Cascades (CAS) Q2 2026 earnings summary

Executive summary

• Q2 2026 sales reached $1,219 million, up 8% sequentially and 3% year-over-year, driven by record production at Bear Island and Greenpac, strong demand in both packaging and tissue, and higher average selling prices.

• Adjusted EBITDA(A) was $140 million, up from $118 million in Q1 2026 and $137 million in Q2 2025, with a margin of 11.5%, reflecting improved productivity and cost reduction initiatives.

• Net earnings per share were $0.21, compared to $0.38 in Q1 2026 and a loss of $0.03 in Q2 2025; adjusted net earnings per share were $0.24.

• Net debt decreased to $1,879 million, with leverage ratio stable at 3.3x.

• Sale of real estate at closed recycling plant in Lachine, Quebec for $9 million contributed to asset disposal proceeds.

Financial highlights

• Packaging sales reached $772 million (up 8% sequentially), tissue sales were $409 million (up 7.6% sequentially), and total Q2 sales were $1,219 million.

• Adjusted EBITDA rose 16% sequentially to $120 million in packaging and 6% to $35 million in tissue.

• Adjusted cash flow from operations was $123 million, up year-over-year.

• Capital expenditures for H1 2026 totaled $67 million; full-year CapEx guidance is $150–$175 million.

• Working capital at quarter-end was $423 million, 8.9% of sales.

Outlook and guidance

• Annual run-rate Adjusted EBITDA is expected to exceed $600 million in H2 2026, excluding the impact of new U.S. tariffs.

• Q3 2026 consolidated adjusted EBITDA(A) forecasted at $155M–$165M, with packaging at $135M–$140M and tissue at $40M–$44M.

• Additional price increases announced for packaging products, effective September 8th, with positive impact anticipated in Q4.

• Sequential improvement expected in Q3, driven by seasonally higher volumes and ongoing price increases.

• Potential impact from new U.S. tariffs on exports estimated at no more than 5% of Adjusted EBITDA, with mitigation plans in place.