Cascades (CAS) Q3 2025 earnings summary

Executive summary

• Q3 2025 delivered strong operational execution, with Bear Island reaching 90% of ramp-up and 88% of rated capacity, and the Niagara Falls mill closure and tonnage redistribution completed ahead of schedule.

• Sales reached $1,238 million, up 4% sequentially and 3% year-over-year, driven by higher selling prices, favorable FX, and improved volumes.

• Profitability initiatives and operational improvements contributed to a 16% sequential and 14% year-over-year increase in consolidated EBITDA to $159 million.

• Strategic focus remains on debt reduction, asset monetization, and operational excellence, with $57 million in asset sales including $31 million from Flexible Packaging.

• Strategic initiatives generated approximately $10 million in sequential benefits, with ongoing cost reduction and productivity improvements.

Financial highlights

• Adjusted EBITDA (A) was $159 million, up from $137 million in Q2 2025 and $140 million in Q3 2024; margin improved to 12.8%.

• Net earnings were $29 million ($0.29 per share), compared to a loss of $3 million in Q2 2025 and $1 million in Q3 2024.

• Adjusted net earnings were $39 million ($0.38 per share), up from $19 million ($0.19) in Q2 2025 and $27 million ($0.27) in Q3 2024.

• Adjusted cash flow from operations was $137 million, up from $86 million a year ago and $101 million in Q2.

• Net debt decreased by $81 million to $2,023 million; leverage ratio improved to 3.6x from 3.8x.

Outlook and guidance

• Q4 2025 consolidated EBITDA (A) expected to range from -6% to +6% versus Q3, with packaging down 0–10% and tissue up 12–20%.

• Packaging segment Q4 results expected to be stable to 10% below Q3, with a forecasted 5% volume decrease mainly in December.

• Tissue segment results anticipated to strengthen sequentially due to lower raw material and maintenance costs.

• Asset monetization target increased to $120 million by June 2026.

• Profitability improvement initiatives on track for $100 million run rate by end of 2026.