Cascades Reports Third Quarter 2026 Results

Cascades Inc. (TSX: CAS) reports its unaudited financial results for the three-month period ended September 30, 2026.

Q3 2026 Highlights

• Sales of $1,267 million (compared with $1,219 million in Q2 2026 and $1,238 million in Q3 2025);
• Operating income of $78 million (compared with $58 million in Q2 2026 and $73 million in Q3 2025);
• Net earnings per common share of $0.30 (compared with $0.21 in Q2 2026 and $0.29 in Q3 2025);
• Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA (A))¹ of $162 million (compared with $140 million in Q2 2026 and $159 million in Q3 2025);
• Adjusted net earnings per common share¹ of $0.33 (compared with $0.24 in Q2 2026 and $0.38 in Q3 2025);
• Net debt¹ of $1,863 million as of September 30, 2026 (compared with $1,879 million as of June 30, 2026). Net debt to EBITDA (A) ratio¹ of 3.2x, down from 3.3x as of June 30, 2026;
• Total capital expenditures of $47 million in Q3 2026, compared to $40 million in Q2 2026 and $30 million in Q3 2025. The Corporation’s 2026 forecasted capital expenditures before disposals will be in a range of $150 million to $175 million.
• The Company generated $11 million in asset sale proceeds during the third quarter, bringing total proceeds to $165 million for the 2025 – 2026 period. The Company’s objective of generating $230 million is progressing well and is now expected to be achieved in early 2027.

Hugues Simon, President and CEO, commented: “Our third quarter results were in line with our expectations despite significant headwinds from ongoing tariff-related disruptions, cost inflation and continued uncertainty in the economic environment. Our Packaging segment faced headwinds from higher raw material and transportation costs, combined with tariff impacts of approximately $4 million, which more than offset the benefits of our operational and pricing improvement initiatives. Packaging volumes remained generally in line with our assumptions, although customer demand remained uneven across certain end markets. In Tissue, results came in ahead of our expectations. Realization of previously announced selling price increases largely offset ongoing inflationary pressures and lower volume in our Away-from-Home business, while our continued focus on productivity and cost reduction initiatives supported profitability. Corporate activities performed better than anticipated, reflecting the benefits of cost reduction initiatives and an improved contribution from our Recovery and Recycling operations. Overall, we remained disciplined in managing the aspects of the business within our control, while continuing to strengthen the resilience and efficiency of our operating platform. Our financial position remained stable during the quarter, supported by prudent capital allocation and continued focus on debt reduction and cash generation.”

Discussing near-term outlook, Mr. Simon commented, “Looking ahead, we remain prudent regarding demand and inflationary costs, given the uncertain macroeconomic environment and the continued impact of tariffs on customer purchasing patterns. With market conditions remaining challenging, we expect consolidated fourth quarter results to be slightly lower sequentially, and anticipate continued pressure from raw material costs, transportation expenses and tariff-related impacts. Nevertheless, the ongoing realization of price increases, ongoing profitability improvement initiatives and contributions from our operational optimization efforts are expected to continue to help mitigate these pressures. In this environment, our priorities remain unchanged: maintaining disciplined capital management, enhancing productivity across our asset network, optimizing our customer portfolio and executing initiatives that strengthen the long-term resilience and competitiveness of the business.”

Source: Cascades