#Canada #financial results #CAS #Cascades Inc #Kingsey Falls, QC

Cascades Inc. Reports Second Quarter 2025 Financial Results

Cascades Inc. (TSX: CAS) disclosed its unaudited financial results for the period ending June 30, 2025. According to the report, the company achieved notable sales, totaling $1,187 million, which reflects a marginal increase compared to $1,154 million in Q1 2025 and a slight rise from $1,180 million in Q2 2024.

Highlights from Q2 2025

In terms of operational performance, Cascades registered an operating income of $36 million, down from $50 million in the previous quarter but slightly up from $34 million in Q2 2024. The net loss per common share stood at ($0.03), a decline from the net earnings of $0.07 registered in Q1 2025 and net earnings of $0.01 in Q2 of the previous year.

The adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) reached $137 million, compared to $125 million in Q1 2025 and $112 million a year ago. Adjusted net earnings per common share also improved to $0.19, up from $0.13 in the prior quarter and $0.08 in Q2 2024. Notably, the net debt decreased by $112 million to $2,104 million, yielding a net debt to EBITDA ratio of 3.8x, a drop from 4.2x at the end of Q1 2025.

Cascades' capital expenditures for Q2 totaled $18 million, compared to $36 million in Q1 2025, with an updated total forecast for 2025 of approximately $150 million before disposals.

CEO's Remarks

Hugues Simon, President and CEO of Cascades, commented on the performance, stating that it aligned with the company's forecasts. He noted a consolidated improvement driven by stronger volumes, increased selling prices, and reduction in transportation and energy costs. Furthermore, the packaging segment benefitted from enhanced pricing and stable shipments, despite facing higher operational costs from lower operating rates.

Mr. Simon acknowledged that operational metrics at Bear Island improved, with production levels rising by 8%, a trend that he indicated continued into July. The tissue segment maintained stable performance, albeit challenged by higher costs due to scheduled shutdowns and maintenance aimed at boosting line efficiencies.

Third Quarter Outlook

Looking ahead, Simon anticipated that the third quarter performance would show slight sequential improvements, despite exhibiting cautious conditions in the packaging sector. The anticipated stabilization in this segment is expected from favorable pricing and raw material trends, although demand levels could remain constrained. Nonetheless, a stronger performance is expected in the tissue segment due to growth in volume and stable cost structures.

The macroeconomic landscape continues to present uncertainties that could potentially impact demand levels across North America.

About Cascades

Founded in 1964, Cascades Inc. is recognized for its commitment to sustainable and innovative packaging solutions, hygiene products, and recovery initiatives. With approximately 9,600 employees across 66 operational facilities, including 17 dedicated to recovery and recycling across North America, Cascades strives to provide innovative products that meet customer needs while also contributing to the health of communities and the planet.

Shares of Cascades Inc. trade on the Toronto Stock Exchange under the ticker symbol CAS. Forward-looking statements within this report may be influenced by various market factors, and actual results could deviate significantly from projections.

Contact Information and Conference Call Details

Management will provide further insights during a conference call scheduled for today at 9:00 a.m. ET. Participants can access the call by dialing 1-800-990-4777 (international calls at 1-289-819-1299). Additionally, the call will be streamed live on the Cascades website under the ‘Investors’ section, with replays available until September 7, 2025, for those unable to attend live.

You may follow Cascades Inc. on its official website, where continuous updates regarding their operations and forecasts can be accessed.