Cascades Reports Results for the Second Quarter of 2025

Executive Summary

• Cascades Inc. reported unaudited financial results for the second quarter ended June 30, 2025, posting a net loss of $3 million ($0.03 per share) compared to net earnings of $1 million in the prior year period.
• Adjusted EBITDA increased 22% to $137 million, driven by higher selling prices and lower raw material costs, partially offset by lower volumes and higher production/energy costs.
• The company announced a quarterly dividend of $0.12 per share and provided a full-year 2025 capital expenditure forecast of approximately $150 million, down from the previous guidance of $175 million.

Key Details

• Financial Performance (Q2 2025 vs Q2 2024):
  • Sales: $1,187 million (up from $1,180 million).
  • Operating Income: $36 million (up from $34 million).
  • Net Loss: $(3) million (vs. Net Earnings of $1 million).
  • Adjusted EBITDA: $137 million (up from $112 million).
  • Adjusted Net Earnings: $19 million ($0.19 per share) (up from $8 million / $0.08 per share).
  • Net Debt: $2,104 million (down from $2,216 million in Q1 2025).
  • Net Debt to EBITDA Ratio: 3.8x (down from 4.2x).
• Segment Results:
  • Packaging Products: Sales of $763 million; Operating Income of $46 million; EBITDA (A) of $119 million.
  • Tissue Papers: Sales of $392 million; Operating Income of $25 million; EBITDA (A) of $38 million.
  • Corporate/Recovery/Recycling: Operating Loss of $(35) million; EBITDA (A) of $(20) million.
• Specific Items Impacting Q2 2025:
  • $23 million impairment charge on inventory and equipment related to a closed US facility.
  • $2 million loss on other items.
  • $4 million unrealized loss on financial instruments.
  • $1 million loss on repurchase of long-term debt.
• Capital Expenditures:
  • Total capital expenditures, net of disposals, totaled $18 million in Q2 2025.
  • Year-to-date capital expenditures net of disposals were $54 million.
  • Full-year 2025 forecasted capital expenditures (before disposals) revised down to ~$150 million (previously $175 million).
• Dividends:
  • Board declared a quarterly dividend of $0.12 per common share, payable September 4, 2025, to shareholders of record on August 21, 2025.
  • No common shares were purchased for cancellation during Q2 2025.
• Outlook:
  • Q3 2025 performance expected to be slightly higher sequentially.
  • Packaging results expected to be largely stable due to favorable pricing/raw materials offset by constrained demand.
  • Tissue segment expected to perform strongly due to volume growth and stable costs/prices.

Notable Quotes

• Hugues Simon, President and CEO: "Second quarter performance was in line with our forecasts. On a consolidated basis, sequential improvement was underpinned by stronger volumes and selling prices, and lower transportation and energy costs."
• Hugues Simon, President and CEO: "We now expect full year 2025 levels [for capital expenditures] to be in the range of $150 million, before disposals, down from $175 million previously."