Cascades's third quarter 2026 sales of $1,267 million increased by $29 million, or 2%, compared with the same period last year.
Nov. 5, 2026 - Cascades Inc. (TSX: CAS) reported its unaudited financial results for the three-month period ended September 30, 2026.
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."
The Corporation's third quarter sales of $1,267 million increased by $29 million, or 2%, compared with the same period last year. This increase reflects consolidated net benefits of $42 million from higher average selling prices, a favourable sales mix of $24 million and a favourable average foreign exchange rate of $13 million. However, these factors were partially offset by a $50 million impact from lower volumes, primarily in the Tissue Papers segment, as well as the effects of business closures and asset dispositions completed in previous quarters within the Packaging Products segment.
The third quarter EBITDA totaled $162 million, an increase of $3 million, or 2%, from the $159 million generated in the same period last year. This increase was driven by higher average selling prices and cost reduction initiatives across the Corporation's businesses. These impacts were partially offset by higher raw material, transportation and energy costs.
The main specific items, before income taxes, that impacted our operating income and/or net earnings for the third quarter of 2026 were:
For the three-month period ended September 30, 2026, the Corporation posted net earnings of $30 million, or $0.30 per common share, compared to net earnings of $29 million, or $0.29 per common share, in the same period of 2025. On an adjusted basis, the Corporation posted net earnings of $34 million in the third quarter of 2026, or $0.33 per common share, compared to net earnings of $39 million, or $0.38 per common share, in the same period of 2025.
Founded in 1964, Cascades offers sustainable, innovative and value-added packaging, hygiene and recovery solutions. The company employs approximately 8,900 women and men across a network of 60 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