Cascades (CAS) Q4 2025 earnings summary

Executive summary

• Q4 2025 consolidated performance aligned with projections, with sales at $1,197M (down 3% sequentially and 1% year-over-year), and annual sales at $4,776M, up 2% from 2024.

• Adjusted EBITDA (A) for Q4 2025 was $155M (12.9% margin), up 6% year-over-year, with annual adjusted EBITDA (A) at $576M, up 15% from 2024, driven by packaging segment improvements.

• Net earnings per share in Q4 were $0.37, reversing a loss of ($0.13) in Q4 2024; adjusted EPS was $0.40, up from $0.25 in Q4 2024.

• Key operational initiatives delivered results, notably Bear Island facility at 88% capacity and Pryor, Oklahoma output up 11% sequentially.

• Strategic actions, including asset sales and operational optimization, generated over $120M in proceeds and ~$30M in profitability improvements in 2025.

Financial highlights

• Q4 consolidated adjusted EBITDA reached $155M, up 9% year-over-year, reflecting lower corporate costs.

• Net debt decreased to $1,896M at year-end, with a net debt to EBITDA (A) ratio of 3.3x, down from 4.2x a year earlier.

• Adjusted cash flow from operations for 2025 was $465M, up from $356M in 2024; Q4 adjusted cash flow from operations was $165M, up from $129M a year ago.

• Q4 capital expenditures were $42M; full-year CapEx was $152M, with 2026 CapEx expected at $175M.

• Q4 net earnings per share were $0.37; adjusted EPS was $0.40, up from $0.25 in Q4 2024 and $0.38 in Q3 2025.

Outlook and guidance

• Q1 2026 consolidated results expected to decrease sequentially but increase year-over-year for the sixth consecutive quarter.

• Q1 2026 consolidated adjusted EBITDA (A) is forecasted at $130M–$142M, reflecting seasonally softer volumes and higher logistics/energy costs.

• Maintenance downtime of 16,000 tons planned in Q1, with stable raw material and selling price trends but higher energy and logistics costs.

• Internal target for 2026: adjusted EBITDA above $600M, aiming for a $100M increase in baseline annualized profitability.

• 2026 performance is forecasted to surpass 2025 despite macroeconomic uncertainty; leverage ratio expected to continue improving.