Adjusted EBITDA Growth and Margin Improvement
Q4 adjusted EBITDA of $84.2M, up 26% year-over-year; adjusted EBITDA margin improved to 15.0% from 12.4% a year ago; run-rate above $80M for a second consecutive quarter.
Revenue Growth
Q4 consolidated revenue of $560.1M, up 3.8% year-over-year (described as nearly 4%); full fiscal 2025 revenue growth of 7.5%.
Net Income Turnaround
Q4 net income of $23.4M versus a net loss of $13.7M in Q4 2024; improvement driven by favorable foreign exchange of $29.7M and higher adjusted EBITDA of $17.4M (partially offset by tax, interest and noncontrolling interest impacts).
Geographic Performance — Canada and U.S.
Canada Q4 revenue +5.1% (approx. +$15M); U.S. Q4 revenue +2.2% (approx. +$5.5M) despite a strong prior-year comparable; U.S. annual growth rate of 8.2%, identified as the company’s growth engine.
Strong Consumer and AFH Segment Results
Consumer revenue $472.3M, up 4.3% YoY; consumer adjusted EBITDA $78.1M with a 16.5% margin (improvement of ~2 percentage points YoY). Away-From-Home revenue $87.8M, up 1% YoY; AFH adjusted EBITDA $9.7M vs $4.6M YoY, AFH margin ~11% (more than doubled year-over-year).
Market Share Gains in Canada
Facial tissue market share increased by 130 basis points to 46.3% (52-week period ended Dec 27, 2025); paper towel share grew 130 basis points to 25.3%; bathroom tissue showed incremental year-over-year growth.
Operational Progress and Safety
Positive production rates across paper machine and converting operations; Memphis converting line on track for startup in early Q2 2026; Sherbrooke in-sourcing improved AFH margins; record safety results across manufacturing assets in 2025.
Balance Sheet and Liquidity Improvement
Cash improved to $196.1M from $149.1M at end of Q3; long-term debt of $1.741B decreased $9.4M sequentially; net debt reduced by $55.7M; leverage ratio declined to 3.1x from 3.4x.