Cascades Reports Results for the Fourth Quarter and Full Year 2025

Executive Summary

• Cascades Inc. posted a material improvement year‑over‑year, reporting net earnings of C$0.70 per share for FY 2025 versus a loss of C$0.31 per share in 2024.
• Q4 2025 operating income rose to C$76 M, and adjusted EBITDA (A) reached C$155 M, both up sharply from the prior year’s negative results.
• Net debt fell to C$1,896 M (down C$200 M YoY), improving the net‑debt/EBITDA ratio to 3.3× from 4.2×.

Key Details

• Sales: FY 2025 total sales C$4,776 M (up from C$4,701 M in 2024); Q4 2025 sales C$1,197 M (down $14 M YoY).
• Operating Income: FY 2025 C$235 M (vs. C$95 M in 2024); Q4 2025 C$76 M (vs. C$16 M in Q4 2024).
• Net Earnings / EPS: FY 2025 net earnings C$70 M, EPS C$0.70; Q4 2025 net earnings C$37 M, EPS C$0.37.
• Adjusted EBITDA (A): FY 2025 C$576 M (12.1% margin); Q4 2025 C$155 M (12.9% margin).
• Segment Performance:
• Packaging Products sales C$3,079 M, operating income C$269 M, adjusted EBITDA C$496 M.
• Tissue Papers sales C$1,575 M, operating income C$93 M, adjusted EBITDA C$163 M.
• Specific Items Impacting Q4 2025:
• Impairment charge – C$23 M (building & equipment).
• Net realizable value adjustment – C$2 M (inventories).
• Gain on sale of Flexible Packaging plant activities – C$21 M.
• Restructuring costs – C$4 M (U.S. plant closure).
• Gain on financial instruments – C$1 M.
• Capital Expenditures: FY 2025 C$152 M; Q4 2025 C$42 M. Forecast 2026 capex before disposals ≈ C$175 M.
• Debt & Leverage:
• Long‑term debt C$1,874 M (down from C$1,871 M).
• Net debt C$1,896 M, net‑debt/EBITDA ratio 3.3× (improved from 4.2×).
• Dividend: Board declared a quarterly dividend of C$0.12 per share, payable March 26 2026.
• Outlook: Management expects Q1 2026 earnings to decline sequentially but remain higher YoY for the sixth consecutive quarter; leverage expected to improve further.

Notable Quotes

“Our fourth‑quarter consolidated performance met sequential forecasts… Overall, we successfully decreased net debt by $127 million sequentially, which results in leverage decreasing to 3.3× from 3.6× at the end of the third quarter.” – Hugues Simon, President & CEO

“We are confident that the fundamentals for our Company are strong… We expect our 2026 performance to surpass 2025 despite ongoing macro‑economic uncertainty.” – Hugues Simon, President & CEO