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Q4 2025 FINANCIAL RESULTS February 18, 2026
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FORWARD -LOOKING STATEMENTS 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-looking statements. Forward-looking statements in this presentation include, but are not limited to, statements regarding plans to build a new TAD tissue plant and its expected annual production capacity; expected date for starting production; the expected financing structure of the project; certain anticipated benefits of the project; Kruger Products’ expansion efforts in U.S. premium private label; and Kruger Products’ future business strategy and the anticipated benefits of its business strategy. The words "may", "will", "would", "should", "could", "expects", "plans", "intends", "trends", "indications", "anticipates", "believes", "estimates", "predicts", "likely" or "potential" or the negative or other variations of these words or other comparable words or phrases, are intended to identify forward-looking statements. The forward-looking statements are based on certain key expectations and assumptions made by KPT or Kruger Products, including obtaining financing on acceptable terms for the project. Although KPT and Kruger Products believe that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking statements since no assurance can be given that such expectations and assumptions will prove to be correct. Many factors could cause Kruger Products’ actual results, level of activity, performance or achievements or future events or developments (which could in turn affect the economic benefits derived from KPT’s economic interest in Kruger Products), to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the following factors, which are discussed in greater detail in the “Risk Factors – Risks Related to Kruger Products Business” section of the KPT Annual Information Form dated February 18, 2026 available on SEDAR+ at www.sedarplus.ca: Kruger Inc.’s influence over Kruger Products; Kruger Products’ reliance on Kruger Inc.; consequences of an event of insolvency relating to Kruger Inc.; risks associated with the ownership of the TAD Sherbrooke Project; risk associated with the operation of the TAD Sherbrooke Project; operational risks; significant increases in input costs; reduction in supply of fibre; increased pricing pressure and intense competition; Kruger Products’ inability to innovate effectively; adverse economic conditions; dependence on key retail trade customers; damage to the reputation of Kruger Products or Kruger Products’ brands; Kruger Products’ sales being less than anticipated; Kruger Products’ failure to implement its business and operating strategies; Kruger Products’ obligation to make regular capital expenditures; Kruger Products entering into unsuccessful acquisitions; Kruger Products’ dependence on key personnel; Kruger Products’ inability to retain its existing customers or obtain new customers; Kruger Products’ loss of key suppliers; Kruger Products’ failure to adequately protect its intellectual property rights; Kruger Products’ reliance on third party intellectual property licenses; adverse litigation and other claims affecting Kruger Products; material expenditures due to comprehensive environmental regulation affecting Kruger Products’ cash flow; Kruger Products’ pension obligations are significant and can be materially higher than predicted if Kruger Products management’s underlying assumptions are incorrect; labour disputes adversely affecting Kruger Products’ cost structure and Kruger Products’ ability to run its plants; exchange rate and U.S. competitors; Kruger Products’ inability to service all of its indebtedness; exposure to potential consumer product liability; covenant compliance; interest rate and refinancing risk; information technology; cyber-security; insurance; internal control; trade-related; and tax. Readers should not place undue reliance on forward-looking statements made herein. The forward-looking information contained herein is expressly qualified in its entirety by this cautionary statement. The forward-looking information contained herein is made as of the date of this presentation and KPT and Kruger Products undertake no obligation to publicly update such forward-looking information to reflect new information, subsequent or otherwise, unless required by applicable securities laws. 2 The following presentation is to review Kruger Products’ Q4 2025 financial results
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CORPORATE STRUCTURE 31As of February 18, 2026 100% 12.1%87.9% 1
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5 End-to-End Supply Chain Excellence Consumer As Our Compass Expand Our Business Footprint Winning Team & Culture Deliver Sustainability Drive Strong Revenue, Profit and Shareholder Value in a Sustainable Manner 1 2 3 4 5 5 UNDERLYING STRATEGIES
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61 Non-GAAP measure – see MD&A for the definition and reconciliation of the most comparable GAAP measure. Q4 2025 HIGHLIGHTS Adjusted EBITDA1 $84.2M over Q4 2024 26.0% Net Income $23.4M over Q4 2024 $37.1M Revenue 3.8% $560.1M over Q4 2024 +5.1% Revenue Canada +2.2% Revenue U.S. $15.0M $5.5M over Q4 2024 over Q4 2024
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FY 2025 HIGHLIGHTS 7 Adjusted EBITDA1 $318.2M over FY 2024 20.2% Net Income $75.5M over FY 2024 $51.7M Revenue 7.5% $2,203.4M over FY 2024 +6.9% Revenue Canada +8.2% Revenue U.S. $76.8M $76.6M over FY 2024 over FY 2024 1 Non-GAAP measure – see MD&A for the definition and reconciliation of the most comparable GAAP measure.
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8 1 Both NBSK and BEK prices were calculated using RISI. 2 Pulp price indices to be used only as an indicator of trends as Kruger Products’ actual purchase prices may differ. PULP INPUT PRICES Q4 2025 NBSK average prices1 in CAD decreased 6.6% while BEK average prices1 were up 3.3% sequentially. Q4 2025 NBSK average prices1 in CAD declined 7.3% and BEK average prices1 were down 5.3% year-over-year. Industry analysts expect pulp prices to trend upwards over the upcoming year. $600 $1,100 $1,600 $2,100 $2,600 Dec-21 Dec-22 Dec-23 Dec-24 Dec-25 $600 $1,100 $1,600 $2,100 $2,600 $3,100 Dec-21 Dec-22 Dec-23 Dec-24 Dec-25 NBSK North American List Prices per MT Q4 2025: (7.3)% YoY in CAD BEK List Prices per MT Q4 2025: (5.3)% YoY in CAD NBSK USD NBSK CAD BEK CAD BEK USD (CAD/USD exchange rate averaged 1.40 in Q4 2025 compared to 1.40 in Q4 2024)
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9 OPERATIONS • Production rates for paper machines and converting operations remain positive, exceeding 2025 targets • Memphis update – Renewed asset strategy driving strong sequential performance across paper machine and converting lines – Multi-purpose, state-of-the-art converting line project on track for start-up in early Q2 2026 • Finalizing location, project scope, and financing details for new TAD facility in western United States • Record safety results with several sites achieving safety milestones throughout the year 9
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10 FOCUSED BRAND SUPPORT • Equity-building campaigns for Cashmere, SpongeTowels, Bonterra, and Scotties • Cashmere featured in a full-episode Project Runway Canada design challenge • Launched “Scott for Scotties” activation with Toronto Raptors star Scottie Barnes • Sixth year of Kruger Big Assist program, making hockey more accessible to Canadian families • Expanded support of Scotties seasonal cubes with the Toronto Maple Leafs, Montreal Canadiens and Holiday Cubes 10
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11 BRAND LEADERSHIP POSITION * Data represents Nielsen Canadian dollar market share for 52 -week period ended December 27, 2025. BATHROOM TISSUE 32.3% NO. 1 FACIAL TISSUE 46.3% NO. 1 PAPER TOWEL 25.3% NO. 2
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12 AFH SEGMENT – KRUGER PRO • Revenue grew moderately year-over-year on higher volume, but decreased sequentially due to seasonality • Profitability increased year-over-year, but declined sequentially • In-sourcing of paper improved year-over-year profitability • Strong performance across Cashmere, Scotties, and TITAN brands • Monitoring AFH market amid economic uncertainty 12
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13 QUARTERLY FINANCIAL SUMMARY 1 Non-GAAP measure – see MD&A for the definition and reconciliation of the most comparable GAAP measure. % Change (Million CAD$, unless otherwise noted) Q4 2025 Q3 2025 Q4 2024 Y/Y Q/Q Revenue 560.1 561.1 539.6 3.8% (0.2)% Cost of Sales 451.9 460.0 459.3 (1.6)% (1.8)% Gross Profit 108.2 101.1 80.3 34.7% 7.0% Gross Margin 19.3% 18.0% 14.9% Adjusted EBITDA1 84.2 85.7 66.8 26.0% (1.8)% Adjusted EBITDA Margin1 15.0% 15.3% 12.4% Net Income (Loss) 23.4 14.6 (13.7) Net Income (Loss) Margin 4.2% 2.6% (2.5)%
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14 QUARTERLY SEGMENTED RESULTS 1 Non-GAAP measure – see MD&A for the definition and reconciliation of the most comparable GAAP measure. % Change (Million CAD$, unless otherwise noted) Q4 2025 Q3 2025 Q4 2024 Y/Y Q/Q Segment Revenue Consumer 472.3 468.3 452.7 4.3% 0.9% AFH 87.8 92.8 86.9 1.0% (5.4)% Total Segment Revenue 560.1 561.1 539.6 3.8% (0.2)% Segment Adjusted EBITDA1 Consumer 78.1 78.2 64.0 22.0% (0.1)% AFH 9.7 10.4 4.6 110.9% (6.7)% Corporate and other costs (3.6) (2.9) (1.8) Total Segment Adjusted EBITDA1 84.2 85.7 66.8 26.0% (1.8)% Segment Adjusted EBITDA Margin1 Consumer 16.5% 16.7% 14.1% AFH 11.0% 11.2% 5.3% Total Segment Adjusted EBITDA Margin1 15.0% 15.3% 12.4%
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15 Q4 2025 REVENUE COMPARED TO Q4 2024 $560.1M in Q4 2025 compared to $539.6M in Q4 2024 Increase primarily due to: • Higher sales volume across both segments $20.5M Q4 2025 Revenue increase over Q4 2024 3.8% Geographic revenue segmentation $15.0M +5.1% Revenue Canada $5.5M +2.2% Revenue U.S. over Q4 2024 over Q4 2024
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161 Non-GAAP measure – see MD&A for the definition and reconciliation of the most comparable GAAP measure. Q4 2025 ADJUSTED EBITDA 1 COMPARED TO Q4 2024 $84.2M in Q4 2025 compared to $66.8M in Q4 2024 Increase primarily due to: • Higher sales volume • Favourable productivity at manufacturing sites • Lower pulp prices • Reduced freight costs Partially offset by: • Higher manufacturing overhead costs • Increased SG&A expenses $17.4M Q4 2025 Adjusted EBITDA1 increase over Q4 2024 26.0% Adjusted EBITDA Margin1 Q4 2024 12.4% Q4 2025 15.0%
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17 Q4 2025 REVENUE COMPARED TO Q3 2025 $560.1M in Q4 2025 compared to $561.1M in Q3 2025 Sequential decrease primarily due to: • Lower U.S. sales volume ($1.0)M Q4 2025 Revenue decrease over Q3 2025 (0.2)% $5.0M +1.7% Revenue Canada ($6.0)M (2.3)% Revenue U.S. over Q3 2025 over Q3 2025
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181 Non-GAAP measure – see MD&A for the definition and reconciliation of the most comparable GAAP measure. Q4 2025 ADJUSTED EBITDA 1 COMPARED TO Q3 2025 over Q3 2025 Q3 2025 15.3% Q4 2025 15.0% ($1.5)M Q4 2025 Adjusted EBITDA1 decrease (1.8)% $84.2M in Q4 2025 compared to $85.7M in Q3 2025 Sequential decrease primarily due to: • Higher SG&A expenses • Elevated freight costs and warehousing expenses • Increased marketing expenses • Greater manufacturing overhead costs • Lower U.S. sales volume Partially offset by: • Lower pulp prices Adjusted EBITDA Margin1
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19 BALANCE SHEET 1 Non-GAAP measure – see MD&A for the definition and reconciliation of the most comparable GAAP measure. (Million CAD$, unless otherwise noted) Q4 2025 Q3 2025 Q4 2024 Cash 196.1 149.1 119.5 Current Portion of Long-term Debt 98.6 97.9 54.2 Long-term Debt 1,074.1 1,083.5 1,180.5 Net Debt 976.6 1,032.3 1,115.2 LTM Adjusted EBITDA1 318.2 300.8 264.8 Net Debt/LTM Adjusted EBITDA1 3.1x 3.4x 4.2x • Net debt decreased by $55.7 million on a sequential basis • Leverage declined to 3.1x on lower net debt and higher LTM Adjusted EBITDA
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20 CAPITAL EXPENDITURES $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 2022 2023 2024 2025 2026E Millions • Q4 2025 CAPEX totaled $33.4M, including $1.3M related to the Sherbrooke Expansion Project • Total 2025 CAPEX reached $78.0M • Anticipating $100M-$120M in CAPEX for 2026, driven by strategic projects Strategic Growth CAPEXBase CAPEX
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21 K E Y T A R G E T S T O A C H I E V E B Y 2 0 3 0 SUSTAINABILITY FOCUS
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22 ACCELERATING GROWTH • Preparing for new TAD tissue plant in 2028 • Managing margins amid volatile economic environment • Investing in operations to increase efficiency and capacity • Driving long-term brand share • AFH has built a sustainable business model • Developing organizational capability to strengthen adaptability and resiliency