Cascades Reports Results for the Third Quarter of 2025

Executive Summary

• Cascades Inc. reported unaudited Q3 2025 results with sales of C$1,238 M, operating income of C$73 M and net earnings of C$29 M ($0.29 per share), a material improvement from the prior quarter’s loss.
• Adjusted EBITDA (A) rose to C$159 M and net debt fell to C$2,023 M, lowering the net‑debt/EBITDA ratio to 3.6×.
• The Board declared a quarterly dividend of $0.12 per share payable on Dec 4 2025; management highlighted stronger packaging volumes, a 24% increase at Bear Island, and expects capital expenditures of ~C$140 M for 2025.

Key Details

• Financial Highlights (unaudited)
• Sales: C$1,238 M (up from C$1,187 M Q2‑25; +3% YoY)
• Operating income: C$73 M (vs. C$36 M Q2‑25; flat YoY)
• Net earnings: C$29 M ($0.29/share) vs. loss of $0.03/share Q2‑25; up from $0.01/share YoY
• Adjusted EBITDA (A): C$159 M (↑14% YoY)
• Adjusted net earnings per share: $0.38 (vs. $0.19 Q2‑25; ↑40% YoY)
• Balance Sheet
• Net debt: C$2,023 M (down $81 M sequentially); net‑debt/EBITDA ratio 3.6× (down from 3.8×)
• Cash & equivalents: C$73 M
• Capital Allocation
• Total capital expenditures (net of disposals) Q3‑25: C$30 M; FY 2025 capex forecast ≈ C$140 M.
• Asset monetization target: $120 M by mid‑2026 (up from $80 M); $57 M already achieved, including $31 M from the Flexible Packaging sale on Oct 8 2025. Proceeds earmarked for debt reduction.
• Operational Highlights
• Packaging business volume up; Bear Island production +24% and 90% of its ramp‑up curve achieved.
• Tissue segment volume growth continued; lower maintenance costs and favourable raw‑material pricing cited.
• Dividends & Shareholder Returns
• Quarterly dividend declared: $0.12 per common share, payable Dec 4 2025 to shareholders of record Nov 20 2025.
• No share repurchases in Q3‑25.
• Outlook
• Management expects Q4‑25 performance to be stable sequentially at the consolidated level; anticipates lower packaging volumes in December (seasonally softer) but continued tissue momentum.
• Strategic focus remains on debt reduction, operational efficiency and growth initiatives.

Notable Quotes

“Third quarter consolidated results exceeded our sequential forecast… driven by stronger volume, good operational execution, benefits from profitability initiatives and favourable raw‑material and selling price trends.” – Hugues Simon, President & CEO
“We are forecasting lower sequential results for packaging in Q4 due to seasonally softer December demand, while tissue momentum should continue.” – Hugues Simon, President & CEO