Cascades Inc. Reports Strong Q3 2025 Financial Performance with Increased Sales and Profitability
In its latest financial announcement, Cascades Inc. (TSX: CAS) shared promising results for the third quarter of 2025, revealing an increase in both sales and net earnings compared to previous quarters. The results, which cover the three-month period ending September 30, 2025, reflect a robust 4.3% growth in sales, rising to $1,238 million from $1,201 million in Q3 2024. This upward trend was not just a continuation but marked a sequential increase from $1,187 million in Q2 2025. Operating income also witnessed a dramatic rise, reaching $73 million, up from $36 million in Q2 2025 and the same figure in Q3 2024.
Net earnings per share made a remarkable recovery, reporting at $0.29, compared to a loss of $0.03 per share in the preceding quarter and only a marginal profit of $0.01 in Q3 2024. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) showed resilience, totaling $159 million, up from $137 million in Q2 2025 and $140 million in the same quarter last year. This consistent growth trajectory highlights the effectiveness of Cascades' operational strategies and the favorable market dynamics they encountered.
In terms of asset management, net debt decreased to $2,023 million, down from $2,104 million as of June 30, 2025. The company enjoys a net debt to EBITDA ratio of 3.6x, improved from 3.8x in the previous quarter, a positive indicator of financial health and stability.
A noteworthy highlight was Cascades' announcement regarding its plans to monetize redundant assets, aiming to realize $120 million by mid-2026, increasing from an earlier forecast of $80 million. This reflects not only a proactive strategy to optimize asset utilization but also an anticipated positive impact on their financials through targeted debt reduction. Following the successful sale of its Flexible Packaging activities on October 8, 2025, earning $31 million, the company reported that $57 million of its asset monetization goal has already been achieved.
Cascades also disclosed total capital expenditures of $30 million for Q3 2025, indicating active investment in growth and operational enhancements, although this was lower compared to $34 million in Q3 2024. CEO Hugues Simon attributed the third quarter's success to increased volumes, effective implementation of profitability initiatives, and encouraging trends in raw material costs and selling prices. The packaging segment significantly outperformed expectations, bolstered by the successful closure and redistribution of production from the Niagara Falls mill, and also recorded a 24% increase in volumes produced at the Bear Island facility.
Looking ahead, Simon communicated a cautious optimism regarding Q4 2025 performance, anticipating stable results on a consolidated basis. While demand remains favorable and raw material trends are promising, the company expects a seasonal drop in packaging volumes during December. However, strength in the tissue segment is anticipated to persist, fueled by improved maintenance efficiencies and competitive raw material pricing.
In conclusion, despite external economic uncertainties, Cascades Inc. is strategically positioned, continuing its commitment to operational excellence and sustainable growth. With a solid foundation and proactive management strategies, the company aims to enhance its financial profile while navigating the market challenges ahead, reinforcing the positive trajectory observed in Q3 2025.
Net earnings per share made a remarkable recovery, reporting at $0.29, compared to a loss of $0.03 per share in the preceding quarter and only a marginal profit of $0.01 in Q3 2024. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) showed resilience, totaling $159 million, up from $137 million in Q2 2025 and $140 million in the same quarter last year. This consistent growth trajectory highlights the effectiveness of Cascades' operational strategies and the favorable market dynamics they encountered.
In terms of asset management, net debt decreased to $2,023 million, down from $2,104 million as of June 30, 2025. The company enjoys a net debt to EBITDA ratio of 3.6x, improved from 3.8x in the previous quarter, a positive indicator of financial health and stability.
A noteworthy highlight was Cascades' announcement regarding its plans to monetize redundant assets, aiming to realize $120 million by mid-2026, increasing from an earlier forecast of $80 million. This reflects not only a proactive strategy to optimize asset utilization but also an anticipated positive impact on their financials through targeted debt reduction. Following the successful sale of its Flexible Packaging activities on October 8, 2025, earning $31 million, the company reported that $57 million of its asset monetization goal has already been achieved.
Cascades also disclosed total capital expenditures of $30 million for Q3 2025, indicating active investment in growth and operational enhancements, although this was lower compared to $34 million in Q3 2024. CEO Hugues Simon attributed the third quarter's success to increased volumes, effective implementation of profitability initiatives, and encouraging trends in raw material costs and selling prices. The packaging segment significantly outperformed expectations, bolstered by the successful closure and redistribution of production from the Niagara Falls mill, and also recorded a 24% increase in volumes produced at the Bear Island facility.
Looking ahead, Simon communicated a cautious optimism regarding Q4 2025 performance, anticipating stable results on a consolidated basis. While demand remains favorable and raw material trends are promising, the company expects a seasonal drop in packaging volumes during December. However, strength in the tissue segment is anticipated to persist, fueled by improved maintenance efficiencies and competitive raw material pricing.
In conclusion, despite external economic uncertainties, Cascades Inc. is strategically positioned, continuing its commitment to operational excellence and sustainable growth. With a solid foundation and proactive management strategies, the company aims to enhance its financial profile while navigating the market challenges ahead, reinforcing the positive trajectory observed in Q3 2025.
Topics Financial Services & Investing）
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