Cascades (CAS) Q4 2024 earnings summary

Executive summary

• Q4 2024 sales reached $1,211M, up 6% year-over-year and 1% sequentially, driven by higher selling prices and favorable FX, especially in Containerboard.

• Adjusted EBITDA for Q4 2024 was $146M, up from $140M in Q3 2024 and $122M in Q4 2023, reflecting improved spreads and lower raw material costs.

• Net loss per share in Q4 2024 was $(0.13), improving from $(0.57) in Q4 2023; adjusted net earnings per share were $0.25, up from $0.05 last year.

• Full-year 2024 sales totaled $4,701M, with adjusted EBITDA of $501M and adjusted net earnings of $60M.

• Operating income for Q4 2024 was $16M, down from $36M in Q3 2024 but improved from a loss of $(24)M in Q4 2023.

Financial highlights

• Q4 adjusted cash flow from operations was $129M, up from $103M a year ago and $86M in Q3.

• Net debt at year-end was $2,096M, up from $1,882M in 2023, with a net debt/EBITDA ratio of 4.2x.

• Capital expenditures in 2024 were $127M, with a 2025 forecast of $175M, prioritizing debt reduction.

• Q4 2024 EBITDA margin was 12.1%, up from 10.7% in Q4 2023 and 11.7% in Q3 2024.

• Dividend of $0.12 per share declared, payable March 20, 2025.

Outlook and guidance

• No near-term financial guidance provided due to macroeconomic and political uncertainty, especially potential Canada-US tariffs affecting up to 15% of revenues.

• Raw material prices expected to remain a tailwind in Q1 2025, with steady seasonal demand volumes observed.

• Strategic focus for the next 24 months includes operational excellence, margin improvement, asset monetization targeting $80M, and debt reduction.