Cascades (CAS) Q1 2025 earnings summary

Executive summary

• Q1 2025 sales reached $1,154 million, up 4% year-over-year but down 5% sequentially, as higher selling prices and favorable FX offset lower volumes.

• Adjusted EBITDA (A) was $125 million, up 21% year-over-year but down 14% sequentially, driven by stronger packaging pricing.

• Net earnings per share improved to $0.07 from a loss of $0.20 in Q1 2024 and $0.13 in Q4 2024; adjusted EPS was $0.13.

• Both Packaging and Tissue segments saw lower volumes, but higher prices and FX supported results.

Financial highlights

• Adjusted EBITDA (A) margin was 10.8%, up from 9.3% in Q1 2024 but down from 12.1% in Q4 2024.

• Adjusted net earnings per share were $0.13, compared to $0.00 in Q1 2024 and $0.25 in Q4 2024.

• Adjusted cash flow from operations was $90 million, up year-over-year but down from Q4.

• Net debt increased to $2,216 million, with a net debt/EBITDA (A) ratio of 4.2x.

• Capital expenditures were $36 million in Q1; 2025 capex forecast remains at $175 million.

Outlook and guidance

• Q2 2025 consolidated adjusted EBITDA (A) expected to increase 5–12% over Q1, with both Packaging and Tissue segments forecasted to grow sequentially.

• Tissue results expected to improve with higher volumes and pricing initiatives offsetting higher raw material costs.

• Operations at Niagara Falls complex limited to 85% capacity due to a third-party steam supplier incident, with full recovery targeted before end of Q2.

• No seasonal upswing assumed for Q2 due to economic uncertainty; company positioned to capture demand uptick if it occurs.

• 2025 capital expenditures forecasted at approximately $175 million before disposals.