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Cascades Inc. Releases First Quarter 2026 Financial Results

Cascades Inc. (TSX: CAS) has disclosed its unaudited financial performance for the first quarter of 2026, covering the three-month span that concluded on March 31, 2026. This report is particularly noteworthy as it sheds light on both the accomplishments and hurdles experienced by the organization during a turbulent economic landscape.

Financial Highlights of Q1 2026

In the first quarter, the company's sales amounted to $1.125 billion, which shows a decline from $1.197 billion in the preceding quarter (Q4 2025) and also from $1.154 billion in the same quarter last year. Operating income registered at $81 million, compared to $76 million in Q4 2025 and $50 million in Q1 2025. This indicates a growth in operating efficiency despite the downturn in sales.

Cascades recorded net earnings of $39 million, or $0.38 per common share, an improvement compared to $7 million or $0.07 per common share in the same quarter from the previous year. However, on an adjusted basis, net earnings fell to $7 million, or $0.07 per share, from $13 million or $0.13 per share a year prior, emphasizing the pressures caused by fluctuating market conditions.

The company’s adjusted EBITDA (A) for the quarter was $118 million, down from $155 million in Q4 2025 and $125 million in Q1 2025. This decline stemmed largely from increased operational costs across logistics, production, and energy, alongside reduced sales volumes, significantly influenced by the ongoing pandemic and economic downturn.

Operational Insights and Strategic Focus

Hugues Simon, President and CEO of Cascades, reflected on the quarterly results and outlined the multifaceted challenges encountered, attributing many issues to weather-related disruptions and heightened fluctuations in fuel costs. He stated, "These elements increased the operational costs beyond our initial budget. Furthermore, geopolitical factors have suppressed consumer spending and confidence, leading to decreased demand for our packaging products."

Despite these challenges, Cascades aims to enhance its overall efficiency and profitability. The company's strategic vision includes generating $100 million in profitability improvements by the end of 2026 through targeted cost reduction initiatives, operational efficiency enhancements, and pricing adjustments in response to cost increases.

Looking Ahead: Q2 2026 Expectations

Regarding expectations for the upcoming quarters, Mr. Simon noted that a cautious approach to packaging volume prediction will likely see results for Q2 2026 being modestly lower than the previous quarter. However, the implementation of announced price increases across both segments is anticipated to help counterbalance these market headwinds. Pricing strategies will begin to take effect in packaging in the second quarter, expanding into the tissue segment later this year.

Cascades continues to focus on adapting to the evolving macroeconomic landscape, and Mr. Simon remains optimistic about achieving the company's fiscal goals despite the challenges presented in the first half of 2026. The ongoing review of its asset portfolio further aims to ensure long-term strategic alignment and operational efficiency.

Conclusion

In these unpredictable times, Cascades Inc. remains committed to its market position and dedication to sustainable practices, building on its substantial experience in recycling and innovative product development. The company’s successful navigation through these shaking circumstances will be instrumental as it aims to reaffirm its financial strength and growth trajectory through the remaining quarters of 2026.