Can you talk about operating rates there and how they might compare to your broader network, and then also how the Sherbrooke sales program is ramping as well? You cut out a little bit, Kasia. I heard Sherbrooke operating rates. I'm not going to give you exact numbers, but I would say Sherbrooke is definitely one of the strongest operating rates in our network, and we believe, based on what we're seeing from external data, definitely a top-tier performer in North American tissue. So very pleased, and that's resulting in increased output capacity, and we believe we know that there's strong profit being generated from that site. Gotcha. And then I also just asked on the sales program. Sorry about cutting out. I'm sorry. The sales program? Can you repeat, Kasia? Sorry, you're— Yeah. Sorry. Is this better? Go ahead. Try one more time. Just speak softly that maybe we can hear better. Okay. Sorry about that. Is this better? Yeah. Perfect. Yeah, just wondering about how the actual sales program for the output from Sherbrooke is going as well. Yeah, very good. I mean, we are selling everything we make. I mean, so the more that site makes, the more we sell. I think the market and our business is growing very well. You can see the numbers, obviously, and Sherbrooke's been a big part of supplying that. It does supply Canada and the U.S., and it does supply multiple categories. So very pleased with the results and very pleased with the work the team is doing there to continue to drive great output. And then just on the results this quarter, are you able to parse between how much the higher selling prices quarter over quarter were due to mix versus market price increase initiatives? Well, maybe Michael will give you some color, but the market price—we took pricing last year, and so when you're comparing quarter over quarter, the pricing last year took effect in Q4, so we're lapping Q3 last year, which is pre-pricing. So that's why we talked about the benefit of the price increase. We've not taken any additional pricing since that time. I don't know if we'll give specific details. Maybe I'll look over to Mike to see if there's anything else he wants to add to that. Yeah, thanks. For sure, the year-over-year comparison would show a larger portion of that selling price increase coming from the pure change or announcement on the selling price itself that we did in the fall last year. In terms of the sequential change, that would be more driven by mix and a bit less by the actual selling price change. Gotcha. Okay. Yeah, we're selling a lot more premium product. Obviously, I just talked about Sherbrooke, and that is a TAD facility. And I talked about our brands really pushing the premium side of the business. So you're seeing an improved mix through just the improved premium segment as part of our portfolio. Right. Yeah, that all makes sense. I just wanted to confirm relative to Q2 that the actual market price hikes would have had a minimal impact. So it sounds like that's the case. And just on AFH, strong results this quarter, obviously, and the margins in line with what you had previously guided to as being attainable for that business once the benefits of the paper insourcing come through, which they are now. Any thought to revising the margin range higher for the future in terms of what you think that business can do? Well, I've always said, I think, low teens, and we've now crossed the 10% threshold. I think it does have the opportunity. I want to make sure I see sustained performance. Obviously, there's a bit of a watch-out in the short term around what's going on in the away-from-home market in general and in the economy and consumers. So we're watching that. We think we're well-positioned. We have a very diversified portfolio across Canada and the United States. So I think I'm not going to make an announcement that's going to give guidance of a different margin structure. I'm very pleased with where we are. I've said we should be low teens, and right now we're there. So our goal right now is to keep it, keep it delivering it across not only sales, but our cost structure and our margins. Makes sense. And final one for me on Memphis. There's been improvements there. Can you put any numbers around how meaningful that might be for 2026 results? No. We won't give that kind of guidance, but I certainly think the momentum that we're going to build in 2025, and we will give Q1 guidance later in February. But I think the momentum we're building is going to carry forward. I mean, we're not a one-time deliverer of profit. As you can see, the foundations that we're building with respect to our business, our portfolio, our cost structure, our building our share, I think all are working very well, and those are sustainable in my mind, and we should continue to drive momentum. Of course, the economy and cost inputs are always a wild card, but we feel very good about the momentum we are driving, and we should continue that into 2026, and we will provide that guidance at the right time. Obviously, for 2025 and fourth quarter, we feel very confident because we can see that one near in and feel good about our guidance being in the range of Q3. Okay. Dino, Mike, thanks a lot. I'll turn it over. Thank you. Ladies and gentlemen, as a reminder, should you have a question, please press * one. Your next question comes from Zachary Evershed with National Bank. Your line is now open. Good morning, everyone. Congrats on the quarter. Good morning. Thank you. Good morning. So a few here on the next TAD project, so feel free to pass if you guys want to provide that level of detail yet. But we do note that construction costs have spiked over the last few years. Do you think it's likely that the return economics on the project will be lower than your first two? That is not what our data is showing us right now. So obviously, it's still early, but I would say that we are in the range of what we believe we need to be. And even with the escalated costs, we feel we have a model here and the market situation with our growth in the premium segment. We believe we'll have a good operating plan, latest equipment and technology, likely a simplified portfolio, an improved freight structure, having said Western United States, and we believe that'll deliver similar margins. Good color. Thanks. And then thinking about your financing split to debt, what are the guardrails that you're looking at to limit your use of debt, either leverage or interest coverage ratios? Yeah, we're working through that. I don't think we're going to give you a specific number, but I guess the four things that we're looking at, first of all, we have a proven track record of successfully completing large-scale projects. Notably, we just talked about Sherbrooke and then the Sherbrooke expansion project. So two large projects, and both have exceeded the ramp-up curve. I think the other piece is we believe we are in a strong position right now to pursue this project. We have a cash balance of almost 150 million, and we have strong cash flow generation, a lot of it driven by those new projects that I just talked about. We also have recently completed an update with DBRS, and we've given them details of the project, including the financing parameters and expected financial profile. And lastly, of course, we've been working on this project for a long time, and we are now ready. And I think maintaining the sound financial profile and strong market access remains priorities for the company and for the board, including any volatility during the period, making sure that we can manage that. So I think we're in a really good position. I don't think we're going to give you any specific metrics as it relates to ratios at this point. So I think when we finalize the project scope early in the new year, but I don't know, Mike, if there's any further guidance that we want to provide. No, I mean, you covered that we have a current strong financial position. That position and cash available on hand today is in a much better position than the period of 2022 and 2023 that we went through a few years ago. The performance of our last eight quarters, over 2024 and 2025, has demonstrated that we have that strong cash flow generation. So we feel we're in a very, very strong position to be able to proceed with this project at this point in time. Appreciate that. Thank you very much. And then just one last one. As Amir mentioned, there are a number of new machine announcements that will be coming online over the next few years after almost a drought in major additions. Can you speak to your thinking around your competitor's geographic positioning and timelines and how that may affect your ramp-up in 2028? Well, obviously, we've made the announcement knowing those announcements. Long-term projections continue to show a need for ultra-premium in the North American market. So despite those announcements, the market continues to grow and will continue to grow. So we have made this announcement knowing that the market will require this capacity. Obviously, the Western U.S. is going to be a strong position for us given what we believe a lot of our customers are growing and opening new outlets in west of the Mississippi. So I think we'll be very well-positioned from a service point of view for our customers. The other benefit being that with the addition of this new facility, it will create benefit and synergy to Memphis and Sherbrooke. So our new network now, kind of this triangle between Memphis, Sherbrooke, and the new facility, this tad triangle, if you will, will help us really get more efficient and produce the right product in the right place for the customers. So all that, I think, just supports the need and the location that we chose. Excellent. Thanks so much. I'll turn it over. There are no further questions at this time. I will now turn the call over to Dino Bianco for closing remarks. Great. Thank you all for joining us on the call today. We look forward to speaking with you again in the release of our fourth quarter results for 2025. Thank you and have an amazing day. Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines.