Cascades reported sales of C$1.219 billion for the second quarter of 2026, up from C$1.125 billion in the previous quarter and C$1.187 billion a year earlier. The increase was supported by stronger performance in its Packaging business.
Operating income reached C$58 million, compared with C$81 million in the first quarter and C$36 million in the second quarter of 2025. Net earnings were C$21 million, or C$0.21 per share, compared with C$39 million in the previous quarter and a net loss of C$3 million a year earlier.
Adjusted EBITDA totalled C$140 million, up from C$118 million in the first quarter and C$137 million in the same period last year. The adjusted EBITDA margin stood at 11.5%, compared with 10.5% in the previous quarter and 11.5% a year earlier. Adjusted net earnings reached C$24 million, or C$0.24 per share.
Packaging Products generated sales of C$772 million and adjusted EBITDA of C$120 million, compared with C$715 million and C$103 million, respectively, in the first quarter. Cascades attributed the improvement to solid production and demand across its paper mill network, progress in onboarding new customers and stronger-than-expected volumes.
Tissue Papers recorded sales of C$409 million, up from C$380 million in the previous quarter and C$392 million a year earlier. Adjusted EBITDA reached C$35 million, compared with C$33 million in the first quarter and C$38 million in the second quarter of 2025. Productivity gains, higher sales volumes and ongoing cost-reduction measures supported the segment’s performance, although adjusted EBITDA remained below the year-earlier level.
Compared with the second quarter of 2025, consolidated sales benefited from higher average selling prices and a more favourable sales mix. These gains were partly offset by lower volumes related mainly to business closures and asset disposals completed in previous quarters. Higher raw material and transportation costs also limited the improvement in adjusted EBITDA.
Net debt declined to C$1.879 billion at June 30, from C$1.901 billion at the end of March and C$2.104 billion a year earlier. The net debt-to-adjusted EBITDA ratio remained stable sequentially at 3.3 times, down from 3.8 times in the second quarter of 2025.
Cascades invested C$40 million during the quarter and expects full-year capital expenditures before disposals to range from C$150 million to C$175 million. Asset sales generated C$5 million in the quarter, bringing total proceeds for 2025 and 2026 to C$154 million. The company now expects to reach its C$230 million asset-sale objective in early 2027.
Excluding the potential impact of the recently announced U.S. tariffs, Cascades expects its annual run-rate adjusted EBITDA to exceed C$600 million during the second half of 2026. Previously announced selling price increases in Packaging and Tissue are being implemented as planned, including a Packaging increase of $50 per ton announced in June.
The board declared a quarterly dividend of C$0.12 per share, payable on September 3 to shareholders of record on August 20.
Founded in 1964, Cascades produces packaging and tissue products and provides recovery and recycling services. The company employs approximately 8,900 people across a network of 60 operating facilities in North America, including 17 recovery and recycling facilities. Cascades shares trade on the Toronto Stock Exchange under the symbol CAS.
