"Third quarter consolidated results exceeded our sequential forecast." – Hugues Simon, President and CEO of Cascades.
Nov. 6, 2025 - Cascades Inc. reports its unaudited financial results for the three-month period ended September 30, 2025.
Hugues Simon, President and CEO, commented, "Third quarter consolidated results exceeded our sequential forecast. This was driven by stronger volume, good operational execution, benefits from ongoing profitability initiatives, and favourable raw material and selling price trends.
"Our packaging business, in particular, had a stronger than expected quarter. This reflected continued positive volume momentum during the quarter, a well-executed closure and redistribution of tonnage from the Niagara Falls mill, and a 24% increase in volumes produced at Bear Island, the latter of which achieved 90% of its targeted production ramp up curve in the quarter.
"As expected, our tissue business similarly had a strong quarter, driven by improvements in volume.
"At the corporate level, net debt decreased by $81 million sequentially, and leverage fell to 3.6x from 3.8x at the end of the second quarter," Simon noted.
Discussing near-term outlook, Simon commented, "We are expecting fourth quarter performance to be stable sequentially on a consolidated basis. Notwithstanding favourable raw material and selling price trends and a continuation of good demand levels in October, we remain cautious in packaging. To this end, we are forecasting lower sequential results for this business, driven by our current expectation that volume will decrease in seasonally softer December.
"For tissue, we expect the momentum of sequentially stronger results to continue in the fourth quarter, driven by lower maintenance and favourable raw material costs.
"Looking further ahead, we are focused on achieving our strategic objectives. Despite the ongoing uncertainty in the current economic environment, we are making good progress across many of these initiatives. We are confident that the fundamentals for our company are strong, and are steadfast in our commitment to continue to improve the financial profile, level of operational and commercial excellence and growth momentum of our company," Simon concluded.
The Corporation's third quarter sales of $1,238 million increased by $37 million compared with the same period last year. This increase was driven by consolidated net benefits of $43 million from higher selling prices and $7 million from a more favourable foreign exchange. These were partially offset by $12 million from lower volumes mainly in the Packaging Products segment.
The third quarter EBITDA totaled $159 million, an increase of $19 million, or 14%, from the $140 million generated in the same period last year. This increase was driven by net benefits of $43 million from higher selling prices and by lower raw material costs of $19 million, mainly in the Packaging Products segment. These were partially offset by net impacts of $38 million from higher production and energy costs and $5 million from lower volumes mainly in the Packaging Products segment.
The main specific items, before income taxes, that impacted our third quarter of 2025 operating income and/or net earnings were:
For the three-month period ended September 30, 2025, the Corporation posted net earnings of $29 million, or $0.29 per common share, compared to net earnings of $1 million, or $0.01 per common share, in the same period of 2024. On an adjusted basis, the Corporation posted net earnings of $39 million in the third quarter of 2025, or $0.38 per common share, compared to net earnings of $27 million, or $0.27 per common share, in the same period of 2024.
Founded in 1964, Cascades offers sustainable, innovative and value-added packaging, hygiene and recovery solutions. The company employs approximately 9,300 women and men across a network of 65 operating facilities, including 17 Recovery and Recycling facilities which are part of Corporate Activities and joint ventures managed by the Corporation, in North America.
SOURCE: Cascades Inc.