Cascades (CAS) Investor presentation summary

Business profile and strategy

• Packaging represented 65% of LTM sales, tissue 35%; 2025 fibre recovered or brokered totaled 2.8M short tons. Facilities and employees were concentrated in Canada, while Q2 2026 YTD sales were 48% Canada and 52% U.S.

• 2026 priorities include aligning packaging operations and commercial structure, improving productivity and efficiency, and prioritizing debt reduction; the target is $100M of baseline annual profitability improvements by year-end 2026.

• Strategic actions generated ~ $55M of profitability improvements in 2025 and 2026; capital expenditures are forecast at $150M-$175M in 2026.

• The 2025-2026 target of $230M in proceeds from redundant and unused asset sales was postponed to early 2027 to maximize value.

Q2 2026 financial performance

• Sales were $1,219M, adjusted EBITDA $140M and margin 11.5%; adjusted net earnings were $24M, or $0.24 per share, versus $19M and $0.19 in Q2 2025.

• Net debt was $1,879M and net debt to adjusted EBITDA was 3.3x, unchanged sequentially; Q2 2025 leverage was 3.8x.

• Q2 adjusted EBITDA rose to $140M from $118M in Q1 2026; sales increased to $1,219M from $1,125M.

• Q2 operating income was $58M, versus $81M in Q1 2026 and $36M in Q2 2025.

Segment performance

• Packaging reported record quarterly production at Bear Island and Greenpac; Bear Island ran at 95% of capacity, with March/April price increases realized and strong paper-roll demand.

• Packaging Q2 sales rose 8% sequentially to $772M and adjusted EBITDA increased to $120M from $103M; higher shipments and selling prices were partly offset by raw material, logistics and maintenance costs.

• Tissue Q2 sales rose 8% sequentially to $409M; shipments increased 7%, including Away-from-Home volume up 16% and retail up 2%, while adjusted EBITDA declined to $33M from $35M.

• Pryor, Oklahoma tissue production increased 19% versus Q3 2025 and 2% sequentially in Q2 2026; negotiated selling price increases were set to begin in July.