Weather disruptions in the U.S. and heightened volatility in transportation and fuel surcharges increased operating costs, while recent geopolitical events negatively affected consumer confidence and spending, resulting in lower packaging volumes..
April 13, 2026 - Cascades has updated its outlook for the first quarter of 2026 to reflect a combination of external and operational factors that emerged during the quarter. Weather disruptions in the U.S. and heightened volatility in transportation and fuel surcharges increased operating costs, while recent geopolitical events negatively affected consumer confidence and spending, resulting in lower packaging volumes.
Performance was further impacted by execution inefficiencies in the second half of the quarter.
As a result of these factors, Cascades expects first quarter 2026 consolidated adjusted earnings before interest, taxes, depreciation and amortization to be in the range of $115 million to $120 million, down from a previously disclosed $130 million to $142 million.
"The revised outlook largely reflects lower results for the packaging segment, and tissue segment results slightly below the earlier communicated range," Cascades said in a press release.
"This revised outlook is based on the information available to the company on the release date of this press release and could vary once the preparation for the interim financial statements for the first quarter of 2026 is completed," the company added.
Cascades stated, "The company is unwavering in its commitment to its longer-term objective of generating $100 million of profitability improvements by the end of 2026 via ongoing cost reduction, logistics and productivity efficiency initiatives. The company is also implementing announced price increases in the Containerboard and uncoated recycled board business segments.
"In addition, price increases have been announced for some Tissue product categories, and additional pricing strategies are being evaluated to mitigate external headwinds.
"The company is similarly on track to realize an additional $100 million in proceeds from the sale of non-core and redundant assets in 2026, and reiterates its longer-term outlook and strategy, including achieving its leverage objective of 2.5x to 3.0x by year-end 2026," Cascades concluded.
Founded in 1964, Cascades Inc. (TSX: CAS) offers sustainable, innovative and value-added packaging, hygiene and recovery solutions. The company employs more than 9,000 people across a network of 60 operating facilities in North America.
SOURCE: Cascades Inc.